Molybdenum is a steel alloy that improves strength, hardness, toughness, wear and corrosion resistance. It has applications in construction of pipelines, manufacturing of wires and cables, and automobile components. The global construction industry has boomed in the last few years with rapid urbanization and rising investments in infrastructure projects across developing nations. Molybdenum products such as reinforcement bars and plates are extensively used in construction of buildings, bridges, roads and industrial structures.
The global Molybdenum Market is estimated to be valued at Us$316 Bn in 2023 and is expected to exhibit a CAGR Of 9.2% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing demand from construction industry owing to the superior properties molybdenum imparts to steel such as high tensile strength and anti-corrosion is a key driver augmenting the molybdenum market growth.
Furthermore, growing manufacturing sector and rapid industrialization has increased consumption of steel products and thereby molybdenum. Majority of molybdenum is used as an additive in steel production to enhance strength while reducing weight. Rising infrastructure development and construction of modern facilities across emerging economies has boosted consumption of steel and molybdenum containing construction materials.
The SWOT Analysis
Strength: The molybdenum market benefits from its robust demand as an alloying metal. It improves the mechanical properties of steel like high-temperature strength and corrosion resistance. Some key end-use industries like construction and automotive witness high growth worldwide contributing to stable demand. The market faces limited substitutes for molybdenum in critical applications maintaining its importance.
Weakness: Mining activities are susceptible to geo-political risks and environmental regulations in major producing countries. Uncertainties surrounding trade policies and sanctions can disrupt supply chains. Fluctuations in molybdenum prices impact the overall profitability and planning for manufacturers.
Opportunity: Growing focus on infrastructure projects in developing nations boosts long-term demand for molybdenum in construction steel. Expanding electric vehicle industry increases consumption for high-strength steels. Developments in super alloys expand usage of molybdenum in aerospace components ensuring new avenues.
Threats: Volatility in demand from cyclic end-use sectors poses challenges. Trade wars and sanctions on major producers pose supply risks. Substitutes may gain importance with technology advances especially in sensitive applications.
Key Takeaways
The Global Molybdenum Market Demand is expected to witness high growth supported by rising steel consumption worldwide. Growing urbanization and mega infrastructure projects in Asia Pacific drive the regional market. China dominates production and demand for molybdenum owing to its huge steel industry and accounts for over 30% of the global output. Key players operating in the molybdenum market are Marriott International, Inc., Hilton Worldwide Holdings Inc., Accor S.A., InterContinental Hotels Group PLC, and CWT (formerly Carlson Wagonlit Travel).
The molybdenum market forecasts steady gains through 2030 on the back of robust construction activities and automobile manufacturing worldwide. Government initiatives to develop road, rail and urban infrastructure augment steel demandfrom the construction industry in major economies. Meanwhile,policies promoting electric mobility and stringent emission standards spur production of advanced high-strength steels for lightweight vehicles.
Key players operating in the molybdenum market are focusing on capacity expansions and long-term offtake agreements to ensuresecurity of supply. Marriott International, Inc. aims to increase its hotel network to over 8000 properties by 2023 entering new markets.Hilton Worldwide Holdings Inc.is undertaking strategic renovations and acquiring new brands to strengthen its portfolio. Meanwhile, InterContinental Hotels Group PLC is investments in management contracts and franchising to drive revenues.
Get more insights on this topic :
Arabic
French
Spanish
Portuguese
Deutsch
Turkish
Dutch
Italiano
Russian
Romaian
Portuguese (Brazil)
Greek