May 21, 2024
Molybdenum Market

The Molybdenum Market Is Transitioning Towards Renewable Energy By 2030

The molybdenum market comprises products such as molybdenum oxide, molybdenum disulfide, and fused molybdenum. Molybdenum is mainly used as an alloying material in steel production to enhance the strength and machinability of steel. It also has corrosion-resistant properties that make it suitable for manufacturing pipes, valves, and tubing.

The Global Molybdenum Market is estimated to be valued at US$ 364.04 Mn in 2024 and is expected to exhibit a CAGR of 4.8% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the molybdenum market are Baxter International Inc., GlaxoSmithKline plc, Novartis AG, Perrigo Company plc, Caleb Pharmaceuticals, Inc., Myungmoon Pharma Co. LTD., Alchem International, Phytex Australia, Centroflora-Cms, Alkaloids of Australia, and Fine Chemicals Corporation. Rising consumption of high-strength steel in end-use industries such as construction, automotive, and oil & gas is expected to drive the demand for molybdenum over the forecast period. The market is also witnessing significant growth opportunities in regions such as Asia Pacific and North America on account of rapid industrialization and increasing investment in infrastructure development projects.

Market key trends

One of the key trends gaining traction in the Global Molybdenum Market Size is the increasing use of molybdenum in renewable energy applications. Molybdenum improves the efficiency and durability of wind turbines and enhances the conductivity of wires in solar panels. It can substantially reduce greenhouse gas emissions through innovations in clean energy technology. With more emphasis on achieving sustainable development goals, the demand for molybdenum from the renewable energy sector is expected to grow considerably over the next decade.

Porter’s Analysis
Threat of new entrants: Entry barriers are high as molybdenum mining requires huge capital investments and specialized mining skills. Large players dominate the market.
Bargaining power of buyers: Buyers have moderate bargaining power. Molybdenum has few substitutes and buyers need a consistent supply of molybdenum.
Bargaining power of suppliers: Suppliers have strong bargaining power as mining is an oligopolistic market dominated by a few players. Suppliers can influence prices.
Threat of new substitutes: No cost-effective or functional substitutes exist for molybdenum in major end-use industries like oil and gas, automotive, construction and transportation.
Competitive rivalry: The market is highly consolidated with the top five players accounting for over 50% share. Intense competition exists among players.

Geographical Regions
China accounted for over 40% of the global molybdenum market value in 2024. Abundant reserves and largest production of molybdenum concentrates enables China to dominate the molybdenum market.
The United States is projected to witness the highest CAGR of over 6% during the forecast period. Growing end-use industries and focus on resource independence is driving the demand in the country. The Automotive industry particularly in the Western United States contributes to market growth.

Geographical Regions
Asia Pacific excluding China is expected to be the fastest growing region for the molybdenum market between 2024-2030. Countries like India are witnessing rapid industrialization and infrastructure growth which is increasing the demand for steel and other end-use industries driving molybdenum consumption.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it