The global ferrosilicon market size was valued at USD 11.25 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 2.5% from 2023 to 2030. The growth is anticipated to be driven by the rising use of ferrosilicon as a deoxidizer in the steel industry and as an inoculant in cast iron. Growing demand for steel is compelling producers to increase their production capacity. For instance, in January 2022, AM/NS India signed an MoU with the Government of Gujarat, under which the company will invest over USD 22.0 billion in six projects across the state. An investment of USD 5.97 billion will be for expanding its steel production from 8.6 to 18.0 million tons per annum in the Hazira plant.
The U.S. is one of the largest steel producers in the world. Its production reached 86.0 million tons in 2021, up by 18.3% from 2020. The rise in production was attributed to increasing investments toward infrastructural developments, supporting steel demand in the country. For instance, in 2021, the U.S. President signed the Infrastructure and Jobs Act, which allocated USD 550 billion for improving the infrastructure of roads, airports, ports, and freight rails. However, in 2022, production declined by 5.9%.
The growing investments in the infrastructure have increased competition in the industry, compelling market players to indulge in mergers & acquisitions and capacity expansions. For instance, in December 2020, Cleveland-Cliffs Inc. acquired ArcelorMittal USA and its subsidiaries. The acquired assets will be combined with existing facilities, transforming the company into a vertically integrated producer of iron and steel.
Furthermore, growth in the electric vehicles (EVs) industry is benefitting market growth. For instance, in November 2021, POSCO announced to invest KRW 1 trillion (~USD 831.4 million) in building a non-oriented electrical steel plant with an annual production capacity of 300 kilotons in Gwangyang. The plant will cater to the drive motors of EVs.
Also, in September 2021, NLMK announced the commissioning of a new electrical steel laser treatment unit, which is expected to have a capacity of 54 kilotons per year. The company is also building an electrical steel plant in India with 64 kilotons annual capacity. Ferrosilicon is used in electrical steel production, and thus, such investments are expected to propel market growth over the forecast period.
Based on end-use, carbon & other alloy steel accounted for more than 43.0% of the revenue share in 2022. Ferrosilicon is an important raw material in the production process of steel, where it is used as a deoxidizer and alloy agent. Furthermore, ferrosilicon powder can release a large amount of heat when burned at a high temperature. Hence, it is also used as a heat-producing agent for making capped steel.
Cast iron is anticipated to register the highest growth rate, in terms of revenue, over the forecast period. Cast iron is cheaper, easy to melt, and exhibits excellent casting properties, unlike steel. Ferrosilicon is used as an inoculant in the cast iron industry to prevent the formation of iron carbide, resulting from the rapid cooling of thin sections of castings. Growing investment in cast iron is anticipated to benefit product demand over the forecast period.
Stainless steel is another vital end-use segment of the market. Ferrosilicon is used in the product for improving its aesthetics, wear resistance, and corrosion resistance, and thus, growing stainless steel production is propelling segment growth. For instance, in December 2021, Jindal Stainless Ltd. announced raising USD 82 million from KfW IPEX-Bank to expand production facilities in India. The facility expansion is expected to increase annual production from 1.1 to 2.1 million tons.
Based on application, deoxidizers dominated with a revenue share of more than 69.0% in 2022 and this trend is expected to continue over the forecast period. Ferrosilicon is widely used as a deoxidizer in the steel industry. The deoxidization process blocks the heat and prevents the loss of carbon from the molten steel, thereby ensuring its quality.
Inoculants is anticipated to register the highest growth rate, in terms of revenue, over the forecast period. Ferrosilicon is used as an inoculant in the cast iron industry and growing demand for cast iron cookware is anticipated to drive the market further. For instance, in October 2021, The Indus Valley, a direct-to-consumer cast iron kitchenware producer, raised USD 1.1 million from RU.K.am Capital, DSG Consumer Partners, and The Chennai Angels for increasing production and delivering toxin-free kitchenware products.
Ferrosilicon is also used during the Pidgeon process for high-purity magnesium refining. Growing demand for magnesium products from different industries is propelling its production, thus, benefiting market growth. For instance, in December 2021, LiteAuto announced to invest INR 1,500 crore (~USD 199.3 million) in Telangana, India, for producing magnesium products for the automotive industry.
Based on region, Asia Pacific held the largest revenue share of over 66.0% in 2022. High potential for infrastructural developments coupled with continuous investment in the automobile industry is propelling steel production, thereby augmenting the growth of the ferrosilicon market.
According to the World Steel Association, China, India, and Japan were the top three crude steel producers in the world in 2021. Although China and Japan reported a decline in their production, India reported an increase of 4.7% from 2020 to 2021. The region is witnessing various investments in steel capacity expansions in different countries, which is anticipated to benefit the regional industry growth over the forecast period.
North America is anticipated to register a CAGR of 2.2%, in terms of revenue, over the forecast period. The growth of the EV industry coupled with rising construction spending is anticipated to propel market growth over the forecast period. For instance, North America’s EV sales increased by 96% from 2020 to 2021 reaching 735,000 units.
In Europe, EV sales rose by 66%, reaching 2,332,000 units in 2021. Increasing sales are encouraging manufacturers to expand EV production. Rising demand for EVs is anticipated to facilitate market growth as ferrosilicon grade-electric steel is essential for producing motors used in EVs.
The market is highly competitive with the presence of numerous players. The key players are adopting strategic initiatives such as capacity expansions and mergers & acquisitions to expand their share in the industry. For instance, in November 2021, BMML, a ferrosilicon producer in Bhutan, made a proposal to the administration in the country to set up a ferrosilicon plant at Chengmari. The project is worth more than USD 11.96 million. Some prominent players in the global ferrosilicon market include:
Elkem ASA
Eurasian Resources Group
Ferro Alloys Corporation Limited (FACOR)
FINNFJORD AS
Ferroglobe
IMFA
OM Holdings Ltd.
Russian Ferro-Alloys Inc.
SINOGU CHINA
VBC Ferro Alloys Limited
Report Attribute |
Details |
Market size value in 2023 |
USD 11.50 billion |
Revenue forecast in 2030 |
USD 13.67 billion |
Growth Rate |
CAGR of 2.5% from 2023 to 2030 |
Market size volume in 2023 |
8,174.7 kilotons |
Volume forecast in 2030 |
9,549.6 kilotons |
Growth Rate |
CAGR of 2.2 % from 2023 to 2030 |
Base year for estimation |
2022 |
Historical data |
2018 - 2021 |
Forecast period |
2023 - 2030 |
Quantitative Units |
Volume in kilotons, revenue in USD million/billion, and CAGR from 2023 to 2030 |
Report coverage |
Volume forecast, revenue forecast, competitive landscape, growth factors, and trends |
Segments covered |
Application, end-use, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South Africa; Middle East & Africa |
Country scope |
U.S.; Canada; Mexico; Germany; U.K.; Russia; China; Japan; India; Brazil; GCC |
Key companies profiled |
Elkem ASA; Eurasian Resources Group; Finnfjord AS; FENGERDA GROUP; Ferroglobe; IMFA; OM Holdings Ltd.; Russian Ferro-Alloys Inc.; SINOGU CHINA; VBC Ferro Alloys Limited |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue and volume growth at global, country & regional levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global ferrosilicon market report based on application, end-use, and region:
Application Outlook (Volume, Kil0tons; Revenue, USD Million, 2018 - 2030)
Deoxidizer
Inoculants
Others
End-use Outlook (Volume, Kil0tons; Revenue, USD Million, 2018 - 2030)
Carbon & Other Alloy Steel
Stainless Steel
Electric Steel
Cast Iron
Others
Regional Outlook (Volume, Kil0tons; Revenue, USD Million, 2018 - 2030)
North America
U.S.
Canada
Mexico
Europe
Germany
U.K.
Russia
Asia Pacific
China
India
Japan
Central & South America
Brazil
Middle East & Africa
GCC
b. The global ferrosilicon market size was estimated at USD 11.25 billion in 2022 and is expected to reach USD 11.50 billion in 2023.
b. The global ferrosilicon market is expected to grow at a compound annual growth rate of 2.5% from 2023 to 2033 to reach USD 13.67 billion by 2030.
b. Based on the application, deoxidizer accounted for the largest revenue share of more than 69.0% in 2022 of the overall market. Rising steel production is anticipated to drive the segment growth over the forecast period.
b. The key players operating in the ferrosilicon market include Elkem ASA, Eurasian Resources Group, Ferroglobe, IMFA, OM Holdings Ltd., SINOGU CHINA, and Russia Ferro-Alloys Inc., among others.
b. The rising use of ferrosilicon as a deoxidizer in steel production and as an inoculant in the cast iron industry are the major growth drivers for the market.
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