The global tungsten market is witnessing a strong growth trajectory, with its valuation expected to rise from USD 5.16 billion in 2024 to USD 9.65 billion by 2032, expanding at a robust CAGR of 8.14% during the forecast period (2025–2032), according to DataM Intelligence. This growth is being fueled by heightened demand in sectors such as automotive, aerospace, mining, and electronics markets that increasingly rely on tungsten’s exceptional hardness, density, and thermal stability.
The versatility of tungsten makes it indispensable in several high-performance applications. Tungsten carbide, renowned for its hardness, plays a dominant role in cutting tools, mining equipment, and wear-resistant components, securing a 50% share in the product segmentation. In automotive applications (28% market share), tungsten’s high temperature and wear resistance are critical for components such as engine parts, braking systems, and components in electric vehicles (EVs). Machine tools and equipment account for 26% of demand, while electrical and electronics follow closely at 22%, leveraging tungsten’s superior conductivity and heat resistance. Moreover, technological advancements and industrial growth have amplified the appeal of tungsten in cemented carbides and mill products, particularly across the Asia Pacific, North America, and Europe.
The Asia Pacific region continues to lead the tungsten market, holding approximately 50% of global market share in value terms. China’s dominance in both production and consumption, alongside major infrastructure, EV manufacturing, and electronics supply chains across Japan, South Korea, Vietnam, and India, has firmly entrenched the region’s leadership position. Notable developments, such as the expected commercial-scale production launch at South Korea’s Sangdong Tungsten Mine in H2 2025, are further strengthening regional production capacity while diversifying away from China-dominated intermediate supply.
China’s 2025 introduction of tighter export controls on tungsten intermediates, coupled with rising downstream demand across cemented carbide and precision tool sectors, has led to significant price adjustments and strategic product upgrades by manufacturers in the region.
Europe and North America are also key contributors to global tungsten demand. Europe accounts for around 25% of market revenues, featuring strong consumption from aerospace, industrial machinery, and defense end-users. North America follows with approximately 20% share, underpinned by aerospace, automotive, and oil & gas sectors and bolstered by increased U.S. efforts to shore up domestic critical mineral sourcing and processing.
The strategic importance of tungsten has risen markedly, especially in the United States. Multiple policy developments in 2025 reflect a concerted push to reduce reliance on Chinese-origin tungsten. In February 2025, the U.S. government strengthened its critical minerals policy framework, including extended tariffs on Chinese tungsten products and support for allied and domestic mining ventures.
Domestic industry players like Almonty Industries are capitalizing on this momentum, progressing with offtake and financing agreements to supply tungsten concentrate for the U.S. defense and aerospace sectors. Meanwhile, manufacturers in the oilfield services and tool-making industries have secured long-term procurement agreements to hedge against price volatility and supply chain disruption, reflecting confidence in medium- to long-term demand.
The tungsten industry has experienced significant consolidation recently, driven by strategic mergers and acquisitions aimed at enhancing vertical integration and expanding production capacity. One noteworthy development is Sandvik's ongoing efforts to integrate Buffalo Tungsten, which was acquired to bolster its capabilities in tungsten carbide tooling across North America. Meanwhile, the Plansee Group has responded to rising demand from the aerospace and electronics sectors by expanding its production capabilities for tungsten-heavy alloys and heat dissipation components. Additionally, Elemental Royalty Corp has reinforced its position in the upstream market through key financing initiatives slated for 2025, focusing on royalty and streaming deals that target tungsten and other critical minerals.
The tungsten market has been experiencing a meteoric price rise in 2025, climbing nearly 150% year-to-date. As of December 9, prices for black tungsten concentrate (≥65% grade) reached a record 356,500 CNY/mt (approx. USD 50,000/mt), reflecting a coordinated impact of mining quota tightening, reduced availability, and rising strategic demand.
Major producers such as Jiangxi Tungsten, Zhangyuan Tungsten, and the Ganzhou Tungsten Industry Association repeatedly raised their long-term contract prices throughout the year. Notably, China’s 2025 tungsten mining quotas remained tight or declined in several provinces, leading to lowered output and slower year-end deliveries. Tungsten’s strategic role, especially in defense and electronics, has been magnified given its limited substitutability and continued demand resilience.
APT prices reached 530,000 CNY/mt in December, with ferrotungsten and other processed materials showing similar triple-digit increases across international markets, including Europe. The average European APT price surged by nearly 130% year-to-date, with prices ranging between USD 735–780/mtu.
Despite high input costs and pressure on end-market consumers, price pass-throughs have been relatively smooth due to the concentrated presence of key producers and the inelastic nature of tungsten in advanced applications. The industry is seeing a synchronized tightening of supply across China and Vietnam, along with increased stockpiling activity in the U.S. and EU, further fueling the bullish price environment.
Looking ahead, tungsten’s outlook remains solid. The market is expected to close in 2025 at elevated price levels, with the supply-demand imbalance widely expected to persist into 2026. Although structural adjustments are occurring across downstream end-use sectors, no viable large-scale substitution material has emerged. Market participants should monitor developments such as new quota announcements, restocking behavior in Q1 2026, and further industrial policy decisions globally.
Additionally, high-margin applications in aerospace, defense, and electronics will continue to support pricing power. Tungsten’s unique material properties, combined with its strategic classification by multiple governments, ensure it will remain a critical and high-demand material over the coming decade.
With an expected market value nearing USD 10 billion by 2032, amplified by soaring spot prices, strategic investments, and geopolitical supply realignments, the tungsten industry is firmly on a growth trajectory. Asia Pacific's commanding role, emerging mining projects in allied nations, and vertical integration by major industry players are reshaping the strategic landscape of this essential metal. Stakeholders across the value chain, from miners to defense contractors, will need to navigate the complex interplay of supply constraints, escalating demand, and evolving policy frameworks to harness the full potential of the tungsten opportunity.