Explosive Accessories

Explosive Accessories Global Market Outlook:

MARKET OVERVIEW

Global Demand: $7.01 billion (2022)

Global Demand CAGR: Approx. 4 percent (2021–2024)

• The demand for explosive accessories is primarily driven by the demand for commodities in China, India, and other Asian & emerging countries

• A constant rise in commodity demand continues to drive the mining activity and increasing mineral output, which along with declining ore grades, are the key drivers for explosives and blasting accessories

Explosive Accessories Market Overview and Trend

• The global explosive accessories market is expected to grow at a moderate CAGR of 3.5–4 percent until 2025. The economic recovery in various countries as well as rising commodity prices are expected to be the major drivers for the explosive accessories market

• The key explosive accessories are detonators (electric and non-electric), detonating cords, boosters, blast initiation timers, micro-logger, network-tester, micro-blaster, ohm-meter, multi-meter, etc.

• Primarily PETN (Pentaerythritol Tetranitrate) is used as the base charge, and ASA compound is used as the primary charge in detonators

• The APAC region is expected to be the primary demand driver for explosives and accessories, with the Asian market projected to grow at a CAGR of 6–7 percent

• The mining industry accounts for 90 percent of the global demand, and coal mining (53 percent) and metal mining (30 percent) are the primary demand drivers for explosives and accessories

Porter's Analysis on Explosive Accessories

• Major suppliers of explosives over fully integrated supply of explosives, accessories, and services, due to which supplier power in medium to high

• Major mining companies have a strong negotiation power because of the large consolidated business volume

Supplier Power

• On a global scale, the industrial explosive and accessories market is consolidated with major manufacturers, such as Orica, Dyno Nobel, AEL, etc.

• The other significantly larger suppliers are regional, and they influence the local pricing

• Suppliers offer fully integrated supply of explosives, accessories, and services, which offer the best supply security and reliability

Barriers to New Entrants

• The barrier to new entrants is medium to high for explosive accessories category

• While the barrier is high for some explosive accessories, like blast initiation devices, safety fuse, detonating cord, etc., due to the use of explosive agents in the product as well as the integrated nature of accessories, explosives, other accessories, such as connectors, lead wires, ohm-meters, and multi-meters, could have other players. However, the primary players are full service integrated suppliers, which will continue to act as a barrier

Intensity of Rivalry

• Intensity of rivalry among major suppliers of explosives and accessories is high, while smaller suppliers find it difficult to compete with the major manufacturers, due to the fully integrated supply and service model that permeates the mining industry

Threat of Substitutes

• There are no known substitutes, which can currently replace explosives and accessories in blasting operations performed in mines and quarries

• End users can select among different types of initiating systems (non-electric, electric, and electronic) based on requirements, cost, and safety standards to be adopted for each application

Buyer Power

• The current supply surplus scenario gives the buyer negotiation leverage with explosive and accessories manufacturers, due to reduced commodity demand globally, especially the decline in coal mining

• While major mining companies have an advantage over junior miners, the buyer power is low, due to consolidated suppliers dominating the market

• Buyers look to engage with full service providers for supply of explosives, accessories, and services