Barite Market Analysis
The global barite market will reach revenues worth US$ 2 Bn in 2030, following a stable growth trail. While the market would continue to witness sizeable revenue contribution by the oil & gas industry - identified as the largest end-use sector worldwide, this sector has been under constant pressure to satiate the global demand for petrochemicals by auto & transportation industry. The oil & gas production levels thus constantly demand a considerable surge. Besides its application as drilling mud in production of oil & gas, leading manufacturers of barite are focusing on extended applicability to cover paper, textile, pharmaceuticals, and paints industries to survive stiff market competition.
Key Research Findings
- The global barite market will register over US$ 2 Bn revenues in 2030
- Increasing production of oil & gas would be the key factor propelling market growth
- Barite powder continues to capture a greater revenue share over barite lumps
- Grade SP 4.3 and above barite would generate greater returns to shareholders
- Drilling mud would be the major application area for barite throughout the forecast period
- Barite market in North America reflects highly lucrative prospects; Asia Pacific (APAC) is developing as a potential growth hub for market players
Key Factors Shaping Barite Market
Sudden Fall in Drill Rig Count in North America
The U.S. has increased its oil & gas production significantly in the past few years due to advances in hydraulic fracturing and horizontal drilling. It has started exploiting its tight resources of shale gas to meet the rising demands for energy. This has led to excessive production of oil & gas in the Middle East, surpassing the demand for it and causing a decline in prices. As a result, the drill rig count in the U.S. and Canada has witnessed a sharp fall. For Instance, in the U.S., the drill rig count fell from 1683 to a minimal 714 in the recent year, leading to reduced consumption of barite for drilling mud.
Rise in Demand for Barite in Latin America
Mexico is a major producer of oil & gas in Latin America. The country possesses 1,500 million tons of oil, 11.4 trillion cubic feet of natural gas, and 545.2 trillion cubic feet of wet shale gas reserves. Mexico is expected to gain significant foreign investment from other countries for oil & gas production.
Increasing Demand from Paints and Rubber & Plastics Industries in Europe
In Europe, more than 25% of barite is consumed in applications such as paints & coatings (as a filler), rubber & plastics (as a filler), pharmaceuticals, and automotive. Paints & coatings and plastics & rubber sectors in the region are expanding, which offers significant growth opportunities to the barite market in the region.
Rising Captive Consumption of Barite in China
The energy demand in China is increasing at a significant rate, owing to rapid industrialization. This has forced the country to get the energy demand fulfilled from shale gas and natural gas. China has approximately 1115.2 trillion cubic feet of wet shale gas reserves, the maximum capacity in the world. The country is planning to drill thousands of shale gas wells in the near future to reduce its energy dependency on coal as well as other countries. This would lead to high rise in captive consumption of high-grade barite i.e. Sp. Gr. 4.2 and Sp. Gr. 4.3 & above grade barite, as these grades most effectively help counteract high-pressure zones encountered while drilling.
Demand from Oil & Gas Drilling
Middle East & Africa is a leading producer of oil & gas in the world. The region consumes more than 83% of the total barite, in terms of volume, for drilling mud application. GCC is a leading consumer of barite in Middle East & Africa. Along with GCC, countries such as Nigeria, Angola, and Algeria are major consumers of barite in Africa.
Impact of COVID-19 Pandemic on Barite Market
The COVID-19 pandemic has affected a majority of countries in Europe, Asia, North America, and the Middle East. This pandemic is drastically hampering the global economy and has led to a shutdown of worldwide activities. The new or ongoing projects across oil & gas, underground projects value chain and supply & demand scenario are facing several challenges in terms of planning, project execution, and from the risk management aspect due to the pandemic. Therefore, COVID-19 is negatively impacting the service industry, drilling projects, exploration projects, and in turn, the long term supply contracts of players offering barite.
Barite Market Structure Analysis
- The global barite market is highly competitive due to the presence of a large number of players. The Andhra Pradesh Mineral Development Corporation Limited, Halliburton, Sojitz Corporation, Anglo Pacific Minerals, Baker Hughes Incorporated, China Shen Zhou Mining and Resources, Inc., and Schlumberger Limited are some of the industry leaders operating the global barite market.
- The market participants in the barite market are maintaining strategic focus on technological developments, joint ventures, new product developments, and acquisition deals in order to strengthen their market positioning.
Report Scope
|
Report Metric |
Details |
|
Base year considered |
2019 |
|
Actual estimates/Historical data |
2015 - 2019 |
|
Forecast period |
2020 - 2030 |
|
Forecast units |
Value (USD) Mn |
|
Segments covered |
Form, Grade, Application, and Region |
|
Regions covered |
North America (US & Canada), Europe (UK, Germany, France, Spain, Italy, Russia, BENELUX and Rest of Europe), Latin America (Brazil, Mexico, and Rest of LA), East Asia (China, Japan and South Korea) South Asia & Pacific (India, Indonesia, Malaysia, Thailand, Australia and New Zealand and Rest of South Asia & Pacific), and MEA (GCC, South Africa, Turkey, Northern Africa and Rest of MEA) |
|
Report coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
Barite Market Share by Grade
High specific gravity (SP) attribute is associated with superior quality. Grade SP 4.3 and above barite is broadly utilized in use cases including, computer monitors, automotive sound proofing material, and manufacturing of brake linings. By 2030, sales of high grade barite would account for around US$ 1 Bn in revenues. On the other hand, low grade barite (SP 3.9-4.2) is gaining traction in the oil & gas industry, as it is relatively cheaper as compared to grade SP 4.3 and above barite.
Regional Analysis of Barite Market
Upsurge in shale gas production in the US and growth in infrastructure projects that spur the paints & coatings industry are primarily fueling North American market. FMI finds that about 400,000 tons of industrial high grade barite is produced in the US, and Canada. Whereas, rapid pace of industrialization in East Asia is translating into substantial energy demand in the region. China houses a colossal capacity of wet shale gas and is looking to introduce further exploration projects. These activities are accelerating barite consumption by East Asian markets.
Barite Market Trends Defining Competition
Global barite market is highly fragmented, and the number of players is gradually increasing. This intense competition is influencing barite manufacturers to explore new revenue streams in several use cases. Case in point, barite is also utilized as a filler to be added during production process of industrial rubber. Its high-density aspect has made it commonplace in preparation of heavy concrete and cement that are further utilized in heavy construction machinery. Furthermore, barite is being used as a lining material in the automotive industry for containing radioactive constituents.
Barite powder captures leading value share
Barite lumps to show greater CAGR
High grade barite to remain high in demand
Low grade barite to falter gradually
Drilling mud would remain key application area
Adoption in rubbers & plastics to rise
How Growth will Unfold
The non-magnetic nature of barite makes it a favored choice for hole-drilling operations. As such alternative materials including, celestite, iron powder and synthetic hematite, pose meagre impact on barite adoption in drilling mud industry. About 7 out of 10 barite manufacturers are heavily investing in the industry, owing to the ever-growing demand for energy, as well as oil & gas across continents. Moving on, market players are also unpacking growth potential in the pharmaceutical, and paint & coating industries.
* This data is only a representation. Actual data may vary and will be available in report.
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Overview
A recent market study published by FMI on the Barite market includes the global industry analysis of 2015-2019 & opportunity assessment for 2020-2030, and delivers a comprehensive assessment of the most important market dynamics. Our analysts conduct thorough research on the historical as well as current growth parameters of the market to obtain growth prospects with maximum precision.
Barite Market Taxonomy
Form
- Lumps
- Powder
Grade
- Up to SP 3.9
- SP 4.0
- SP 4.1
- SP 4.2
- SP 4.3 and Above
Application
- Drilling Mud
- Pharmaceuticals
- Rubbers & Plastics
- Paints & Coatings
- Textiles
- Others
Region
- North America
- Latin America
- Europe
- East Asia
- South Asia & Pacific
- MEA
What's Included
The report initiates with the executive summary of the Barite market, which includes a summary of the key findings and statistics of the market. It also includes the demand & supply-side trends pertaining to the Barite market.
In this chapter, readers can find the definition and a detailed taxonomy of the Barite market, which will help them understand the basic information about the Barite market. Along with this, comprehensive information about Barite is provided in this section. This section also highlights the inclusions and exclusions, which help readers understand the scope of the Barite market report.
The Barite market report provides key market trends that are expected to significantly impact market growth during the forecast period. Detailed industry trends are provided in this section.
This section includes key successful factors and strategies adopted by key market participants.
This section explains the global market value analysis and forecast for the Barite market for the forecast period of 2020-2030. This chapter includes a detailed analysis of the historical Barite market, along with an opportunity analysis for the future. Readers can also find the absolute $ opportunity for the current year (2019), and an incremental $ opportunity for the forecast period (2019-2029). Along with this, pricing analysis of the Barite market at the regional level has been provided in this section. This section also explains the global market volume analysis and forecast for the Barite market in the forecast period of 2020-2030.
This chapter explains key macroeconomic factors that are expected to influence the growth of the Barite market over the forecast period. Along with the macroeconomic factors, this section also highlights supply chain, forecast factors, and value chain analysis for the Barite market. Moreover, in-depth information about the market dynamics and their impact analysis on the market have been provided in the successive section.
This chapter provides details about the Barite market on the basis of Form and has been classified into Lumps and Powder. In this chapter, readers can understand the market attractiveness analysis based on Form.
This chapter provides details about the Barite market on the basis of Grade and has been classified into Up to SP 3.9, SP 4.0, SP 4.1, SP 4.2, and SP 4.3 and above. In this chapter, readers can understand the market attractiveness analysis based on Grade.
This chapter provides details about the Barite market based on material and has been classified into Drilling Mud, Pharmaceuticals, Rubbers & Plastics, Paints & Coatings, Textiles and Others.
This chapter explains how the Barite market will grow across various geographic regions such as North America, Latin America, Europe, East Asia, South Asia & Pacific, and the Middle East & Africa (MEA).
This chapter includes a detailed analysis of the growth of the North America Barite market, along with a country-wise assessment that includes the U.S. and Canada. Readers can also find the pricing analysis, regional trends, and market growth based on material and countries in North America.
This chapter provides the growth scenario of the Barite market in Latin American countries such as Brazil, Mexico, and the Rest of Latin America. Along with this, an assessment of the market across target segments has been provided.
Important growth prospects of the Barite market based on its end users in several countries such as Germany, Italy, France, the U.K., Spain, Nordic, Russia, and the Rest of Europe are included in this chapter.
This chapter highlights the growth of the Barite market in East Asia by focusing on China, Japan, and South Korea. This section also helps readers understand the key factors that are responsible for the growth of the Barite market in East Asia.
This chapter highlights the growth of the Barite market in South Asia by focusing on India, ASEAN, Australia, New Zealand, and the Rest of SA. This section also helps readers understand the key factors that are responsible for the growth of the Barite market in South Asia & Pacific.
This chapter provides information about how the Barite market will grow in major countries in the MEA region such as GCC Countries, Turkey, Northern Africa, South Africa, and the Rest of MEA, during the forecast period of 2020-2030.
In this chapter, readers can find detailed information about the tier analysis and market concentration of key players in the Barite market, along with their market presence analysis by region and product portfolio.
In this chapter, readers can find a comprehensive list of all the prominent stakeholders in the Barite market, along with detailed information about each company, which includes company overview, revenue shares, strategic overview, and recent company developments. Some of the market players featured in the report are The Andhra Pradesh Mineral Development Corporation Limited, Halliburton, Sojitz Corporation, Anglo Pacific Minerals, Baker Hughes Incorporated, China Shen Zhou Mining and Resources, Inc., Schlumberger Limited, Excalibar Minerals LLC, Ashapura Minechem Limited, Abhirama Pulapathuri™ Group, Eagle Petrochem, Guizhou Toli, Yongan Viaton Minerals Company Limited, and Others.
This chapter includes a list of acronyms and assumptions that provides a base to the information and statistics included in the Barite market report.
This chapter help readers understand the research methodology followed to obtain various conclusions as well as important qualitative and quantitative information about the Barite market.
How the research was conducted?
Primary Research
- C - Level Executives
- Marketing Directors
- Product Managers
- Engineers
- Business Development Officers
- Production Managers
- Procurement Heads
- Sales Executives
- Distributors
- Traders
- Raw Material Suppliers
- Industry Experts
- End Users
- Current market dynamics and challenges
- Yesteryear trends
- Market characteristics
- Market performance and growth quadrants
- Competition structure and market structure
- Strategic growth initiatives
- Near-term and long-term market growth prospects
- Market segment splits and authenticity
- Opinions on market projections and validity of assumptions
Secondary Research
- Industry Publications
- Industry Associations
- OICA
- International Trade Association
- Factiva
- Company Press Releases
- Annual Reports and Investor Presentations
- Research Papers
- Government Websites and Publications
- Trade Websites
Primary Interview Splits
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