The Molybdenum market is used in various steel alloying and other metallurgical applications owing to its properties like high strength and corrosion resistance. Molybdenum is used to enhance and harden steel while maintaining ductility. It improves the strength, hardness and corrosion resistance of steel and its alloys.
The global molybdenum market is estimated to be valued at US$ 364.04 Mn in 2024 and is expected to exhibit a CAGR of 4.8% over the forecast period 2024 to 2030.
Molybdenum has excellent mechanical properties and is used in alloy steels like high-speed tool steels and stainless steels. It improves steel strength and facilitates its hardening without becoming brittle. The growing construction industry along with rising steel consumption for automotive, machinery and equipment manufacturing will boost the demand for quality steel with improved mechanical properties. This rising demand for high-quality steel will drive the consumption of molybdenum. The global infrastructure development along with growing automotive sector especially in developing nations is propelling the steel production, which in turn will support the growth of molybdenum market.
Key Takeaways
Key players operating in the Global Molybdenum Market Size are Baxter International Inc., GlaxoSmithKline plc, Novartis AG, Perrigo Company plc, Caleb Pharmaceuticals, Inc., Myungmoon Pharma Co. LTD., Alchem International, Phytex Australia, Centroflora-Cms, Alkaloids of Australia, and Fine Chemicals Corporation. The growing construction and infrastructure development activities along with increasing steel usage in the automotive industry will boost the demand for molybdenum in the coming years. Technological advancements in metallurgy have facilitated the development of novel high strength steel alloys with improved corrosion resistance using molybdenum as the major alloying element.
Market Trends
Growing demand for high strength steel alloys - Molybdenum improves the strength of steel and mechanical properties like corrosion resistance. This growing focus on developing advanced high strength steel alloys using molybdenum as the primary alloying element.
Rising consumption in the power generation industry - Molybdenum has excellent corrosion and heat resistance and is used in components in nuclear power plants, gas turbines and coal-fired boilers. The growing energy demand and capacity addition will augment molybdenum consumption.
Market Opportunities
Increased usage in the oil and gas industry - Molybdenum containing corrosion resistant alloys have widespread application in deep oil and gas drilling and transportation due to its strength and resistance to corrosion.
Use in the aerospace industry - Molybdenum is used in aircraft engine components, rockets and space shuttle systems due to its high strength, thermal stability and low weight. Growth in the commercial aerospace sector presents an opportunity.
Impact of COVID-19 on Molybdenum Market Growth
The COVID-19 pandemic has significantly impacted the growth of the global molybdenum market. During the initial lockdown phases declared by various governments worldwide, the production and supply chain activities were disrupted. This led to reduced demand from key end-use industries like construction, transportation, aerospace etc. that use molybdenum in manufacturing of high strength steel and alloy products. The shutdown of major construction projects severely affected the demand for construction grade steel and thereby molybdenum. However, with easing of lockdowns and resuming of economic activities, the demand is recovering gradually.
The pre-COVID forecasted growth for 2024 was projected at 4.8% driven major demand from construction, machinery manufacturing and automobile sector. However, after the pandemic, the projected growth rate saw a decline and is now estimated to be around 3% for 2024. This decline can be attributed to reduced capital spending by major industries during the pandemic and economic recession. However, renewed focus on infrastructure development programs by governments is likely to support the market recovery in coming years. Strong rebound in global manufacturing sector along with new product development will further aid growth post-COVID. The future strategies for molybdenum market players include expanding presence in Asia and focusing on highly engineered molybdenum steel applications.
Geographical Regions with Highest Molybdenum Market Value
The Asia Pacific region holds the highest value and volume share in the global molybdenum market. Countries like China, Japan, India are major consumers as well as producers of molybdenum. This is attributed to strong presence of manufacturing industries and robust demand from construction sector in these countries. Asia Pacific accounted for over 55% of the total global molybdenum market value in 2024. North America is another major region concentrated with tier 1 molybdenum producers and technology leaders. Countries like United States and Canada are major export hubs of high-quality molybdenum ores.
Fastest Growing Regional Market for Molybdenum
Africa region is expected to register fastest value growth between 2024 to 2030 for the molybdenum market. This growth can be attributed to increasing mining activities and production of molybdenum in countries like Democratic Republic of Congo, Zimbabwe and Zambia. As per recent mineral potential studies, Africa region holds over 20% of world's molybdenum reserves. Hence, expected growth in industrial infrastructure and rise in mining investments would support strong and sustainable demand growth for molybdenum from Africa over the forecast period.
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