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Mining Chemicals Market Growth with Worldwide Industry Analysis to 2027
5/17/2022
Mining companies have been using mining chemicals for broad spectrum of applications to meet the needs in various industrial applications. Over the years, the mining chemicals market has made strides on the back of efforts made by these companies to improve the grade and optimize the recovery of minerals. This is a key trend bolstering the expansion of formulation of specialty mining chemicals.
Some of the key product types that find demand in the mining chemicals market are frothers, flocculants, collectors, solvent extractants, and grinding aids. The market has been propelled by the growing demand for gold, copper, and platinum in various industries and commercial applications. According to analysts at TMR, the valuation of the mining chemicals market is expected to reach US$ 36 Bn by 2027-end.
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Wide Range of Applications Spurs Growth
The opportunities in the mining chemicals market have expanded considerably over the years, fueled increasingly by rise in demand from various end-use industries such as water and wastewater treatment and in mineral processing applications. Of note, the vast uptake of mining chemicals in the wastewater treatment has contributed sizable revenue shares in the mining chemicals market over the past few years.
Rise in demand for grinding aids in multiple industries has helped spur the consumption of mining chemicals. For instance, grinding aids are used in cement manufacturing, whose demand thus correlates with the expansion of the construction and infrastructural development.
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Wastewater Treatment Leading Segment, Stringent Implementation of Industrial Norms Propels Opportunity in Segment to Expand Substantially
Of the various applications, water and wastewater treatment held the major share in 2018. In the year, it held a share of 40%. A key drive for the growth in activities in the wastewater treatment is the continuously evolving landscape of environmental regulations pertaining to industrial effluents and discharge. Government agencies in developed nation keep a close track of recycling of waste and water to ensure the safety of the communities and ecology in general. This is a key trend bolstering the prospects for the demand for various products in the mining chemicals market. The chemicals themselves are governed by regulations to prevent the instances in the impact of harmful chemicals. In emerging economies, the use of wastewater treatment has gained a big impetus from the focus of communities on water reclamation projects.
Stringent regulations pertaining to the production of mineral processing are shaping the growth of the mining chemicals market value chain.
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Asia Pacific Highly Lucrative, Mining Companies Lean on Improving Efficiency of Mining Processes to Tap into Receding Reserves
The various key regional markets in mining chemicals are North America, Europe, Asia Pacific and Rest of World. Of these, Asia Pacific held the major share in 2018, and is anticipated to retain its lead throughout the forecast period. The growth is increasingly fueled by the rapid pace of industrialization leading to extensive uptake of mining chemicals in the water and wastewater treatment in industrial settings. The growth of the regional market has also come from the extensive demand for the chemicals in the packaging sector, notably in the manufacturing of flexible packaging. The presence of abundant reserves of chemicals in China makes the region highly attractive in relation the near-term growth.
The U.S. and Europe are also promising regions, fueled by the strides made in the mining sector.
Convoluted Logistics Key Impediment for Growth in Mining Chemicals Market
Over the past few years, the mining sector has been under substantial pressures to meet changes in environmental regulations. Moreover, the reserves of some of the chemicals have been declining substantially. The impacts that the mining sector has been making has come under the scanner of governments and publics. Also, governments are keen on promoting the recyclability of chemicals to support a circular economy. On the other hand, the growing complexity of logistics used in mining chemicals has also hampered the prospects in the mining chemicals market.
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High Degree of Fragmentation Influence Competitive Dynamics
The competitive dynamics is driven by the high degree of fragmentation. The presence of several unorganized players renders the global mining chemicals market highly fragmented. This is evident in the presence of a large number of companies in Asia Pacific including in the unorganized sector.
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