Barite Market Growth & Trends
The global barite market size is expected to reach USD 2.08 billion by 2027, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 3.8% from 2020 to 2027. The market is expected to be driven by rising demand for oil & gas drilling applications. The COVID-19 pandemic is likely to restrict the industry growth in 2020 as oil & gas production is expected to fall drastically in 2020.
Barite is mainly used as a weighting agent in drilling operations owing to its properties, like low abrasiveness, non-corrosive nature, and high specific gravity. The amount of barite used for offshore drilling is greater than that of onshore drilling. The recent trend indicates that oil & gas producers are focused on sustaining oil production as onshore oil resources are being depleted at a significant rate. As a result, oil & gas players are increasingly seeking alternate sources, such as offshore oil resources. This is predicted to benefit market growth.
In the chemical industry, various chemical derivatives of barite, such as carbonates, sulfates, and hydroxides, are significantly used for industrial applications. For instance, barium hydroxide is used in the manufacturing of barium salts of organic acids, which are further used as stabilizers for PVC and additives for lubricating oils.
Barite is also used as a filler in the paint and plastic industries. Furthermore, the product is used in glass manufacturing to enhance the brilliance of glass products by removing impurities. High economic growth in the Asia Pacific driven by rapid industrialization is expected to fuel the growth of the chemicals, plastics, and paints and coatings industries, which, in turn, is expected to boost market growth.
The Asia Pacific was the largest producer of barite in 2019 while North America was the largest consumer. The U.S. has significantly ramped up its oil production since the past decade owing to the discovery of tight oil. This has proved rewarding for barite producers. The product consumption has witnessed a sharp boost since 2016 and is expected to witness moderate growth until 2027, following the recovery of the COVID-19 pandemic.
Request a free sample copy or view report summary:
Barite Market Report
Barite Market Report Highlights
- The oil & gas application segment dominated the market with a revenue share of 77.1% in 2019 owing to extensive utilization of barite as a weighting agent, particularly for offshore drilling
- The fillers application segment is expected to expand at the fastest CAGR of 4.3%, in terms of revenue, from 2020 to 2027 owing to increasing plastics and paints manufacturing, particularly in the Asia Pacific
- North America dominated the market with a revenue share of 39.6% in 2019 owing to the high production of tight oil in the region
- Asia Pacific is expected to expand at the fastest CAGR in terms of volume and revenue from 2020 to 2027 owing to increasing investments in exploration and production of oil, particularly in China
- Capacity expansion is a key strategy adopted by the market players