Refractory Market Highlights

• Global refractory market revenue is poised to garner USD 53.4 billion by 2032 with a CAGR of 5.5% from 2024 to 2032
• Asia Pacific refractory market value occupied around USD 16.3 billion in 2023
• North America refractory market growth will record a CAGR of more than 6% from 2024 to 2032
• Among form, the bricks & other shapes sub-segment generated 56% of the market share in 2023
• Based on alkalinity, the acidic and neutral sub-segment generated notable market share in 2023
• Production of high-temperature materials and the rise of new applications are the refractory market trends that fuels the industry demand

Refractories are inorganic, nonmetallic materials that can withstand high temperatures without changing physically or chemically, even when exposed to molten slag, gases, and metal. To meet diverse processing conditions, various types of refractory’s, including chemically bonded, fired, and carbon-bonded, are produced in different combinations and shapes. These materials are essential for minimizing heat loss in reaction chambers and enabling the thermal conversion of reactive substances, as metallic vessels cannot handle such conditions. Refractories must endure high temperatures, mechanical loads, temperature fluctuations, and chemical and abrasive interactions, without contaminating the materials they contact. The quality and cost of steel products are significantly affected by refractory materials. The demand for high-quality refractory’s has grown due to the diversification and cleanliness requirements of steel products, which are produced at temperatures around 1600ºC involving high-temperature phases like molten steel, slag, and hot gases. Thus, high-quality, cost-effective refractories are crucial, as their cost directly impacts the overall cost of steel products.

Global Refractory Market Dynamics

Market Drivers

• Increasing demand for high-performance materials in the steel and cement industries
• Growth in the construction sector boosting the need for refractory materials
• Growing infrastructure investments around the world

Market Restraints

• High production costs due to expensive raw materials
• Environmental regulations limiting the use of certain refractory materials
• Intense competition from alternative materials affecting market growth

Market Opportunities

• Development of eco-friendly and energy-efficient refractory products
• Expansion of the market in emerging economies with industrial growth
• Advancements in nanotechnology offering new applications for refractory materials

Refractory Market Report Coverage

Refractory Market Insights

The global refractories materials market is experiencing significant growth, driven by increasing infrastructure investments worldwide. Refractories, essential materials for withstanding high temperatures in industries such as steel, cement, and glass, are in higher demand due to expanding construction activities and industrial developments. As countries invest in upgrading and building new infrastructure, including bridges, buildings, and manufacturing facilities, the need for high-performance refractory materials rises. This surge in infrastructure projects, particularly in emerging economies, propels the market forward, ensuring steady growth for refractory manufacturers and suppliers. Additionally, growth in the construction sector boosts the need for refractory materials. For instance, in February 2023, Vesuvius Group announced intentions to invest USD 61 million to expand its refractory manufacturing bases in India over three to five years. The company's Taratala facility in Kolkata will be expanded, increasing monthly manufacturing capacity by 35%. Thus, this continuous growth of the construction sector and investments in infrastructure drive the refractory industry.

Environmental regulations limiting the use of certain refractory materials, such as those containing hazardous substances like chromium, have hindered the growth of the refractory market. These materials, while essential for their heat-resistant properties in industries such as steel, cement, and glass, pose significant environmental and health risks. Stricter regulations and enforcement have led to increased costs for compliance, research, and development of alternative materials. For instance, the Clean Air Act (CAA) requires the Environmental Protection Agency (EPA) to establish limitations on air pollutants. Consequently, companies face higher production costs and supply chain disruptions, slowing market expansion and innovation within the refractory sector.

The development of eco-friendly and energy-efficient refractory products presents a significant opportunity for the refractory market by aligning with global sustainability trends and regulatory demands for lower emissions and energy consumption. For instance, in October 2022, Imerys announced plans to increase production, research and development, and sustainability at its manufacturing site in Visakhapatnam, Andhra Pradesh, India. The company aimed to increase its manufacturing capacity from 30,000 to 50,000 tons by 2030. It also invested an additional USD 1.4 million in simplifying its operations to manufacture the Secar 71. The investment sought to enhance the production of calcium aluminates binder to meet rising demand in Indian refractory and construction sites. Innovations in this area include the use of sustainable raw materials, recycling of exhausted refractories, and advanced manufacturing techniques that reduce the carbon footprint. These products not only minimize environmental impact but also enhance the operational efficiency and lifespan of industrial furnaces and kilns. As industries such as steel, cement, and glass manufacturing increasingly prioritize sustainability, the demand for such advanced refractory solutions is expected to rise, driving market growth. Moreover, the expansion of the market in emerging economies with industrial growth further propels the market. For instance, in April 2023, RHI Magnesita announced the acquisition of Seven Refractories, a US provider of non-basic monolithic refractory with revenue of USD 110 million and PBT of USD 12 million in 2022. The company offers a diverse spectrum of end-use applications for the global market. This acquisition will introduce innovative product categories and technological breakthroughs, leading to significant changes in consumer offerings.

Refractory Market Segmentation

The worldwide market for refractory is split based on form, alkalinity, manufacturing process, end-use industry, and geography.

Refractory Form

• Monolithic & Other Unshaped
• Bricks & Other Shapes

According to the refractory industry analysis, bricks & other shapes type is dominatng the refractory market due to their robust structural integrity and high resistance to extreme temperatures, making them ideal for lining furnaces, kilns, and reactors. These shaped products are extensively used in industries such as steel, cement, and glass manufacturing, where precise and durable linings are crucial for operational efficiency and longevity. Additionally, their customizable shapes and sizes allow for modified solutions to meet specific industrial requirements. The dominance of bricks and shaped refractories is also driven by their ease of installation and maintenance compared to monolithic alternatives.

Refractory Alkalinity

• Acidic and Neutral
• Basic

The acidic and neutral segment is significantly increasing in refractories materials market. Alkalinity categories, such as silica and alumina, which are extensively used due to their high melting points and chemical stability. These materials are essential in industries requiring robust thermal insulation, such as steel, cement, and glass manufacturing. Their dominance is attributed to their ability to withstand extreme temperatures and corrosive environments. Consequently, they play a critical role in enhancing the efficiency and longevity of industrial processes.

However, basic alkalinity segment is also showcasing notable growth in the coming years. The basic alkalinity segment in refractories refers to materials that are chemically basic (alkaline) and used in high-temperature industrial processes for their resistance to slag and corrosion. It is the fastest-growing segment due to the increasing demand from the steel and cement industries, which require durable materials for their high-temperature operations.

Refractory Manufacturing Process

• Dry Press Process
• Fused Cast
• Hand Molded
• Formed
• Unformed

According to the refractory industry forecast, the dry press process and unformed refractories (castables, ramming mixes, etc.) segments significantly boosting the market due to their widespread applications and versatility. The dry press process is favored for its efficiency in producing uniform and precise shapes, while unformed refractories are preferred for their adaptability and ease of use in various installations, including repairs and complex shapes.

Refractory End Use

• Iron & Steel
• Cement/Lime
• Nonferrous Metals
• Glass Ceramics
• Teeming Ladle
• Others (Power generation, Energy and Chemicals, Paper and pulp)

According to the refractory industry analysis, iron & steel segment dominates as end use in market driven by its high demand for durable and heat-resistant materials essential for withstanding the extreme temperatures and harsh conditions in steel manufacturing processes. Refractories are crucial in various stages of steel production, including blast furnaces, basic oxygen steelmaking, and electric arc furnaces, ensuring efficient and safe operations. The constant need for innovation and improvements in steel production technologies further boosts the consumption of refractories. For instance, according to the World Steel Association, 63 nations crude steel output in February 2023 was 142.4 million metric tons (Mt). This dominant position is maintained by the pure scale and global spread of the steel industry, which continually drives refractory market growth.

Refractory Market Regional Outlook

North America

Refractory Market Regional Analysis

For several reasons, the Asia-Pacific region dominates the refractory market due to its robust industrial infrastructure and burgeoning manufacturing sector. For instance, in April 2024, Vesuvius strengthened its footprint in India by opening a cutting-edge flux manufacturing factory. Additionally, with heavy investments in steel, cement, and glass industries, the demand for refractory materials in this region remains consistently high. For instance, according to the World Steel Association data, China produced around 80.1 Mt (million tons) in February 2023, up 5.6% from February 2022. Moreover, rapid urbanization and infrastructure development fuel the need for construction materials, further propelling the refractory market. Additionally, the region's accessibility to abundant raw materials contributes to its dominance in this sector.

North America is fastest growing region in refractory market fueled by a robust industrial sector and increasing demand for advanced materials. The region's expanding construction and manufacturing activities, particularly in sectors like steel, cement, and glass, are driving the demand for refractory products. With ongoing advancements by key players and a focus on sustainable solutions, North America maintains its position as fastest growing region in coming years. For instance, Shinagawa Refractories Co. Ltd (Shinagawa) bought the Brazilian refractory business as well as the alumina-based wear-resistant ceramics company from Compagnie de Saint-Gobain S.A. (Saint-Gobain) in the United States. Additionally, stringent regulations on emissions and energy efficiency have prompted industries to adopt high-performance refractories, further propelling market growth.

Refractory Market Players

Some of the top refractory companies offered in our report include RHI AG, VESUVIUS, Corning Incorporated, TRL Krosaki Refractories Limited, Imerys, HarbisonWalker International, Inc., Morgan Advanced Materials, Resco, Sinosteel, Shinagawa Refractories, and Saint-Gobain.