Lime Market: Overview
The size of the lime market was estimated at USD 43.9 billion in 2021 and is anticipated to increase at a CAGR of 5.9% over the following years. Rising infrastructure development is projected to raise the demand for lime globally in the upcoming years. Mineral ores are refined during mining operations into pure metals, producing sludge effluents dumped into water sources. With lime as a reagent in effluent treatment procedures, these water resources necessitate good water treatment, generating profitable growth possibilities for lime producers. The main driver of this increase is anticipated to be current, required environmental management regulations that governments enforce to achieve zero hazardous material discharge in natural water resources. In 2020, there were around more than 35,000 mines in the world. Thus with the growing mining industry, the use of lime will increase in the coming years.
The revolutionary product precipitate calcium carbonate (PCC), produced from lime, has many uses in manufacturing paper, paint, plastic, rubber, ink, etc. The PVC plastisol, polysulfides, urethanes, and silicone sectors are pushing PPC demand due to its potential to substitute expensive impact modifiers in polymers. By 2025, it is anticipated that the market for calcium carbonate in the US will be worth around USD 7 billion from USD 5.6 billion in 2021. Therefore, the demand for precipitated calcium carbonate will favor the worldwide lime market over the projected period. The demand for lime is anticipated to increase due to its expanding use in various applications, particularly in the mining, agriculture, chemical, and plastics industries. With its ability to trap pollutants like lead and SOx emissions, the product is increasingly used to treat wastewater and flue gases. The use of these goods is anticipated to significantly expand during the forecast period as pollution control rules tighten in nations including the U.S., China, and India.
Lime Market: COVID-19 Impact
Lime is an essential chemical for important industrial end-use industries like metallurgy, construction, chemicals, and the environment. Therefore, despite the COVID-19 epidemic, many nations make an effort to guarantee that their supply is controlled. The pandemic has, however, forced a rigorous halt to resource shipping and mining. The product's supply chain was severely impacted in nations including China, India, and Brazil. The final product's price increased due to the limestone's essential raw material's erratic mining and shipping activities. This has further impacted the producers' already slim profit margins. Furthermore, the closure of end-use industries will probably impact the general demand for lime in the near future. During the downtime period, manufacturers who are active in the market repair the kilns. They also emphasize how the epidemic drives up demand for environmental protection applications. The industry is anticipated to return to its previous demand within the next few years as soon as governments ease the limits on activities like construction and manufacturing metal products in the fourth quarter of 2020.
Lime Market: Drivers
Demand From Various Sectors Combined with Growth in Steel Industry is Driving Lime Market
Numerous industries, including the automotive, building, and manufacturing sectors, have a considerable need for steel. The growth of infrastructure and rising car demand are expected to boost the steel industry. The World Steel Association estimates that in 2020, global steel production would increase from 1,874 million metric tonnes in 2019 to 1,878 million metric tonnes. As a result, the expansion of the market is primarily driven by increased steel output. As governments in countries like China, India, South Africa, and Brazil boosted their efforts to construct sturdy infrastructure and homes for their rising populations, the demand for steel products has surged considerably in recent years. A total of 6 million residential projects were constructed in China in 2020, generating more than 17 trillion Yuan in sales. Thus, the steel demand will rise in the upcoming years due to the building industry's quick progress, boosting the lime market.
Environmental Protection Laws that are Strict will Help Market Grow
The World Health Organization (WHO) predicts that by 2025, half of the world's population will reside in water-stressed places. Contaminated water is a primary means through which cholera, typhoid, cholera, and diarrhea are disseminated. According to the World Health Organization (WHO), contaminated drinking water is responsible for over 470,000 fatalities yearly. To decrease the consequences of dirty water, EPA has devised a legal framework for the quality criteria for drinking water. Industries must audit their waste outputs as well to reduce their environmental effect. Hydrated products can reduce acidity and eliminate pollutants like phosphorus and nitrogen from mining and industrial effluent. As a result, its application in water treatment has greatly expanded. Quicklime is also used to treat chimney gas from companies, power plants, and waste incinerators. Since it catches and neutralizes SOx emissions, acid rain is prevented. With these elements, it is anticipated that strict environmental conservation obligations would drive product demand.
Lime Market: Restraints
Products with a High Carbon Footprint will Slow Growth
Lime is mostly made from limestone when burnt to produce calcium oxide and carbon dioxide from calcium carbonate. As a greenhouse gas, the CO2 generated during the process causes several disasters and global warming, both of which have severe repercussions. This industrial method's high energy requirements also increase the sector's overall carbon impact. Symptoms of mild carbon dioxide exposure include tiredness, headaches, and nausea. Long-term exposure can also result in disorientation, elevated arrhythmia, high blood pressure, breathing issues, and potentially suffocation death. Alternative calcium hydroxide solutions have become increasingly popular among customers due to consequences like these on human and environmental health.
Lime Market: Segments
Demand for Quick Lime is Rising due to Iron and Steel Industry's Quick Adaptation
With the heavy demand from steel producers, quick lime dominated the lime market. The main factors driving the quicklime market are the rising demand for precipitated calcium carbonate and quicklime's widespread use in the building and construction sectors. Quick lime is used to manufacture metals to help separate contaminants such as slag. As a result, steel is less brittle and performs better. Other factors affecting the quicklime market include rising mining activity and rising demand for iron and steel from various industries. Some companies are growing their production capacity and signing international agreements to address the rising demand for quicklime products in the building, construction, and water treatment industries. For instance, in July 2021, Lhoist North America and Maerz Ofenbau AG began construction on a new quicklime kiln in Montevallo, Alabama. Lhoist North America has increased the output of dolomitic quicklime in Marble Falls, Texas, and installed a new lime kiln in New Braunfels, Texas. With this development, the organization will be able to enter previously untouched market segments.
Agricultural Sector will Dominate Market due to Increased Awareness Regarding Soil Health
In the agricultural sector, lime is used to improve the pH of the soil to support a high crop yield. Minimizing surface crusting, lessening erosion, and increasing water-retentive capacity further enhance the soil's physical structure. Utilizing calcium hydroxide helps plants resist environmental and climatic disturbances, such as floods and drought, by enhancing water percolation and root penetration. Additionally, it increases the crops' access to nutrients and the efficiency of pesticides. To increase the amount of calcium present and maintain the pH of agricultural soil, a paper from the University of California suggests applying calcium hydroxide at a rate of 1 to 2.3 tonnes per acre. The segment's growth is anticipated to be notable during the forecast period due to all these factors.
Lime Market: Regional Landscape
Asia Pacific Acquired Largest Share due to Increased Lime Production
In terms of lime production, Asia Pacific is the most producing region. The area is expected to sustain its strong growth rate in the following years. The region's dominance is related to China, where industry concentration is high. It is the world's leading producer of various metals, including steel, aluminum, and gold. Furthermore, India's and other Southeast Asian countries' emphasis on infrastructure development in the region will be a major factor fueling the region's exponential growth. In 2020, India produced the most lime in the world, with 3.71 million metric tonnes. Gujarat, Madhya Pradesh, Andhra Pradesh, Karnataka, and Odisha produce more than 80% of India's limes. The market is expected to grow during the forecast period because of rising consumer demand and considerable health benefits. Rising demand for the commodities would eventually increase the need for lime. As a result, rising interest in infrastructure development and industrialization would be a significant driving element in the Indian market.
Europe will account for a significant share of the worldwide lime market in the forecast period. Steel manufacturing and the thriving automobile industry are fueling the region's expansion. In addition, the region's paper and plastic industries have expanded their demand for wastewater and flue gas treatment. This provides a fantastic opportunity for market participants to thrive. The expansion of the metallurgical industry is expected to drive the lime market in Europe, Russia, Italy, and Spain, transforming them into key lime producers and markets. According to the European Industry Association, Russia will lead production in 2019 with 11 million tonnes.
Global Lime Market: Competitive Landscape
In July 2021, As part of SSAB's large research initiative in Finland, Nordkalk created fossil-free lime. SSAB is anticipated to collaborate with industry and scientific partners on the project to investigate various methods and alternatives for producing fossil-free steel. For instance, in April 2021, Calix and Adelaide Brighton (Adbri Ltd) will collaborate on a lime project that will include CO2 capture and multi-fuel choices. Here in Australia. The project is a first-of-its-kind commercial-scale, zero-emissions lime-producing factory. Calix and Adbri propose to move on with a feasibility study encompassing site selection, raw materials, and proof of marketable product, as well as the basis of design covering CO2 capture from lime production and multi-fuel/energy possibilities, with a completion date of early 2022.
Few of the players in the Lime market include Adelaide Brighton Limited, Sibelco Australia Ltd, Boral Limited, Lime Group Australia, Omya Australia Pty Ltd., Agricola Mining Pty Ltd., Wagners, Carmeuse, Calcimo Lime & Fertilizers Pty Ltd, Cheney Lime & Cement Company, United States Lime & Minerals, Inc., Linwood Mining & Minerals Corp., Lhoist., Mississippi Lime Company., Pete Lien & Sons, Inc., Valley Minerals LLC., Graymont Limited., Shandong Zhongxin Calcium Industry Co., Ltd., Shanxi Jianqiang Active Lime Manufacturing Co., and Others.
Regional Classification of the Global Lime Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Lime Market
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