Refractories Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Refractories Market Trends & Growth Drivers

Increasing Demand in High-Temperature Industrial Processes Is Key Trend

• Refractories are resistant to heat, chemicals, and pressure, and they retain their strength and form at high temperatures. This quality makes them indispensable in industries where high-temperature processes are pivotal.
• Their largest consumer is the steel industry, which uses them in electric arc furnaces, tundishes, steel ladles, and blast furnaces. Refractories are vital for surviving the extreme temperatures (up to 1,500 °C or higher) involved in melting iron ore and converting it to steel.
• In cement manufacturing, rotary kilns are used to sinter limestone at temperatures of 1,450 degrees Celsius.
• Silica sand is melted at temperatures more than 1,700 degrees Celsius in the production of glass. Glass product demand is increasing in the consumer electronics, automotive, and construction sectors and, consequently, driving the consumption of refractories.
• Non-ferrous metals, such as aluminum, copper, and zinc, are melted and refined at high temperatures. The refractories must be highly resistant to thermal shock and chemical corrosion.

Increasing Rate of Industrial Production Is Biggest Driver for Market

• The main driver of the refractories market is the increasing industrial production globally.
• The U.S. had an average growth rate of 3.53% from 1920 to 2024 in industrial production, according to data from the Federal Reserve. In this region, refractory demand is majorly driven by its diverse industrial environment, including sectors such as glass, cement, and glass.
• Europe’s diverse industrial sector, such as construction, manufacturing, aerospace, and automotive, is consuming refractories in increasing volumes. Europe is a significant hub for industrial production, with Germany, specifically, shaping the requirement for refractories. The automotive and aerospace industries, which have a significant presence in the region, need these materials for the heat treatment, forging, and metal casting.
• Rapid industrialization and infrastructure development are the major drivers for the market in APAC, particularly China and India. Industrial production in China saw a 7% increase in February 2024 as compared to the corresponding month of the previous year. From 1990 to 2024, industrial production in China had an average growth rate of 11.15%. Its highest point was recorded at 35.10% in January 2021. Similarly, industrial production rose by 3.8% in December 2023 compared to 2.4% in November 2023 in India as per the Ministry of Statistics and Programme Implementation.
• Refractory demand in LATAM is majorly driven by the mining industry, with Brazil and Chile leading in terms of mineral extraction. Brazil is rich in mineral resources and has a booming mining industry, which heavily depends on refractories for aluminum melting, iron ore processing, and other mineral extraction processes.
• In the MEA region, the oil & gas, metal, construction, and manufacturing sectors are demand high volumes of refractories. Gulf Cooperation Council (GCC) members offer vast investment opportunities to market players due to their massive industrial potential.

Environmental, Health, and Safety Concerns Restrain Market Growth

• Environmental, health, and safety concerns act as significant challenges for the global refractories market as societal expectations, along with regulatory pressure, prioritize sustainable and responsible production practices. This is because refractory manufacturing comprises dangerous materials, extreme temperatures, and heavy machinery, which makes it essential to make stringent safety rules, conduct training programs, and have personal protective equipment (PPE) for workers.
• Breathing in silica dust can cause respiratory issues, such as silicosis. dust can irritate the skin, eyes, and respiratory system. Not handling chromium compounds properly can cause skin irritation and lung cancer. Phosphate-containing compounds release toxic gases if mishandled. Binders and additives are also hazardous if not handled safely.
• Refractory manufacturing involves working with materials that can withstand extremely high temperatures, which not only drives the need for energy but also poses burn risks for workers.
• Kilns and furnaces commonly have temperatures exceeding 1,000 °C (1,832 °F), which puts workers at a perpetual risk of third-degree burns.

Refractories Industry Outlook

Product Insights

• Clay is the largest category, with a market share of over 50% in 2023. This dominance is due to their durability, reasonable price, and ability to withstand continuous thermal cycling with rapid heating and cooling.
• The demand for them is increasing in industries that involve working in extreme temperatures, such as cement, non-ferrous metal, glass, and steel & iron.
• Non-clay will witness the higher CAGR, of 5.3%, from 2024 to 2030 in the market. This is due to their high resistance to high temperatures and usefulness in various applications.

These products are covered in the report:

• Clay (Larger Category)
• Non-Clay (Faster-Growing Category)

Alkalinity Insights

• The acidic & neutral category is the larger, with a market share of around 55% in 2023. This is because the developments in manufacturing technologies have augmented the performance and cost-efficiency of both acidic and neutral refractories.
• Basic is a rapidly growing category at a CAGR of 5.3% from 2024-2030 in the market. This growth is due to the basic refractories which have high resistance from basic substances. This feature makes them suitable for usage in processes where the refractory material is exposed to basic slags, fluxes, or dust.

This segment has two categories:

• Basic (Faster-Growing Category)
• Acidic & Neutral (Larger Category)

Form Insights

• Bricks and shapes are expected to be the faster-growing bifurcation, with a CAGR of 5.4%, from 2024 to 2030 in the market. This is due to the growing demand for brick and shaped forms owing to the enhancements in their formulations.
• Monolithic held the larger market share, of more than 50%, in 2023. This dominance is due to the economic benefit, high performance, and flexibility of this shape. The adaptability of these variants to diverse industrial applications allows for easy setup, custom shaping, and joint-free linings, which eliminate thermal shock risk and corrosion.

Refractories are available in the following two forms:

• Bricks & Shapes (Faster-Growing Category)
• Monolithic (Larger Category)

End User Insights

• The iron & steel category dominated the market, with 70% revenue, in 2023, and it is also the fastest-growing category. This is ascribed to refractories’ essential role in the production of steel process. These materials line furnaces, kilns, and reactors, which operate at the extreme temperatures required for steel production.

These end users are included in this report:

• Iron & Steel (Largest and Fastest-Growing Category)
• Energy & Chemicals
• Non-ferrous Metals
• Cement
• Glass
• Others

APAC Is Largest and Fastest-Growing Region

APAC is the largest region, with a global refractories market share of around 70% in 2023, and it will also witness the highest CAGR, of 5.2%, during the forecast period. This region is a hub for industries that are heavy users of refractories, including glass, cement, power generation, and iron & steel. These sectors are rapidly growing in India and China, which adds fuel to the growth of the market. The rapid urbanization and industrialization in the APAC contribute to the construction and infrastructure development boom, further bolstering refractory consumption.

These regions and countries were analyzed for this report:

• North America
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest and Fastest-Growing Country Market)
  • U.K.
  • Italy
  • Spain
  • Rest of Europe
• APAC (Largest and Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest and Fastest-Growing Country Market)
  • South Africa
  • U.A.E
  • Rest of MEA

Refractories Market Share

The refractories market is fragmented in nature with many global players and some regional and local players. Numerous approaches are being used by organizations to be in the race, such as mergers and acquisitions, facility expansion, product launches, and partnerships and collaboration. The major players are RHI Magnesita GmbH, Krosaki Harima Corporation, SHINAGAWA REFRACTORIES CO. LTD. and Imerys S.A.

Refractories Industry News

• In March 2024, RHI Magnesita announced plans to acquire Resco Group, a U.S.-based producer of alumina monolithics and a wide range of basic and non-basic refractories, for an enterprise value of up to USD 430 million.
• In July 2023, RHI Magnesita acquired Seven Refractories, which was formally shut down on July 17, 2023. Seven Refractories was a supplier of alumina refractory mixes to the iron & steel, cement, aluminum and non-ferrous metals industries.
• In January 2023, RHI Magnesita acquired Jinan New Emei Industries Co. Ltd. (Jinan New Emei), a producer of refractories in China. The acquisition enables RHI Magnesita to expand its product range in steel flow control refractories and its solution contract offerings in the Chinese market.
• In November 2023, IFGL Inaugurated a research center at its Kalunga plant in Odisha
• In July 2023, Morgan Advanced Materials plc operationalized its Yixing plant, which manufactures TJM insulating firebricks (IFBs), with an additional capacity of more than 50%, to support customers in China and Asia in the petrochemicals, iron & steel, aluminum, and cathode material industries. The new line produces the full family of TJM IFBs, including specialty TJM bubble alumina bricks. The expansion of the Yixing IFB site was done keeping in mind energy efficiency in refractory production.
• In June 2023, Saint-Gobain inaugurated a PCR monolithics refractory plant in Jebel Ali Free Zone, Dubai, U.A.E. The new plant strengthens the position of Saint-Gobain PCR by manufacturing locally and supplying to the Middle East region.
• In October 2023, HWI introduced a broadened portfolio with more product options, services, and technology enhancements for aluminum manufacturers.
• In February 2023, Saint-Gobain launched a new Induction Melting Technology Centre at its performance ceramics & refractories plant in Bangalore, India. This center enables the company to reinforce services to customers to customize the company’s solutions and accelerate the developments and R&D projects.
• In February 2023, Calderys struck a collaboration with HWI to create a high-temperature solutions provider. A year later, the two have become a unified group and are sharing technologies from one region to another to offer an expanded portfolio of refractory products for high-temperature industries around the globe.
• In February 2023, Chosun Refractories Co. Ltd. and Sarvesh Refractories partnered to manufacture refractory products for steel, automobile, and chemical companies in India.