Molybdenum is widely used in metallurgical applications owing to its high strength, corrosion resistance, and weldability. It is used to make components such as turbine blades, pumps, and pipes for industries including chemical processing, oil and gas, and desalination. Molybdenum improves corrosion protection, increases conductivity of copper alloys, and imparts strength and hardenability to steel. The growing demand for high-strength steel and expanding oil and gas industry are fueling the consumption of molybdenum.
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.
Key Takeaways
Key players operating in the molybdenum market 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 defense industry across the globe and increasing production of aircraft, ships, submarines, missiles, etc. offers opportunities for growth in the coming years. Technological advancements are also witnessed in the steel industry wherein steel makers have started using new processing methods to replace molybdenum with other alloying elements in specific steel production applications.
Market drivers
The major driver for the Global Molybdenum Market Size is increasing demand from the construction industry. Molybdenum is used to produce high strength and corrosion resistant steel, which finds extensive applications in the construction of buildings, bridges, factories, etc. According to statistics, the global construction industry is expected to grow by 85% by 2030. Rising investments in infrastructure development across emerging nations will continue driving the demand for molybdenum in the coming years.
Current Challenges in the Molybdenum Market
The molybdenum market has witnessed slow growth in the past few years owing to the sluggish growth of end-use industries such as chemicals, oil & gas, and automotive. The volatility in raw material prices and uncertainties over environmental regulations pose major challenges. The trade wars and restrictions imposed by governments have negatively impacted the trade of molybdenum products. However, with the recovering global economy and growing infrastructure development activities, demand is likely to continue increasing in the coming years.
SWOT Analysis
Strength: Strong demand from steel manufacturing and chemical industries. Molybdenum improves the strength and durability of steel.
Weakness: Fluctuations in raw material supply and prices. Raw material prices are influenced by global economic and political scenarios.
Opportunity: Growth in end-use industries such as machinery, petrochemicals will boost consumption. Rapid industrialization in Asia Pacific presents new opportunities.
Threats: Stringent environmental rules on mining can limit production. Trade restrictions and wars can disrupt global supply chains.
Geographical Regions with Highest Market Share
North America currently accounts for the largest share in the global molybdenum market, both in terms of production and consumption. The presence of major steel producers along with the thriving automotive and oil & gas industries drive the demand. Asia Pacific is poised to be the fastest growing regional market with increasing infrastructure spending, automotive manufacturing, and robust economic growth in China and India.
Fastest Growing Geographical Region
Asia Pacific region is projected to witness the highest CAGR during the forecast period. The massive investments towards urbanization and rising industrialization are fueling the growth of end-use industries in developing countries. Furthermore, government initiatives to strengthen industrial base through the Make-in-India program and advancement of manufacturing sector under China’s Five-Year Plans will augment regional market for molybdenum in the coming years.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it