Niobium Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The niobium market size was estimated at over 120 kiloton in 2020, and the market is projected to register a CAGR of over 5% during the forecast period.

The market was negatively impacted by COVID-19 in 2020. Owing to the pandemic scenario, several countries across the world went into lockdown, which led to a decrease in the demand for niobium from various end-user industries, as all the manufacturing and construction activities were put on hold. This created a negative impact on the niobium market. However, the condition is expected to recover in 2021, thereby driving the market studied during the forecast period.

• Over the medium term, accelerating usage in structural steel and increased usage in aerospace applications are driving the market's growth.
• On the flip side, limited supply sources and the impact of the COVID-19 pandemic are hindering the growth of the market studied.
• The construction industry dominated the market, and it is expected to grow at a healthy rate during the forecast period, as niobium-based alloys are exceptionally meeting the challenges regarding fire resistance and seismic requirement of modern artistic construction.
• 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.

Scope of the Report

Niobium is a gray, lustrous, ductile metal with relatively low density, high ductility, high melting point, and superconductor properties. Niobium is majorly extracted from pegmatite minerals, such as columbite-tantalite and pyrochlore. This is a relatively rare mineral, and the order of abundance is around 24 parts per million. The niobium market is segmented by occurrence, type, application, end-user industry, and geography. By occurrence, the market is segmented by carbonatites and associates and columbite-tantalite. By type, the market is segmented by ferroniobium, niobium oxide, niobium metal, and vacuum grade niobium alloys. By application, the market is segmented by steel, superalloys, superconducting magnets, capacitors, glass, and other applications. By end-user industry, the market is segmented by construction, automotive and transportation, aerospace and defense, oil and gas, and other end-user industries. The report also covers the market size and forecasts for the niobium market in 16 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (metric ton).

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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. Heavy machinery, pressure vessels, etc., represent additional applications of microalloyed plates.
• Structural sections are widely used in civil construction, railway wagons, transmission towers, etc., where niobium competes with vanadium. Similarly, a steel reinforcing bar is used in large concrete structures to increase their resistance to tensile loads. Larger diameter, high-strength grades are produced via the addition of niobium and/or vanadium, although some modern steel mills also use water cooling, which negates the need for microalloying. Finally, niobium has also found application in high-strength and wear-resistant rails for railway tracks operating under high axle loads.
• 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 HSLA steel, which provides cost savings through reduction of weight in buildings while also preventing infrastructure failures.
• The Chinese government has rolled out massive construction plans, including making provisions for the movement of 250 million people to its new megacities over the next ten years, creating a major scope for the market studied.
• The construction sector in North America has witnessed significant growth in the past few years. According to the United States Census Bureau, the value of the construction industry in the United States increased from USD 1,007.62 million in 2014 to USD 1,306.03 million in 2019. The total residential housing units authorized by building permits in March 2020 were at a seasonally adjusted annual rate of 1,353,000, representing 5% growth over the March 2019 rate of 1,288,000. The total number of privately‐owned housing starts in March 2020 was at a seasonally adjusted annual rate of 1,216,000, representing 1.4% growth over the March 2019 rate of 1,199,000.
• The factors driving the building and construction industry are the ever-increasing populations, rapid urbanization, and the rise in purchasing power. As a result of which, investments in infrastructure are being made and are in the pipeline.
• Adding to these, several vanity projects in the Middle East and building of commercial constructions, such as airports, etc., are expected to drive the market in the future.
• Therefore, such robust growth in construction across the world is likely to boost the demand for the consumption of niobium during the forecast period.

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