|Study Period:||2016 - 2026|
|Fastest Growing Market:||Middle-East and Africa|
|Largest Market:||Middle-East and Africa|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The Barite market is projected to register a CAGR of over 4% during the forecast period (2021-2026).
COVID-19 has negatively impacted the barite market. The barite market is used in the drilling mud while extracting oil from the ground. The oil demand in 2020 fell by 57%, according to the International Energy Agency. Oil demand declined due to the lockdown and travel restrictions imposed by governments across the world to reduce the spread of the virus. Furthermore, the chemical industries have been shut down due to COVID-19 and resulted in less production of chemicals. The restrictions and the lockdowns being lifted across the globe is a positive sign for the barite market.
- Over the long term, the major factors driving the barite market are the growing demand from the oil and gas drilling activities and its growing usage in the plastics industry.
- The presence of close substitutes, such as celestite and iron ore, could act as an obstacle to the growth of the barite market.
- Studies revealing the combination of barite with iodine to help block radiation in diagnostic tests may act as an opportunity for the barite market in the medical sector.
- Middle East & Africa is forecast to be the largest market for barite, owing to the growing oil and gas industry where barite plays a very crucial role.
Scope of the Report
Barite is a mineral consisting of barium sulfate, typically occurring as colorless prismatic crystals or thin white flakes. Barite is usually used as an additive in drilling mud, as barite increases the hydrostatic pressure, allowing it to compensate for high-pressure zones experienced during the drilling. The market is segmented by type of deposit, end-user industry, and geography. By type of deposit, the market is segmented into vein, residual, bedded, and other types of deposit. By end-user industry, the market is segmented into oil and gas, chemical, rubber, and other end-user industries. The report also covers the market size and forecasts for the barite market in 16 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of revenue (USD million).
|Oil and Gas|
|Other End-user Industries|
Key Market Trends
High Demand from the Oil and Gas Industry
- Barite has huge demand in oil and gas drilling operations as a weighing agent in the drilling mud. It prevents the explosive release of oil and gas during drilling, and it has unique physical and chemical properties such as high specific gravity, chemical and physical inertness, low solubility, and magnetic neutrality.
- About 80% of the global demand is from the petroleum industry. The worldwide demand for barite would continue till petroleum products are preferred as the chief source of energy, given their importance in the transportation and industrial end-use sectors.
- The properties like non-corrosiveness, non-abrasiveness, insolubility in water, inertness, and high specific gravity enable barite’s application as a weighting agent in drilling operations to remove the cutting from the bits, transport cutting to the surface to reduce the friction in the drilling string, control pressure, prevent blow-out and at the same time to provide lubrication.
- The prospectus for the future growth of the petroleum industry suggests that petroleum exploration will continue to grow and simultaneously the consumption of barite. Furthermore, more drilling must be done per unit of oil as hydrocarbon discoveries become less productive with time.
- Daily global demand for crude oil (including biofuels) in 2019 was 99.7 million barrels per day; this value fell to 91 million barrels per day in 2020 due to the lockdown and mobility impacts of COVID-19 and is anticipated to reach above 96.5 million barrels per day in 2021.
- Hence, the rising demand for barite from the oil and gas industry globally is expected to drive market growth during the forecast period.
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The Middle Eastern Region to Dominate the Market
- The Middle East has the largest market share in the barite market owing to its dominance of over 30% in global oil production. This is due to the presence of some leading oil-producing nations of the world in this region, like Saudi Arabia, Iran, Iraq, Kuwait, and the United Arab Emirates.
- It was estimated that among OPEC’s total oil reserves, the majority was held by the Middle Eastern nations. The proven oil reserves of this region were valued at about 113.2 billion metric ton.
- As of 2020, Saudi Arabia produced roughly 9.21 million barrels of oil per day, accounting for 15% of the global output, making it the largest oil producer globally.
- Around 8.5 million barrels per day were produced by Saudi Arabia. According to the United States Energy Information Administration, in the first quarter of 2021, Saudi Arabia produced around 8.49 million barrels, accounting for 31% of the Middle Eastern output.
- In fact, the Middle East produces one-third of the world’s total oil production, which was estimated to be roughly around 25.98 million barrels per day in 2020.
- Growth was witnessed in the Middle Eastern crude oil production in the first quarter of 2021, with 26.55 million barrels per day, indicating a growth in demand for barite.
- Global oil demand in 2021 is estimated to be around 96.5 million barrels per day. This is likely to fuel the production from the oil and gas industries of the Middle Eastern countries, which is expected to increase the consumption of barite in this region.
- Hence, with the rising demand from various industries, the demand for barite is expected to grow considerably in the Middle East & African region over the forecast period.
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The barite market is partially consolidated. Some of the companies in the market include Sachtleben Minerals GmbH & Co. KG, Milwhite Inc., Cimbar Performance Minerals, New Riverside Ochre, and Newpark Resources Inc.
- In September 2019, Cleansorb Limited, a UK-based chemicals company that serves the oil and gas industry, was acquired by Newpark Resources Inc. under the fluid systems department of the company.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Rapidly Increasing Demand from the Oil and Gas Industry
4.1.2 Growing Use in the Plastic Industry
4.2.1 Availability of Close Substitutes
4.2.2 Unfavorable Conditions Arising Due to COVID-19
4.2.3 Other Restraints
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION
5.1.4 Other Types
5.2 End-user Industry
5.2.1 Oil and Gas
5.2.4 Other End-user Industries
220.127.116.11 ASEAN Countries
18.104.22.168 Rest of Asia-Pacific
5.3.2 North America
22.214.171.124 United States
126.96.36.199 United Kingdom
188.8.131.52 NORDIC Countries
184.108.40.206 Other CIS Countries
220.127.116.11 Rest of Europe
5.3.4 South America
18.104.22.168 Rest of South America
5.3.5 Middle East & Africa
22.214.171.124 Saudi Arabia
126.96.36.199 United Arab Emirates
188.8.131.52 Rest of Middle East & Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share Analysis**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Andhra Pradesh Mineral Development Corporation Ltd
6.4.2 Anglo Pacific Minerals Ltd
6.4.3 ALCOR MINERALS
6.4.4 Cimbar Performance Minerals
6.4.5 DESKU GROUP INC.
6.4.6 Halliburton Energy Services Inc.
6.4.7 International Earth Products LLC
6.4.8 Kaomin Industries LLP
6.4.9 Milwhite Inc.
6.4.10 Newpark Resources Inc.
6.4.11 New Riverside Ochre
6.4.12 Pands Group
6.4.14 PVS Global Trade Pvt Ltd
6.4.15 Sachtleben Minerals GmbH & Co. KG
6.4.16 Schlumberger Limited
6.4.17 Sojitz Corporation
6.4.18 Spectrum Chemical Manufacturing Corp.
6.4.19 The Cary Company
6.4.20 The Kish Company Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The barite market market is studied from 2016 - 2026.
What is the growth rate of barite market ?
The barite market is growing at a CAGR of >4% over the next 5 years.
Which region has highest growth rate in barite market ?
Middle-East and Africa is growing at the highest CAGR over 2021- 2026.
Which region has largest share in barite market ?
Middle-East and Africa holds highest share in 2020.
Who are the key players in barite market ?
Are the major companies operating in barite market .