The global explosives market has been forecast to reach 15.8 million metric tons by 2018, driven by growing demand from emerging economies and technological advancements focused on the development of safe blasting technologies.
This industry has rebounded strongly since taking a major blow during the recession. Renewed revenue is expected to continue growing at a steady rate through 2017. The need for more natural gas and a rising industrial production index will keep the growth rate moving along.
Fortunes of the explosives industry are closely linked with the metal/mineral extraction industry. More than 75% of the explosives production is consumed in mining operations alone across the globe.
While the market has entered a stabilisation phase in some countries, it is picking up momentum in other economies with availability of extensive mineral deposits for excavation and rebound in construction and quarrying activity.
Developing economies such as China, India, and South Africa are expected to drive growth of the explosives market with rise in mining, construction as well as manufacturing industries. In addition, civil works such as tunnel constructions and other development projects in emerging markets are expected to drive market growth.
Currently, lower commodity prices post a concern for explosives industry, as major mining companies focus on lower operating costs and tightening operating cash flows. Given that explosives constitute 10%-15% of the mining costs, pricing of explosives is expected to be under pressure for reducing operating costs by mining companies.
Besides the fall in commodity prices, underperformance in North America amidst growing shift towards natural gas by power generation companies and continued weakness in West European markets continue to impact the demand for explosives in recent years.
According to a recent report, 'Explosives: A Global Strategic Business Report,' Asia-Pacific represents the largest and fastest growing market for explosives worldwide. With the Chinese and Indian economies displaying strong demand, global players are venturing these markets to gain presence.
Also demand for ammonium nitrate, a key component in explosive manufacture, is expected to increase significantly, as mining companies gear up to expand production in these economies.
For more information on the global explosives market, see the latest research: Explosives Market Research
Follow us on Twitter @CandMResearch
Companiesandmarkets.com issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.