Booming Demand in Mining and Military Sectors Drives U.S. Explosives Manufacturing Growth

According to the latest market research study published by P&S Intelligence, the U.S. explosives manufacturing market is poised for significant expansion, with its value projected to rise from USD 3.1 billion in 2024 to USD 4.7 billion by 2032, registering a CAGR of 5.5% during the forecast period. This surge is being propelled by the growing demand for explosives across mining, construction, defense, and oil & gas industries. Notably, controlled demolitions for tunneling and foundation creation are fueling the demand within infrastructure development projects, while the mining sector continues to use vast amounts of explosives for coal, metal, and mineral extraction.

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Defense remains a crucial growth pillar, with substantial government investment in ammunition, missile systems, and propellants. In Fiscal Year 2023 alone, U.S. defense-related expenditures rose by USD 50.5 billion, driven by increased contract obligations and payroll spending. Simultaneously, technical innovations, such as eco-friendly explosives and digital detonation systems, are enhancing safety, precision, and compliance with environmental regulations—pushing the industry toward sustainable practices.

Key Insights

• Blasting agents and low explosives dominate the market with a 65% share in 2024 and are expected to remain the fastest-growing category, widely used across mining, quarrying, and construction due to their operational safety and economic utility.
• High explosives like TNT, RDX, HMX, and PETN are essential for defense and aerospace, with chemical synthesis accounting for 70% of production methods due to its high stability and rapid detonation velocity.
• Mining leads all application segments with a 60% share in 2024, driven by increasing coal, metal, and quarry production. The U.S. produced minerals worth USD 100 billion domestically and processed an additional USD 900 billion worth in 2024.
• The defense & military segment is set to grow the fastest due to increased spending on advanced propellants and precision explosives. The U.S. military remains the largest global buyer of explosive materials.
• Mechanical mixing, while currently the smaller segment, is the fastest-growing manufacturing process, driven by demand for bulk, emulsified, and eco-friendly explosives in commercial and industrial applications.
• Technological innovation is transforming detonation methods, with users shifting from traditional pyrotechnics to digital and smart detonators for greater control and safety. This trend helped reduce mining fatalities from 41 in 2023 to 31 in 2024.
• AI is increasingly integrated into blasting operations to analyze geological conditions, optimize explosive use, and minimize environmental impact.
• Eco-friendly trends are shaping R&D investments, with a focus on low-emission, ammonia-free, and water-based explosive formulations compliant with EPA standards.
• Government initiatives to boost domestic mineral production are reinforcing market demand. The average American consumes 3.4 tons of coal and 40,000 pounds of newly mined minerals annually.
• Quarrying activity is also on the rise due to escalating demand for limestone, gravel, and sand in infrastructure development.
• Between 2020 and 2024, the value of total mining production in the U.S. rose from USD 28,100 million to USD 33,500 million, indicating a steady growth trajectory.
• The industry remains fragmented and competitive, with companies offering diverse explosives tailored to sectors such as mining, defense, aerospace, and pyrotechnics, which fosters innovation and opens space for new entrants.
• Leading companies in the U.S. market include Orica Limited, Chemring Group PLC, Incitec Pivot Limited, MAXAMCORP HOLDING, SL, and Ensign-Bickford Aerospace & Defense Company, among others.
• In a significant development, Repkon USA secured a USD 435 million U.S. Army contract in November 2024 to build a TNT production facility in Kentucky, underscoring the defense sector’s role in market growth.
• In October 2024, Orica Limited advanced its technology leadership with the launch of the i-kon III Steel detonator, emphasizing precision and enhanced blast performance.