Corundum Market Size, Share & Trends Analysis Report By Application (Jewelry, Abrasive, Refractory), By Region (APAC, Europe, North America, Central & South America, MEA), And Segment Forecasts, 2020 - 2027

Report Overview

The global corundum market size was valued at USD 2.6 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 4.0% from 2020 to 2027. The rising popularity of the ruby and sapphire jewelry is expected to positively aid the industry growth over the forecast period. Corundum is a mineral, which occurs naturally as well as can be manufactured using a synthetic process. The product is very hard in nature and has a rating of 9 on Moh’s scale next to diamond. Due to the properties of hardness exhibited by the product, it is widely used in applications, such as abrasives and refractory. Corundum demand in the U.S. observed negative trajectory from 2016 to 2017, largely due to the volatility in the domestic jewelry industry. The vivid color of product types including ruby and sapphire are widely popular in the global jewelry industry. The domestic production of the gemstones including sapphire, ruby, and others plummeted from nearly USD 11.7 million to USD 9.2 million over the aforementioned timeline.

The production decline coupled with weak purchase sentiments leads to a decrease in sales revenue from 2016 to 2017. Over the period from 2018 to 2019, the dynamics improved for the domestic corundum industry in the U.S. This positive growth was largely influenced by the steady growth in the domestic production along with improved market conditions. The domestic production of synthetic and natural gemstones increased from nearly USD 59.5 million in 2018 to approximately USD 65 million in 2019.

However, in 2020, the market conditions plummeted to its lowest levels since the financial meltdown of 2007 - 2008 due to the emergence of coronavirus. The U.S. coronavirus cases also observed a significant spike by the end of June 2020. This led to the severe disruption in the daily operations along with the closing of shops and commercial centers in the country. The economic disruption caused by the global pandemic in the U.S. is projected to hinder the corundum market growth over the forecast period. Moreover, the slowdown industrial activities coupled with rising unemployment is anticipated to have a negative impact on the market.

Application insights

The jewelry segment led the market and accounted for more than 51% of the global revenue share in 2019. The segment growth is largely influenced by customer sentiments and macro-level economic indicators. However, with the emergence of the global pandemic, the short term growth of the overall jewelry industry is likely to remain stagnant due to weak economic conditions and rising unemployment around the globe.

Abrasives was the second-largest application segment. The product is used in the form of abrasives for the polishing of steel and glass. The rising prominence of abrasives, especially in the building & construction sector, to provide final finishing is projected to aid the growth of the segments over the forecast period. However, with the spread of coronavirus around the globe and lockdown imposed by respective governments, the global construction sector is likely to take a hit in FY 2020. This, in turn, is projected to affect the short-term gains for the abrasive application category.

The product is also used in the production of high-alumina refractory bricks, which are widely used across the linings of thermal kilns. The refractory application is projected to remain the third-largest segment over the forecast period. However, the short-term dynamics of the segment are likely to remain sluggish due to the emergence of coronavirus and disruption caused by it; leading to a drop in the industrial activities across the globe.

Regional Insights

Asia Pacific led the market and accounted for over a 29% share of global revenue in 2019. The presence of glass and steelmaking industries in the region is likely to boost the market over the forecast period. The rapid industrialization in India will further drive the product demand in the Asia Pacific region.

Moreover, the presence of key corundum-producing nations including India, Myanmar, Australia, Sri Lanka, and others will support the region’s growth. The European region is projected to witness steady growth over the forecast period. However, with the spread of coronavirus in the region coupled with the lockdown imposed by the respective governments of the region is projected to hamper the industry growth.

North America is projected to witness the second-highest CAGR, in terms of volume, from 2020 to 2027. The U.S. is expected to emerge as the key regional market, as the country accounted for nearly 90% of the total regional market space. The product demand in the U.S. market is largely driven by the domestic jewelry sector. The short-term market conditions are likely to remain sluggish, however, it is expected to normalize once the pandemic situation comes under control.

Central & South America is projected to observe the slowest growth over the forecast period due to the increasing number of Coronavirus cases in Brazil. The region is undergoing tremendous economic turmoil. In addition, the region is afflicted by geopolitical stress in key countries, such as Columbia and Venezuela, which hampers industrial activities in the region.

However, the region is anticipated to observe steady growth over the forecast period, primarily driven by the gulf countries. The economic development coupled with strong construction activities in Saudi Arabia, UAE, and Oman will positively influence the consumption trends of corundum in the region.

Key Companies & Market Share Insights

The industry participants are mainly focusing on controlling the production costs during the pandemic situation. A decline in demand and weak economic indicators are pushing vendors to adopt cash-saving strategies and reduce operational costs. The industry-level activities including extraction and refining corundum are projected to slow down due to the pandemic. Some of the prominent players in the corundum market include:

• Alteo

• MOTIM Electrocorundum Ltd.

• RusAL

• Greenland Ruby

• Henan Sicheng Co.

• Ltd, K. A Refractories Co., Ltd.

• Rubicon Technology

• Xingyang Jinbo Abrasive Co., Ltd.

• RSA LE RUBIS SA

• Arteka

Corundum Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global corundum market report on the basis of application and region:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Jewelry

  • Abrasive

  • Refractory

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

  • Europe

    • Germany

    • France

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa