Niobium Market - Forecast(2023 - 2028)

Niobium Market Overview

The niobium market size is forecast to reach US$1.7 billion by 2027 after growing at a CAGR of 5.1% during 2022-2027. Niobium is a gray, lustrous transition metal with robust properties of conductivity, resistance to corrosion, hardness, and high melting point. These superior properties determine their higher uses in several high-end applications such as the production of steel, superalloys, superconducting magnets, surgical implants, and many other applications. Niobium finds its extensive use in the production and refinement of steel. These steels are later used in several end-use industries such as construction, aerospace, and automobile. The construction industry is one of the largest markets that utilize steels produced using niobium in a wide variety of construction applications. This sector is exhibiting exceptional growth owing to the increasing investments and new project announcements and this is expected to drive the market’s growth during the forecast period. For instance, as per the report by India Brand Equity Foundation, FDIs received by India in the construction development sector (townships, housing, built up infrastructure and construction development projects) amounted to USD 26.14 billion between April 2000 and June 2021. Another major sector that is driving niobium’s higher uses is the aerospace and defense industry. Niobium contained in iron, cobalt, and nickel-based superalloys is utilized in high-temperature applications such as flying gas turbines, jet engine components, and rocket subassemblies. The aerospace and defense sector witnessing a massive boost globally with increasing demand for aircraft and space activities and this is expected to be another key factor in driving the market’s growth during the forecast period.  For instance, as per Boeing’s Commercial Market Outlook 2021-2040 report, the commercial fleet in the world is projected to touch 49,000 airplanes by 2040. The complicated extraction process of niobium might hamper the market’s growth during the forecast period.

COVID-19 Impact

The niobium market got badly affected due to the COVID-19 pandemic as several challenges such as disruption in the supply chain and factory shutdown surfaced in the market. Market players were forced to adopt new work strategies to maintain a standard business operation during the pandemic. As per the April 2020 COVID-19 report by China Molybdenum Company Limited, the company established a team that coordinated efforts from every level of business units. The report also mentioned that all its operational sites are globally confronted with challenges due to the unprecedented circumstances amid the pandemic. The market witnessed decent growth towards the end with high expansion of various end-use industries. Going forward, the market is projected to witness robust demand with a massive boost in the construction and automobile industry globally.

Niobium Market Report Coverage

The report: “Niobium Market Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Niobium Industry. 

By Type: Niobium Alloys, Niobium Metal, Niobium Chemicals, Vacuum Grade Niobium, Others

By Occurrence: Carbonatites and Associates, Columbite-Tantalite, Others

By Application: Steel, Superalloys, Superconducting Magnets, Capacitors, Surgical Implants, Glass, Others

By End Use Industry: Construction, Residential, Commercial, Office, Hotels and Restaurants, Concert Halls and Museums, Educational Institutes, Automobile, Passenger Vehicle, Commercial Vehicle, Light Commercial Vehicle, Heavy Commercial Vehicle, Industrial, Aerospace and Defense, Oil and Gas, Marine, Healthcare, Jewellery, Chemical, Others

By Geography: North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of Asia Pacific), South America (Brazil, Argentina, Colombia and Rest of South America), and RoW (Middle East and Africa).

Key Takeaways:

• The steel application is expected to contribute immensely to the growth of the niobium market during the forecast period. As per the World Steel Association 2021 Stainless Steel Figures report, 1878 million tonnes of crude steel were produced in 2020 globally which was 1869 million tonnes in 2019.
•  The aerospace and defense sector will drive the growth of the market during the forecast period. For instance, according to the Airbus Global Market Forecast 2021-2040 report, around 15250 new aircraft are expected to be delivered in the next 20 years which will be for the replacement of older less fuel-efficient models.
•  The Asia-Pacific region is projected to witness the highest demand for niobium owing to the expanding construction sector in the region. As per the data by India Brand Equity Foundation, FDI received by India in construction (infrastructure) activities stood at USD 25.38 billion between April 2000 and June 2021.
  

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Niobium Market - By Application

The steel application segment dominated the niobium market in 2021 and is growing at a CAGR of 5.6% during the forecast period. Niobium finds its high uses in the production and refinement of steel and steel alloys globally to improve strength, toughness, corrosion resistance, and other properties. The demand for steel is increasing with the rise in production globally and this is projected to drive the growth of the market during the forecast period. For instance, as per the data by World Steel Association 2021 Stainless Steel Figures, in 2020, China, India, and Japan accounted for the top three major steel-producing countries with a crude steel production figure of 1064.8 MT, 100.3 MT, and 83.2 MT respectively. The European and the Middle East region registered high production figures with a production of 139.2 million tonnes and 45.4 million tonnes of crude steel respectively in 2020. Such increasing production of steel is expected to augment the higher uses of niobium, in turn driving the market’s growth during the forecast period.

Niobium Market - By End Use Industry

Niobium Market - By Geography

Niobium Market Drivers

Expanding aerospace and defense sector will drive the market’s growth

Booming construction sector will drive the market’s growth

Niobium Market Challenges

The complicated extraction process of niobium might hamper the market’s growth

The extraction of niobium is a critical process which is a key challenge and this might hamper the market’s growth during the forecast period. The vast amount of unexplored niobium resources are present in undiscovered deposits in the world out of which some occur in covered or remote areas, making the extraction process more challenging and expensive. As per the August 2021 article by ResearchGate, many shortcomings and challenges exist in the extraction of niobium from its minerals. The niobium mineral ores contain various impurities such as refractory metallic oxides, radioactive materials, and certain amounts of rare earth elements which further makes the extraction and processing challenges. This complicated extraction of niobium might hamper the market’s growth during the forecast period.

Niobium Industry Outlook

Investment in R&D activities, acquisitions, product and technology launches are key strategies adopted by players in the market. Niobium major players include:

• CBMM
• Global Advanced Metals Pty Ltd
• China Molybdenum Company Limited
• AMG Advanced Metallurgical Group NV
• Alkane Resources Limited
• NioCorp Developments Ltd
• Taseko Mines Limited
• Titanex GmbH
• TANIOBIS GmbH
• Others

Acquisitions/Product Launches

• In April 2021, NioCorp Developments Ltd announced that it has closed on the purchase of the land parcel on which the company’s Elk Creek Superalloy Materials Project operations will be located. This project will deal with the production of niobium, allowing the company to expand its niobium portfolio in the market.   

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