Barite Market Bonded to a Striking Growth by 2030; Asserts MRFR

Barite Market Highlights

Global barite market witnessed strong growth from oil and gas exploration industry owing to its usage to suppress the high formation of liquid and prevent blowouts. Rising pressure on energy sector to meet global demand of growing transportation and petrochemical industry has result in rising oil and gas production which in turn will have positive impact on barite market. In addition, barite is used for application as weighing agent and to increase density of fluid to control pressure in shale reserves. Thus, blooming oil shale production will subsequently drive the demand of barite in U.S. market.The barite market is projected to reach USD 2.8 Billion by 2030, registering a CAGR of 5.82% during the forecast period 2022 - 2030.

Barite is widely used in application such as textile, paints and coatings and paper making among others. This mineral is used in sodium hydroxide production which is extensively used in refining sugar and in paints as white pigments. Moreover, increasing automotive production coupled with rise in residential and commercial projects also positively influence the barite market growth. Barite is also used in production of barium carbonate which in turn used in manufacturing LED glass. Growing LED glass consumption in television and laptops is expected to augment the barite market growth over the forecast period. Barite is non-magnetic in nature which makes it ideal choice for drilling hole. Hence, alternative to barite such as celestite, iron ore and synthetic hematite does not hold any major impact in drilling mud industry.

Barite is broadly segmented according to grade as grade 3.9, grade 4.0, grade 4.1, grade 4.2 and grade above 4.3.  Grade with high specific gravity represents superior quality compared to lower specific gravity. Higher grade obtained from deeper earth crust holds higher prices, which in turn impede the market growth over the forecast period. However, lower grade barite from 3.9 to 4.2 is gaining traction in oil and gas industry owing to optimum production of shale gas coupled with shift in trend towards unconventional energy source thereby, will have positive impact on barite market in coming years.

Barite are largely consumed in Asia Pacific region owing to robust end use industry growth, favourable government policies and low labor cost. China is leading country owing to large availability of shale reserve to meet growing demand of barite in automotive and construction industry. Furthermore, rapid industrialization has led to strong growth in paints and coating industry which is likely to propel barite market growth. North America is second largest market due to rise in shale gas production in U.S. and development in infrastructure activities leading to growth in paints and coatings industry. U.S. is major market and exhibits growth potential in coming years. Europe to register significant growth. Germany and UK are leading countries in European regions on account of large automotive hub. Automotive refinishes and restoration is driving huge demand of paints and coatings which in turn drives the demand for barite market. Moreover, Brazil is anticipated to witnessed high demand of barite on account of increase in expenditure on interior of residential projects which is anticipated to further drive the paints and coatings industry.

Key Players:

Desku Group Inc. (United States), Halliburton Company (Unites States), Excalibar Minerals LLC (United States), P & S Barite Mining Co. Ltd. (Thailand), Ashapura Minechem Ltd. (India), Anglo Pacific Minerals (United Kingdom), CIMBAR Performance Minerals (United States), New Riverside Ochre Company, Inc (United States), Andhra Pradesh Mineral Development Corporation Limited (India) and Mil-Spec Industries Corporation (United States) among others are some of the prominent players at the forefront of competition in the Global Barite Market and are profiled in MRFR Analysis.

Barite Market – Competitive Analysis

Barite market is fragmented market with tier 1 and tier 2 companies dominating the overall market. The major players are adopting key strategy like partnerships and agreements in order to reduce gap between supplier and manufacturer of barite. Apart from that, various key strategies adopted by key players are expansion and acquisition. Advancement in technology and increasing presence of significant players has positively impact the growth of barite market. Moreover, companies are expanding their production facility to meet global demand and obtain competitive advantage in the market.

Industry/ Innovation/ Related News:

April 2017 –Nigeria barite sector are entering new era of development by targeting strategic minerals and metals of development including barite, limestone, iron and bitumen along with offering tax break to mining companies. This project got initiative after World Bank approved credit line of USD 150 Million to increase the mining sector in Nigerian economy. This would open new lucrative opportunity to market players.

June 2017 –Honey Badger Exploration Inc. signed an agreement to acquire assets located in Quebec. The deal includes acquisition of three properties including the Upton Property, the Saint-Fabien Property, and the Kamouraska Property. Total of 642 hectors are acquired for zinc and barite mining. This would strengthen companies position by opening new opportunity to investors as well as raise capital for advanced new projects.

February 2016 –Schlumberger got approval of barite mining at Duntanlich near Aberfeldy in Perthshire. The Duntanlich site is economically known as barite deposit in UK. The company plans to mine around 120,000 tons of mineral each year to make self sufficient for over next 50 years. This would strengthen companies position as barite is key ingredient of drilling mud industry.

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