Ferrochrome Market

Global Ferrochrome Market:

The global ferrochrome market size reached US$ 18.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 28.0 Billion by 2032, exhibiting a growth rate (CAGR) of 4.48% during 2024-2032. 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 Analysis:

• Major Market Drivers: The widespread product utilization in the power generation industry to produce gas turbines and power generation equipment for wind and solar power plants is primarily driving the growth of the market.
• Key Market Trends: The implementation of supportive policies by several government authorities to encourage the production of ferrochrome as a raw material for industrial applications is acting as a significant market trend, bolstering the growth of the market.
• Competitive Landscape: Some of the leading companies operating in the global market are 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), and Vargön Alloys AB (Yildirim Group), among many others.
• Geographical Landscape: According to the ferrochrome market growth analysis by IMARC, Asia-Pacific represented the largest market segment. This can be attributed to the presence of a robust stainless-steel industry that caters to various sectors, such as construction, automotive, chemical, and consumer goods. Furthermore, the government authorities of various developing nations are increasingly investing in infrastructural development activities, which is further augmenting the demand for ferrochrome for high strength, corrosion resistance, and aesthetic applications.
• Challenges and Opportunities: Challenges in the ferrochrome market include fluctuating prices of raw materials like chrome ore and energy, as well as environmental regulations impacting production. However, opportunities lie in emerging technologies for more sustainable production methods and increasing demand from industries like stainless steel manufacturing and aerospace. Ferrochrome market overview suggests that balancing these factors will be crucial for the future growth and stability of the ferrochrome market.
   

Ferrochrome Market Trends:

Rising Product Utilization in the Aerospace and Defense Industries

The increasing utilization of ferrochrome in the aerospace and defense industries to manufacture jet and rocket engines, turbine rotors, and stator vanes due to their ability to withstand extremely high temperatures, corrosive environments, and mechanical stresses is primarily driving the growth of the market. Furthermore, the rising number of aerospace facilities across the globe is augmenting the need for aerospace and defense equipment, which in turn is positively impacting ferrochrome market demand. For instance, in March 2024, Israel Aerospace Industries (IAI) announced that they would be establishing a new aerospace defense company in India, named Aerospace Service India (ASI). IAI said the establishment of ASI demonstrated new levels of collaboration between the group and the Indian government’s plans to promote national independence. Moreover, the government authorities of various nations are taking initiatives and providing funds to bolster defense capabilities, which is further augmenting the market for ferrochrome. For instance, in March 2024, the Indian government launched the Acing Development of Innovative Technologies with iDEX (ADITI) scheme. This scheme aims to promote innovation in critical and strategic defense technologies by providing grants of up to Rs 25 crore to eligible start-ups for research, development, and innovation endeavors in defense technology.

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. 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 increasing demand for automobiles on account of the inflating spending capacities of individuals and the rising preference for convenient modes of transportation is further augmenting the growth of the market. For instance, revenue in the passenger car market is projected to reach US$ 2,069.0 Billion in 2024. Passenger car market unit sales are expected to reach 72.54 million vehicles in 2028. Furthermore, in India, sales of passenger cars also increased from 14,67,039 to 17,47,376, utility vehicles from 14,89,219 to 20,03,718, and vans from 1,13,265 to 1,39,020 units in the financial year 2022–23. Such a significant rise in the ownership of vehicles is anticipated to propel the ferrochrome market revenue in the coming years.

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. In line with this, the escalating demand for home appliances, such as air conditioners, microwaves, refrigerators, televisions, etc., on account of increasing disposable incomes of consumers and elevating levels of lifestyles is also positively influencing the market for ferrochrome. For instance, in 2022, worldwide retail sales of major appliances exceeded US$ 400 Billion, while small appliances' sales reached US$ 240 Billion. Additionally, the growing product adoption to manufacture connectors and terminals for computers, laptops, and smartphones is positively impacting the ferrochrome market outlook. The growing adoption of smartphones and laptops is significantly catalyzing the utilization of ferrochrome. For instance, in 2021, the number of mobile users worldwide stood at 7.1 billion, with forecasts suggesting this is likely to rise to 7.49 billion by 2025.

Global Ferrochrome Market 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 2024-2032. 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 ferrochrome market research 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
• Others
   

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.

Ferrochrome market statistics by IMARC indicate that 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 industries. The increasing number of residential construction projects on account of the elevating levels of urbanization across the world is further bolstering the market growth. For instance, approximately 4.4 billion people, or 56% of the world's population, now reside in cities. By 2050, approximately 7 out of 10 people will live in cities, with the urban population predicted to surpass its current level. Moreover, rising product applications in architecture, interior design, home appliances, and decorative components, owing to their attractive appearance and aesthetic appeal, are contributing to the market growth. Besides this, the increasing application of ferrochrome 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 States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• 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.

Ferrochrome industry research report by IMARC indicates that 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 government authorities of various developing nations are increasingly investing in infrastructural development activities, which is further augmenting the demand for ferrochrome for high strength, corrosion resistance, and aesthetic applications. For instance, the Government of India approved the development of 21 greenfield airports in the country in January 2022. The country's largest airport will be built in Uttar Pradesh's Gautam Buddha Nagar area. Similarly, China has the largest building market in the world, accounting for 20% of all construction investments worldwide. Moreover, the country is expected to spend nearly US$ 13 Trillion on buildings by 2030. Such a massive rise in the infrastructure development projects in the Asia Pacific region is anticipated to further propel the growth of the market. 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 anticipated to propel the ferrochrome market price in the coming years.

Competitive Landscape:

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)
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Global Ferrochrome Market Latest News:

• February 2024: Oman Chromite commenced the trial of the new low-carbon ferrochrome project at SOHAR Freezone. This project will bolster Oman’s credentials as a regional ferrochrome production powerhouse.
• November 2023: Tata Steel’s Ferro Alloys and Minerals Division integrated electric run forklifts in its Ferro Chrome export operations, as a step towards sustainable operations. The company through its Container Freight Station (CFS) partner introduced the electric forklift at VPL Container Freight Station, Vizag.
• September 2023: Indian Metals and Ferro Alloys Ltd. announced plans to ramp up existing ore mining capacity and set up a new greenfield smelting capacity in Kalinganagar, Odisha, to cater to rising domestic demand for stainless steel.

Ferrochrome Market Report Scope:

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 2018-2032.
• 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.