The global barite market was valued at US$ 1,276.60 Mn in 2017 and is anticipated to expand at a CAGR of 4.8% from 2018 to 2026, according to a new report published by Transparency Market Research (TMR) titled 'Barite Market: Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018-2026.' The global barite market is driven by the rise in demand in the oil & gas industry. North America accounts for major share of the global barite market, due to the increase in production of oil and gas in the region.
Rise in Production of Oil and Gas and Increase in Drill Rig Count Projected to Drive Market
Barite possesses high specific gravity, and is thus used as weighting agent in drilling fluids. It is used to elevate hydrostatic pressure to counteract high-pressure zones during drilling activities. In this process, barite is crushed and mixed with water and other materials. It is then pumped into the drill hole. The weight of this mixture counteracts the force of oil and gas when released from the ground. This allows rig operators to prevent the explosive release of oil and gas from the ground. Currently, drilling constitutes more than 70% share of the global consumption of barite. However, consumption of barite in drilling mud fluctuates from year to year, as it is dependent on the amount of exploration drilling for oil and gas. This, in turn, depends on prices of oil and gas. The drill rig count is estimated to rise owing to the increase in demand for natural gas. This, in turn, is projected to augment the demand for barite.
Expansion in Paints & Coatings and Rubber & Plastics Industries to Offer Attractive Growth Opportunities
Barite is employed as filler agent in paints, coatings, rubber, and plastics, as it possesses beneficial properties such as chemical inertness, nontoxicity, and high specific gravity. It is used as pigment in paints, while it is employed as a weighted filler in paper, textile, and rubber industries. The global paints & coatings industry is expected to expand at a CAGR of 5.4% during the forecast period. This is anticipated to boost the consumption of barite in this application in the near future. Asia Pacific is projected to dominate the global market, as the region is a major producer of paints and coatings in the world. The plastics industry is projected to expand at a CAGR of more than 6.0% by 2020. The global plastics industry was valued at US$ 298.3 Bn in 2014 and is likely to cross the US$ 500.0 Bn mark by 2020. This is anticipated to provide lucrative opportunities to the barite market. Significant growth in paints & coatings and rubber industries is estimated to fuel the consumption of barite.
Stringent Government Regulations and Monitoring to Hamper Barite Market
Strict government monitoring and interference over the production of barite in major countries such as China and India has adversely affected the barite market. This has led to a severe shortage of barite in the market. Governments of countries across the world have implemented stringent regulations with regard to the environmental impacts of mining. Companies need to adhere to acts such as the Federal Migratory Bird Treaty Act and the U.S. Environmental Protection Act in order to obtain leases and licenses from governments. The global barite market is also projected to be hampered due to the implementation of stringent regulations regarding the usage of toxic metals such as mercury, cadmium, arsenic, and lead.
In terms of region, North America held major share of more than 30% of the global barite market in 2017. Significant rise in production of oil and gas and increase in drill rig count in the U.S. have been the primary factors driving the demand for barite in the region since the last few years. Middle East & Africa is also one of the key consumers of barite, as it is the largest producer of crude oil and natural gas in the world. Asia Pacific is also a prominent consumer of barite. Barite is largely employed in paints, coatings, rubber, and plastics industries in the region. It is also used in drilling mud application in Asia Pacific, especially ASEAN, due to the rise in production and exploration of oil and gas in the region. Furthermore, Asia Pacific is expected to be a rapidly growing region of the barite market during the forecast period owing to the rise in demand for barite as filler in China, India, and ASEAN.
High Degree of Competition among Established Players
Large numbers of small- and large-scale manufacturers operate in the global barite market. These companies offer different grades of barite for various applications. Key players profiled in the report on the global barite market are The Andhra Pradesh Mineral Development Corporation Limited, Ashapura Minechem Limited, Anglo Pacific Minerals, Schlumberger Limited, Baker Hughes Incorporated, Excalibar Minerals LLC, International Earth Products LLC, Milwhite Inc., Oren Hydrocarbons Private Limited, CIMBAR Performance Minerals, and P&S Barite Mining Co., Ltd.
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