Asia-Pacific Refractory Material Market Outlook, 2029

The Asia-Pacific refractory material market is an important part of the worldwide industrial sector, supporting industries like steel, cement, glass, and nonferrous metals that require materials that can endure high temperatures. Refractory materials are designed to maintain their strength and integrity at extreme temperatures, making them indispensable in industrial furnaces, kilns, reactors, and other high-temperature environments. These economies not only have strong manufacturing sectors, but also rely heavily on industries that use refractories. Historically, China has been the leading producer and user of refractories, accounting for more than half of global demand.

The country's industrial transformation in the latter half of the twentieth century, combined with its position as the world's largest steel manufacturer, fuelled the expansion of refractory materials. The region's large supply of raw materials, such as bauxite, magnesia, and silicon carbide, has given Asia-Pacific an advantage in refractory production.

Over the decades, technical breakthroughs have resulted in the creation of high-performance refractory materials, including as alumina, silica, and zirconia-based products, to satisfy the changing needs of diverse industries. China, the world's largest manufacturer of refractories, shut down production facilities during the epidemic, resulting in a temporary supply deficit.

Similarly, India's refractory industry suffered substantial setbacks due to labour shortages and supply chain interruptions. The epidemic impeded shipping and logistics, impacting international trade, which had a significant impact on export markets as well. However, when the region recovered from the pandemic, demand for refractories increased, notably.

According to the research report " Asia-Pacific Refractory Material Market Overview, 2029,", the Asia-Pacific refractory material market is anticipated to grow at more than 5.05% CAGR from 2024 to 2029. Nanotechnology is becoming increasingly significant in the development of refractories, providing greater durability and resistance to chemical attacks. High-performance refractories, including magnesia-alumina spinel, carbon-containing refractories, and ceramic fiber-based materials, have gained popularity in the region, particularly in steelmaking and cement production. Digitalisation and sector 4.0 technologies are also changing the refractory sector in Asia-Pacific.

Several major manufacturers dominate the Asia-Pacific refractory material market. Major enterprises include RHI Magnesita, Krosaki Harima Corporation, Vesuvius PLC, Imerys, and Shinagawa Refractories Co., Ltd. These enterprises have a strong presence in the region and manufacture and offer a diverse range of refractory goods. India has also emerged as a major participant in the export of refractory materials, with products reaching markets in the Middle East and Africa. Indian enterprises are focussing on increasing their exports by improving refractory quality and matching international requirements. Asia-Pacific countries such as Japan and South Korea import some types of high-performance refractories that are not manufactured domestically.

For example, advanced refractories for the aerospace and electronics industries are frequently imported from Europe and the United States. Local suppliers in China and India provide a consistent supply of raw materials to local refractory manufacturers, whereas countries such as Japan and South Korea rely on imports for raw materials that are rare in their own markets.

Market Drivers

• Booming Steel Industry: The steel sector is the primary consumer of refractory materials. Asia-Pacific, particularly China and India, are the world's top steel manufacturers, accounting for more than 70% of total output. The ongoing expansion of steel production in these economies, aided by infrastructural development and industrialisation, drives demand for refractories.
• Rapid urbanisation and infrastructure development: Governments throughout Asia-Pacific, particularly in China, India, and Southeast Asia, have begun major infrastructure projects such as roads, bridges, airports, and trains. The demand for refractory materials is inextricably linked to cement production, which is necessary for infrastructure development.

Market Challenges

• Volatility in Raw Material Prices: The refractory business relies largely on raw materials such as magnesite, alumina, and bauxite. Refractory manufacturers face uncertainty as prices in these commodities fluctuate due to supply chain disruptions or changes in mining laws. China, a major source of magnesite, has faced production constraints due to environmental laws, contributing to price volatility.
• Environmental rules and Sustainability Concerns: Stricter environmental rules, notably in China, have an impact on refractory production. Manufacturers are now compelled to use cleaner technology and decrease emissions, increasing production costs. The requirement to decrease carbon footprints and adhere to sustainability targets presents a challenge for businesses, particularly those with limited resources to invest in green technologies.

Market Trends

• Shift to Recyclable and Sustainable Refractory Materials: The growing emphasis on sustainability is fuelling innovation in recyclable refractory materials. Companies are investing in technology that enable the reuse of refractory waste, lowering the demand for fresh raw materials. This tendency is consistent with global initiatives to promote a circular economy and reduce industrial waste.
• Shift to Recyclable and Sustainable Refractory Material: The growing emphasis on sustainability is fuelling innovation in recyclable refractory materials. Companies are investing in technology that enable the reuse of refractory waste, lowering the demand for fresh raw materials. This tendency is consistent with global initiatives to promote a circular economy and reduce industrial waste.

By form, the monolithic or unshaped segment is expected to develop at a spectacular CAGR between 2024 and 2033 in the Asia-Pacific refractory material market.

Unlike shaped refractories, which are prefabricated and hard (like bricks and blocks), unshaped materials, such as castables, ramming masses, and gunning mixtures, are pliable and can be moulded or applied on-site. This flexibility lowers the need for accurate custom shape production, making them highly desirable in industries requiring uneven furnace linings or quick repairs, such as steel, cement, and glass. Furthermore, unshaped refractories provide greater installation efficiency and less downtime for repairs or replacements. The ability to install these materials rapidly and with low interruption is a significant benefit in high-temperature sectors, where downtime can be exceedingly costly.

Unshaped refractories are also gaining popularity due to their superior thermal shock resistance and longer service life, particularly in the severe industrial settings found in Asia-Pacific's constantly expanding industrial sector. Vesuvius India Ltd. is a major participant in unshaped refractory materials, particularly in the steel and iron sectors.IFGL Refractories Ltd. (India) specialises in monolithic refractory materials for the steel and cement industries. Shinagawa Refractories Co., Ltd. (Japan) is a significant producer of unshaped refractories that supply the steel and foundry industries. RHI Magnesita (China), a global leader with a strong presence in Asia-Pacific, specialises in sophisticated unshaped refractory solutions.

The acidic and neutral segments dominate the market because demand for these materials is rapidly increasing.

Acidic and neutral refractories dominate the Asia-Pacific refractory material market due to their wide range of uses and adaptability across sectors, particularly steel, cement, glass, and non-ferrous metal manufacturing. Acidic refractories, such as silica or alumina, and neutral refractories, such as chromite or graphite-based materials, are preferred due to their chemical resistance and thermal stability in settings with acidic or neutral slags. Furthermore, acidic refractories are both inexpensive and abundant in raw materials, especially in China and India.

These materials are also very resistant to thermal shocks, which is an important element in high-temperature operations, making them an appealing choice for industries with varying thermal conditions. Neutral refractories are utilised in applications that require both acidic and basic slag resistance, increasing their adaptability in mixed environments, such as non-ferrous metal smelting.

Orient Refractories Ltd. (India) is a leading supplier of acidic and neutral refractories, notably for steel manufacture.Shandong Refractories Group Co., Ltd. (China) specialises in silica-based acidic refractories and supplies materials to the glass and ceramic industries.Jinlong Group Refractories Co., Ltd. (China) produces both acidic and neutral refractories, with a concentration on thermal-resistant products for the steel sector.IFGL Refractories Ltd. (India) is a leading producer of neutral refractories, with an emphasis on sophisticated solutions for the steel and nonferrous metal sectors.

Fireclay refractories have long dominated the Asia-Pacific refractory material industry due to their low cost, availability, and versatility.

Fireclay, which is mostly made of alumina and silica, is frequently used in industries such as steel, cement, and glass to line furnaces, kilns, and boilers. Its capacity to tolerate moderate to high temperatures, up to approximately 1,500°C, qualifies it for a wide range of high-temperature applications in various industries. One of the primary reasons for fireclay's dominance in the region is its availability. China and India, two key consumers and producers of refractory materials, have large clay mineral reserves, making fireclay refractories affordable and accessible. Fireclay is extremely easy to shape and work with, allowing producers to create a variety of shapes, such as bricks and castables, to meet a variety of industrial needs.

Its high thermal shock resistance and chemical stability lead to its widespread use. Although alumina, magnesia, and silica refractories perform better in some high-temperature applications, their higher costs and restricted raw material availability make fireclay refractories a more feasible option for many firms in Asia-Pacific.Shandong Refractories Group Co., Ltd. (China) specialises in the manufacture of fireclay-based refractories for a variety of industries such as cement and glass.

IFGL Refractories Ltd. (India) manufactures a variety of fireclay refractories, with a focus on low-cost solutions for high-temperature applications. Shinagawa Refractories Co., Ltd. (Japan) is a prominent participant in fireclay refractories, serving the glass and ceramics industries. Jinlong Group Refractories Co., Ltd. (China) focusses on fireclay products for the steel and nonferrous metal industries.

In the Asia-Pacific refractory material market, Metals & Metallurgy is the main end-use industry, backed by the region's massive steel and aluminium output.

Asia-Pacific, particularly China, India, Japan, and South Korea, is a worldwide metals manufacturing hub, with China alone accounting for more than half of global steel production. The need for refractories in this sector is driven by their critical function in furnace linings, ladles, kilns, and other high-temperature processing equipment in the metallurgy industry.

Refractories in the metals and metallurgy industry must tolerate extremely high temperatures, frequent thermal cycling, and exposure to corrosive slags and metal melts, making them critical for furnace and smelting operations. Basic refractories, such as magnesia and dolomite, are especially popular in this industry due to their resilience to high temperatures and basic slags.

Furthermore, the region's rapid industrialisation and infrastructure development are driving up demand for steel and other metals, supporting the dominance of this end-use sector in the refractory materials market. Furthermore, increased urbanisation and construction activities in Asia-Pacific enhance the need for metals such as steel and aluminium, which in turn raises the demand for metallurgical refractory materials.IFGL Refractories Ltd. (India) specialises in refractories for the iron and steel industries, with an emphasis on low-cost, high-performance materials. Shinagawa Refractories Co., Ltd. (Japan) specialises in high-temperature refractory products for metal processing. These firms dominate the market by meeting the demanding demands of the metals and metallurgy industries, providing new refractory solutions that improve the durability and efficiency of industrial furnaces and kilns.

China leads the Asia-Pacific refractory material market, owing to its dominance in steel production, the major consumer of refractory materials.

As the world's largest steel manufacturer, accounting for more than half of global steel output, China has a massive demand for refractories. Refractory materials play an important role in lining furnaces, ladles, and other high-temperature steel production equipment. The country's strong growth in industries such as metallurgy, cement, glass, ceramics, and power generation drives up demand for refractory materials. China also possesses significant amounts of raw materials, such as bauxite, magnesite, and clay, which are required to manufacture various types of refractories.

This ample availability of raw materials enables Chinese manufacturers to make refractory products at reduced costs, providing them a competitive advantage over other countries in the region. In addition to its high local demand, China is a major exporter of refractory materials to Asia-Pacific countries and global markets. Leading Chinese refractory businesses such as RHI Magnesita, Sinosteel Refractory Co., Ltd., and Jinlong Group Refractories Co., Ltd.

have a significant presence in both local and foreign markets, cementing China's dominant position in the refractory industry. China's commitment to technical innovation and sustainability is also helping it preserve its leadership position. China's investments in modern refractory solutions, such as energy-efficient materials and environmentally friendly goods, position it as a vital participant in determining the global refractory market's future.

• In September 2022, Essar's investment in Saudi Arabia for a 4 million tonnes per year steel complex is expected to impact regional refractory material demand.
• In 2022, The Indian government provided USD 6.2 million to the Ministry of Steel, which will further drive the refractory market expansion.
• In Aprilo 2021, Minerals Technologies Inc. has inked a deal with Zhumadianshi Baiyun Paper Co., LTD to construct a satellite precipitated calcium carbonate factory in China, marking an investment in refractory materials for paper production.
• In May 2022, Lhoist and Air Liquide cooperated to decarbonise lime production in France, thereby affecting the Asia-Pacific market as part of a global shift towards greener refractory practices.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Refractory Material market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Form

• Shaped
• Unshaped

By Chemistry

• Basic
• Acidic
• Neutral

By Chemical Composition

• Fireclay
• Alumina
• Magnesia
• Silica
• Others

By End Use

• Metals & Metallurgy
• Cement
• Glass & Ceramics
• Power Generation
• Others

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Refractory Material industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.