upcoming mining projects, increasing foreign direct investment, favorable government policies, and technological advancements in the key mining countries such as South Africa, Zimbabwe, Mozambique, Angola, and DRC. The positive outlook of the mining industry in these economies is further expected to boost the demand for explosives in the regional market. The factors that are currently driving the Africa explosives market are vast mineral reserves of diamond, gold, and platinum in South Africa; high demand for coal across the globe, especially in Asia-Pacific; and the surging demand for metals & minerals in Asia-Pacific.
Coal is a valuable commodity, which is majorly used to generate electricity. Moreover, coal is used by the cement and steel industries to extract iron from iron ore and in the production of cement. Coal mining in Africa contributes around 6% of the world's total coal deposits. The total coal production in South Africa is around 250 million tons of coal annually. Coal mining was the dominant sector in the South African mining industry in terms of both scale and revenue in 2018. It contributed 28% of revenue to the country's mining industry in the year 2018.
Africa Explosives Market Trends
South Africa's modern history has often been dated from the first commercial mining of diamonds and gold in the late 19th century when the region became a magnet for European investments. Soon after the European rush for gold and diamonds in the late nineteenth century, mining operations expanded to include more than two dozen other minerals. By the mid-twentieth century, South Africa was the world's largest producer or second-largest producer of gold, diamonds, platinum, chromium, manganese, and vanadium; and it ranked high among producers of coal, iron ore, uranium, copper, silver, fluorspar, asbestos, and Cartridge Watergel Explosives.
Gold occurs in seams embedded in rock strata, sometimes more than a mile below the surface. Deep shafts must be sunk, large amounts of rock must be blasted and brought to the surface, and the rock must be crushed and chemically separated from the gold. Some gold mines then pump processed mine tailings underground to serve as backfill. Mining and processing are costly, especially in deposits where the gold seam is extremely thin compared with the surrounding rock. Platinum group metals (platinum, palladium, ruthenium, rhodium, iridium, and osmium), which occur together in ore seams, are mined in one operation.
Explosives are used to extract coal mostly from underground mines as compared to surface mines. South Africa is one of the major coal-producing countries in the world, apart from China, the US, India, Indonesia, Russia, Australia, and Colombia. Coal mining is the largest revenue-generating sector in South Africa, with a contribution of 28% of revenue in 2018. Some of the key coal mining companies in South Africa are Anglo American, New Vaal Mine, Kriel Mine, Zibulo Mine, Isibonelo Mine, Goedehoop Mine, Landau Mine, Greenside Mine, Kleinkopje Mine, New Denmark Mine, and Mafube Mine.
Coal is among the important and reliable energy resources covering 40% of the global energy consumption. The demand for coal across the globe increased significantly in 2018, attributed to the growth in coal power generation, which reached an all-time high. However, coal power generation is estimated to have declined in 2019. This appears to have resulted from particular circumstances in some specific regions and is unlikely to be the start of a lasting trend. According to the International Energy Agency (IEA), the demand for coal in Asia-Pacific is high as it is dependent on coal-fired power plants for energy. The region's share of global coal power generation has increased from over 20% in 1990 to almost 80% in 2019. The emerging economies of Asia-Pacific require a large amount of coal as low-cost energy-generating fuel to power the economic transformation. It is for this reason that, in 2018, China, India, and Southeast Asia commissioned a total additional 50GW of coal-fired capacity. Over 50% of the coal is consumed in China and thus largely defines global coal trends. India's coal demand is expected to grow by 4.6% per year by 2024. The demand in Southeast Asian countries is estimated to grow by more than 5% per year through 2024, led by Indonesia and Vietnam.
Africa Explosives Market Segment Insights
Africa Explosives Market By Application Insights
The Africa Explosives Market has been segmented into Mining, Construction, Others, and others. In 2023, the mining segment drove the Africa explosives market by holding a substantial market share of 86.5% with a market value of USD 5,70,745.2 million. It is projected to register a CAGR of 3.01% during the projected timeframe.
Africa Explosives Market By Type Industry Insights
Based on type, the Africa Explosives market has been segmented into bulk explosives, ammonium nitrate/fuel oil, cartridge emulsion explosives, cartridge watergel explosives, others, and others. In 2023, the bulk explosives segment drove the Africa explosives market by holding a substantial market share of 44.2% with a market value of USD 2,91,977.5 million. It is projected to register a CAGR of 3.4% during the projected timeframe.
Africa Explosives Market Regional Insights
By region, the Africa market is segmented into South Africa, Mozambique, Angola, Tanzania, Sierra Leone, Liberia, Ivory Coast, Zimbabwe, Zambia, Namibia, DRC, Malawi, Senegal, Burkina Faso, Mali, Guinea, Lesotho, Ghana, Rest of Africa. Among these, the South Africa emerged as the leading segment with a share of 84.2%. The segment is projected to reach a value of USD 5,68.8 million by the end of the forecast period. The DR region witnessed the fastest segment with a healthy CAGR of 3.18%.
Africa Explosives Key Market Players & Competitive Insights
Africa explosives is projected to register healthy growth during the forecast period, owing to the increasing demand from the mining & construction industry. Large mineral reserves of diamond, gold, and platinum in the country promote the demand for explosives. Moreover, increasing foreign direct investment in the mining sector and the number of upcoming mining projects in South Africa is expected to create significant growth opportunities for the players operating in the Africa explosives market during the forecast period.
BME South Africa, Sasol, TITANOBEL, AECL, Orica Limited, Yara, Solar Mining Services (PTY) LTD, and Maxam are the prominent players operating in the Africa explosives market. These players account for a major market share owing to their extensive product portfolio, global revenue base, large production capacities, and global distribution network. Additionally, the adoption of various strategies, such as expansions, product launches, and agreements, is expected to help these players gain maximum revenue and long-term growth during the review period.
Key Companies in the Africa Explosives Market includes:
Explosives Industry Developments
July 2020: Sasol and Enaex, a subsidiary of the Sigdo Koppers Group, formed an explosives joint venture, Enaex Africa, in Southern Africa. The new company will operate under the name of Enaex Africa. Enaex is the major shareholder and took over management and operational controls of the entity from 1 July 2020. Enaex, in association with Sasol, will comprise certain assets and associated activities spun off from the current explosives and rock fragmentation value chain of the base chemicals business of Sasol South Africa. This JV includes the associated business activities in both South Africa and other countries in Southern Africa.
April 2019: AEL Intelligent Blasting announced the provision of green solutions for mines in French West Africa, called Francophone West Africa. The company introduced the eco-formulation of surface emulsion, which requires using waste oil generated by the mines. This will enable the company to partner with the mines by assisting them in reducing their carbon footprint by responsibly destroying waste oil.
Explosives Segmentation
Flat Product Application Outlook
Explosives Type Industry Outlook
Explosives Regional Outlook
Africa
South Africa
Mozambique
Angola
Tanzania
Sierra Leone
Liberia
Ivory Coast
Zimbabwe
Zambia
Namibia
DRC
Malawi
Senegal
Burkina Faso
Mali
Guinea
Lesotho
Ghana
Rest Of Africa
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 659.9 Million |
| Market Size 2024 | USD 674.7 Million |
| Market Size 2030 | USD Â 791 million |
| Compound Annual Growth Rate (CAGR) | 2.93% (2023-2030) |
| Base Year | 2023 |
| Forecast Period | 2024-2030 |
| Historical Data | 2018 & 2022 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Application, Type, and Region |
| Geographies Covered | Africa |
| Countries Covered | South Africa, Mozambique, Angola, Tanzania, Sierra Leone, Liberia, Ivory Coast, Zimbabwe, Zambia, Namibia, DRC, Malawi, Senegal, Burkina Faso, Mali, Guinea, Lesotho, Ghana |
| Key Companies Profiled | BME South Africa, Sasol, Yara, Orica Limited, Titanobel, AECI Mining Explosives, Maxam, Solar Mining Services, NX Mining Technologies, Sichuan Yahua Industrial Group Co., Ltd. |
| Key Market Opportunities | Promising growth of the mining industry in south Africa in the coming years |
| Key Market Dynamics | Abundance reserves of diamond, gold, and platinum in south Africa High demand for coal in emerging economies of Asia-pacific |
Frequently Asked Questions (FAQ) :
The Africa Explosives market is US$ 659.9 Million in the year 2023.
The growth rate of Africa Explosives market is 2.93%
The South Africa held the largest market share in the Africa explosives market.
BME South Africa, Sasol, Yara, Orica Limited, Titanobel, Others
Mining segment had the largest share in the Africa explosives market.
Bulk Explosives have the largest market share in the Explosives Market.
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Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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