by The industrial explosives market consists of commercial explosives that are used for various applications including mining, quarrying, construction, and other infrastructure development projects. Industrial explosives are primarily composed of ammonium nitrate and other explosive materials that provide the necessary energy for breaking, shifting, loosening, and moving rock and earth. They find widespread use in construction applications including road construction, tunneling, dam construction, and others. Demolition explosives are also used for controlled implosion of structures. Some key products in the industrial explosives market include dynamite, ANFO (ammonium nitrate fuel oil), emulsions, and water gels.
The global industrial explosives market is estimated to be valued at US$ 8.03 billion in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing construction activities: One of the key drivers propelling the growth of the industrial explosives market is the rising infrastructure development activities across both developed and developing countries. There has been a significant rise in construction of roads, bridges, dams, buildings, and other infrastructure projects to support economic growth. Industrial explosives play a vital role in earth-moving applications during the construction phase through controlled blasting. This rising demand from the construction industry is expected to drive market growth over the forecast period.
Infrastructure development projects: The market is further expected to be driven by ongoing large-scale infrastructure projects such as high-speed rail networks, urban metro projects, and expansion of road networks. Many countries are investing heavily in developing new infrastructure to improve connectivity and transportation facilities. For instance, China’s Belt and Road initiative involves construction of roads, railways, and port facilities across dozens of countries. Such massive infrastructure programs will require extensive use of commercial explosives, thereby augmenting demand.
Segment Analysis
The global industrial explosives market is dominated by ANFO (Ammonium nitrate fuel oil) sub-segment. ANFO accounts for around 60% of the total market share as it is cost effective and easily available as compared to other explosives. ANFO is primarily used in mining applications due to its bulk nature. The emulsion explosives sub-segment is expected to witness highest growth during the forecast period due to increasing usage in construction activities such as dam construction, rock blasting etc. Emulsion explosives allow precise blasting and minimize environmental impact.
PEST Analysis
Political: Regulations around usage and transportation of explosives are quite stringent globally which drives development of safer explosive technologies. However, inconsistent policies across regions continue to hamper market growth to some extent.
Economic: Upcoming infrastructure projects, mineral extraction activities and growing construction industry are major demand drivers for industrial explosives. Fluctuations in commodity prices can impact mining sector expenditure and therefore explosives demand.
Social: Safety and environmental concerns around use and transportation of explosives is a key factor considered by manufacturers. Development of green explosives is aimed at addressing such issues and boosting social acceptability of controlled blasting.
Technological: Technology advancements are leading to development of more powerful yet safer product variants. Initiatives towards digitalization and automation in the explosives value chain provide opportunities for efficiency and productivity gains.
Key Takeaways
The Global Industrial Explosives Market Size is expected to witness high growth driven by upcoming mining and infrastructure projects across regions. Asia Pacific currently dominates the market and is expected to maintain its leading position during the forecast period supported by presence of major commodity producers such as China, India and Australia. Growth in the region will be further aided by investments towards road, rail and power sector development.
North America is anticipated to showcase substantial growth attributable to increasing shale gas extraction and construction activities in the region. Presence of major explosives producers in the US and Canada also positions the region attractively.
Key players operating in the industrial explosives market are Orica Limited, Irish Industrial Explosives Limited, Dyno Nobel Pty Limited/ Incitec Pivot Ltd., NOF Corporation, AEL Mining Services Ltd. / AECI Group, EURENCO, Enaex S.A., Austin Powder Holdings Company, Maxamcorp Holding S.L., and Exsa S.A. These players are focused on product innovation and expansion into newer markets to strengthen their positions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
