The global andalusite market size is expected to reach USD 280.1 million by 2025, expanding at a revenue-based CAGR of 7.3%, according to a new report by Grand View Research, Inc. The growing consumption of andalusite in refractories owing to increasing demand from end-use industries such as steel and chemicals is propelling the market growth. Growing consumption of steel in construction and automotive industries is expected to propel the demand for refractories as the global steel industry consumes around 60 to 70% of refractories produced. This is likely to augment the market growth over the coming years.
Andalusite is used as foundry sand in metal casting, which is widely used in manufacturing various automotive components such as power-train, support systems, suspensions, casings, and gears. In the U.S., nearly 35% of the casting produced is used in the automotive industry. The growing demand for lightweight vehicles such as lightweight trucks is anticipated to augment the growth of the foundry market, which in turn is anticipated to propel the demand for andalusite over the coming years.
Market players are established in South Africa and Peru owing to the presence of large amount of reserves. The companies in these countries are adopting strategies such as mergers and acquisitions and capacity expansions in order to strengthen their market share and increase their regional presence. Latin Resources Limited is looking for a joint venture to develop its Guadalupito Andalusite and Mineral Sands Project situated in Northern Peru. The conceptual annual production at the site for andalusite is expected to be of 155 kilotons. Key market players include Andalusite Resources, Imerys Refractory Minerals, Resco Products, and Andalucita S.A.
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Further key findings from the report suggest:
- The refractories segment is anticipated to progress at a revenue-based CAGR of 7.3%, in terms of revenue over the forecast period on account of the growing demand from steel, cement, aluminum, iron, and glass industries
- Europe emerged as the leading regional market and accounted for 61.0% of the overall volume share in 2018. This can be attributed to the increasing production of metal casting especially in Russia and France
- Asia Pacific was the second-largest regional market and held a revenue share of 25.3% in 2018. This can be attributed to the increasing steel production and growing construction industry in China and India
- Made in China 2025 plan was aimed to expand the domestic manufacturing sector, which in turn is likely to boost the demand for refractories and foundries. This is anticipated to augment the andalusite market growth over the coming years
- South Africa is the largest producer of andalusite in the world. Its production declined from 270 kilotons in 2016 to 200 kilotons in 2017 and 2018, owing to heavy rains in the country.