Andalusite Market To Hit Value $280.1 Million By 2025 |Grand View Research, Inc.
The global andalusite
market size is expected to reach USD 280.1 million by 2025, expanding at
a revenue-based CAGR of 7.3%,
according to a new report by Grand View Research, Inc. The growing consumption
of andalusite in refractories owing to increasing demand from end-use
industries such as steel and chemicals is propelling the market growth. Growing
consumption of steel in construction and automotive industries is expected to
propel the demand for refractories as the global steel industry consumes around
60 to 70% of refractories produced. This is likely to augment the market growth
over the coming years.
Andalusite is used as foundry sand in
metal casting, which is widely used in manufacturing various automotive
components such as power-train, support systems, suspensions, casings, and
gears. In the U.S., nearly 35% of the casting produced is used in the
automotive industry. The growing demand for lightweight vehicles such as
lightweight trucks is anticipated to augment the growth of the foundry market,
which in turn is anticipated to propel the demand for andalusite over the
coming years.
Market players are established in
South Africa and Peru owing to the presence of large amount of reserves. The
companies in these countries are adopting strategies such as mergers and
acquisitions and capacity expansions in order to strengthen their market share
and increase their regional presence. Latin Resources Limited is looking for a
joint venture to develop its Guadalupito Andalusite and Mineral Sands Project
situated in Northern Peru. The conceptual annual production at the site for
andalusite is expected to be of 155 kilotons. Key market players include
Andalusite Resources, Imerys Refractory Minerals, Resco Products, and
Andalucita S.A.
Major
market players such as Imerys Refractory
Minerals, Andalusite Resources, Andalucita S.A., and Resco Products are
largely focusing on innovation of new grades of andalusite to serve various
applications. In July 2018, Resco Products constructed a new R&D facility
in Greensboro, North Carolina, which was aimed at launching various grades of
andalusite and to improve product performance.
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Further key findings from the report suggest:
·
The refractories segment is
anticipated to progress at a revenue-based CAGR of 7.3%, in terms of revenue
over the forecast period on account of the growing demand from steel, cement,
aluminum, iron, and glass industries
·
Europe emerged as the leading
regional market and accounted for 61.0% of the overall volume share in 2018.
This can be attributed to the increasing production of metal casting especially
in Russia and France
·
Asia Pacific was the
second-largest regional market and held a revenue share of 25.3% in 2018. This
can be attributed to the increasing steel production and growing construction
industry in China and India
·
Made in China 2025 plan was
aimed to expand the domestic manufacturing sector, which in turn is likely to
boost the demand for refractories and foundries. This is anticipated to augment
the andalusite market growth over the coming years
·
South Africa is the largest
producer of andalusite in the world. Its production declined from 270 kilotons
in 2016 to 200 kilotons in 2017 and 2018, owing to heavy rains in the country.
The phenomenal properties of
andalusite such as volume stability, high thermal shock, low porosity, and
chemical and creep resistance along with high level of purity, make it suitable
for use in the manufacturing of refractories. Refractories are largely used in
blast furnaces during the production of steel owing to properties such as the
ability to withstand high temperature and thermal conductivity.
Growing
demand for steel in various end-use industries such as construction is
anticipated to increase the utilization of refractories. The growth in the
construction industry owing to increasing population and rapid urbanization is
likely to propel global steel consumption, which is anticipated to augment
refractory production over the forecast period.
Rising
demand for cast metal products from the automotive industry is expected to
augment the foundry industry growth which, in turn, will propel the market as
it is an important component in foundry sand. According to the Foundry
Informatics Centre, the global casting production increased by nearly 5.3% from
2017 to 2018, which is likely to augment the demand for andalusite over the
coming years.
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Release of this report:
The market growth is anticipated to
be hindered by the supply-demand imbalance. Andalusite’s production is limited
as commercial deposits are concentrated in South Africa, France, and Peru,
which is insufficient in meeting the consumer demand. The heavy rainfall in
2017 in South Africa and Peru caused a decline in production and hence supply
deficit was reported, thereby leading to price surge in the andalusite market.
These factors can result in the consumers switching to alternatives such as
bauxite owing to abundant availability, thus hampering the market growth.
Grand View Research has segmented the
global andalusite market on the basis of application:
Andalusite Application Outlook (Volume, Kilotons;
Revenue, USD Million, 2014 - 2025)
·
Refractories
·
Foundry
·
Kiln Furniture
·
Other applications
About Grand View Research
Grand View Research, Inc. is a U.S.
based market research and consulting company, registered in the State of
California and headquartered in San Francisco. The company provides syndicated
research reports, customized research reports, and consulting services. To help
clients make informed business decisions, we offer market intelligence studies
ensuring relevant and fact-based research across a range of industries, from
technology to chemicals, materials and healthcare.
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