Global Thermal Ceramics Market - 2024-2031

Overview

Global Thermal Ceramics Market reached US$ 5.05 billion in 2023 and is expected to reach US$ 7.94 billion by 2031, growing with a CAGR of 5.8% during the forecast period 2024-2031.

The global thermal ceramic market growth is driven by increasing demand across various sectors, including aerospace, automotive, energy and construction, as industries seek materials that can withstand high temperatures and enhance energy efficiency. Its robust growth trajectory is supported by technological advancements and increasing demand for high-temperature-resistant materials across these industries.

Asia-Pacific holds the fastest-growing share in the global thermal ceramics market. The demand is primarily fueled by rapid industrialization and infrastructure development, particularly in countries such as China and India. The growing demand for high-temperature insulation in the petrochemical, power generation and automotive industries is significant. China has been a major contributor to the global thermal ceramics market, with its construction and automotive industries.

Dynamics

Increasing Demand for Energy Efficiency

Increasing demand for energy-efficient solutions across various industries is the key driver for the global thermal ceramics market. Thermal ceramics offer superior thermal insulation properties, which help in reducing energy consumption in industrial processes. According to a report by the International Energy Agency (IEA), industrial energy consumption accounts for nearly 37% of global energy use. The adoption of thermal ceramics can lead to significant energy savings, making them an attractive option for industries looking to optimize their energy usage.

Similarly, US Energy Information Administration (EIA) projects that global energy demand will increase by 16-57% between 2022 and 2050. The International Energy Outlook 2021 (IEO2021) projects that global energy use will increase by nearly 50% by 2050 compared to 2020. The demand requires high-capacity thermal ceramics, to meet the demand manufacturers are continuously developing new formulations and processing techniques that enhance the performance and versatility of thermal ceramics.

Rising Demand for Green Construction

The construction industry is another major driver for the thermal ceramics market. The construction industry's growth, especially in developing countries such as US, China and India, is a key driver. The growing trend of green building and energy-efficient construction practices is fueling demand for high-performance insulation material.

According to Oxford Economics, Construction work went up from US$9.7 trillion in 2022 to US$ 13.9 trillion in 2037-driven by superpower construction markets China, US and India. This is further propelled by government regulations focusing on reducing carbon footprints and improving energy efficiency. As regulations tighten and building codes become more stringent, the use of thermal ceramics for insulation in residential and commercial buildings is expected to rise.

High Cost of Raw Material with Strict Government Regulation

The cost of raw materials, such as alumina, silica and other specialty ceramics, is a significant restraint for the thermal ceramics market. These supplies are crucial for making ceramics that can withstand high temperatures, but their prices can fluctuate due to changes in mining and extraction expenses. According to USGS Publications, In the fourth quarter of 2023, bauxite prices in China, Germany and Brazil reached US$ 69/MT, US$ 50/MT and US$ 56/MT, respectively. This directly impacts the cost structure of thermal ceramic products, making it challenging for manufacturers to maintain profit margins without passing on the costs to end-users.

Furthermore, the production of thermal ceramics requires a lot of energy and creates emissions, leading to strict environmental regulations being imposed. As an example, the emissions from ceramic production plants are subject to strict limits set by the European Union's REACH regulation and US Environmental Protection Agency (EPA). Adherence to these rules frequently mandates that companies invest in cutting-edge pollution control equipment, increasing operating expenses.

Segment Analysis

The global thermal ceramics market is segmented based on type, temperature range, end-user and region.

Demand for Insulating Furnaces and Reactors for the Chemical & Petrochemical Sector

The demand for thermal ceramics in the chemicals and petrochemicals sector is driven by the industry's need for materials capable of withstanding high temperatures, harsh chemicals and mechanical stresses. Ceramic fibers, insulating bricks and monolithic refractories are essential for insulating furnaces, reactors and other high-temperature equipment.

Furthermore, the chemicals sector has been investing heavily in modernizing and expanding production capacities, particularly in regions such as Europe. According to the European Chemical Industry Council (AISBL), in 2022, the EU27 reported capital spending of €32 billion, constituting 12% of the world's chemicals investment. The regions have seen a surge in demand for thermal ceramics, driven by the construction of new plants and the revamping of older facilities.

Geographical Penetration

Expansion in Petrochemical, Steel and Power Generation Industries in Asia-Pacific

The demand for thermal ceramics in Asia-Pacific is largely driven by the significant expansion in the petrochemical, steel and power generation industries, particularly in countries like China, India, Japan and South Korea. China's petrochemical industry has experienced a significant rise in demand for petrochemical feedstocks like naphtha, liquefied petroleum gas (LPG) and ethane, as reported by the International Energy Agency (IEA).

By 2023, China needed 1.7 mb/d more of these feedstocks compared to 2019, indicating an increase due to the expansion of high-temperature activities such as cracking, distillation and reforming. Thermal ceramics are essential in these procedures, as they are utilized to line furnaces, reactors and other machinery, improving operational efficiency, reducing energy usage and prolonging equipment lifespan.

In India, the chemical and petrochemical sector also shows significant growth potential. According to Invest India, the market size of the chemicals & petrochemicals sector is estimated at approximately US$ 220 billion, with projections to reach US$ 300 billion by 2030. The growth is anticipated to increase the need for thermal ceramics, as the sector seeks more innovative refractory options for effectively managing high-temperature procedures.

Competitive Landscape

The major global players in the market include BNZ Materials, IBIDEN, Luyang Energy-Saving Materials Co. Ltd., Mitsubishi Chemical Corporation, Morgan Advanced Materials, Pyrotek Inc., Rath, RHI Magnesita, Source Runner Enterprise Co., Ltd. and Unifrax LLC.

Sustainability Analysis

Thermal Ceramics play a critical role in enhancing energy efficiency by reducing heat loss, thereby helping companies achieve their sustainability goals for industries such as steel, cement, petrochemicals and power generation. Thermal ceramics can help reduce energy consumption by up to 20%, improve process efficiency and reduce emissions. It also helps extend lining service life and improve maintenance opportunities.

The sustainability of thermal ceramics also hinges on their recyclability and lifecycle management. Ceramic materials, especially high-temperature fibers, have long lifespans, but disposal and recycling practices vary. The average annual production rate of refractory materials lies in the range of 30-35 million tons and recycling rates for refractory products can reach up to 30%. Thermal ceramics are essential for enhancing refractory product recyclability and minimizing environmental impacts throughout their lifecycle.

Russia-Ukraine War Impact

The thermal ceramics market has been heavily affected by the Russia-Ukraine conflict, mainly because of supply chain interruptions, fluctuating costs of raw materials and evolving energy strategies. Trade restrictions and sanctions resulting from the conflict have increased geopolitical tensions, impacting the supply of crucial raw materials for thermal ceramics like alumina, silicon carbide and refractory products. Export bans and restrictions in Russia, a significant provider of aluminum and other industrial minerals, have disrupted global supply, causing fluctuations in prices and availability.

The conflict has also impacted the energy industry, specifically the natural gas sector, as Russia plays a major role in supplying natural gas to Europe. The increase in energy costs due to gas supply disruptions has led to higher manufacturing expenses for thermal ceramics. Due to the high energy consumption involved in making thermal ceramics, rising energy costs have caused production expenses to increase, affecting both profit margins and market expansion. The IEA stated that European gas prices increased by more than 200% in 2023 because of the conflict, greatly impacting production costs in various industries, such as the thermal ceramics sector.

By Type

• Ceramic Fibers
  • Vitreous Alumina-Silica Ceramic Fiber
  • Refractory Ceramic Fibers (RCF)
  • Low Bio-Persistent Ceramic Fibers
  • Polycrystalline Ceramic Fibers
• Insulating Firebricks
  • Acidic Refractory Bricks
  • Neutral Refractory Bricks
  • Basic Refractory Bricks

By Temperature Range

• 650-1,000°C
• 1,000-1,400°C
• 1,400-1,600°C

By End-User

• Chemical & Petrochemical
• Mining & Metal Processing
• Manufacturing
• Power Generation
• Others

Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In April 2024, Nabertherm GmbH, unveiled its latest innovation, the LH.DB line of compact sintering furnaces, at the Ceramitec 2024 exhibition. Designed to meet the thermal post-processing needs of additively manufactured components, the LH.DB series is set to establish new benchmarks in laboratory heat treatment for ceramic parts.
• In February 2024, Mitsubishi Chemical Group launched a new high heat-resistant ceramic matrix composite (CMC) incorporating pitch-based carbon fibers, designed to withstand temperatures up to 1,500°C. The company showcases this cutting-edge material at the 2024 International Space Industry Exhibition in Tokyo from February 20-22, 2024 and at JEC World 2024 in Paris from March 5-7, highlighting its potential impact on the future of thermal ceramics.
• In July 2023, the Indian Space Research Organization (ISRO) launched Chandrayaan-3, its third lunar mission, from the Satish Dhawan Space Centre in Sriharikota. The mission's successful preparation involved advanced thermal ceramics for high-temperature resistance and insulation, showcasing the critical role of these materials in aerospace applications.

Why Purchase the Report?

• To visualize the global thermal ceramics market segmentation based on type, temperature range, end-user and region.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel spreadsheet containing a comprehensive dataset of the thermal ceramics market, covering all levels of segmentation.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global thermal ceramics market report would provide approximately 62 tables, 53 figures and 207 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies