Calcium Carbide Market - Size, Share, Industry Trends, and Forecasts (2023 - 2031)

Calcium Carbide Market Dynamics - (DRO) :

Key Drivers :

Significant growth in the demand for acetylene and its derivatives

Calcium carbide plays a pivotal role in the production of acetylene and its derivatives through a chemical reaction known as hydrolysis. It is a critical starting material in the production of acetylene gas, which is then purified and used directly or as a feedstock to manufacture a wide range of products such as chemicals, plastics, and manufacturing. Acetylene is widely used in various industrial processes such as chemical synthesis, food processing, pharmaceuticals, metal fabrication, construction, and, others. Acetylene serves as a crucial feedstock in the chemical sector, enabling the production of various chemicals and intermediates. This includes the synthesis of vinyl chloride, a key raw material for PVC production, which has been witnessing increasing requirement for applications in the construction, piping, and, automotive industries. Acetylene is widely used in the metalworking and construction sectors for oxyacetylene welding and cutting. As per the analysis, the growing production of acetylene across the globe is driving the demand for this compound for the production of acetylene. For instance, in March 2021, BASF SE announced the launch of its Ludwigshafen, Germany, site which includes a new production facility with the capacity to produce 90,000 mt/y of acetylene. Furthermore, in October 2022, SCG Chemicals announced a partnership with Denka Company Limited to establish and operate an acetylene black manufacturing business in the province of Rayong. The production capacity will be approximately 11,000 tons annually and is expected to commence by early 2025. Hence, the significant requirement in the production of acetylene is driving the demand for this compound as a raw material. Such high demand for this compound is driving the market worldwide.

Growing production of steel is propelling the growth of the global calcium carbide market

In the steel manufacturing sector, calcium carbide is used as a reducing agent in the electric arc furnace for recycling scrap steel. When this compound is injected into the electric arc furnace along with scrap steel, it reacts with the impurities, such as iron oxides present in the scrap. Acetylene produced from this compound is used for heat generation, which is utilized to maintain and control the temperature within the electric arc furnace. It helps to reach the high temperatures required for the steelmaking process, ensuring efficient smelting and refining of the steel. Based on the analysis, the significant requirement in steel production in developing economies is driving the demand for this compound for various applications and thus drives the market. For instance, according to the report by the Ministry of Steel of India in December 2022, crude steel production expanded from 109.25 million tons in 2018 to 124.72 million tons in 2022. Crude Steel production in 2022 showed a year-on-year growth of 5.5% over 2021. For this reason, the growing production of steel is propelling the expansion of the global calcium carbide market trend.

Key Restraints :

Harmful effects of Calcium carbide on human health along with high cost of raw materials

Calcium carbide is a chemical compound that can pose several harmful effects on human health, especially when not handled or used properly. This compound itself is considered toxic to humans. Indigestion or inhaling this compound leads to various health issues, including gastrointestinal problems, irritation of the respiratory system, and damage to internal organs. This compound can release acetylene gas when it comes into contact with moisture. Inhalation of acetylene gas can lead to symptoms such as dizziness, headache, nausea, vomiting, and in severe cases, it can cause unconsciousness. The use of this compound is unregulated or improper disposal practices can have negative environmental effects. It can contaminate soil and water, potentially harming ecosystems and aquatic life. Furthermore, the production of this compound involves a high-temperature process in electric arc furnaces, which requires a significant amount of energy. The electrically needed for this process contributes to a substantial portion of the production cost. Hence, the harmful effects of this compound on human health and the high production cost of this compound are restraining the calcium carbide market trend worldwide.

Future Opportunities :

Significant growth in the metal fabrication and construction sector

Calcium carbide in the metal fabrication sector is used as a fuel in oxyacetylene welding and cutting torches. When this compound is mixed with water, it produces acetylene gas, which provides a high-temperature flame for welding and cutting metals. This method allows for precise and efficient metal joining and cutting. In the construction sector, it is used for the manufacturing of acetylene torches for construction, concrete building, demolition work, welding and fabrications, and others. acetylene generated from this compound is commonly used in the construction sector for tasks such as soldering, brazing, and heating. These processes are crucial for joining metals, especially in plumbing, HAVC systems, and structural works. Based on the analysis, significant expansion in investment in the construction sector across the globe is creating lucrative opportunities and trends for the calcium carbide market growth over the estimated period. For instance, in June 2023, the European Union announced USD 324.25 million for the construction of four new flagship infrastructure projects in Bosnia and Herzegovina. Furthermore, in April 2023, The European Climate, Infrastructure and Environment Executive Agency (CINEA) launched a call for proposals for key cross-border EU energy infrastructure projects worth USD 802.59 million from the European Union budget. Therefore, the growing investment for the construction of various infrastructure projects across the developed economies is expected to drive market growth over the forecast period.

Top Key Players & Market Share Insights:

The Calcium Carbide market is highly competitive, with several large players and numerous small and medium-sized enterprises. These companies have strong research and development capabilities and a strong presence in the market through their extensive product portfolios and distribution networks. The calcium carbide industry is characterized by intense competition, with companies focusing on expanding their product offerings and increasing their market revenue through mergers, acquisitions, and partnerships. The key players in the market include-