Niobium Market Report: Growth Opportunities and Trends

The niobium market was estimated to be over 120 kiloton in 2020 and is expected to grow at a CAGR of over 5% during the forecast period. The market experienced a decline in 2020 due to the pandemic scenario that put a halt to manufacturing and construction activities. However, the market is expected to recover in 2021, driving its growth in the coming years. Here are some key highlights and trends in the niobium market:

Key Highlights:

Accelerating usage in structural steel and increased usage in aerospace applications are driving the market growth.
Limited supply sources and the impact of the COVID-19 pandemic are hindering the growth of the market.
The construction industry dominated the market, and it is expected to grow at a healthy rate during the forecast period.
Increasing demand for high strength and lightweight steel in oil and gas pipelines is likely to act as an opportunity in the future.
Asia-Pacific dominated the market with the largest consumption from countries, such as China and Japan.
Key Market Trends:

Construction Sector to Dominate the Market

The construction industry is the largest consumer of niobium across the world. The major application of niobium is in the production of steel. About half of all steel produced worldwide goes to the construction industry. High-strength niobium microalloyed plate products are used in the construction of bridges, viaducts, high-rise buildings, etc. The building and construction industry is currently a thriving industry in several emerging economies of the Asia-Pacific and European regions, and this is going to drive the demand for high-strength low-alloy (HSLA) steel, which provides cost savings through reduction of weight in buildings while also preventing infrastructure failures.

Asia-Pacific to Dominate the Market

Asia-Pacific dominated the global market. With accelerating usage in structural steel and growing usage in the automobile and aerospace industry in countries such as China, India, and Japan, the consumption of niobium is increasing in the region. The infrastructure sector is an important pillar of the Indian economy. The government is taking various initiatives to ensure the timely creation of excellent infrastructure in the country. The government is focusing on railways, road development, housing and urban development, and airport development. Currently, China is majorly focusing on increasing the production and sale of electric vehicles in the country. For this purpose, the country planned to increase the production of electric vehicles (EVs) and build charging stations in various cities.

In conclusion, the niobium market is expected to witness significant growth during the forecast period. The construction industry, particularly in the Asia-Pacific region, is expected to be the largest consumer of niobium, driving its demand. However, limited supply sources and the impact of the COVID-19 pandemic could hinder the growth of the market.