Barite Market will be worth of US$ 1.84 Bn in 2023, expanding at a CAGR of 5.8% between 2015-2023

ALBANY, N.Y. - Aug. 25, 2016 - PRLog -- This information is based on the findings of a report published by Transparency Market Research titled "Barite Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2015 - 2023." According to the report, the global market opportunity in barite is expected to rise from US$1.17 bn in 2015 to US$1.84 bn by 2023. By application, the oil and gas segment led in the past and will continue to do so in the coming years. North America, followed by Asia Pacific is expected to lead in the market in the coming years. North America is expected to account for 42.6% of the barite market by 2023.

The global barite market is moderately fragmented. The Andhra Pradesh Mineral Development Corporation Ltd, China Shen Zhou Mining and Resources Inc, and Ashapura Group of Industries are the top three companies, which accounted for 27.9% of the market in 2014. Other companies in the market include Mil-Spec Industries Corporation, Anglo Pacific Minerals, Excalibar Minerals LLC, and International Earth Products LLC. Most companies are focused on expanding their manufacturing capacities and establishing new business units in the emerging markets of Asia Pacific, states a new report by Transparency Market Research (TMR). Companies are also investing in new barite mining projects to expand their reserves and grow in the market.

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High Demand for Crude Oil Benefits Barite Market

Barite is used as a weighing agent for drilling fluids in oil and gas exploration and production (E&P) activities. The oil and gas industry is thus a key consumer of barite. As the demand for oil and gas is increasing, so is the need for barite. Countries such as Saudi Arabia directly burn crude oil for the purpose of power generation due to lack of alternative sources, which further fuels the demand for crude oil, and subsequently barite.

Demand for crude oil will also be high from the industrial sector, especially the petrochemical industry. Several countries in Asia Pacific are attempting to reduce their dependence on oil imports and thus, increasing their domestic oil production. As such, the demand for barite is expected to be high in Asia Pacific.

Barium is extensively used for the diagnosis of hernia, constrictions and obstructions in the esophagus, and inflammatory diseases of the intestine. Barium meals are efficient and cost effective technique working as a substitute for endoscopy in the primary evaluation of the upper gastrointestinal tract. Thus, the demand for barium is growing in the medical sector.

Availability of Substitutes Hampers Demand for Barite

There is a shortage of barite in countries such as Saudi Arabia, Egypt, and the United Arab Emirates. This has caused a rising interest to find and opt for barite alternatives. Alternatives such as celestite, hematite, and ilmenite can replace barite in the drilling fluid industry as a weighting agent. As per a study published by the Society of Petroleum Engineers, antimony sulphide can be a better substitute to barite in dangerous drilling zones due to its lower negative effect on viscosity. Thus, the availability of substitutes pose a threat to the demand and consumption of barite.

Application of Barite in Nuclear Industry Widens Scope of Market

Barite is used in the oil and gas, medical, chemical, paints and coatings, automobile, and electronic industries. In the recent times, barite has also shown the potential to be used in the nuclear industry, owing to its ability to absorb gamma radiations. Barite is being added to concrete aggregate during the construction of an atomic reactor for increased density. This is expected to widen the scope of the market.

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The threat of new entrants is expected to be medium as there are low entry barriers for players owing to the fragmented nature of the market. Securing mining rights from the government is the major hurdle for players. There exists a significant threat of backward integration from oil field services company. The barite market also faces medium threat from substitutes such as iron ore, itabirite, antimony sulphide, celestite, potash, dolomite, and ilmenite.