Niobium Pentoxide Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Niobium Pentoxide Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The niobium pentoxide market is estimated at around 4,842.36 tons in 2022, and the market is projected to register a CAGR of over 5% during the forecast period (2022-2027).

The market was negatively impacted by COVID-19 in 2020, as the outbreak hampered various industries, such as the automotive and construction industries, due to disruption in the supply chain. However, the market is expected to reach the pre-pandemic level during the forecast period.

Key Highlights

• Over the short term, growing demand from the electric vehicles segment and growing demand for high-quality steel from the manufacturing sector are some driving factors stimulating the market demand.
• Concerns about health issues on acute exposure to niobium pentoxide are hindering the market growth.
• Growing demand from the biomedical sector is likely to act as a growth opportunity for the niobium pentoxide market in the future.
• The Asian-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.

Key Market TrendsIncreasing Usage in the Production of Niobium Metal

• Niobium pentoxide, especially industrial grade, is used mainly in producing niobium metal. Moreover, niobium pentoxide (99.9%) is also used to produce niobium metal for higher quality requirements. For the electrothermic and metallothermic manufacture of niobium metal, technical quality niobium pentoxide (98-99%) is suitable.
• Niobium metal offers high-temperature resistance, corrosion resistance, oxidation resistance, improved creep resistance, and reduced erosion at high temperatures.
• Niobium metal has good resistance to corrosive chemicals, even at high temperatures, and is, therefore, used to construct chemical equipment. Specifically, niobium metal plates, sheets, wire, rods, and tubing are used in sputtering targets, cathode protection systems for large steel structures, and chemical processing equipment. Moreover, it is also used for medical implants.
• With the growing construction activities globally, the demand for niobium-based alloys and their products is projected to increase during the forecast period. For instance, the global construction market was valued at around USD 7.2 trillion in 2021. It is expected to rise at a CAGR of 3.6% in 2022. This is likely to support the demand for the market studied from various construction applications.
• As per the Organization Internationale des Constructeurs d'Automobiles (OICA), a total of 80.15 million vehicles were produced worldwide in 2021, a CAGR of 3% over 2020, thus, enhancing the demand for metallic alloys, such as niobium, which are used for various automotive parts, including the body in white, and others.
• According to the International Air Transport Association (IATA), the airline industry generated global revenue of USD 373 billion in 2020 and was expected to reach USD 472 billion by 2021, registering a CAGR of 26.7% from year to year. In addition, revenue is expected to reach USD 658 billion by 2022. Such factors are likely to increase the demand for aerospace parts based on niobium alloys, further enhancing the consumption of niobium pentoxide in the future.
• All factors mentioned above are likely to enhance the market's growth significantly.

Asia-Pacific Region to Dominate the Market

• The Asian-Pacific region is expected to dominate the market. In the region, China is the largest economy in terms of GDP. China and India are among the fastest emerging economies in the world.
• Niobium-based HSLA steels are mainly used in automotive and construction activities, among other activities. Specifically, about 80% of all automotive sheet steel grades are regularly micro-alloyed with niobium. HSLA steels are used to manufacture fuel-efficient, safe, and long-lasting vehicles.
• China is the largest manufacturer of automobiles globally. The country's automotive sector has been shaping up for product evolution, with the country focusing on manufacturing products to ensure fuel economy while minimizing emissions, owing to the growing environmental concerns.
• In 2021, according to the OICA, the automotive production in the country reached 26.08 million, which increased by 3%, compared to 25.23 million vehicles produced in 2020. The increase in automotive production is estimated to drive the demand for the market studied in the country from high-end vehicle manufacturing.
• According to the OICA, around 43,99,112 vehicles were produced in 2021, which increased by 30% compared to 33,81,819 units manufactured in 2020. The increasing automotive sector is expected to augment the market in the forecast period. Moreover, the government's reforms, such as "Aatma Nirbhar Bharat" and "Make in India" programs, are likely to boost the automotive industry, which will further support the demand for niobium pentoxide-based niobium alloy from automotive applications.
• Due to all such factors, the market for niobium pentoxide in the region is expected to have steady growth during the forecast period.

Competitive Landscape

The niobium pentoxide market is consolidated in nature. Some of the major players in the market include CBMM, AMG NV, JX Nippon Mining & Metals, MITSUI Mining & Smelting Co. Ltd, and F&X Electro-Materials Ltd, among others (not in any particular order).

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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