Mining Explosives Market Research Report—Global Forecast till 2028

Mining Explosives Market Information By Type (Bulk Explosives, Packaged Explosives) Application (Coal Mining, Metal Mining, Quarry & Non-metal mining) By Region ( North America, Europe, Asia Pacific, Latin America, Middle East & Africa) Forecast till 2028

ID: MRFR/CnM/5703-CR | February 2022 | Region: Global | 100 pages

Mining Explosives Market

The Mining Explosives market size is projected to be worth USD 15,193.30 million by 2028, registering a CAGR of 6.78% during the forecast period (2020–2028).

Segmentation

By Type Bulk Explosives Packaged Explosives
By Application Coal Mining Metal Mining Quarry Non-metal mining
By Region North America Europe Asia Pacific Latin America Middle East & Africa

Key Players

  • EPC Groupe (France)
  • Hanwa Corp (South Korea)
  • Incitec Pivot Ltd (Australia)
  • Austin Powder Gmbh (Czech Republic)
  • Eurenco SA. (France)
  • Explosia a.s. (Czech Republic)
  • Nitroerg SA (Poland)
  • BME South Africa (South Africa)

Drivers

  • Growing demand from the coal industry
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Mining Explosives Market Overview


The Mining Explosives market size is projected to be worth USD 15,193.30 million by 2028, registering a CAGR of 6.78% during the forecast period (2020–2028). The market was valued at USD 9,185.82 million in 2020.


Explosives are a reactive mixture of a high-energy substance that explodes under high pressure and temperature. Explosives are classified as detonating (high explosive) or deflagrate (low explosive) based on the rate at which they explode (low explosive). In the global mining explosive market, packaged and emulsion explosives are gaining traction. Furthermore, mining resource extraction has resulted in global industrial development, particularly the emergence of new players such as Africa, Latin America, and Asia. As a result, the mining explosives market's growth prospects are heavily reliant on the metal and coal mining industries.


COVID-19 Impact vs. Opportunities for the Mining Explosives Market:


Mining in the Middle East and North Africa (MENA) is a thriving industry with promising prospects for mining, resource, and infrastructure companies. Gulf countries are attempting to diversify their economies in order to reduce their reliance on oil and gas while also providing employment for their young, rapidly growing populations.


Modern technology and equipment are being used to survey Arabian regions in search of untapped growth opportunities. Despite having nearly 30% of the world's mineral resources, Africa receives less than 5% of global mining investment. Australian economists predict a market rebound, citing the discovery of approximately A$700 billion in minerals by Australian corporations across the African continent over the last five years.


Because of the high concentration of resources in these regions, global mining companies are looking for long-term viability, especially given the industry's recent plateau. Northern African countries are amassing vast amounts of unexplored mining materials as a result of a three percent drop in FDI in Africa as a result of the civil unrest in Libya. This, in turn, is expected to provide manufacturers with an opportunity to invest in the market during the forecast period.


COVID-19 has had a negative impact on overall chemical production, particularly mining explosive production, owing to supply chain disruptions around the world. The metal and mining industry's average share price has decreased over 10%, and many standalone companies have lost 40-50 percent of their market value. This is due to the global quarantine and travel restrictions imposed to prevent the spread of the coronavirus. The pandemic has had an impact on global operations of various industries. Some of the industry's main companies, including BHP Billiton, Rio Tinto, and Anglo American, have reported partial shutdowns, resulting in a production loss of about 30%.


China dominates the global intermediate product supply chain, which includes metal and metal products, with a share of more than 20%. As a result, the economic disruption produced by COVID-19 in China is projected to spread to other countries around the world. If China's exports are cut by even 2%, the European Union's metal industry is anticipated to lose more than USD 1 billion. Because of dwindling orders, a lack of available labor, or as a safety precaution against coronavirus, steel manufacturers in Europe are curtailing production and idling plant lines in which people are not working. "This is going to be a loss-making year for the European steel industry," says commodity specialist James Campbell of CRU.


Other businesses that rely on the supply of ferroalloys and steel, such as autos and foundries, have been closing down around the world as a result of the downturn in the metal and mineral industry. According to some analysts, the metal industry is experiencing a drop in demand due to the spread of the coronavirus; rather, the quarantine or shutdown is degrading demand..


Market Dynamics


Drivers


  • Growing demand from the coal industry


Explosives are used to extract coal mostly from underground mines compared to surface mines. Coal is among the important and reliable energy resources covering 30% of the global energy consumption. Around 40% of globally generated power relies on this fuel. Increasing global demand for energy and the subsequent increase in the coal-fired thermal plant is expected to spur the demand for coal mining. The major coal-producing countries are China, the U.S., India, Indonesia, and South Africa.


Opportunity


  • Promising growth of the mining industry in the middle east


The GCC is a promising region in the mining industry. Rather than relying solely on oil and gas earnings, the GCC countries have prioritized economic diversification, investing in non-oil areas such as mining to grow their economies and create jobs.


Restraints


  • Stringent regulatory environment and effects on health


Explosives being used for mining and quarry activities drive the attention of the government to control the production of explosives, storage, and transportation. They contain blasting agents such as ANFO, bulk emulsions, explosives, and slurries, which are hazardous to the environment.



  • Challenges

  • Cumulative Growth Analysis

    • The global Mining Explosives market is expected to witness healthy growth at a CAGR of 6.78% throughout the forecast period. However, due to the outbreak of COVID-19 globally, the demand for mining explosives declined slightly in 2020.




Regulatory Implications


Mining Explosives contain blasting agents such as ANFO, bulk emulsions, explosives, and slurries, which are hazardous to the environment. Environmental protection agencies (EPA) and other government bodies are responsible for lowering down the explosive pollutants. Other regulatory bodies include Federal Water Pollution Control Act and Resource Conservation and Recovery Act (RCRA) that regulates the generation, storage, and disposal of solid waste from generation to disposal.


Supply Chain Analysis:


The supply chain analysis is the process of evaluating every stage and step taken by stakeholders involved throughout the production and distribution of mining explosives. The supply chain includes raw materials and suppliers, Mining Explosives producers, distribution channels, and end-use industries. The distribution channel in this market comprises distributors, wholesalers, and e-commerce merchants.


Segmentation


By Type



  • Bulk Explosives: This segment accounted for the largest market share in the global mining explosives market. Bulk explosives are essential in mining, quarrying, and construction operations because they provide the energy needed to move a rock mass and reduce it to an optimal size. Ammonium nitrate-fuel oil, slurries, water gels, and other similar blasting agents are commonly loaded directly into blast holes from a bulk delivery truck.

  • Packaged Explosives: This segment consist of high strength, high water resistance, improved dig ability, minimized leaching, and reduced environmental impacts. These explosives are majorly used in underground mining and general blasting applications.

  • Others: Others include ANFO, ammonium nitrate explosives (powder), bulk emulsion explosives, cartridge emulsion explosives, and others.


By Application



  • Coal Mining: This segment accounted for the largest market share in the global mining explosives market. This is attributed to the increasing demand for coal in the steel manufacturing and power generation industry. Increasing mining exploration activities in countries such as China, India, Indonesia, Australia, and the US provides a lucrative opportunity to the market players.

  • Metal Mining: This segment accounted for second-largest market share in the global mining explosives market. Metal mining is the process of means to haul out metal deposits from underground and the surface of the earth. The metal mining industry refers to the location and extraction of metal and mineral reserves around the world.

  • Quarry & Non-metal mining: Quarrying is the process of extracting rock, sand, and other minerals from ground sites. Quarries substantially produce coal, chemical grade limestone, gypsum, China clay, and silica sand.


Regional Analysis


Asia-Pacific accounted for the largest market share and is projected to witness the fastest growth in the market. This is mainly attributed to the growing coal mining activities, rapid industrialization in the region, the presence of a considerable number of producers, infrastructure development, and growing exports. North America accounted for the second-largest share in the global market owing to the presence of numerous players in this region and the rising adoption of innovative technology. North America is followed by Europe. Europe recorded stagnant growth in the global market owing to rising demand for metals in this region results in the expansion of mining industries. On the other hand, the Middle East & Africa is expected to witness significant growth owing to the growing investment in mining activities in the end-use industries. The Latin American market is likely to create notable opportunities due to the rise in industrialization and increasing mining activities in major countries.


Competitive Landscape


The global mining explosives market is highly fragmented and consists of many organized and unorganized industry players. The key players operating in the global market have large production bases and advanced manufacturing facilities at the domestic and international levels. Many of the key players are major suppliers in mining regions, such as Australia and North America. These suppliers are trying to improve their supply capabilities to offer an integrated service portfolio, thereby gaining low to medium negotiation power.The key players operating in the global market have large production bases and advanced manufacturing facilities at the domestic and international levels. Agrement, expansion of production facilities, and product launch was key strategies adopted by key players engaged in the market. Moreover, collaboration and partnership was also witnessed by key players to expand its foothold in the growing markets.


Some of the prominent players in the global mining explosives market include EPC Groupe (France), Hanwa Corp (South Korea), Incitec Pivot Ltd (Australia), Austin Powder Gmbh (Czech Republic), Eurenco SA. (France), Explosia, a.s. (Czech Republic), Nitroerg SA (Poland), BME South Africa (South Africa), Sasol Limited (South Africa),  Titanobel (France), Orica Limited (Australia), Yara (Norway), MAXAM (Peru), Nof Corporation (Japan), and Solar Industries India Ltd (India).


Some of the key developments include:



  • In September 2021, Orica launched 4D bulk explosives technology at MINExpo, Las Vegas. The 4D bulk explosives technology will enable Orica’s customers to seamlessly match a greater range of explosives energy in mining and target specific blast outcomes in real-time..

  • In January 2021, BME is set to provide service and supply across the US, which offers an explosives product range, including electronic and non-electric initiation systems and packaged explosives products.

  • In April 2021, Austin Powder introduced its explosives production to a new level with the modernization of its HMX plant in Rafaela. Austin can produce a new “Class 5” granulometry product (micronized) required for shock tube manufacturing.

  • In December 2020, Austin Powder entered Tanzania by investing in Nitro Explosives and Nitro Logistics (Nitro).

  • In November 2020, Orica and Epiroc developed Avatel semi-automated explosives delivery system. Orica and Epiroc announced their collaboration in November 2019. The Avatel prototype, which is undergoing trials, is expected to be commercially ready by the end of 2021.


Report Overview:


The Mining Explosives market is segmented by type, application, and region in the report. In terms of insights, this report has focused on various levels of analysis such as market dynamics, value chain analysis, Porter's five forces, competitive landscape, and company profiles—all of which comprise and discuss views on the global Mining Explosives emerging and fast-growing segments, regions, and countries.


Objectives of the Study



  • To get a comprehensive overview of the global Mining Explosives market

  • To get wide-ranging information about the key factors driving the market and market opportunities

  • To gain information regarding the key players in the industry, their product portfolio, strategies, and key developments

  • To gain insights about the key country/region in which the market is growing


Intended Audience



  • Mining Chemicals Companies

  • Metal Companies

  • Coal Companies

  • Dynamite Companies

  • Research Institutes

  • Academic Institutes

  • Government Organizations



Report Scope:
Report Attribute/Metric Details
  Market Size   2028: USD 15,193.30 Million
  CAGR   6.78% CAGR (2020-2028)
  Base Year   2020
  Forecast Period    2021-2028
  Historical Data   2019
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Type and Application
  Geographies Covered    North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa
  Key Vendors   EPC Groupe (France), Hanwa Corp (South Korea), Incitec Pivot Ltd (Australia), Austin Powder Gmbh (Czech Republic), Eurenco SA. (France), Explosia, a.s. (Czech Republic), Nitroerg SA (Poland), BME South Africa (South Africa), Sasol Limited (South Africa), Titanobel (France), Orica Limited (Australia), Yara (Norway), MAXAM (Peru), Nof Corporation (Japan), and Solar Industries India Ltd (India)
  Key Market Opportunities   â€¢ Promising growth of the mining industry in the Middle East
  Key Market Drivers   â€¢ Growing demand from the coal industry • Increasing mineral extraction activity • Rising infrastructure activities


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Frequently Asked Questions (FAQ) :

The global mining explosives market would register a growth of 6.78%.

The coal mining industry will play a prominent role in taking the market forward.

Stringent regulatory environment and effects on health could restrain the market.

Asia-Pacific would enjoy the upper hand in the mining explosives market.