Explosives & pyrotechnics are commercially available as solutions for easy and direct application in mining, military, and construction industry. They are available in various forms which include high explosives, and low explosives. High explosives are further classified into primary, secondary and tertiary explosives such as blasting agents. High explosives include dynamite, ANFO (ammonium nitrate-fuel oil mixture), nitroglycerin, TNT (trinitrotoluene), picric acid, and PETN (pentaerythritol tetranitrate). Low explosives include propellants and the fireworks.
Growing construction sector primarily in the U.S. and Mexico is expected to drive the demand for explosives in North America over the forecast period. The government of Mexico has implemented the National Infrastructural Plan, which includes an investment of USD 590 billion from 2014 to 2018, which is anticipated to promote construction of residential and commercial structures. Population growth, urbanization and rising disposable income in Mexico are expected to play an important role to stimulate growth.
Explosives are used in the mining of various minerals such as copper, tin, zinc, iron ore, gold, bauxite, titanium, and nickel. Positive automobile industry outlook in Brazil, Mexico, China, Malaysia, Germany and Hungary on account of growing domestic demand have facilitated mineral mining and processing activities in various regions of China, India, Australia, Africa and Latin America. Liberalization of mineral policies opted by governments of Chile, Peru, and China in the early 80s, 90s and 2000s, respectively have attracted foreign players to promote extraction and production of minerals over the last few years. Also, increased technological expenditure meant for enabling effective exploration, viable processing of low grade and complex minerals have increased the mining activities.
The other factors which promoted mining operations include resource boom of 2003-04 with a rise in metal prices have resulted in the development of untapped resources in emerging economies of China, India, Peru, Chile. Therefore, growing mining industry in rapid growth economies of China, India and Chile is expected to be a major driver for the market in the near future.
Rising government spending on the defense sector in various countries including India, the U.S., China, Saudi Arabia, France, Russia and the UK will fuel industry expansion over the forecast period. In 2015, the U.S. declared a military and defense budget of USD 601 billion, which exceeds the total amount spent by the consecutive seven highest spending countries. The Indian Government allocated Rs. 2,46,727 crores (USD 40.4 billion) for defense for 2015-2016. The Government of Saudi allocated 213 billion riyals (USD 57 billion) in its 2016 budget for defense spending.
Regulatory pressures intended towards environmental protection are expected to restrict mining activities. Also, the European Commission and the U.S. EPA framed various regulations pertaining to restrict the use of chemicals used in mineral processing, drilling and waste water treatment. These factors are combined to restrict the demand for explosives over the forecast period.
Various explosives & pyrotechnics manufacturers include Melrose Pyrotechnics, LSB Industries, Chemring Group, Titanobel SAS, ePC Group, Sasol and Orica Mining Services.
In-depth report on explosives market by Grand View Research: