Calcium Carbide Market Forecast 2023 - 2031

By Application :

The Application is categorized into acetylene gas, calcium cyanamide, desulfurizing agent, reducing agent, and others. In 2022, the acetylene gas segment accounted for the highest market share in the calcium carbide market. Calcium carbide is a key component used in the production of acetylene. Acetylene is a colorless, flammable, hydrocarbon gas with the chemical formula C2H2. It has two carbon atoms and two hydrogen atoms. It has a distinctively sharp, pungent odor. Acetylene is produced by the decomposition of calcium carbide (CaC2) in water. While acetylene is a useful gas for many applications. Acetylene is used in various industries such as chemicals, pharmaceutical applications, agricultural industries, polymers and resins, and others. Acetylene gas is most commonly used for the production of other chemicals used in perfumes, vitamins, polymers, solvents, and other materials due to its versatility and ease of reactive control in comparison to other gases. The significant growth in the production of chemicals worldwide is driving the segment growth across the globe. For instance, according to the report by the European Chemical Industry Council, the global sales of chemicals in 2020 accounted for USD 3750.37 billion and increased by 15.2% in 2021 and reached, USD 4,321.41 billion in 2021. Thus, the significant growth in the chemical industry is driving the demand for ethylene for the production of various chemicals and driving the segment growth.

Furthermore, the calcium cyanamide segment is expected to hold the highest CAGR over the forecast period in the calcium carbide market. Calcium carbide is used as a precursor in the production of calcium cyanamide, which is an important nitrogen fertilizer and chemical compound. Calcium cyanamide is used in various applications, and calcium carbide plays a significant role in its synthesis. It is used as a nitrogen fertilizer. It provides controlled healthy plant growth and increases crop yields. It also acts as an herbicide and helps control weeds and pests. The growing demand for fertilizers is expected to drive the segment growth over the forecast period.

By End-user Industry :

The end-user industry segment is categorized into steel manufacturing, chemical, pharmaceutical, metal fabrication, construction material, energy & power, and others. In 2022, the chemical segment accounted for the highest market share of 24.25% in the overall calcium carbide market. Calcium carbide has several applications in the chemical industry due to its ability to produce acetylene gas when it reacts with water. Acetylene gas derived from calcium carbide serves as a versatile feedstock for various chemical processes such as the synthesis of vinyl chloride monomer, acrylic acid and esters, organic compounds, acetylic black, and others. The significant growth in the investment in the chemical industry is driving the segment growth across the globe. For instance, according to the report by the European Chemical Industry Council, in the European Union chemicals investment reached the value of USD 28.46 billion in 2021, which is 68% above investment in 2003. Thus, the increasing investment in the chemical industry is increasing the demand for calcium carbide in the chemical industry and driving segment growth.

Moreover, the metal fabrication segment is expected to grow at the fastest CAGR over the forecast period in the calcium carbide market. Acetylene produced from calcium carbide is used in metal fabrication and metalworking applications. Investments in infrastructure projects, such as highways, bridges, airports, and public transportation systems, are expected to drive the segment growth over the estimated period.

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By Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

In 2022, Asia Pacific accounted for the highest market share at 38.15% valued at USD 5,097.24 Million in 2022 and USD 5,313.90 Million in 2023, it is expected to reach USD 7,670.89 Million in 2031. In Asia Pacific, China accounted for the highest market share of 25.15% during the base year of 2022. Calcium carbide is used in the production of acetylene gas, which finds application in pharmaceutical, construction, steel manufacturing, and others. Significant growth in these industries across the Asia Pacific is driving the calcium carbide market in the region. For instance, according to the report by the Indian Brand Equity Foundation in August 2023, the market size of the Indian pharmaceuticals industry is expected to reach USD 65 billion by 2024, and USD 130 billion by 2030. Furthermore, according to the report by the National Investment Promotion and Facilitation Agency in July 2023, the construction industry in India is expected to reach USD 1.4 trillion by 2025, due to the growing urban population across the country. Significant growth in steel production in the region is also driving the market growth in Asia Pacific. For instance, according to the data published by The World Steel Association in April 2023, China's steel production in 2023 increased by 5.6% from the previous year 2022.

Furthermore, the North America region is expected to witness significant growth over the forecast period, growing at a CAGR of 5.2% during 2023-20230. The significant growth in the manufacturing, energy, and power sectors across the North America region is expected to create lucrative growth opportunities for the calcium carbine market. The manufacturing industry such as automotive, aerospace, and metal fabrication, relies on calcium carbide-derived acetylene for various processes like welding, brazing, and heat treatment. The growth of these industries across North America is expected to influence the market growth over the estimated period.