In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
The global niobium market is anticipated to record a significant CAGR during the forecast period, i.e., 2021-2029. The important factors boosting the growth of the market are the surging demand for steel in leading nations along with the growing usage of oxides & compounds in electro ceramic applications. The total production of crude steel around the world grew from around 1.6 Billion tonnes in 2015 to close to 2 billion tonnes in 2020. Out of these, China and India were the two largest producers of steel contributing to around 50% of the share of the total production in the year 2019. Further, emergence of latest technologies such as internet and laptops, where niobium is used, is also anticipated to drive the market growth. Further, the growing usage of niobium in automotive and pipeline industries in order to produce high strength and low alloy steels the extensive use of niobium in order to strengthen super alloys in aerospace sector in hot units of aircraft gas turbine engines, are some of the additional factors anticipated to contribute to the growth of the market in the coming years.
The global niobium market is segmented on the basis of source type into columbite and pyrochlore. Among these segments, the pyrochlore segment is anticipated to hold the largest market share by the end of 2029. The growth of the segment can be attributed to the richness in niobium content in pyrochlores, along with the wide technological application of pyrochlores, that include ionic conductivity, luminescence, automobile exhaust gas control, and others.
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Programme), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favourable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labour as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
Geographically, the global niobium market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa region.
Among the market in these regions, the Asia Pacific niobium market is anticipated to hold the largest market share by the end of 2029. The growth of the market in the region can be attributed to the rising usage of niobium in aerospace and automobile industries in emerging economies such as India, Japan and China. Further, Japan is a leader in the production of computer, fax machines, smart phones and various other components. In addition, upcoming major rail and road projects in the region along with the growing focus of China for the production of electric vehicles is estimated to generate healthy demand for niobium market. Moreover, the North America region is anticipated to witness notable growth on the back of growing demand for consumer electronics coupled with rising engineering construction in the region.
The global niobium market is further classified on the basis of region as follows:
Our in-depth analysis of the global niobium market includes the following segments:
Ans: Growing demand for niobium from the end-user industries, is one of the major factors driving the market growth.
Ans: The market is anticipated to attain a significant CAGR over the forecast period, i.e., 2021-2029.
Ans: The concern for the restricted availability is one of the major factors estimated to act as barriers to the growth of the market.
Ans: The market in the North America is anticipated to display significant growth opportunities during the forecast period on account of the growing demand for consumer electronic products, where niobium is used widely.
Ans: The major companies in the market are Alkane Resources Ltd., NioCorp Development Ltd., NIOBEC Corporation, Titanex GmbH, Global Advanced Metals Pty Ltd., and others.
Ans: The company profiles are selected based on the revenues generated from segments, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market in the Asia Pacific region is anticipated to hold the dominating share by the end of 2029 in the global niobium market.
Ans: The niobium market is segmented by source type, product type, application type, end user industries, and by region.
Ans: The pyrochlore segment under the source type segment is projected to hold the dominating share by the end of 2029 in the global niobium market.