Global explosives and pyrotechnics market has recorded a commendable growth graph due to increasing mining activities, military spending and greater demand for recreational fireworks. Rapid industrialization has created massive demand for mined commodities which has resulted in increased mining activities in countries such as South-Africa, China, Indonesia, the U.S. etc. adding to the demand for explosives used in mining industry.
U.S. Explosives & Pyrotechnics Market Size, By End-user, 2014-2025 (USD Million)
Mounting government spending on the defense sector in various countries including the U.S., India, China, France, Saudi Arabia, U.K. and Russia will positively impact explosives market size. On the other hand, pyrotechnics (fireworks) market is forecast to gain traction with rising cracker shows on occasions, festivals and sports events.
Pyrotechnic articles are not only used for entertainment but are also utilized in technical & military cases for illumination and signaling, as pesticides and for various other purposes. Pyrotechnics are designed to give out specific effects, such as whistling, illumination, smoke formation, detonation, propulsion, shooting and disintegration.
The APA (American Pyrotechnics Association) predicted an exceptional year for fireworks sale in 2019. According to APA, consumer fireworks revenue has increased from $407 million in 2000 to $945 million in 2018. The APA estimates that fireworks revenues could exceed $1 billion during the 2019 fireworks season. On days like New Year’s Eve, almost every nation celebrates with elaborate firework shows. For instance, in 2017, the German Pyrotechnic Industry Association reported €137 million in sales in the final four days of the year. In 2019, New Year’s Eve fireworks sale in Netherlands amounted to €70 million, which is €2 million more than 2018 figures. Such a trend will ultimately prove beneficial for increasing explosives and pyrotechnics market share.
Get a Sample Copy of this Report @ https://www.gminsights.com/request-sample/detail/828
In spite of the ongoing trade war between U.S. and China, tariffs were not raised on the import of fireworks from China to U.S. as imports of fireworks have long surpassed domestic production in the United States. In 2018, China exported $325 million worth of bottle rockets, Roman candles and other fireworks/pyrotechnics to the U.S., accounting for 90% of pyrotechnic imports of the country, clearly underlining the growth of explosives and pyrotechnics industry in the region.
With record-breaking growth in backyard fireworks usage and liberalization of consumer fireworks laws, the number of fireworks-related injuries have dramatically declined. Currently, the fireworks-related injury rate is 56% lower than what it was in 2000. There is no such consumer product in the market that has an exceptional consumption growth and declining injury rate – which will encourage more expansive use of fireworks and add indirect impetus to explosives and pyrotechnics industry.
Another factor significantly augmenting explosives and pyrotechnics market size is ongoing political unrest between countries, which has resulted in increased military spending. The top five spenders in the world in 2018 included U.S., China, Saudi Arabia, India and France, which accounted for approximately 60% of world military spending. The total world military spending has risen by 2.6% to reach USD 1,822 billion over 2017-2018, according to SIPRI (Stockholm International Peace Research Institute). Military segment accounts for approximately 45% in explosives and pyrotechnics market share. The segment growth is majorly influenced by political clashes in African countries, Middle East and Europe.
North America and Asia-Pacific are the major regions having maximum growth rate in the explosives and pyrotechnics market. In 2018, Asia Pacific accounted for 35% share in the global explosives and pyrotechnics market.
Explosives are majorly used in mining. Growing technological expenditure for enabling effective exploration, sustainable processing of low grade and complex minerals are fueling mining activities. For instance, countries such as Indonesia have stringent government policies to generate up to 50% of power from domestic coal which is resulting in increased mining operations. Such initiatives are expected to positively influence explosives and pyrotechnics market growth over 2019-2025.
With major coal producing countries such as China, India, Indonesia and Australia, Asia Pacific is a region that is largely concentered on mining industry. The growth trends recorded by mining industry in Asia Pacific has added impetus to explosives and pyrotechnics market outlook. For instance, National Energy Agency of China has approved 7 major coal mining projects adding up a capacity of 22.5 million tons in 2019. Additional activities in mining sector not only due to the demand for coal but also other valued commodities like iron ore and copper are expected to fuel explosives and pyrotechnics industry trends during the forecast timeline.
Rapidly growing mining sector, increased political tensions leading to greater military spending and trends encouraging fireworks display will together augment revenue share of explosives and pyrotechnics market in the coming years.
Author Name : Aakriti Kakkar