Industrial Explosives Market

Global Industrial Explosives Market Forecast

• The US$7.8 Bn industrial explosives market (2022) projected to rise high up to US$11.6 Bn in 2030
• Global market value of industrial explosives estimated to see a CAGR of 5.9% between 2023 and 2030

Quick Report Digest

1. The rise in mining activities and the rising demand for coal and various rare earth metals, such as bauxite, gold, iron, ore, silver, and surface minerals across several industrial verticals, are two of the key drivers driving the market's development.
2. The market is expanding as a result of the beneficial steps taken by the government authorities of various nations to encourage the use of industrial explosives for extracting valuable underground mineral resources.
3. Semi-automated explosive delivery systems have been developed as a result of key stakeholders' strategic alliances and the rapid growth of technology, making it possible to blow deeper deposits of underground mines in a safer and more effective manner.
4. The installation of strict rules on the storage and transportation of industrial explosives and the fluctuating price of ammonia are anticipated to be the main factors limiting the global market. In addition, one of the main obstacles to market expansion is the high initial expenses associated with manufacturing industrial explosives.
5. Due to an increase in demand for blasting agents from the mining industry, the blasting agents category accounted for the greatest revenue share in 2022. Due to the rise in demand for mineral extraction, the usage of blasting agents in mining activities has seen a rapid surge.
6. In 2022, the market share of industrial explosives that was dominated by the mining category was the largest. Mining activities have increased as a result of government initiatives to efficiently utilise mineral and coal reserves and an increase in demand for these resources across a range of end uses.
7. North America region is anticipated to account for the highest share of the global industrial explosives market. The government has announced several major building and development initiatives that will increase the need for industrial explosives in the nation.
8. The Asia Pacific will have the significant rate of growth in the industrial explosives market during the forecast period. The need for industrial explosives is driven, particularly in China, India, Australia, and Indonesia, by elements including low labour costs, an availability of earth resources, and an increase in explosive use preference.

A Look Back and a Look Forward - Comparative Analysis

The market for industrial explosives is expected to grow as a result of the increased demand for explosives in the mining sector. Furthermore, it is projected that market expansion will be supported by the mining industry's expansion.

Additionally, the increased focus on effective resource extraction by the government and mining companies as well as the rise in disposable income have resulted in a rise in the use of industrial explosives for mining activities, which has encouraged the expansion of the global market.

Throughout the historical period of 2018-2022, the market had staggered growth. The global need for industrial explosives is fueled by the rise in per capita disposable income, which increases demand for precious metals like gold and silver, whose extraction requires extensive mining.

Furthermore, the demand for earth minerals like bauxite, iron ore, and coal is also increasing from sectors like the automotive, thermal, and chemical industries. These factors, combined with an increase in the tendency of construction professionals to use industrial explosives to cut down on labour costs and time, are what are driving the growth of the global industrial explosives market.

Strategic partnerships between important players and the rapid advancement of technology have led to the development of semi-automated explosive delivery systems, which enable the safer and more efficient blowing of deeper underground mine deposits. As a result, this considerably contributes to market expansion.

Moreover, other factors that are improving the market forecast include growing industrialisation and sizable investments in R&D activities for mass producing explosives to enhance drilling, blasting, and downstream operations.

Key Growth Determinants

• Increased Mineral Extraction Activities

The only way to obtain expensive and rare earth minerals from the crust of the planet is through mining. Large-scale mining of a variety of minerals and metals is done to support the economic system. Different mining behemoths have utilised industrial explosives for earth moving and mine digging purposes due to the growth in personnel expenses and the increased focus of mining businesses on reducing total turnaround time.

Large explosives are also necessary in a variety of mining processes, including quarrying, nonmetal mining, and metal mining. Drilling and the use of explosives are the main methods used to extract coal for electricity. Approximately 90% of the coal used in the US was for electric generation. In addition, the mining industry's increased need for industrial explosives, which in turn spurs the market's expansion, is greatly influenced by the surge in demand for iron and bauxite ores from a variety of industrial uses.

• Increasing Number of Tunnel Development and Construction Projects

Developing nations make significant investments in building out their road networks, rail lines, and tunnels for better connectivity, which makes conducting business easier and boosts the growth of their economies. By 2030, it is anticipated that India will invest over US$715 Bn in rail infrastructure. Additionally, tunnel construction is cost-effective in the long run since it leaves open space above it for local or commercial growth.

Rock excavation is a necessary step in the construction process for each of these projects. The most popular method of rock extraction, drill and blast, can be employed on igneous, sedimentary, or metamorphic rocks of any sort. When done correctly, it is quite effective and cuts down on labour costs. As a result, the global market is expanding due to the demand for greater connection as well as the effective excavation provided by industrial explosives.

• Supportive Government Initiatives

Rocks, metal ores, and coal make up the majority of mineral commodities. Aluminum and bauxite are crucial materials in the construction and automobile industries, even though coal is a major feedstock for electric generation. Plaster of Paris, wallboards, soil conditioners, and hardening retarders are all made from gypsum.

Mineral-rich nations can therefore employ their mineral riches to bolster their macroeconomic stability, much like oil and gas-producing nations can. It is uneconomical to depend more on mineral imports while there is no mining activity. To decrease the importation of minerals and coal, government mining departments therefore fund new mining projects.

Such investments will present lucrative chances to broaden the global market. The metals and mining industry in India, which is opportune for the market, is anticipated to change as a result of reforms like Make in India and 100% Foreign Direct Investment (FDI).

Major Growth Barriers

• Rising Natural Gas Costs

Industrial explosives are used by mining corporations because they are more advantageous economically and practically than mechanical excavation techniques. Ammonium nitrate is the main basic ingredient used to make industrial explosives.

The availability of ammonia, which is reliant on the cost of natural gas, controls the price of ammonium nitrate. As a result, the cost of ammonium nitrate increases due to the rising price of natural gas, which drives up manufacturing expenses. Because of this, mining companies are compelled to use mechanical excavation techniques.

• Potential Risks Associated with Explosives

The most evident type of explosion risk in mining is caused by nitrogen explosives. The regulated release of chemical energy occurs during blasts and shoots. The possibility of an uncontrolled release of stored energy is also possible, and this possibility may go unnoticed.

Unwanted occurrences have the potential to destroy infrastructure and equipment, discharge shrapnel, inflict harm, or even be fatal. Exposure pathways are the various routes by which a person can be exposed to dangerous chemicals.

Key Trends and Opportunities to Look at

1. Growing Need for Earth Minerals

High-tech equipment, such as smart phones, digital cameras, computer hard drives, light-emitting diodes (LEDs), and others, depend on rare-earth elements (REEs) like neodymium, europium, terbium, dysprosium, and yttrium.

Some REEs are employed in significant amounts in renewable energy and defense industries. These minerals play a crucial role in many green technologies as well as being essential parts of electronic equipment.

Both batteries and wind turbine magnets contain them, as do hybrid electric automobiles. The use of REEs in a variety of industries contributes to the expansion of the mining industry and, as a result, projects growth for the industrial explosives market.

2. Rising Mergers and Acquisition

Major market companies engage in merger and acquisition activities in an effort to achieve a sizable competitive edge. For instance, Rheinmetall (RHMG.DE), a German maker of military equipment, stated in November 2022 that it had signed an agreement to acquire Expal Systems, a Spanish business that specialised in explosives and ammunition. The acquisition agreement had a US$1.24 Bn value.

3. Increased Production of Coal-fired Electricity

The need for power is rising as urbanisation grows. With an increasing population, governmental authorities must fulfill the rising energy demand. Over the five-year period from 2022 to 2030, a considerable increase of 19.5% in the world's electricity generation is predicted.

Coal-fired power plants remain a major source of energy even with attempts made to adopt cleaner, renewable energy sources to create electricity. Thus, it is expected that these factors would support global industrial explosives market expansion throughout the forecast years. 

How Does the Regulatory Scenario Shape this Industry?

The industrial explosives market is greatly influenced by the regulatory environment. The production, storage, transportation, and use of industrial explosives are all subject to safety norms and regulations set by regulatory organisations. The purpose of these guidelines is to guarantee the security of the environment, communities, and workers. These regulations, which may have an effect on operations and expenses for businesses in the explosives sector, must be followed.

In addition, a lot of places demand that businesses get licenses and permissions before they may produce, store, and use explosives. It can take a lot of time and effort to complete the regulatory process. Strict licensing requirements may prevent some businesses from entering the market, which may reduce competition and alter market dynamics. Furthermore, the handling and disposal of hazardous items, including explosives, are governed by environmental standards. Regulations governing emissions, trash disposal, and environmental impact assessments must be followed by businesses. Fines and legal problems may follow from noncompliance.

Fairfield’s Ranking Board

Top Segments

1. Blasting Agents Surge Ahead, Whereas High Explosives Accelerate

The blasting agents segment dominated the market in 2022. Blasting agents are explosives made of fuels like fuel oil or aluminum, oxidizers like ammonium nitrate, and sensitizers such microscopic air bubbles or air pockets. These explosives are non-explosives on their own and can only be set off by adding a high explosive charge.

Sensitizers also offer the necessary heat source for catalysing the chemical interaction between the oxidizer and the fuel. ANFO, emulsions, aqueous gels, and slurries are examples of blasting agents. Blasting agents can be safely stored in a dry environment and are substantially less susceptible to shock or heat.

The high explosives category is expected to grow significantly over the forecast period. Any chemical concoction that detonates with a reaction velocity of more than 5,000 feet per second is a high explosive. It is used for military, mining, and demolition purposes.

Tetrazene, lead azide, and mercury fulminate are examples of primary high explosives, whereas trinitrotoluene (TNT), and dynamite are examples of secondary high explosives. A prominent element that is projected to create profitable growth potential for the high explosives market is the rise in demand for mineral extraction, particularly in developing nations like China, and India.

2. Adoption by Mining Category Dominant

In 2022, the mining category dominated the market, and it is predicted to grow significantly over the course of the forecast period. Industrial explosives have taken the place of traditional mechanical drills, labour-intensive open-pit mining methods, and human labour. Different mining giants employ industrial explosives like trinitrotoluene (TNT), dynamite, ANFO, and emulsion to create a profitable blast hole and recover various metals and minerals.

Depending on the mineral or metal that needs to be extracted, different industrial explosives are employed for different mining operations. Furthermore, the construction category is expected to expand significantly. Construction companies are increasingly turning to the usage of industrial explosives since it lowers costs overall and saves time and manpower.

As explosions occur in hard rocks and mountains, tunneling calls for high-density explosives. One of the main trends in the industrial construction explosives market is the preference of civil engineers for industrial explosives to shorten the total process time, as well as labour costs and the necessity to achieve efficient blasting, particularly for tunneling applications.

Regional Frontrunners

North America Continues to Contribute the Largest Share

The region with the biggest market share for industrial explosives is expected to be North America during that forecast period. North America has emerged as one of the mining industry's most lucrative areas thanks to the presence of numerous international mining and construction firms. A significant factor boosting the demand for explosives is the implementation of strict government restrictions for the use of industrial explosives to recover the most amount of underground mineral reserves.

A significant component boosting the industry in the region is also the rise in demand for precious metals like copper, gold, iron, and zinc, particularly from Mexico, and the US. The latter has a large coal reserve and is a big consumer of coal. Additionally, the US provides the market with profitable chances because its reserves of copper, iron ore, gold, platinum, and zinc are so plentiful. 

China, Australia, and India Spearhead Asia Pacific’s Growing Attractiveness

The market for industrial explosives is expanding at the fastest rate in Asia Pacific, which presents a significant opportunity for the industry. Due to growing mining and mineral extraction operations in the area, Asia Pacific is predicted to show a stable expansion in the market. The rise in coal mining and iron ore reserves is largely responsible for the increase in demand for industrial explosives in the Asia Pacific region, particularly in China, Australia, and India.

The demand for industrial explosives is mostly fueled by elements like low labour costs, an abundance of earth materials, and the region's mining giants' propensity to make significant profits. The governments of many developing markets in the Asia Pacific region have placed a priority on exploiting valuable mineral resources to boost their economies and encourage foreign mining corporations and investors to participate in these nations.

Fairfield’s Competitive Landscape Analysis

As per the Fairfields analysis, leaders continue to set themselves apart on the basis of established B2B networks and a long-maintained supplier base despite the extremely consolidated nature of the competitive landscape. Convenience is seen by major players in the industrial explosives market as the primary differentiation in terms of storage and delivery. R&D investments are rising quickly.

Although the need for portable explosive items from end users has increased recently, businesses have been depending more on cutting-edge technologies to meet their demands.

Who are the Leaders in Global Industrial Explosives Space?

1. NOF Corporation
2. Enaex S.A.
3. Orica Limited
4. Dyno Nobel
5. African Explosives Limited
6. Maxam corp Holdings
7. Irish Industrial Explosives Ltd
8. BME Mining
9. LSB INDUSTRIES
10. Austin Powder Company
11. Solar Industries India Limited
12. Sichuan Yahua Industrial Group Co., Ltd.
13. Ideal Industrial Explosives Limited
14. Eurenco S.A.
15. AECI Limited

Significant Company Developments

New Product Launch

• January 2023: The first hydrogen dispenser created in India was successfully manufactured, tested, installed, and the Petroleum and Explosives Safety Organization (PESO) approved by Fluitron LLC, a renowned developer and manufacturer of industrial-grade gas compression systems.

Distribution Agreement

• February 2023: For the Western Australia-based Bronzewing gold operations, Northern Star Resources, a gold producer, awarded SRG Global a five-year contract worth USD 156.5 million. SRG will carry out grade control drilling, professional drill and blast services, and explosives management for the course of the five-year contract.

Mergers & Acquisitions

• February 2020: Exsa, Peru's top industrial explosives maker and distributor, was acquired by Orica, according to a recent announcement. As part of the agreement, Orica will include Exsa's brand-new, cutting-edge Initiating Systems (IS) manufacturing plant into its global manufacturing footprint. Orica will be able to change IS manufacturing capability and considerably enhance production by exploiting latent capacity, with the potential to meet demand throughout the Americas.

An Expert’s Eye

Demand and Future Growth

The mining industry's rising demand for explosives is anticipated to fuel market expansion for industrial explosives. Additionally, the mining industry's expansion is anticipated to support market expansion. Furthermore, the increased emphasis placed by the government and mining corporations on efficiently extracting natural resources and the rise in disposable income have led to an increase in the usage of industrial explosives for mining activities, which has boosted the growth of the global market.

Supply Side of the Market

According to our analysis, With businesses like Orica, and Dyno Nobel operating there, the US has been a prominent source of industrial explosives. A variety of industries are served by the varied industrial explosives market in the US. This covers mining, building, quarrying, oil and gas, and even defense applications.

Additionally, US-based businesses in the explosives sector frequently spend money on R&D to develop explosives that are safer, more effective, and less harmful to the environment. This dedication to innovation helps the nation compete on the world market.

Global Industrial Explosives Market is Segmented as Below:

By Type

• High Explosives 
• Blasting Agents 
  • Ammonium nitrate fuel oil (ANFO) 
  • Water gel explosives 
  • Emulsions 
  • Nitrogen explosives 
  • Others

By End-use Industry

• Mining 
  • Metal Mining 
  • Non-metal Mining 
  • Quarrying 
• Construction 
• Others

By Geographic Coverage:

• North America 
  • U.S. 
  • Canada 
• Europe 
  • Germany
  • U.K.
  • France
  • Italy
  • Turkey
  • Russia
  • Rest of Europe 
• Asia Pacific 
  • China
  • Japan
  • South Korea
  • India
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America 
  • Brazil 
  • Mexico 
  • Argentina
  • Rest of Latin America 
• Middle East & Africa  
  • GCC 
  • South Africa
  • Egypt
  • Nigeria
  • Rest of Middle East & Africa