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The market for barite is expected to register a CAGR of over 4% during the forecast period. Some of the major factors driving the barite market are the growing demand from the oil and gas industry, in drilling fluid, and its growing usage in the plastics industry. The presence of close substitutes, such as celestite and iron ore, could act as an obstacle for the growth of the barite market.
– About 80% of the global demand is from the petroleum industry. The worldwide demand for barite would continue till petroleum products are preferred as the chief source of energy, given their importance in the transportation and industrial end-use sectors.
– Middle-East & Africa is forecasted to be the largest market for barite owing to the growing oil & gas industry of this region where barite plays a very crucial role.
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Key Market Trends
High demand from Oil & Gas Industry
– Barite has huge demand in oil and gas drilling operations as a weighing agent in the drilling mud. It prevents the explosive release of oil and gas during drilling and it has unique physical and chemical properties such as high specific gravity, chemical and physical inertness, low solubility, and magnetic neutrality.
– The properties like non-corrosiveness, non-abrasiveness, insolubility in water, inertness, and high specific gravity enable barite's application as a weighting agent in drilling operations to remove the cutting from the bits, transport cutting to the surface to reduce the friction in the drilling string, control pressure, prevent blow-out and at the same time to provide lubrication.
– The prospectus for the future growth of the petroleum industry suggests that petroleum exploration will continue to grow and simultaneously the consumption of barite. Furthermore, more drilling must be done per unit of oil as hydrocarbon discoveries become less productive with time.
– Daily global demand for crude oil (including biofuels) is on the rise and is projected to cross 100 million barrels per day mark by the end of 2020.
– Hence, the rising demand for barite from oil & gas industry globally is expected to drive market growth during the forecast period.
Middle-East Region to Dominate the Market
– Middle-East has the largest market share in the barite market owing to its dominance of over 30% in global oil production. This is due to the presence of some of the leading oil-producing nations of the world in this region, like Saudi Arabia, Iran, Iraq, Kuwait, and UAE.
– It was estimated that among OPEC's total oil reserves, the majority was held by Middle-East nations. The proven oil reserves of this region were evaluated at about 113.2 billion metric tons.
– As of 2019, Saudi Arabia produces roughly 12 million barrels of oil per day which accounts for 15% of the global output, making it the largest oil producer in the world.
– In fact, Middle-East produces one-third of the world's total oil production, which was estimated to be roughly around 32 million barrels per day in the year 2019.
– Global oil demand in 2019 is estimated to be around 99 million barrels per day. This will fuel the production from the oil & gas industries of Middle-East countries, which in turn will increase the consumption of barite in this region.
– Hence, with the rising demand from various industries, the demand for barite is expected to grow considerably in Middle-East & Africa region over the forecast period.
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The Barite market is partially consolidated. Some of the companies include The Cary Company, Deutsche Baryt Industrie, CIMBAR PERFORMANCE MINERALS, Milwhite Inc., and International Earth Products.
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1.1 Rapidly Increasing Demand from the Oil and Gas Industry
4.1.2 Growing Use in the Plastic Industry
4.2.1 Availability of Close Substitutes
4.2.2 Other Restraints
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Degree of Competition
5 MARKET SEGMENTATION
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