Chromium Market Outlook Report By Application (Metallurgy, Chemicals, Refractory), By Region (North America, Europe, Asia Pacific, Central & South America, Middle East & Africa), And Segment Forecasts, 2020 - 2025

Industry Insights

The global chromium market size was estimated at USD 14.01 billion in 2019 and is anticipated to expand at a compound annual growth rate (CAGR) of 2.7% from 2020 to 2025. Increasing demand from the stainless steel industry for various end-use markets such as automotive, aerospace, defense, marine, building and construction, and electronics is expected to be the key growth factor. In addition, significant demand from Asia Pacific is anticipated to fuel the market over the forecast period. China was the largest consumer of the product as it is one of the largest manufacturers of stainless steel and other specialty steel products.

Chromium is an essential alloying element in the formulation of stainless steel. Thus, augmented demand for stainless steel is a major driver propelling demand in the global market. Approximately 18.0% of the total composition of stainless steel is comprised of chromium in order to enhance its hardness and resistance to oxidation, thereby protecting steel from corrosion.

The chromium market in the U.S. was valued at USD 595.1 million in 2019 and is expected to progress at a CAGR of 2.5% over the forecast period. Being a major stainless steel manufacturing country, the U.S. is also a major global manufacturer of chromium-based chemicals, and chromium ore is extensively used for refractory applications. The primary source of chromium supply is in the form of imported and domestically mined chromium ore. Increasing infrastructural development activities in the country are likely to fuel demand over the forecast period.

However, carcinogenic properties and volatility in prices are posing a challenge to the growth of the market. Chromium is toxic and found in the environment in two forms: hexavalent (Cr VI) and trivalent (Cr III). Cr III is considered to be lesser toxic than Cr VI in case of acute as well as chronic exposure. Cr VI severely affects the respiratory tract in humans following prolonged exposure. Coughing, shortness of breath, wheezing, and neurological and gastrointestinal effects are among common irritations caused by its exposure.

Chromium Market Trends

The Chromium market is expected to grow significantly over the forecast period owing to the rising production levels of stainless steel related products. Chromium is an essential element in the formulation or manufacturing of stainless steel grade for commercial use and mostly employed as an additive to harden steel as well as its enhance corrosion protection.

The production of stainless steel is increasing at a rapid rate on account of huge demand arising from application industries such as automotive, aerospace, defense, electronics, and building & construction. Rapid industrial growth in developing countries, such as China and India, is one of the factors driving the growth of the global stainless steel market. As per the International Stainless Steel Forum (ISSF), the total production of stainless steel in India stood at 3.3 million tons at the end of 2016. Moreover, the overall production reaches up to 3.6 million tons by the end of 2017.

Increasing applications such as decorative plating from finishing and plating industry for automotive is driving the demand for chromium. Corrosion and wear resistance coupled with the ability to improvise the exterior appearance of a vehicle are some of the major advantages of chromium-plated automotive components. These advantageous properties are expected to drive the market growth over the forecast period. However, the growing environmental awareness and accompanying stringent regulations for chromium plating process may pose a challenge to the growth of the market over the forecast period.

However, chromium market witnessed deep disturbance with the occurrence of COVID-19 around the globe in 2020. The industry witnessed sudden drop in demand from its key application sectors owing to the imposed restrictions set by the regulatory bodies. The industrial production levels improved in FY 2021 leading to a sudden surge in demand for chromium and associated products. The price levels increased further in the FY 2022 owing to the increment in the energy cost.

Application Insights

Metallurgy was the largest application segment in 2019 and the trend is anticipated to continue over the forecast period. Stainless steel and high resistance steel manufacturers are major consumers in the metallurgy segment. Chromium is used in the form of ferroalloys, metals, and scrape of stainless steel in metallurgical applications. It is an important alloy element used in the manufacturing of high-strength steel due to its excellent mechanical, high oxidative, high hardness, and corrosion resistance properties. It has no substitute in stainless steel or any other superalloys and scrap can be used as an alternative to ferrochromium in some metallurgical end uses.

The chemicals segment accounted for USD 740.6 million in 2019 and is anticipated to register a CAGR of 1.9% over the forecast period. The main product containing chromium in the chemical industry is sodium dichromate, which is widely used as a process material for surface treatment of various metals and feed material for the production of other chrome chemicals in the chemical industry. Chromium-based chemicals include chrome oxide, chromic acid, and potassium dichromate.

Rregional Insights

The Chromium market is expected to grow significantly over the forecast period owing to the rising production levels of stainless steel related products. Chromium is an essential element in the formulation or manufacturing of stainless steel grade for commercial use and mostly employed as an additive to harden steel as well as its enhance corrosion protection.

The production of stainless steel is increasing at a rapid rate on account of huge demand arising from application industries such as automotive, aerospace, defense, electronics, and building & construction. Rapid industrial growth in developing countries, such as China and India, is one of the factors driving the growth of the global stainless steel market. As per the International Stainless Steel Forum (ISSF), the total production of stainless steel in India stood at 3.3 million tons at the end of 2016. Moreover, the overall production reaches up to 3.6 million tons by the end of 2017.

Increasing applications such as decorative plating from finishing and plating industry for automotive is driving the demand for chromium. Corrosion and wear resistance coupled with the ability to improvise the exterior appearance of a vehicle are some of the major advantages of chromium-plated automotive components. These advantageous properties are expected to drive the market growth over the forecast period. However, the growing environmental awareness and accompanying stringent regulations for chromium plating process may pose a challenge to the growth of the market over the forecast period.

However, chromium market witnessed deep disturbance with the occurrence of COVID-19 around the globe in 2020. The industry witnessed sudden drop in demand from its key application sectors owing to the imposed restrictions set by the regulatory bodies. The industrial production levels improved in FY 2021 leading to a sudden surge in demand for chromium and associated products. The price levels increased further in the FY 2022 owing to the increment in the energy cost.

Key Companies & Market Share Insights

The competition in the global market is highly intense and the overall nature of the vendor landscape is fragmented, with the presence of several key players. Leading participants include Kermas Group Ltd., Glencore PLC, Eurasian Natural Resources Corporation, Samancor Chrome, Assmang Proprietary Limited, Odisha Mining Corporation, Hernic Ferrochrome (Pty) Ltd., CVK Group, Al Tamman Indsil FerroChrome LLC, and Gulf Mining Group LLC.

The degree of rivalry varies depending upon product demand, innovation in technology, regulatory compliance, and distribution network. For instance, the market is concentrated in North America; whereas, in Asia Pacific, there is intense competition among players.

Chromium Market Report Scope

Global Chromium Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global chromium market report on the basis of application and region:

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Metallurgy

  • Chemicals

  • Refractory

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

  • Europe

    • Russia

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa