U.S. Refractories Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

U.S. Refractories Market Size

U.S. Refractories Market Trends & Growth Drivers

Adoption of Electric Arc Furnace Is Major Market Trend

• A key trend in the U.S. refractories market is the adoption of electric arc furnaces (EAFs) over conventional blast furnaces.
• EAFs are smaller and lightweight, which offers users the advantage of reduced energy consumption as well as lower costs.
• As per studies, the former consume only a quarter of the energy required by blast furnaces.
• Moreover, because they do not release CO2, they are a lot more environment-friendly than blast furnaces.
• Studies suggest that EAFs generate up to 30% lower emissions than blast furnaces.
• Another advantage of EAFs is their ability to use recycled or scrap metal, thus aligning with the idea of a circular economy.
• Further, because EAFs reach extreme temperatures, the smelting process inside them is typically quicker than using conventional blast furnaces.
• EAFs also enable better control on the product quality as the input materials must always be in precise qualities and the smelting process is measurable in real time.
• The growing popularity of electric arc furnaces impacts the market by driving the demand for durable and high-quality refractory materials that can sustain aggressive chemicals and extremely high temperatures.

Growing Construction Industry in U.S. Drives Market

• The U.S. refractories market is strongly driven by the growing construction industry in the country.
• Being a highly urbanized country and one that is constantly attracting temporary and permanent migrants from around the world, the U.S. is witnessing rising construction activity.
• According to the U.S. Census Bureau, construction spending in the country in October 2024 stood at USD 2,174.0 billion, compared to USD 2,164.7 billion in September 2024 and USD 2,071.1 billion in October 2023.
• Moreover, by November 2024, USD 568 billion of the USD 1.2-trillion investment earmarked by the Infrastructure Investment and Jobs Act of 2021 had been distributed.
• This continues to drive the demand for key materials, including cement, steel, and glass, all of which are produced using refractories in some or the other process.
• The EAFs being used to produce steel generate temperatures of 1,500 degrees Celsius, while temperatures inside the rotary kilns in which cement is produce reach 1,400 degrees Celsius.
• Similarly, glass is produced by heating silica sand to 1,700 degrees Celsius, to withstand which refractories are a necessity. Other key materials produced using refractories are copper, aluminum, and zinc.

Environmental, Health and Safety Concerns Hamper Market Growth

• The production and usage of refractories pose an array of environmental, safety and health concerns, which somewhat hamper their adoption in the U.S.
• These materials are produced from hazardous ingredients under extremely high temperatures inside massive machines, which creates the requirement for appropriate training and industrial safety protocols.
• For instance, inhaling silica dust can cause respiratory issues, while breathing in alumina dust can cause eye and skin irritation. Similarly, unsafe exposure to refractories that contain chromium can cause lung cancer.
• Moreover, accidental contact with the extremely hot kilns and furnaces, as well as molten metal, is an omnipresent concern.
• All these concerns mandate stringent compliance with EPA and OSHA regulations, which is a source of headache for both market players and end users.
• Additionally, the energy intensity of refractory production can be excessive. Based on the manufacturing technology, a refractory plant can consume over 32,000 kWh of electricity, 1,350 tons of coal and 300 tons of wood a year.
• In this regard, the Clean Air Act poses challenges for market players, and the compliance measures in place can significantly raise the final price of refractories.

U.S. Refractories Market Analysis

Product Analysis

The clay category holds the larger revenue share, of around 55%, in 2024 because refractories with a clay base can withstand rapid heating and cooling, while staying relatively stable and unscathed. Therefore, their long-term cost-effectiveness drives their demand for the production of glass, cement, steel, and non-ferrous metals in the U.S.

The non-clay bifurcation will witness the faster growth during the forecast period. This is attributed to the shift toward energy-efficient manufacturing processes, the ability of these variants to withstand harsh environments, and their long-term affordability. Moreover, their usage is growing in casting, molding, and other high-temperature processes for aerospace and automotive components, which are produced in high volumes in the country.

These products are covered in the report:

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

Alkalinity Insights

The acidic & neutral category dominates the market because of the advancements in manufacturing technologies that have improved the cost-effectiveness and performance of acidic and neutral refractories. These materials are also now designed to offer energy efficiency and regulatory compliance in heat-intensive processes.

The basic bifurcation will have the higher CAGR, of 5.2%, during the forecast period. The demand for these variants is rising in industries where the refractories come in regular contact with basic slag, flux and dust. This is true of the steel industry, which is rebounding and growing in the U.S. As per estimates, the country produced 1,668,000 net tons of raw steel in the first week of December 2024.

This segment has two categories:

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

Form Insights

Monolithic is the dominant bifurcation in the market with a revenue share of around 55% in 2024. Their ease of installation and ability to be shaped in a wide variety of forms and shapes make them versatile for end-use industries. Additionally, they form joint-free linings inside furnaces and kilns, which leads to a lower risk of thermal shock and corrosion, which drives down downtime and maintenance expenses.

Bricks & shapes are the faster-growing category on account of their longer working duration and higher stability, ease of replacement and maintenance, high thermal performance and compatibility with customization needs. Further, they better withstand the thermal cycle of heating and cooling, thereby showing resistance to cracking. This offers cost-effectiveness in the long run, thus driving their consumption over monolithic refractories.

Refractories are available in the following two forms:

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

End User Insights

The iron & steel category in the largest in the market and also the fastest-growing, at a CAGR of 5.3%. This is attributed to the growing production of iron and steel for a host of industries, including construction, heavy machinery, automotive, aerospace and shipping. Refractories are indispensable for lining the walls of the reactors, kilns and furnaces in which steel is produced or iron is smelted. The U.S. produced 10,611,555 automobiles in 2023 compared to 10,060,339 in 2022, as per OICA.

These end users are included in this report:

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

Regional Analysis

The Midwest region dominates the market with 35% share, primarily on account of the huge industrial base in the states of Illinois, Michigan, Indiana and Ohio. Detroit, MI, in particular, is the automotive hub of the U.S. Moreover, the region has a productive steel industry, which is the largest consumer of refractories in the country. Some of the largest factories of United Steel Corporation are located in Indiana, Michigan, Ohio, and Minnesota.

The south region will witness the highest CAGR during the forecast period. This is credited to the expansion of the industrial sector in states such as Texas, Louisiana, Florida and Alabama. Among these, Texas is a major hub for the oil & gas, chemical, steel and energy sectors, which are significant consumers of refractories.

Here is the geographical breakdown of the market:

• West
• Northeast
• Midwest (Largest Regional Market)
• South (Fastest-Growing Regional Market)

U.S. Refractories Market Share

• The market is fragmented as it does not take much financial investment and technical expertise to produce such materials.
• Additionally, based on their requirement, users buy from players with variable production output.
• Major users generally contract established players, while companies that require these materials in smaller amounts go for local and regional producers.
• Further, a significant scope for customization in these materials exists as per the end use, allowing a large number of players to flourish with specific product portfolios.

U.S. Refractories Market News

• In December 2024, RHI Magnesita GmbH entered into a partnership with Capgemini SE to improve customer focus, scalability and efficiency via an integrated Global Shared Services model.
• In December 2024, Krosaki Harima Corporation launched its K-GenesisX of sustainable solutions for a number of industries.
• In March 2024, Compagnie de Saint-Gobain S.A. siding production in the U.S. via technologies that lead to very low carbon emissions.
• In March 2023, POSCO Chemicals branded to POSCO FUTURE M Co. Ltd., reflecting its focus on producing eco-friendly materials.