The worldwide ferrovanadium market is estimated to be USD 4,518 million in 2024. Displaying a CAGR of 5.8% through 2034, the sector is slated to be worth USD 7,916.1 million by the end of the forecast period.
The primary use of ferrovanadium is in the production of steel. A number of steels use the alloy, from carbon steel to high-strength steel. The increasing global demand for steel is thus beneficial for the industry. Steel, and subsequently ferrovanadium, demand is improving through constant advancement in the construction industry.
The construction industry is on the up since the effects of the pandemic have faded. Both developed and developing nations are seeing greater construction activities. In the Western world, the increase in clamor for smart buildings, office buildings, and hotels is informing the growth of the construction sector.
According to the Associated Builders and Contractors in the United States, the American construction sector was worth USD 1.2 trillion in July 2024. As such, growing construction activity is playing a key part in the sector’s momentum.
Another prominent end-use sector for the alloy is the automotive one. The product is advancing in the automotive industry through its use both in the making of steel as well as for coating. The addition of the material to steel increases the durability and resistance of car parts and thus car manufacturers are turning towards the product. For similar reasons, the use of the alloy in the aerospace sector is also taking off.
The chemical processing realm is another avenue through which the industry is enjoying greater demand. Steel made from the alloy is being used to a greater degree in the production and handling of sulfuric acid. With the sulfuric acid market set to cross the USD 25,000 million mark by 2033, the future of the alloy in the chemical processing landscape is set to be bright.
Global Ferrovanadium Industry Assessment
| Attributes | Description |
|---|---|
| Estimated Global Ferrovanadium Market Size (2024E) | USD 4,518 million |
| Projected Global Ferrovanadium Market Value (2034F) | USD 7,916.1 million |
| Value-based CAGR (2024 to 2034) | 5.8% |
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An examination of the global ferrovanadium market is done with respect to several semi-annual periods. These periods are the adjacent 2023 to 2033 and 2024 to 2034 periods. For the 2023 to 2033 period, it is clear that the second half (H2) is set to be more beneficial than the first half (H1).
| Particular | Value CAGR |
|---|---|
| H1 | 5.8% (2023 to 2033) |
| H2 | 6% (2023 to 2033) |
| H1 | 6.1% (2024 to 2034) |
| H2 | 6.3% (2024 to 2034) |
In the second period also it is observed that progress in H2 will exceed H1. Thus, the rate of progression is set to be faster in the second half of both semi-annual periods.
Expanding Production Facilities to Propel Sector Forward
The positive trajectory of the industry can be witnessed through major players expanding their production facilities. For example, Ferro-Alloy Resources Ltd is constantly developing its Kyzylordinskaya oblast of southern Kazakhstan. Its aim in 2021 was to increase its vanadium production to 22,400 tonnes per year, mostly in the form of ferrovanadium. As raw material production becomes more common, the industry stands to benefit.
Use in Hand Tools Further Propagates Demand
Another positive effect of the rise in industrial production for the industry has been an increase in the demand for power tools. Steel power tools are as popular as ever in both industrial and residential applications. The propagation of DIY trends, building own furniture, and an increase in car sales is also helping more steel hand tools sales. The durability and strength provided by the alloy see it being used more and more in steel hand tools.
High Cost of Raw Materials and Fluctuations in the Steel Industry Negatively Impact Growth
One of the primary challenges for the industry is the volatility in vanadium prices, which can fluctuate dramatically due to changes in supply and demand, affecting the overall ferrovanadium market.
The limited number of vanadium-producing countries and companies creates a concentrated supply chain, making the industry vulnerable to disruptions from geopolitical tensions, trade disputes, or production issues in key regions. Environmental concerns and stringent regulations surrounding vanadium mining and processing pose additional challenges, potentially increasing production costs and limiting supply.
The sector is also sensitive to the performance of the steel industry, its primary consumer, meaning economic downturns or shifts in steel production can significantly impact demand. Furthermore, the development of alternative materials or technologies that could reduce the reliance on vanadium in steel production presents a long-term threat.
The high initial costs associated with incorporating vanadium in steel production can be a barrier for some manufacturers, especially in developing economies. The complex and energy-intensive process of extracting vanadium from its ores, coupled with the need for specialized equipment and expertise, can limit new entrants and constrain overall production capacity.
Principal Consultant
The industry size was tipped to be USD 3,866 million in 2019. Throughout the historical period, the industry grew at a CAGR of 2.6%, reaching a size of USD 4,279.1 million in 2023.
From 2019 to 2023, the market demonstrated moderate growth. Increased demand from the steel sector boosted overall performance. Infrastructure projects in emerging economies drove the consumption of high-strength steel. However, price volatility in vanadium affected profitability for many producers.
The pandemic disrupted supply chains, impacting market dynamics. Companies adapted by diversifying their supply sources to mitigate risks. Sustainability concerns prompted shifts toward greener production methods. Overall, the industry showed resilience despite facing significant challenges during this period.
To remain competitive, companies focused on innovation and efficiency improvements. Investments in research and development led to enhanced production techniques. Collaborations with steel manufacturers strengthened positioning and customer relationships.
Companies prioritized sustainability to meet regulatory and consumer expectations. Expanding into emerging markets provided new growth opportunities. Strengthening supply chain management helped reduce disruptions and costs.
Tier-1 manufacturers account for around 45-50% of the overall ferrovanadium market, with a revenue of more than USD 500 million. Tier-1 manufacturers include Pangang Group Vanadium Titanium & Resources Co. Ltd, HBIS CHENGSTEEL, Glencore, EVRAZ Plc, AMG Advanced Metallurgical Group, and Treibacher Industrie AG.
Tier-2 manufacturers such as Hickman, Williams & Company, Masterloy Products Company Jinzhou Guangda Ferroalloy Co. Ltd, CRONIMET Holding GmbH, AURA Technologie GmbH, Czech Vanadium, AMG Vanadium, Bushveld Minerals Group and other players are projected to account for 55-50% of the overall market. Their revenue is estimated to be under USD 500 million.
The ferrovanadium market is a slightly consolidated market with a small number of players holding the majority of shares. Key market participants account for about 35-40% of the share.
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In terms of material grade, FeV80 leads the sector. Aluminothermic reduction is the primary process used in the making of the alloy. The construction industry is the largest end-user of the product.
| Segment | FeV80 (Material Grade) |
|---|---|
| Value Share (2024) | 40.1% |
FeV80 is estimated to account for 40.1% of the industry share in 2024. By 2034, FeV80’s share is expected to have marginally decreased to 37.2% and its value is expected to become USD 3,326.7 million. The CAGR for the segment throughout the projected period is pegged to be 5.1%.
The FeV80 segment has become dominant in the ferrovanadium market due to several key factors. Firstly, FeV80 offers a higher concentration of vanadium compared to other ferrovanadium grades, making it more efficient for steel manufacturers to achieve the desired vanadium content in their alloys.
This higher concentration also translates to lower transportation and handling costs per unit of vanadium. Additionally, FeV80 has gained popularity because it provides better control over the final vanadium content in steel production, allowing for more precise alloy compositions.
The increased demand for high-strength, low-alloy (HSLA) steels in various industries, particularly in the construction and automotive sectors, has further driven the preference for FeV80. These steels require precise amounts of vanadium to achieve optimal mechanical properties. Moreover, as steel production processes have become more sophisticated, the ability to use higher-grade ferrovanadium like FeV80 has become more widespread, leading to its increased adoption.
| Segment | Construction (End-user) |
|---|---|
| Value Share (2024) | 28.5% |
The construction sector is anticipated to account for 28.5% of the industry share in 2024. By the time 2034 rolls around, its share is in line to decrease to 26.6%, sustaining a CAGR of 5% in the ten-year period. The segment’s value in 2034 is anticipated to total USD 2,109.3 million.
Ferrovanadium significantly enhances steel’s strength, durability, and resistance to wear and tear. This property is especially valuable in construction, where materials are subjected to constant stress and environmental pressures. The growing trend towards high-rise buildings and large-scale infrastructure projects has intensified the demand for high-strength, low-alloy (HSLA) steels, which rely heavily on ferrovanadium.
These steels allow for lighter, yet stronger structures, enabling more ambitious and cost-effective architectural designs. Additionally, the push for more sustainable and long-lasting buildings has further boosted ferrovanadium usage, as it contributes to creating structures with longer lifespans and better performance over time.
The material's ability to improve steel's resistance to corrosion and fatigue is particularly beneficial in regions with harsh climates or in projects exposed to extreme conditions. Moreover, stringent building codes and safety standards in many countries have mandated the use of higher-quality steel in construction, indirectly driving up demand.
The construction industry's global growth, especially in rapidly developing economies, has also played a significant role in expanding the market. As urbanization continues and infrastructure development remains a priority worldwide, the construction segment's dominance in the industry is likely to persist, reflecting the material's indispensable role in modern building technologies and practices.
Rapid urbanization and population growth have led to a rabid need for apartment complexes, commercial buildings, and other complex construction sites in Asian nations. Thus, the ongoing impetus provided for the construction industry is informing the growth of the sector in the Asia Pacific.
| Countries | CAGR (2024 to 2034) |
|---|---|
| India | 6.4% |
| United States | 4.4% |
| Brazil | 4.1% |
| China | 6.4% |
| Germany | 5.4% |
The industry is penned in to progress at a CAGR of 4.1% in Brazil. The sector in Brazil is set to thrive on the back of increased vanadium production. According to the US Geological Survey, production of vanadium in the country increased from 560 metric tons in 2022 to 6,400 metric tons in 2023.
This saw Brazil become one of the top five vanadium-producing countries in the world, easing the way for the target sector to grow in the nation. Brazil was also adjudged the top exporter of vanadium in the world.
The industry in India is expected to forge ahead with a CAGR of 6.4% through the forecast period. Fero-alloys are regarded to have a bright future in India. Ferro-alloys have climbed in popularity among the nation’s industrialists. As such, the Indian Ferro Alloys and Producers' Association (IFAPA)’s International Ferro Alloys Conference is drawing in more and more stakeholders each with each edition.
This positivity for fero-alloys is also helping ferrovanadium to make more of a mark in India. Particularly for the material, it is the expansion of the railway sector in the country that is seeing the industry be on the right track. For example, the Ministry of Railways has outlined a plan to manufacture 10,000 non-AC coaches during the financial years 2024-2025 and 2025-2026. Thus, the continuing expansion of the railway sector is positively impacting demand in India.
The sector in China is anticipated to book a CAGR of 6.4% over the next ten years. The value of the sector in China for 2024 is estimated to be USD 1,442.9 million and its share in the East Asia region is highlighted to be 78.5%.
A green revolution is sweeping the Chinese steel industry. The demand for green ferro-alloys is shooting up in China and it is in large part due to efforts by the government. Associations such as the China Ferroalloy Industry Association are also helping industrialists in the country make the shift to greener materials. Thus, the industry is projected to thrive in China.
Investors should focus on funding innovative technologies for production. This can enhance efficiency and reduce the environmental impact of production. Supporting research into alternative sources of vanadium is crucial for sustainability.
Collaborating with industry leaders can drive advancements in application methods. Additionally, exploring partnerships in emerging markets can expand reach. Manufacturers should prioritize sustainable practices to attract eco-conscious consumers. Investing in automation can improve production efficiency and reduce costs. Strengthening supply chain management will mitigate risks and enhance reliability.
Key Industrial Developments
Based on the material grade, the ferrovanadium market can be divided into the following segments: FeV35, FeV40, FeV50, FeV60, FeV70, FeV80, FeV85, and nitrided ferro vanadium.
Based on the production process, the ferrovanadium market can be divided into the following segments: below 20" aluminothermic reduction and silicon reduction.
Based on the end-user, the ferrovanadium market can be divided into the following segments: aerospace, automotive & transportation, construction, oil & gas, industrial equipment, hand tools, defense, chemical, and marine.
The sector has been analyzed with the following regions covered: North America, Latin America, Europe, South Asia, East Asia, Oceania, and the Middle East and Africa.
The sector is sized at USD 4,518 million in 2024.
A CAGR of 5.8% is predicted over the forecast period.
The market is forecasted to reach USD 7,916.1 million by 2034.
AMG Advanced Metallurgical Group and Treibacher Industrie AG are key companies in the industry.
The market is penned in to progress at a CAGR of 4.4% over the next ten years in the United States.
FeV80 is set to dominate, with an expected share of 40.1% in 2024.
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