Ferrosilicon Market size is estimated to reach USD 17 Billion by the end of 2033, witnessing around 3% CAGR during the forecast period, i.e., 2023-2033. In the year 2022, the industry size of ferrosilicon was USD 13 Billion. Ferrosilicon is mainly used for the deoxidization of steel, and therefore the primary growth driver for ferrosilicon sales is the world steel market itself. It is estimated that the world finished steel production grew from 1.76 billion tons in 2020 to 1.84 billion tons in 2021. The rising industrialization across the world increases the use of metals. Also, the increasing construction of roads, railways, industrial parks, corridors, DFC, metro connectivity, transportation, and transmission towers initiated by the government is estimated to rise the growth of the market in the forecast. As steel is the main component used to build a base for any of these constructions, and it is projected to increase the growth of the global ferrosilicon market.
The primary alloy used in the production of iron and steel is ferrosilicon. The primary factor that is expected to contribute to the ferrosilicon market's growth over the projection period is the environmental challenges connected with transporting ferroalloys. Manufacturers have been creating consistent sources of income in the steel business over the past few years since steel is a necessary raw material for most sectors. Moreover, iron is used in many industries as the primary component. The increasing mining technology, decrease in the prices of low-grade iron ore, and growing demand for lightweight vehicles including electric vehicles is projected to boost the market growth as per the market analysis. The occurrence of COVID-19 has had a huge impact on the decline of iron ore costs. Also, the supply chain is disrupted during the pandemic. All this increases the demand for iron and steel, with limited supply and production. The automobile sector also plays an important role in the rising demand for iron.
Growth Drivers
Use of Ferrosilicon in Steel Manufacturing to Increase Its Strength – Since silicon and oxygen have a very strong chemical reactivity with one another, it makes ferrosilicon a powerful deoxidizer that is utilized in the steel-making process. The rising production of silicon is expected to boost the ferrosilicon market in the forecasted period. According to the U.S. Geological Survey, the total production of silicon increased from 277 in 2020 to 310 in 2021.
Growing Demand for Ferrosilicon in the Automobile Industry owing to Reduction in Weight – Ferrosilicon use and production will rise proportionately with the use of steel as a raw material in the automobile industry. Therefore, it is predicted to increase the growth of the global ferrosilicon market. Global sales of autos increased from 62 million units in 2020 to over 67 million in 2021.
Rising Demand for Atomized Ferrosilicon Which is Used as Powder in Automobile Manufacturing – Whenever, the demand of a product increases its supply in that case the price increases. Therefore, it is anticipated to surge the growth of the global ferrosilicon market. In March 2022, United States recorded an increase of 12.9% in the prices of ferrosilicon, including its atomized version.
Increased Production of Cast and Pig Iron Across the World to Meet the Demand – Ferrosilicon is used as an inoculant during the production of cast iron, and it is expected to surge the market’s growth in the upcoming years. According to the U.S. Geological Survey, the world’s total production of pig iron increased from 1,310 million metric tons in 2020 to 1,400 million metric tons in 2021.
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~3% |
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Base Year Market Size (2022) |
~ USD 13 Billion |
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Forecast Year Market Size (2033) |
~ USD 17 Billion |
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Regional Scope |
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Application (Deoxidizers, Inoculants)
The global ferrosilicon market is segmented and analyzed for demand and supply by application into deoxidizers and inoculants. Out of these, the deoxidizer segment is projected to hold most of the market share in 2033. This can be attributed to the rising and steady demand for steel across the world for various industries as well as the use of ferrosilicon as a deoxidizer in the steel industry. For instance, on a silicon-content basis, ferrosilicon accounted for nearly 70% of global silicon production in 2021. Steel is deoxidized with ferrosilicon in the last stage of production to increase the elasticity and strength of steel. Moreover, ferrosilicon is obtained from electric furnace smelting, and qualified steel is obtained by treating steel with ferrosilicon. Ferrosilicon is used in steel manufacturing in the diffusion and sedimentation processes of steel.
End-user (Stainless Steel, Cast Iron, Electric Steel)
The global ferrosilicon market is also segmented and analyzed for demand and supply by end-user into stainless steel, cast iron, and electric steel. Amongst these three segments, the stainless-steel segment is expected to garner a significant share. Stainless steel is less prone to dusting, corrosion, or staining, even after exposure to water. Stainless steel does not conduct electricity through it. It is used in many household appliances as it is recyclable and easy to sterilize and use. It is used in culinary, kitchen sinks, cutlery, and cookware manufacturing. Also, it is utilized in products including medical instruments such as surgical tools medical equipment, surgical plants for temporary crowns in the dental sector, and hemostasis. Additionally, architectural buildings, bridges, sculptures, and monuments are built using stainless steel tools. In the construction of airport roofs, automotive, aerospace, rail cars, and aircraft are built with stainless steel materials. All these applications increase the market segment’s growth, which in turn rises the market’s growth in the coming years.
Our in-depth analysis of the global market includes the following segments:
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By Type |
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By Application |
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By End-Use |
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APAC Market Statistics
The Asia Pacific ferrosilicon market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The growth of the market can be attributed majorly to the presence of China and India, the two largest steel-producing countries in the world along with ferrosilicon being the master alloy in steel production. Steel production in India rose from 100.3 million tons in 2020 to 119 million tons in 2021. The rapid modernization of the economy, increasing construction, infrastructure development, and growing manufacturing industries in the region are projected to increase the market growth during the forecast. The manufacturing sector includes automobile vehicles, consumer electronics, and construction materials. Also, the higher production capacity of China with its high quality and lower prices of steel increases the demand for the export of steel from the region. All these factors have a positive impact on market growth. India is the second largest steel producer using country in the Asian Pacific region after China. Moreover, China has advanced equipment that makes the production of steel faster and easier with less production cost, and it is expected to boost the market’s growth in the region.
Elkem ASA
Elkem ASA commemorated the 40th anniversary of its ferrosilicon facility, which is one of the largest in the world and is situated in Akranes, focusing on the environmentally friendly manufacturing of high-quality, specialized ferrosilicon.
Mechel PAO has announced the opening of an upgraded furnace at the Bratsk Ferroalloy Plant. The improvement increased the capacity of the ferrosilicon ore-smelting furnace from 25 MVA to 33 MVA. The plant will be able to raise the furnace's output by 40% as a result. A total of about USD 2 million were invested.
Author Credits: Rajrani Baghel
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