The global molybdenum market size was valued at USD 4.4 billion in 2022. It is projected to reach USD 6.82 billion by 2031, growing at a CAGR of 4.07% during the forecast period (2023-2031).
Molybdenum is a silvery-white, highly ductile, and corrosion-resistant metal offering excellent strength and mechanical stability at high temperatures. It is frequently used in rotating X-ray anodes. It is also helpful in clinical diagnostics, glass-melting furnace electrodes, and friction-reducing sprayed coatings for machine parts and automotive piston rings. It also creates heat sinks with thermal expansivity and components resistant to molten glass. Global demand for molybdenum is now positively impacted by the expanding oil and gas, chemical and petrochemical, construction, aerospace, and defense industries. One of the main drivers propelling the market is the rising demand for molybdenum in the steel industry to improve the hardenability, toughness, and tensile strength of steel.
Steel of many kinds, including stainless steel, tool steel, high-speed steel, and many more, are produced using molybdenum. Molybdenum primarily improves stainless steel's ability to resist corrosion. The use of molybdenum-containing stainless steels is growing swiftly in various end-user industries because they are frequently more corrosion-resistant than molybdenum-free grades. The top producer of steel worldwide is likely to be China. To meet the demand from different end-user sectors, including building and construction, automotive, electronics, and aerospace and defense, it is also a significant steel exporter on the international market. Opportunities for the Chinese steel industry are increased by expanding such end-user sectors globally. It fosters the demand that fuels the molybdenum market both domestically and abroad.
One of the most expensive metals in the world is molybdenum. Molybdenum has been in greater demand for several years, and its price has increased significantly. Globally, the average cost of molybdenum bars, rods, profiles, plates, etc., was roughly USD 53 per kg, compared to USD 23 and USD 30 for molybdenum powder and unwrought molybdenum, respectively. Steel can be alloyed with twice as much chromium or three times as much manganese to have a similar effect of hardenability to molybdenum. Additionally, a variety of molybdenum substitutes are being researched to replace the pricey metal with alternatives that are low-cost and high performing. One such study looks into the molybdenum substitution of manganese in low-alloyed bainite ductile iron.
Oil pipelines, thin-film solar panels, wind turbines, and conventional coal/fossil fuel power plants use molybdenum. Beyond its use in nuclear reactors, molybdenum's demand is also adequately hedged. In addition to traditional coal/fossil fuel power plants, the metal is utilized in oil pipelines, innovative thin-film solar panels, the steel used in wind turbines, and other applications. The demand for solar and wind energy has recently increased at a rate that has never been seen before due to the global market for cleaner and more effective energy methods. The demand for steel used in windmills and molybdenum used in solar panel films is rising due to the growth in the amount of energy produced by renewable sources. Molybdenum is an absorber layer for the black contact in copper indium gallium selenide (Cu(InGa)Se2)-based thin-film solar cells. Globally, the use of solar cells is expanding. The capacity of new installations of solar photovoltaic cells has increased significantly during the past ten years thanks to growing government backing.
The global molybdenum market is segmented by the end product and end-user industry.
Based on the end product, the global molybdenum market is bifurcated into steel, chemical, foundry, mo-metal, and nickel alloy.
The steel segment is the highest contributor to the market and is estimated to grow at a CAGR of 4.24% during the forecast period. Due to the efficiency of molybdenum as an alloying element and its resistance to oxidation, which alters the alloy's mechanical properties, it is widely utilized in metallurgical applications. It also contains solid solution-strengthening qualities, which improve hardenability and qualify it for steel manufacturing. Numerous varieties of steel, including stainless steel, tool, high-speed steel, maraging steels, and many others, are produced using molybdenum. The corrosion resistance of stainless steel is increased by molybdenum. Stainless steel grades with molybdenum tend to be more corrosion-resistant than those without molybdenum. They are employed in more corrosive applications like chemical processing facilities or marine applications. Molybdenum is widely utilized because adding it makes it easier and more affordable to provide steel with improved characteristics. Molybdenum remarkably impacts qualities, including toughness, corrosion resistance, and hot strength. Additionally, it enhances wear resistance, hardenability, and high-temperature creep strength.
Molybdenum is occasionally referred to as a "heavy metal," although having drastically different properties from the conventional heavy metals, mercury, thallium, and lead.Compared to these and other heavy metals, it is significantly less hazardous. Molybdenum is a desirable replacement for more harmful elements in the production of chemicals due to its low toxicity. Various Molybdenum compounds are available for chemical applications, including sodium molybdate, ammonium heptamolybdate, ammonium octamolybdate, and ammonium dimolybdate. Once it has been obtained, a tiny amount of the concentrate is applied immediately to create pure molybdenite compounds. A few examples of typical products are lubricant-grade molybdenum disulfide (MoS2), which is made by drying and de-oiling high-purity molybdenite concentrate that has not yet been roasted, sublimed pure Mo chemical molybdenum lybdic oxide, which is caused by sublimating roasted molybdenite concentrate, ammonium heptamolybdate, ammonium octamolybdate.
Based on the end-user industry, the global molybdenum market is bifurcated into oil and gas, chemical and petrochemical, automotive, industrial usage, building and construction, aerospace and defense, and other end-user industries.
The chemical and petrochemical segment owns the highest market and is estimated to grow at a CAGR of 3.80% during the forecast period. The cryogenic applications, high temperatures, severely corrosive environments, handling under tremendous pressure, and the purity of finished products are just a few of the issues faced by the chemical and petrochemical sectors. Various grades of stainless steel created from products based on molybdenum and molybdenum-nickel alloys are used to solve this issue. Molybdenum primarily improves stainless steel's ability to resist corrosion. Stainless steels with molybdenum tend to be more corrosion-resistant than those without molybdenum. They are utilized in more corrosive applications, such as chemical processing plants.
Additionally, molybdenum is a crucial micromineral component for the growth and development of plants. As a result, the chemical sector uses it to create fertilizer. Additionally, molybdenum is the foundation for numerous heterogeneous catalysts that regulate the pace and selectivity of various chemical reactions. The most prevalent types of molybdenum catalysts are molybdenum sulfides and oxides, which are extensively utilized in hydrotreating and oxidation reactions.
The cryogenic applications, high temperatures, severely corrosive environments, handling under tremendous pressure, and the purity of finished products are just a few of the issues faced by the chemical and petrochemical sectors. Various grades of stainless steel created from products based on molybdenum and molybdenum-nickel alloys are used to solve this issue. Molybdenum primarily improves stainless steel's ability to resist corrosion. Stainless steels with molybdenum tend to be more corrosion-resistant than those without molybdenum. They are utilized in more corrosive applications, such as chemical processing plants.
The global molybdenum market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 4.64% during the forecast period. Molybdenum is found in several locations, including Henan, where Yangjiazhangzi Molybdenum Mine is located, Shaanxi, where Jinduicheng Molybdenum Group Co. Ltd. is located; and Liaoning. China Molybdenum Co. Ltd., Rio Tinto, and Jjinduicheng Molybdenum Group Co. Ltd. are a few of the nation's top molybdenum producers. China is expected to boost its molybdenum production due to its plentiful reserves and mining sector.While other nations continue to engage in lockdowns and treatments actively, China has removed the country's lockdown and has begun several industrial operations there. The demand for the market under study in China is therefore anticipated to be impacted in the short term due to the causes above. The automotive industry, which is already in a dire state, is particularly heavily struck by the Coronavirus outbreak. However, government initiatives like the "Make in India" and "Aatma Nirbhar Bharat" programs are projected to strengthen the aerospace and electronics sectors and the automobile sector.
Europe is expected to grow at a CAGR of 3.04% during the forecast period. Europe's largest automotive producer in Germany. With 41 assembly and engine production facilities, Germany dominates the European automotive market and produces one-third of all the cars sold on the continent. Manufacturers from various industries, including equipment producers, suppliers of materials and components, manufacturers of engines, and integrators of complete systems, may be found in Germany, one of the top manufacturing hubs for the automobile industry. During the projected period, there is expected to be strong growth potential for non-residential and commercial buildings in the nation. Lower interest rates, rising real disposable incomes, and substantial investments from the European Union and the German government are all expected to contribute to the rise.
North America is expected to grow significantly over the forecast period. The United States is one of the top nations in the world for discovering unconventional crude oil reserves, which suggests that the country's market for water treatment chemicals has a lot of potential. Compared to conventionally fractured wells, the amount of oil produced by hydraulically fractured wells has risen dramatically. The chemical sector in the United States has continued to expand due to expansion in crucial end-user markets, which has predominantly increased demand for chemicals. The home chemical industry's profitability is further increased by access to less expensive and more plentiful feedstock and energy supplies. The manufacture of chemicals is a well-established business in the United States, where leading chemical product producers, including Dow, DuPont, PPG Industries Inc., Huntsman Corporation, and Eastman Chemical, have their roots. The expansion of the industry is being aided by numerous government initiatives, including the New Building Canada Plan (NBCP) and the Affordable Housing Initiative (AHI). By the fourth quarter of 2021, the Canadian construction industry was predicted to return to normal. It is also expected to grow moderately throughout the forecast period, increasing market demand.
South Africa, Saudi Arabia, the United Arab Emirates, Qatar, Nigeria, Kuwait, Iraq, Oman, Egypt, Bahrain, and other countries are included in the Middle East and Africa. Saudi Arabia has tight government control over all significant economic activity and an oil-based economy. The nation is one of the top oil exporters in the world and holds more than 15% of the world's oil reserves. However, the ongoing decrease in oil prices has hampered growth and prevented the government from developing long-term strategies for fiscal recovery. As a result, the Saudi government is concentrating on economic diversification to lessen its reliance on the oil market. Saudi Arabia leads the region in crude oil output, which in the Middle East amounts to around 10,145, 4,712, 3,360, 2,980, and 2,678 thousand barrels per day, respectively. In contrast, crude oil production in Africa amounts to about 7,905 thousand barrels per day. The second-largest proven oil reserves in the world are found in Saudi Arabia.
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