Molybdenum is a sturdy transition metal known for its high melting point and resistance to corrosion. It is primarily used as an alloying agent to impart strength and ductility in steel and cast iron. The construction industry utilizes vast amounts of reinforced steel in buildings, bridges, pipelines and other infrastructure. With rapid urbanization and infrastructure development projects worldwide, the demand for molybdenum from the construction sector has seen a considerable rise.
The global Molybdenum Market is estimated to be valued at US$ 364.04 Mn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Rising Demand from Construction Industry
The global construction industry has been growing steadily over the past few years with increasing investments in non-residential and infrastructure projects across major economies. Molybdenum witness growing demand as an alloying element for steelRebar and structural steel commonly used in construction industry applications. According to research, nearly half of the world’s molybdenum production is utilized by the construction sector. The rising demand for molybdenum from booming construction activities worldwide is expected to remain a key trend driving the growth of the molybdenum market size over the forecast period.
Strength: Molybdenum has diverse industrial applications ranging from alloys to fertilizers which boosts its demand from various end-use industries. It facilitates longer service life of high-pressure industrial reaction chambers due to its high melting points and resistance to corrosion and heat.
Weakness: Molybdenum is a rare metal and its mining activities can lead to environmental issues such as soil erosion and air pollution. Fluctuations in its prices depend on global economic conditions and trade conflicts which affect the growth and profitability of end-use industries.
Opportunity: Increasing investments in applications like stainless steel manufacturing and chemical vapor deposition processes are expected to drive the demand for molybdenum and its compounds. Rising focus on developing green energy technologies also offer opportunities for molybdenum consumption in solar panels and fuel cells.
Threats: Substitution threat from other materials for specific applications including tungsten carbide in cutting tools and chromium in steel alloys poses challenges. Stringent environmental regulations for mining activities could increase production costs.
The global molybdenum market is expected to witness high growth. The global Molybdenum Market is estimated to be valued at US$ 364.04 Mn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2024 to 2031.
Regional analysis: North America dominates the global market and is projected to maintain its leading position during the forecast period owing to high consumption of molybdenum in end-use industries like oil & gas and chemical processing in the US and Canada. Asia Pacific is anticipated to be the fastest growing region in the world steel production and use of high-grade steel and alloys in construction and infrastructure development.
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.