The global ferrochrome market size reached US$ 18 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 24.1 Billion by 2028, exhibiting a growth rate (CAGR) of 4.98% during 2023-2028. The rising product utilization in the aerospace and defense industries, increasing product demand in the electrical and electronics industry, extensive research and development (R&D) activities, and the rapidly expanding the automotive industry are some of the major factors propelling the market.
|Ferrochrome Market Size in 2022
||US$ 18 Billion
|Ferrochrome Market Forecast in 2028
||US$ 24.1 Billion
|Ferrochrome Market Growth Rate (2023-2028)
Ferrochrome refers to an alloy of iron and chromium that offers excellent strength, durability, and resistance to corrosion. It is commercially produced by a high-temperature smelting process, where chromite ore (FeCr2O4) is reduced using carbonaceous reductants in a submerged arc furnace. Ferrochrome is widely used in the production of stainless steel, specialty alloys, aerospace and defense equipment, electronic components, refractory materials, and chemicals. It is a cost-effective, versatile, and lustrous substance that provides a visually appealing and durable finish. Ferrochrome also aids in extending product service life, reducing maintenance costs, and eliminating the need for frequent replacement.
The widespread product utilization in the power generation industry to produce gas turbines and power generation equipment for wind and solar power plants is providing an impetus to the market growth. Furthermore, the implementation of supportive policies by several governments to encourage the production of ferrochrome as a raw material for industrial applications is acting as another growth-inducing factor. Moreover, the widespread product utilization in the chemical industry as a catalyst in the production of ammonia, methanol, and other hydrocarbons is strengthening the market growth. Apart from this, the increasing demand for ferrochrome to produce refractory materials for line furnaces and reactors, due to its high melting point and excellent heat resistance is supporting the market growth. . Other factors, including rapid industrialization, extensive research and development (R&D) activities, and increasing investment in infrastructural development projects, are anticipated to drive the market growth.
Ferrochrome Market Trends/Drivers:
The rising product utilization in the aerospace and defense industries
Ferrochrome is widely used in the aerospace and defense industries owing to its unique properties and alloying capabilities. It is used in the production of superalloys that find extensive applications in the manufacturing of jet, and rocket engines, turbine rotors, and stator vanes due to their ability to withstand extremely high temperatures, corrosive environments, and mechanical stresses. Furthermore, the widespread product utilization to produce armor plating, ballistic protection, and high-strength components for military vehicles, naval vessels, and aircraft is acting as another growth-inducing factor. Additionally, the growing product demand for manufacturing missiles and guided weapon components, such as warheads, rocket motor casings, and control surfaces, is contributing to the market growth.
The increasing product demand in the electrical and electronics industry
Ferrochrome is widely used in the production of heating elements that are installed in electric stoves, heating coils, and electric ovens. Furthermore, the widespread product utilization to manufacture resistance wires that offer precise control of electrical current flow and resistance values in electrical appliances is favoring the market growth. Moreover, the rising product application in electrical switches, relays, and circuit breakers, owing to its high electrical conductivity, corrosion resistance, and wear resistance, is strengthening the market growth. Additionally, the growing product adoption to manufacture connectors and terminals for computers, smartphones, and home appliances is positively influencing the market growth. Apart from this, ferrochrome is extensively used in electroplating applications to provide an attractive, decorative, and reflective surface finish.
Growing product adoption in the automotive industry
Ferrochrome finds numerous applications in the automotive industry. It is widely used to manufacture components of exhaust systems, such as headers, catalytic converters, mufflers, and tailpipes. Apart from this, the increasing product utilization to produce critical automotive engine parts, such as piston rings, valve springs, cylinder liners, and valve seats, is positively influencing the market growth. Additionally, ferrochrome is extensively used in the production of automotive bodies and structural components, such as chassis parts, frame components, door panels, and fenders. Moreover, the growing product demand to provide a lustrous, corrosion-resistant finish on bumpers, grilles, door handles, and mirror housings is strengthening the market growth. Besides this, the increasing product applications in brake components, such as rotors and drums, due to its excellent wear resistance, heat dissipation, and thermal stability, are supporting the market growth.
Ferrochrome Industry Segmentation:
IMARC Group provides an analysis of the key trends in each segment of the global ferrochrome market report, along with forecasts at the global, regional, and country levels from 2023-2028. Our report has categorized the market based on type and application.
Breakup by Type:
- High Carbon
- Medium Carbon
- Low Carbon
- Ferro Silico Chrome
High carbon dominates the market.
The report has provided a detailed breakup and analysis of the market based on type. This includes high carbon, medium carbon, low carbon, and ferro silico chrome. According to the report, high carbon represented the largest market segment.
High carbon ferrochrome is dominating the market as it plays a crucial role in stainless steel production. It acts as a source of carbon, which aids in achieving specific steel properties, such as hardness, strength, and wear resistance. Furthermore, high carbon ferrochrome enhances the steel's hardenability, thus enabling it to achieve the desired hardness and strength levels. It also acts as an alloying and deoxidizing agent, which aids in removing oxygen and preventing the formation of undesirable oxides. Apart from this, it is a cost-effective and readily available product, making it an attractive choice in industries where cost optimization is a priority. Moreover, high carbon ferrochrome has an established market and a well-developed supply chain due to its long-standing traditional usage, which, in turn, is boosting the market growth.
Breakup by Application:
- Stainless Steel
- Cast Iron
- Powder Metallurgy
Stainless steel dominates the market.
The report has provided a detailed breakup and analysis of the market based on application. This includes stainless steel, cast iron, powder metallurgy, and others. According to the report, stainless steel represented the largest market segment.
Stainless steel is dominating the market owing to its lightweight, excellent durability, and corrosion resistance, properties making it ideal for applications in the construction and automotive industry. Furthermore, it can be fabricated through multiple processes, such as welding, machining, and forming, thus providing enhanced versatility and flexibility in material designing. Additionally, the growing product demand due to its extended service life, low maintenance, and ability to withstand wear and tear, frequent cleaning, and sterilization procedures is supporting the market growth. Moreover, the rising product applications in architecture, interior design, home appliances, and decorative components, owing to its attractive appearance and aesthetic appeal are contributing to the market growth. Besides this, the increasing product utilization in heat exchangers, furnace components, and exhaust systems, due to its excellent performance and stability at high temperatures is supporting the market growth.
Breakup by Region:
- North America
- United Kingdom
- Asia Pacific
- South Korea
- Latin America
- Middle East and Africa
Asia Pacific exhibits a clear dominance in the market, accounting for the largest ferrochrome market share.
The report has also provided a comprehensive analysis of all the major regional markets, which includes North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia-Pacific represented the largest market segment.
Asia Pacific is dominating the market due to the presence of a robust stainless steel industry, which caters to various sectors, such as construction, automotive, chemical, and consumer goods. Furthermore, the increasing infrastructural development activities are facilitating the product demand for high strength, corrosion resistance, and aesthetic applications. Additionally, the widespread availability of raw materials, such as chromite ore, in the region, which enables ferrochrome production at competitive prices, is positively influencing the market growth. Moreover, the implementation of supportive policies by regional governments to invest in industrialization and infrastructural development projects is strengthening the market growth. Besides this, the adoption of advanced manufacturing processes, such as electric arc furnaces and continuous casting technologies, which improve production efficiency and enhance product quality, is providing an impetus to the market growth.
The key players in the market are expanding their product portfolio by developing specialized grades to cater to evolving customer needs. Furthermore, leading companies are actively targeting new and emerging markets by establishing distribution networks, partnerships, and collaborations to expand the business, strengthen their global footprint, and attract a new customer base. Additionally, several key players are investing in customer-centric approaches by providing technical support, conducting regular market analysis, and actively engaging with customers to understand their requirements and deliver customized solutions. Moreover, the growing emphasis on sustainability and environmental responsibility is prompting leading companies to implement eco-friendly production and responsible mining practices. Apart from this, ferrochrome producers are heavily investing in research and development (R&D) projects to improve product quality and gain competitive advantages.
The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
- Balasore Alloys Limited
- CIA de Ferro Ligas da Bahia – Ferbasa
- Eurasian Resources Group S.à r.l.
- Ferro Alloys Corporation Limited (Vedanta Limited)
- Fondelco Metal & Alloys Pvt. Ltd.
- Glencore plc
- Indian Metals & Ferro Alloys Limited
- Metallic Ferro Alloys LLP
- Mintal Group
- Ningxia Darshan Silicon Industry Co. Ltd.
- Outokumpu Oyj
- Samancor Chrome Limited (Samancor Chrome Holdings Proprietary Limited)
- Vargön Alloys AB (Yildirim Group)
- In February 2021, Eurasian Resources Group S.à r.l. announced that its subsidiary TNC Kazchrome JSC had achieved a new production record for ferro alloys using innovative solutions and best practices.
- In December 2020, Ferro Alloys Corporation Limited (Vedanta Limited) (FACOR) has signed an agreement with TATA Steel to convert chrome ore into ferrochrome and expand its production capacity.
- In June 2022, Outokumpu Oyj announced its plan to achieve carbon neutrality at its Kemi underground chrome mine in Finland by 2025. The plan includes the utilization of carbon-free electricity, the adoption of biofuels in transportation and machinery, and the substitution of natural gas and propane gas with biogas in heating.
Ferrochrome Market Report Scope:
|Base Year of the Analysis
|Scope of the Report
||Exploration of Historical and Forecast Trends, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment:
||High Carbon, Medium Carbon, Low Carbon, Ferro Silico Chrome
||Stainless Steel, Cast Iron, Powder Metallurgy, Others
||North America, Europe, Asia Pacific, Latin America, Middle East and Africa
||United States, Canada, Germany, France, United Kingdom, Italy, Spain, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
||Balasore Alloys Limited, CIA de Ferro Ligas da Bahia – Ferbasa, Eurasian Resources Group S.à r.l., Ferro Alloys Corporation Limited (Vedanta Limited), Fondelco Metal & Alloys Pvt. Ltd., Glencore plc, Indian Metals & Ferro Alloys Limited, Metallic Ferro Alloys LLP, Mintal Group, Ningxia Darshan Silicon Industry Co. Ltd., Outokumpu Oyj, Samancor Chrome Limited (Samancor Chrome Holdings Proprietary Limited), Vargön Alloys AB (Yildirim Group), etc.
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Key Questions Answered in This Report:
- How has the global ferrochrome market performed so far, and how will it perform in the coming years?
- What are the drivers, restraints, and opportunities in the global ferrochrome market?
- What is the impact of each driver, restraint, and opportunity on the global ferrochrome market?
- What are the key regional markets?
- Which countries represent the most attractive ferrochrome market?
- What is the breakup of the market based on the type?
- Which is the most attractive type in the ferrochrome market?
- What is the breakup of the market based on the application?
- Which is the most attractive application in the ferrochrome market?
- What is the competitive structure of the global ferrochrome market?
- Who are the key players/companies in the global ferrochrome market?
Key Benefits for Stakeholders:
- IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the ferrochrome market from 2017-2028.
- The research study provides the latest information on the market drivers, challenges, and opportunities in the global ferrochrome market.
- The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
- Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the ferrochrome industry and its attractiveness.
- Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.