Ferro Vanadium Market - Forecast(2021 - 2026)

Ferro Vanadium Market size is forecast to reach around $3.8 billion by 2025, after growing at a CAGR of 5% during 2020-2025. Ferro Vanadium is a universal hardener, strengthener, and anti-corrosive additive, formed by the combination of iron and vanadium. Ferro vanadium is used in the manufacturing of rail steels, die steels, and heat resisting tool. Thus, the growing transportation sector and strong demand of ferrovanadium for manufacturing axles, body frames and crankshafts are likely to boost the growth of the Ferro Vanadium market size during the forecast period. Whereas, the growing building and construction sector in emerging nations like China and India is also increasing the demand of ferrovanadium for concrete reinforcing bars, thus, further boosts the growth of this market. Additionally, the use of ferrovanadium in oil and gas pipelines also aid the growth of the market owing to the growing city gas distribution plants globally.

Report Coverage 

The report: “Ferro Vanadium Market– Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Ferro Vanadium Industry. 

By Grade: FeV40, FeV50, FeV60, FeV75, and FeV80 & +.

By Manufacturing Process: Aluminothermic Reduction Technique and Silicon Reduction Technique.

By Application: Concrete Reinforcing Bars, Structural Plates, Axles, Frames, Crankshafts, Titanium Alloys, Pipeline, and Others

By End-Use Industry: Building & Construction, Aerospace & Defense, Marine, Chemical Industry, Oil & Gas, Industrial Equipment, Hand Tools, Automotive, and Others.

By Geography: North America, South America, Europe, APAC, and RoW.

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Key Takeaways

• China’s new high-strength rebar standard is likely to aid the growth of the ferro vanadium market. The standard eliminates low strength Grade 2 rebar and sets out specifications for three different high strength standards: Grade 3 (400MPa), Grade 4 (500MPa), and Grade 5 (600MPa). These will require 0.03% V, 0.06% V, and more than 0.1% V respectively.
• The U.S. Commerce Department has imposed duties of up to 141% on Chinese structural steel and up to 31% on Mexican structural steel. Thus, trade war between the U.S and China has impacted the growth of the ferro vanadium market.

Ferro Vanadium Market Segment Analysis - By Chemical Type

FeV80 segment hold the largest share of more than 35% in the ferro vanadium market in 2019. Accelerating use FeV80 in steel industries due to the maximum vanadium content of 80% is driving the growth of the market. Increase in vanadium content not only increases the yield strength and tensile strength of steel, but also promote grain refinement. According to the Worldsteel Association, global crude steel output increased by 3.4% in 2019. Surging production of crude steel also raises the demand for ferro vanadium to enhance the strength, malleability and corrosion resistance of steel.

Ferro Vanadium Market Segment Analysis - By Manufacturing Process

Based on the manufacturing process, aluminothermic reduction segment hold the largest share of more than 40% in the ferro vanadium market. Among the reduction methods, the aluminothermic process is most widely used due to it results in high product purity and good yield. In aluminothermic reduction process, a charge composed of vanadium pentoxide, aluminum, lime/fluorspar, scrap iron, and iron oxide is fed into a heated pot and ignited by a priming mixture. The vanadium and iron oxides are reduced in the resulting reaction, and molten ferrovanadium is obtained in the bottom of the pot. Cost effectiveness and relatively easy extraction of ferrovanadium are the major factors driving the growth of the Ferro vanadium by aluminothermic reduction.

Ferro Vanadium Market Segment Analysis - By Application

Axles segment hold the largest share of more than 25% in the ferro vanadium market in 2019. Axles are made up of hardened steel and addition of ferro vanadium enhances its properties. Ferro Vanadium reduces weight of the hardened steel while simultaneously increases the tensile strength of the material. Growing demand for electric and hybrid electric vehicles is escalating the use of hardened steel for the production of axles, subsequently raising the demand for ferro vanadium. According to International Energy Agency (IEA), global stock of electric passenger car increased by 63% reaching 5 million in 2018, this in turn rose the production of axles and fueled the growth of the ferro vanadium market. Furthermore, department of heavy industries had launched Faster Adoption and Manufacturing of (Hybrid &) Electric vehicle (FAME India) scheme which further increases the demand of axles to boost the properties of steel. Furthermore, Ferro vanadium not only lowers weight of the hardened steel but also increases the corrosion resistance of axles to alkaline reagents such as sulfuric and hydrochloric acids.

Ferro Vanadium Market Segment Analysis - By End Use Analysis

Based on the end-use industry, the building & construction segment hold the largest share of more than 25% in the ferro vanadium market in 2019. Ferro vanadium is extensively used in concrete reinforcing bars and structural plates to increase strength and corrosion resistance to alkaline reagents such as sulfuric and hydrochloric acids. The ability of ferro vanadium steels to withstand extreme load without being deformed make it a suitable material to use in beams and columns to provide structural support to the buildings. Moreover, increasing construction activities around the world is augmenting the growth of the market. According to the Institution of Civil Engineers (ICE), construction output will grow by 85% to $15.5 trillion worldwide by 2030, and three countries China, the US, and India will lead the way and account for 57% of all global growth. 

Ferro Vanadium Market Segment Analysis - Geography

Asia Pacific dominated the ferro vanadium market with a share of more than 45% in 2019 followed by North America and Europe. The rapid industrial expansion and growing population is driving the growth of the ferro vanadium market in APAC region. Surging construction activities in emerging nations like China and India further boosts the growth of the market. For instance, the gross value added (GVA) by the construction sector increased from $183.5 billion in 2018-19 to $192 billion in 2019-20 in India. Furthermore, increase in crude steel production also escalates the demand for ferro vanadium to enhance its properties. According to Worldsteel Association, China’s crude steel production in 2019 was reached to 996.3 Mt, up by 8.3% on 2018 and its global share in crude steel production increased from 50.9% in 2018 to 53.3% in 2019. Indian government’s flagship scheme PMAY which aims to build 20 million urban homes and 30 million rural houses by 2022, also aids the growth of the market.

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