Zirconium and Hafnium Market Share, Industry Analysis [2031]

Report Description

Zirconium and Hafnium Market Outlook

The Global Zirconium and Hafnium Market was estimated at USD 1,706.6 Million in 2022 and is anticipated to reach USD 2,516.1 Million by 2031, expanding at a CAGR of 4.5% during the forecast period.

Zirconium (Zr) is usually found in felsite, an igneous rock rich in silica and feldspar. The principal source of zirconium is the zirconium silicate mineral, zircon (ZrSiO4). Zirconium is a very strong, ductile, malleable, and lustrous silver-gray metal. Its physical and chemical properties are similar to those of titanium. Zirconium is extremely heat and corrosion resistant. Zirconium is lighter than steel, and its hardness is comparable to copper.

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Zircon is a co-product or by-product of the heavy mineral sand industry, where the titanium minerals ilmenite and rutile are also extracted. Hafnium is chemically identical to zirconium, making it difficult to separate the two components. Therefore, it is considered that the most of the commercial hafnium is a by-product of zirconium refining. Zircon is considered better than most other minerals at resisting weathering and erosion, due to its hardness, durability, and chemical inertness.

Therefore, zircon is concentrated in sedimentary deposits and is present in most sands. It is found in economically concentrated deposits of heavy mineral sands. The main ore minerals of these two corrosive and refractory metals is zircon, which mostly contains about 50 times more zirconium than hafnium.

Macro-economic Factors

Economic Growth

The global zirconium and hafnium market is significantly influenced by the rate of economic expansion, which is a crucial macroeconomic factor. Strong economic expansion typically results in increased demand for zirconium & hafnium in a variety of industries, such as aerospace, automotive, and construction. Thus, their prices rise in response to the high demand.

When the economy expands, there are typically more investments in infrastructure and other large-scale projects, which can necessitate substantial quantities of zirconium and hafnium. For instance, the nuclear power industry uses zirconium and hafnium as cladding materials for fuel rods, whereas the aerospace industry relies on these metals for aircraft manufacturing components and equipment.

Additionally, zirconium and hafnium are utilized in a variety of other contexts, such as chemical processing, metal casting, and welding. If economic growth decelerates, the demand for zirconium and hafnium may decline, putting pressure on prices, as industries that are reliant on these metals decrease production and investments in new projects. A slowdown in economic growth decreases consumer spending, which can have repercussions for the demand for zirconium and hafnium in industries such as automotive and construction.

Industrial Production

The global zirconium and hafnium market is mainly influenced by industrial production, which is another important macroeconomic factor. These metals are used extensively in high-tech industries such as aerospace, nuclear power, and chemical processing, and an increase or decrease in industrial production direct affects the demand for zirconium and hafnium. An increase in industrial production drives the demand for these metals.

The aerospace industry heavily depends on zirconium and hafnium to produce jet engines, turbine blades, and other components. Therefore, an increase in aerospace production fuels the need for these metals. Similarly, the nuclear power industry uses zirconium and hafnium as cladding materials for fuel rods, and an increase in nuclear power production can boost the demand for these metals.

Conversely, a decline in industrial production can decline the demand for zirconium and hafnium. For instance, a slowdown in the aerospace industry or a decline in nuclear power production reduces the demand for these metals. Other factors that can reduce industrial production, include economic recessions or changes in consumer behavior. These can have a substantial impact on the zirconium and hafnium market.

Government Policies

The global zirconium and hafnium market is influenced by a number of macroeconomic factors, including government policy. These policies may have direct and indirect implications on the demand, supply, and cost of various metals.

By rules and subsidies, government actions can affect the zirconium and hafnium market. Governments are granting subsidies or tax advantages to support the adoption of renewable energy sources such as wind and solar power. These businesses are dependent on zirconium and hafnium, which are used to manufacture wind turbine blades and solar panels. Thus, policies that encourage the expansion of these businesses fuel the demand for certain metals.

Similarly, government laws and safety requirements influence the usage of zirconium and hafnium in sectors such as nuclear power. Changes in nuclear power safety or environmental affect the rules, thereby affecting the market. In addition to these direct consequences, government can have indirect effect on the zirconium and hafnium markets.

Changes in trade policies, such as tariffs and import limits affect the availability and price of zirconium and hafnium through international commerce and supply chains. Changes in tax laws, such as corporate tax rates or research and development tax deductions, influence investment and production decisions of sectors that rely on these metals.

Zirconium and Hafnium Market Dynamics

Market Driver- Growth in the Chemical Industry

One of the major sectors that frequently uses zirconium and hafnium for a variety of applications is the chemical industry. Hafnium is used in the production of various chemicals; whereas, zirconium alloys are used in numerous chemical industry equipment, such as tanks, pressure vessels, boilers, pumps, and valves.

These components provide robust corrosion resistance against strong alkalis, salt solutions, organic & inorganic acids, and some molten salts. Expanding chemical industry is expected to increase the demand for hafnium and zirconium, which is expected to contribute to the market growth during the forecast period.

Market Driver- Rising Usage of Zirconium in the Ceramics Industry

The ceramics industry makes extensive use of zirconium and hafnium, as these are used in a variety of products, including glazes, enamels, and tiles. The market is expected to expand during the forecast period, as a result of growing production and consumption of ceramics. For instance, according to data provided by the Italian ceramic industry, the demand for ceramic tiles is rising throughout Europe.

The ceramic tile market registered a positive growth rate in the first quarter of 2021, with an increased turnover of 9% compared to 2020. Zirconium demand is expected to rise as a result of the ceramics industry expansion, which is expected to propel the market's expansion during the forecast period.

Market Driver- Growing Demand from Aerospace Industry

Hafnium is frequently used as a super alloy in the aerospace industry, owing to its suitable properties. It combines with a wide variety of other metals, such as tantalum, iron, niobium, and titanium. Hafnium niobium alloys are heat resistant that are used in aerospace applications, such as space rocket engines.

Superalloys are the one of applications for the hafnium market. The growing demand for hafnium is attributed to ongoing technological advancements and innovations in the aerospace manufacturing processes. The adoption of technological advancements in the aerospace industry is anticipated to increase hafnium demand in the aviation and aerospace sectors.

Market Driver- Increasing Demand of Hafnium in the Nuclear Industry

Use of hafnium in the nuclear reactor sector is a potential driver for the market. Hafnium is highly corrosion resistant and an improved neutron absorber. It is used in nuclear submarines and nuclear reactor control rods, both of which are a key technology for sustaining the fission process. Control rods keep the fission chain reaction running, while preventing it from accelerating too quickly. This provides a secure and environmentally friendly source of energy.

In addition, the rising demand for hafnium in research institutions and the nuclear power industry is anticipated to further open up new opportunities for manufacturers and drives the market in the coming years. Increased awareness about product features, such as high safety and efficient use, is expected to further result in high adoption of the product, which drives the market growth over the forecast period. 

Market Restraint- Strict Regulations Regarding the Use of Zirconium

Health risks associated with zirconium use are a major concern, which slows down the market expansion during the forecast period. Zirconium can irritate the eyes, lungs, and skin, as well as trigger an allergic reaction. Zirconium powder, dust, or granules can spontaneously explode in the air and are highly flammable. The proper use zirconium and its impact on human health are constantly monitored by a number of governing bodies.

For instance, the Occupational Safety and Health Administration (OSHA) establishes an exposure limit of 5 mg/m3. The market expansion during the forecast period is expected to be hampered by such stringent regulations regarding the use of zirconium.

Market Opportunity- Zirconium is Recyclable in Nature

China is a key player in terms of production of lithium-ion battery. Many countries apart than China are planning to open lithium-ion factories to meet the growing demand for batteries. According to venture capitalists, the demand for lithium-ion batteries in electric vehicles (EVs) is rising rapidly. The demand foe lithium-ion batteries is set to reach 9,300 gigawatt-hours (GWh) by 2030, up by over 1,600% from 2020 levels.

Furthermore, the US is working on increasing the production of lithium-ion batteries. For example Tesla and Panasonic’s Giga Nevada accounts for the majority of lithium-ion batteries with 37 GWh of annual capacity, making it the one of the largest battery manufacturing plant in the world. Furthermore, Europe is working on increasing the manufacturing plants of lithium-ion batteries for its electric vehicles.

Countries in Europe collectively make up for 68 GWh or around 10% of lithium-ion battery manufacturing. Therefore, increasing number of production plants is expected to boost the demand for Zirconium and Hafnium, as it is used in the production of lithium-ion batteries.

Scope of Zirconium and Hafnium Market Report    

The report on the global Zirconium and Hafnium Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Zirconium and Hafnium Market Segmental Outlook

On the basis of type, the global Zirconium and Hafnium market is segmented into Nuclear Grade Zirconium, Industrial Grade Zirconium, Hafnium. Due to its special characteristics, industrial grade zirconium is a versatile material that may be used in a wide range of applications. Due to its high tensile strength, corrosion resistance, and biocompatibility, it is a crucial component in a wide range of sectors, from ceramics to medical equipment.

The nuclear grade zirconium segment expected to expand at a CAGR of 5.4% during the forecast period. Zirconium's high fuel burn and low failure rates contribute to improved fuel performance. In the long run, it is anticipated that the nuclear industry will be driven by nuclear grade zirconium, which is recognized as a critical strategic metal and intimately linked to nuclear industry development.

As a result, the market is being driven by rising nuclear grade zirconium utilization. Hafnium metal is an ideal neutron absorber, due to its large cross section and notable welding and processing properties. Rapid product utilization in the production of pressurized water reactors, nuclear reactors, and others, is boosting the market. Increasing use of hafnium as a superalloy in the aerospace industry is driving the market, due to its high thermal stability in both composite and metallic forms.

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On the basis of End-Use Industry, the global Zirconium and Hafnium Market is segmented into ceramics, nuclear, chemicals, and others. The ceramics segment held a significant market share in 2022. Rising consumer demand for classy and high-quality ceramic products is boosting the demand for ceramics, which is expected to boost the market during the forecast period.

The chemicals segment is expanding at significant rate. The chemical industry is expanding, which this is expected to increase the requirement of hafnium and zirconium and drive the market in the forecast period. Nuclear segment is growing at high rate during the forecast period. Increasing focus on developing nuclear power resources is boosting the nuclear power industry, which, in turn, is driving the zirconium and hafnium market.

Furthermore, Zirconium is a lightweight metal with a high ratio of strength to weight, making it perfect for aeronautical applications. It is frequently used in engine components, turbine blades, and other components that must endure high temperatures and corrosive environments.

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Zirconium and Hafnium Market Regional Outlook

Based on regions, the market is separated into five regions, namely, North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The market in Asia Pacific held a significant share of the market during the forecast period.

Europe accounted for a substantial share in the market in 2022. This is attributed to the growing consumption of zirconium and hafnium from the nuclear and ceramics industry in the region. In 2022, 42% of electricity was from fossil fuels & biomass, 22% from nuclear, 22% from wind & solar, and 10% from hydro in the EU. France has the major operable nuclear reactors, followed by Belgium and Spain. These countries together boost the demand for zirconium and hafnium in this region.

Asia Pacific accounted for a high market share in 2022. This region is the major dynamic economic region across the globe. This region has a huge capacity for energy, which in turn leads to the high number of nuclear reactors in the area. Additionally, increasing production of ceramics especially ceramic tiles in countries such as China and India is also contributing to the growth of the zirconium and hafnium market in the region.  

North America held substantial market share in 2022, due to the increasing demand for zirconium and hafnium in major industries such as nuclear and superalloy manufacturing used in the aerospace industry. Increasing investment in the nuclear industry in the US is helping the market expansion in the region. For instance, in February 2023, Constellation Energy announced plans to invest USD 800 million in new equipment to increase the output of its Braidwood and Byron nuclear power plants in Illinois by approximately 135 MWe. Such government investments are helping the nuclear power industry to grow in this region.

Furthermore, rising aerospace manufacturing and superalloy production in this region is projected to expand growth opportunities for the market during the forecast period. The market in the Middle East & Africa and Latin America is projected to expand at a CAGR of XX.X% and XX.X%, growth opportunities for the manufacturers of lithium-ion batteries based in these countries.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Zirconium and Hafnium Market
• Historical, Current and Projected Market Size in terms of Value
• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
• Industry Drivers, Restraints, and Opportunities Covered in the Study
• Recent Industry Trends and Developments
• Competitive Landscape & Strategies of Key Players
• Neutral Perspective on Global Zirconium and Hafnium Market Performance