Molybdenum is a silvery-gray metal known for its hardness. It is used as an alloying material to strengthen steel and cast irons. Molybdenum alloys provide excellent corrosion resistance and high strength at elevated temperatures. Common applications of molybdenum include jet engine parts, furnace coils, heat exchanger tubes and x-ray machine components. It plays a key role in applications requiring strength and ductility at high temperatures.

The global molybdenum market is estimated to be valued at US$ 364.04 Mn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics: The increasing use of molybdenum in steel alloy applications such as pipelines, construction components, industrial machinery and transportation equipment is expected to be a major growth driver for this market. Molybdenum steel alloys possess strength and durability properties that make them suitable for applications that require resistance to corrosion and high temperatures. This has led to rising demand from end-use industries such as oil & gas, construction, automotive and aerospace. According to the International Molybdenum Association, molybdenum consumption in construction sector is estimated to grow at a rate of 5% over the forecast period owing to rapid infrastructure development activities around the world. The market is also expected to benefit from growing demand for specialty steel in the energy sector.

SWOT Analysis

Strength: Molybdenum is an important structural metal due to its high melting point, and is thereby used as an alloying agent in steel manufacturing. Molybdenum also has natural resistance to corrosion which makes it ideal for applications in harsh environments. Molybdenum and its alloys have great resistance to heat and are used to manufacture appliances and industrial machinery that function in high temperature applications.

Weakness: The mining of molybdenum requires a lot of excavation efforts as the deposits occur in underground mines. Extraction of molybdenum can have impacts on air and water quality in surrounding areas. Fluctuations in raw material and energy costs affects profit margins for molybdenum producers.

Opportunity: Growth of steel and non-ferrous metal industries is expected to drive demand for molybdenum used in alloying steel and other metals. Expanding application scope in chemical and petrochemical industries as a catalyst also presents new opportunities. Countries investing heavily in infrastructure could augment construction material demand including construction-grade steel with molybdenum content.

Threats: Volatility in steel prices impact molybdenum consumption cycles in short term. Political unrest or supply disruption in major molybdenum producing regions can affect global supply and pricing. Substitute materials threaten market share in certain applications.

Key Takeaways

The global Molybdenum market size is expected to witness high growth over the forecast period of 2024 to 2031. The global molybdenum market is estimated to be valued at US$ 364.04 Mn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2024 to 2031.

Regional analysis suggests Asia Pacific region currently dominates the global market share due to large concentration of steel production in China, India and other Asian countries driving molybdenum consumption. Growth rates are projected to be higher in Asia Pacific and Central and South America regions over the forecast period.

Key players operating in the Molybdenum market are Baxter International Inc., GlaxoSmithKline plc, Novartis AG, Perrigo Company plc, Caleb Pharmaceuticals, Inc., Myungmoon Pharma Co. LTD., Alchem International, Phytex Australia, Centroflora-Cms, Alkaloids of Australia, and Fine Chemicals Corporation. The global molybdenum market is highly consolidated with the top five players accounting for over half the market share. Mergers and acquisitions along with product expansion strategies have been followed by key players to expand business overseas.

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