July 25, 2024

Molybdenum Market Driven By Infrastructure Development Is Estimated 

Molybdenum is an integral component in the production of steel. It enhances the hardness, durability and corrosion resistance of steel when alloyed with it. Molybdenum is used across various applications such as construction, transportation, infrastructure and industrial machinery where high strength and temperature resistant steel is required. Rising investments in infrastructure projects around the world has driven the demand for molybdenum notably in developing economies.

The global molybdenum market consists of molybdenum in its unwrought or wrought forms which find applications in construction, transportation, machinery manufacturing and others. Molybdenum alloyed steel exhibits high tensile strength even at elevated temperatures making it ideal for pipelines, pressure vessels and other structural applications. It also possesses non-magnetic and low friction properties beneficial for industrial bearings. The rising investments in renewable energy projects has further augmented the consumption of molybdenum steel in wind turbine parts and other equipment.

The global Molybdenum Market is estimated to be valued at US$ 316 Billion in 2023 and is expected to exhibit a CAGR Of 9.2% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Steel remains the primary end-use sector accounting for over 70% of global molybdenum consumption. One of the key trends driving the molybdenum market growth is the increasing demand for high strength steel from the automotive industry. Automakers are utilizing advanced high strength steel (AHSS) grades containing molybdenum and other alloying elements to manufacture lighter vehicles with improved fuel efficiency and crashworthiness. The stringent carbon emission standards coupled with growing demand for Electric Vehicles (EVs) have accelerated the replacement of conventional steel with advanced variants. This is anticipated to support the market gain of molybdenum over the forecast period.

Porter’s Analysis

Threat of new entrants: Low barriers to entry exist in the molybdenum market due to low switching cost and capital requirement. However, established players enjoy economies of scale.

Bargaining power of buyers: Large mining companies and steel producers possess significant bargaining power over molybdenum suppliers due to their concentrated demand.

Bargaining power of suppliers: Few large mining companies globally control molybdenum supply. Suppliers thus enjoy high bargaining power over buyers.

Threat of new substitutes: Threat of substitutes is low as molybdenum possesses properties distinct from alternatives in steel making and chemical applications.

Competitive rivalry: The market remains consolidated with few global players. Competition intense based on mining output, production costs and strategic partnerships.

Key Takeaways

The Global Molybdenum Market Demand is expected to witness high growth. The market size is projected to reach US$ 316 Bn in 2023 and grow at a CAGR of 9.2% during the forecast period.

Regional analysis:

 

North America dominates global demand for molybdenum owing to robust steel manufacturing industry in the US. Asia Pacific is the fastest growing market led by China, which accounts for over 50% of global steel production.

Key players:

 

Key players operating in the molybdenum market are Marriott International, Inc., Hilton Worldwide Holdings Inc., Accor S.A., InterContinental Hotels Group PLC, CWT (formerly Carlson Wagonlit Travel). Marriott International and Hilton Worldwide are the largest hotel chains globally.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it