- Summary
- Table Of Content
- Methodology
Molybdenum Market Introduction :
Consegic Business Intelligence analyzes that the molybdenum market is growing with a CAGR of 2.9% during the forecast period (2023-2031). The market accounted for USD 5,300.00 million in 2022 and USD 5,422.59 million in 2023, and the market size is projected to be valued at USD 6,791.95 Million by 2031.
Molybdenum Market Definition & Overview:
Molybdenum (Mo) is a chemical element with the atomic number 42. It's a silvery-white, hard transition metal with one of the highest melting points of all pure elements. It's also a micronutrient essential for life. Molybdenum is available in two different forms in nature such as pure molybdenum and molybdenum alloys. Pure molybdenum is highly refined and has a purity of 99.9% or more. It is used in a variety of applications, such as electrical contacts, heating elements, and sputtering targets.
Molybdenum is often alloyed with other metals to improve its properties. Molybdenum alloys are used in a wide range of applications, including aircraft and automotive parts, construction materials, and oil and gas equipment. It is primarily used in alloys, but it is also used in a variety of chemical applications such as catalysts, pigments, electrodes, and dietary supplements.
Molybdenum Market Insights :
Molybdenum Market Dynamics - (DRO) :
Key Drivers :
Growing demand for high-strength and corrosion-resistant materials
Molybdenum is a versatile element that is added to alloys to improve their strength, hardness, ductility, and corrosion resistance. Molybdenum alloys are used in a wide range of applications, including aircraft and automotive parts, construction materials, and oil and gas equipment. The growing demand for high-strength and corrosion-resistant materials is also being driven by the increasing use of electronics. Molybdenum is used in a variety of electronic components, such as transistors and circuit boards. As the demand for electronics continues to grow, the demand for molybdenum is also expected to increase. The automotive industry is a major driver of the demand for molybdenum. Molybdenum is a versatile element that is added to alloys to improve their strength, hardness, ductility, and corrosion resistance. Molybdenum alloys are used in a wide range of automotive components, including engine parts, landing gear, and suspension systems. Significant growth in the production of electric vehicles is driving the demand for lightweight and high-strength materials which is benefiting the segment growth across the globe. For instance, according to the report by the International Energy Agency in July 2023, electric vehicle sales in 2022 accounted for 22 million, which is a 4% increase from the previous year 2020. Hence, the growing demand for high-strength and corrosion-resistant materials from various end user industries is driving the market growth for molybdenum worldwide.
Increasing steel production across the globe is driving the market for molybdenum
Molybdenum is used to produce steel by adding it to molten iron in small quantities. Molybdenum alloys with iron to form iron molybdate, which dissolves in the molten iron. Molybdenum has several beneficial effects on the properties of steel, such as high strength, hardness, ductility, and improved corrosion resistance. Molybdenum also increases the hardness of steel by forming hard carbides. These carbides are very resistant to wear and tear, which makes molybdenum steels ideal for applications where high hardness is required.
Molybdenum improves the ductility of steel by preventing the formation of grain boundaries. Grain boundaries are weak points in steel, so reducing their number makes the steel more ductile. For instance, according to the China Iron and Steel Association (CISA) in April 2023, China's crude steel production in 2022 reached 1.032 billion tons, up 5.3% from the previous year. This was the highest annual crude steel production on record in China. Molybdenum is an essential alloying element to produce high-strength, corrosion-resistant, and weldable steels. The molybdenum market is expected to benefit from the growing demand for these steels across the globe.
Key Restraints :
High price volatility along with rising environmental concerns
Molybdenum is a relatively rare element in the earth's crust, and most of it is found in a few concentrated regions. This limited availability leads to price fluctuations, especially when there are disruptions in the supply chain. Molybdenum is often found as a byproduct of mining copper or other minerals. Extracting and processing molybdenum from these ores can be technically challenging and costly, which significantly improves the production cost. The extraction and refining of molybdenum require significant energy inputs. Energy costs greatly impact the overall cost of molybdenum production, especially when energy prices are high.
Moreover, molybdenum mining and processing can have negative environmental impacts, such as water pollution and soil contamination. These environmental concerns could lead to increased regulation of the molybdenum industry, which could increase costs and reduce supply. Molybdenum is mined using a variety of methods, including surface mining and underground mining. Surface mining can disturb the land and pollute water sources. Underground mining also pollutes water sources and release harmful gases into the air. Thus, the high price volatility along with the rising environmental concerns across the globe are restraining the growth of the molybdenum market.
Future Opportunities :
Growing demand for molybdenum in the energy sector
Molybdenum is a versatile element that has several applications in clean energy production. It is used in a variety of clean energy technologies, such as solar panels, wind turbines, and fuel cells. Molybdenum is used in the production of thin-film solar cells. Thin-film solar cells are a type of solar cell that is made from a thin layer of semiconductor material. Molybdenum is used in the production of semiconductor material that is used in thin-film solar cells. The market for molybdenum in clean energy production is growing. The growing demand for clean energy and increasing investments in the development of clean energy projects is increasing the demand for molybdenum across the globe. For instance, according to the report by the International Energy Agency in May 2023, in 2023, the total investment in clean energy globally is expected to reach USD 2.8 trillion. Furthermore, in February 2023, Saudi Arabia announced the launch of the world's largest solar power facility, which is expected to start operations by 2025, with a generation capacity of 2,060 MW. Thus, increasing innovation in the molybdenum is expected to create lucrative growth opportunities for the growth of the global molybdenum market over the forecast period.
Molybdenum Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2017-2031 |
| Market Size in 2031 | USD 6,791.95 Million |
| CAGR (2023-2031) | 2.9% |
| By Application | Alloys, Catalysts, Fertilizers, Foundry, and Others |
| By End-user Industry | Oil and Gas, Steel Industry, Chemicals and Petrochemicals, Automotive, Aerospace and Defense, Electrical and Electronics, Energy and Power, Mining, and Others |
| By Region | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
| Key Players | BHP, Multi Metal Development Limited, Grupo Mexico, JINDUICHENG MOLYBDENUM CO., LTD., Climax Molydenum, CMOC Group Limited, Centera Gold Inc., Rio Tinto, and Antofagasta plc. |
Molybdenum Market Segmental Analysis :
Based on the Application :
The application is categorized into alloys, stainless-steel, catalysts, fertilizers, foundry, and others. In 2022, the alloys segment accounted for the highest market share of 38.27% in the molybdenum market, and it is also expected to grow at the highest CAGR over the forecast period. Molybdenum is a versatile element that is used in a wide variety of alloys to improve their strength, hardness, ductility, and corrosion resistance. Molybdenum alloys are used in a wide range of applications, including aircraft and automotive parts, construction materials, and oil and gas equipment. The molybdenum is used in the manufacturing of aircraft alloys, automotive alloys, construction alloys, and alloys for the oil and gas industry. Molybdenum is added to aircraft alloys to improve their strength and high-temperature performance. Molybdenum aircraft alloys are used in a variety of aircraft components, such as engine parts, landing gear, and airframes.
Moreover, Molybdenum superalloys are also used in a variety of aircraft engine components, such as turbine blades, vanes, and combustors. Increasing investments in the manufacturing of aircraft is driving the demand for molybdenum across the globe. For instance, in December 2022, Collins Aerospace announced plans to invest USD 200 million in India over the next five years. The investment will be used to expand the company's R&D and production facilities in India. The increasing investments in the development of aircraft manufacturing facilities are driving the demand for molybdenum as an alloy which is driving the segment growth globally.
Based on the End-Use-Industry :
The end-user industry segment is categorized into oil and gas, steel industry, chemicals and petrochemicals, automotive, aerospace and defense, electrical and electronics, energy and power, mining, and others. In 2022, the steel industry segment accounted for the highest market share in the overall molybdenum market. The increasing steel production across various parts of the globe is driving the segment growth worldwide. For instance, according to the World Steel Association (worldsteel), China Baowu Group was the world's largest producer of crude steel in 2020, China's steel production increased by 80.67% in 2020, accounting for 115.29 million metric tons which were 63.81 million metric tons in 2017. Thus, the significant growth in steel production is driving the segment growth across the globe.
Moreover, the energy and power segment is expected to hold the highest CAGR over the forecast period. Molybdenum is a versatile element that has several applications in solar energy. It is used in a variety of solar technologies, such as solar cells, solar panels, and solar inverters. Increasing launches of solar energy plants are driving the segment's growth. For instance, in July 2022, the government of India launched the 92 MW Kayamkulam Floating Solar Project in Kerala. The project was set up at the National Thermal Power Corporation's (NTPC) Kayamkulam unit. Modi made the announcement virtually as part of the Ujjwal Bharat Ujjwal Bhavishya-Power @2047 program. The growing initiative for green energy is creating lucrative growth opportunities for molybdenum over the forecast period.
Based on the 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 38.55% valued at USD 2,043.15 Million in 2022 and USD 2,095.83 Million in 2023, it is expected to reach USD 2,629.84 Million in 2031, and it is also the fastest growing region across the globe, growing with a CAGR of 3.4% over the forecast period. In Asia-Pacific, China holds 22.15% of market share in 2022. The molybdenum market across the Asia Pacific region is growing owing to the significant growth of the variety of industries, such as steel, construction, and automotive. The significant growth in the capacity of steel is driving the molybdenum market growth across the region. For instance, according to the data published by the Ministry of Steel in India, Capacity for domestic crude steel expanded from 137.97 MT in 2017-18 to 154.06 MT in 2021-22, compound annual growth rate (CAGR) of 3.7%. Crude steel production grew at 4.2% annually (CAGR) from 103.13 MT in 2017-18 to 120.29 MT in 2021-22. Furthermore, growing infrastructure, and manufacturing developments across developed countries such as China is driving the steel production across the region. For instance, according to the report by Organization for Economic Cooperation and Development in February 2022, Crude steel production in Asia increased by 14.0% during the first half of 2021 year-on-year, with China increasing by 10.7%, India by 31.4%, Japan by 13.8% and Korea by 8.3%. All these above-mentioned factors are collectively driving the demand for molybdenum from various end user industries across the Asia Pacific region and creating lucrative growth opportunities for the molybdenum market in the Asia Pacific region.
Top Key Players & Market Share Insights:
The molybdenum 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 market is characterized by intense competition, with companies focusing on expanding their product offerings and increasing their market share through mergers, acquisitions, and partnerships. The key players in the market include-
- BHP
- Multi Metal Development Limited
- Centera Gold Inc.
- Rio Tinto
- Antofagasta plc.
- Grupo Mexico
- JINDUICHENG MOLYBDENUM CO., LTD.
- Climax Molydenum
- CMOC Group Limited
Recent Industry Developments :
- In October 2022, Zijin Mining Group Co., Ltd. acquired 84% equity interest in Anhui Jinsha Molybdenum Co., Ltd. at a consideration of USD 0.81 billion through public tender.
- In August 2021, CMOC Group Limited announced an investment of USD 2.51 billion to expand the Tenke Fungurume Mine (TFM) in the Democratic Republic of Congo (DRC).
Key Questions Answered in the Report
What was the market size of the molybdenum market in 2022? +
In 2022, the market size of molybdenum was USD 5,300.00 million.
What will be the potential market valuation for the molybdenum industry by 2031? +
In 2031, the market size of molybdenum will be expected to reach USD 6,791.95 million.
What are the key factors driving the growth of the molybdenum market? +
Growing demand for high-strength and corrosion-resistant materials across the globe is fueling market growth at the global level.
What is the dominant segment in the molybdenum market for the application? +
In 2022, the alloys segment accounted for the highest market share of 38.27% in the overall molybdenum market.
Based on current market trends and future predictions, which geographical region is the dominating region in the molybdenum market? +
Asia Pacific accounted for the highest market share in the overall market.
