Global Tungsten Market - 2025-2032

Global Tungsten Market reached US$ 5.16 billion in 2024 and is expected to reach US$ 9.65 billion by 2032, growing with a CAGR of 8.14% during the forecast period 2025-2032.

The tungsten market is expanding and undergoing mergers and acquisitions, with more planned in the near future. Companies are expanding organically or by acquiring smaller businesses. For example, in December 2023, Sandvik Group finalized the acquisition of Buffalo Tungsten, Inc., a major producer of tungsten metal and carbide powder in North America. With this acquisition, the corporation intends to expand its footprint throughout North America.

Tungsten Market Trend

The global tungsten market is seeing an increased focus on recycling and sustainability. As environmental concerns and resource constraint grow, the industry is focusing on reclaiming tungsten from scrap materials to assure a steady supply and lessen the environmental impact of mining. The transition not only solves environmental concerns, but it also improves supply chain resilience in the face of geopolitical pressures affecting key tungsten supplies.

Furthermore, advances in recycling technologies make tungsten recovery more efficient and cost-effective. Companies are investing in sustainable extraction procedures and looking into alternate sources to meet rising demand in industries such as electronics, automotive and aerospace. It is consistent with global sustainability goals and reflects a broader push toward responsible resource management in the tungsten sector.

Dynamic

Rising Demand for Tungsten in Aerospace and Defense

The increased need for tungsten in the defense and aerospace sectors, as well as its remarkable density, high-temperature resistance and mechanical strength, are important drivers of the worldwide tungsten market. Tungsten is an essential material in the production of armor-piercing ammunition, missile components, aircraft counterweights and high-performance aerospace parts. Its capacity to keep structural integrity under harsh conditions makes it crucial for military and space-grade applications.

Governments around the world are boosting their defense budgets and investing in updating military equipment, which directly drives demand for tungsten. For example, US and NATO countries consider tungsten to be a vital material essential to national security, providing a steady demand forecast. Furthermore, the growing interest in space exploration and commercial satellite deployment has increased the use of tungsten in aerospace propulsion systems and structural components. The ongoing demand from strategic and high-tech sectors is a key development engine for the global tungsten market.

Environmental and Regulatory Challenges

The environmental and regulatory issues involved with tungsten mining and processing are a substantial limitation on the worldwide tungsten market. Tungsten ore extraction frequently entails large-scale mining operations, which, if not managed properly, can result in habitat damage, soil erosion, water pollution and biodiversity loss.

Furthermore, the chemical methods used to refine tungsten ores can produce toxic waste, which poses further environmental problems. The concerns have resulted in rigorous environmental legislation in many nations, raising compliance costs and potentially limiting mining activities. For example, the European Union's REACH law restricts the use of chemicals, including those used in tungsten processing, to reduce environmental and health hazards.

Segment Analysis

The global tungsten market is segmented based on type, product, application and region.

Growing Demand for High-Performance Cutting and Wear-Resistant Tools Drives Machine Tool & Equipment Segment

The rising need for high-performance cutting and wear-resistant tools in advanced manufacturing industries is a significant driver for the market's machine tools and equipment segment. Tungsten's excellent hardness, high melting point and wear resistance make it a vital material for the manufacture of tools such as drills, milling cutters, dies and inserts.

During the forecast period, the mining and drilling sectors are expected to hold the majority of the tungsten market. Tungsten is a remarkable metal, with the highest melting point, tensile strength and hardness of any metal. In accordance to US Geological Survey, approximately 84,000 metric tons of contained tungsten were produced globally in 2022. China is by far the world's largest tungsten mining country, accounting for approximately 85% of total output.

Geographical Penetration

Rising Disposable Income in Emerging Countries in Asia-Pacific

Asia-Pacific is expected to grow at the fastest rate during the forecast period. Increasing disposable income in emerging economies is driving demand for convenience items, which is aiding global market growth. Because of the utilized and replaceable cutting tools, the carbide industry has the largest market share. Aside from its application in electrical and electronic equipment, the demand for mill items containing tungsten will continue to rise.

The aircraft industry's expansion is expected to drive the fastest increase in tungsten alloys. Boeing has broken down the predicted growth rate of China's commercial aviation market from 2019 to 2038 into segments. Over that time, China's ground, station and freight operations market is predicted to grow by 5.6%. Tungsten or its alloys are also employed in the fabrication of various car parts that tolerate extreme conditions or temperatures.

Impact of US Tariff

Tariffs imposed by US on Chinese tungsten products such as unwrought tungsten, bars, rods and plates have considerably disturbed the worldwide tungsten market, especially given that China accounts for more than 80% of global tungsten output. These 25% tariffs, which take effect in January 2025, are part of a larger US-China trade policy aimed at reducing reliance on Chinese vital minerals.

In response, China imposed export limits on tungsten and related materials, significantly constricting the supply chain. This has caused immediate supply limitations, price volatility and increased procurement issues for US-based businesses in the defense, aerospace, electronics and tooling industries that rely significantly on tungsten's distinctive qualities.

Companies such as Almonty Industries have also obtained tariff exemptions for its non-Chinese tungsten to ensure a steady supply to North American clients. Nonetheless, these transitions will take time and in the near term, the tariffs have raised raw material costs, generated strategic uncertainty for downstream businesses and underlined the geopolitical unstability of global tungsten supply networks.

Competitive Landscape

The major global players in the market include China Minmetals Non-Ferrous Metals Co., Ltd., China Molybdenum Co. Ltd., ChinaTungsten, Jiangxi Tungsten Holding Group Co., Ltd., Jiangxi Yaosheng Tungsten, Xiamen Tungsten Co., Ltd., Nippon Tungsten Co., Ltd., Umicore N.V., Global Tungsten & Powders and Almonty Industries Inc.

Key Developments

• In January 2022, The Plansee Group has signed a formal agreement to acquire Indianapolis-based Mi-Tech Tungsten Metals. Mi-Tech, which employs about 100 people, is considered as one of the leading providers of tungsten-based goods in US.
• In September 2021, Kennametal Inc. has introduced KAR85-AM-K, a highly corrosion-resistant tungsten carbide grade for metal additive production. It can only be used in conjunction with Kennametal's binder jet 3D printing capacity to create fully completed wear components.

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