Ferrosilicon Market Size and Share Analysis by Type (Atomized, Milled), Application (Deoxidizer, Inoculant), End Use (Carbon & Other Alloy Steel, Stainless Steel, Electric Steel, Cast Iron) - Global Industry Revenue Estimation and Demand Forecast to 2030

Ferrosilicon Market Size & Share

The global ferrosilicon market revenue is estimated at USD 11.0 billion in 2023, and it is expected to reach USD 13.7 billion by 2030, advancing at a CAGR of 3.3% during 2024–2030. The wide range of applications of this material in the construction, automotive, and manufacturing industries is the key driver for the market growth.

Ferrosilicon is a major raw material in many commercially lucrative products, such as iron and steel. Its silicon content can range from 15 to 90%, thus contributing to improved quality and other properties of steel. The manufacturing sector profoundly depends on ferrosilicon to enhance the properties of steel, such as magnetic characteristics and heat resistance. This makes it suitable for a wide range of manufacturing purposes. Additionally, ferrosilicon powder is burned at high temperatures, it releases a substantial amount of heat. Therefore, it is employed as a heat-producing agent in the production of capped steel.

Furthermore, government policies and incentives across different nations are resulting in advancements in semiconductor research and production, in turn, propelling the demand for ferrosilicon. For instance, in May 2021, South Korea introduced the K-Semiconductor Belt strategy with the goal of establishing the world's largest semiconductor supply chain by 2030. Moreover, in September 2022, the Mexican federal government initiated the development of a new incentive package to attract semiconductor investments, specifically emphasizing assembly, testing, and packaging.

Growing Production of Photovoltaic Panels Is Key Market Driver

A key market driver is the growing production of solar panels with the increasing focus on integrating more renewable energy into the electricity mix. As per the International Energy Agency (IEA), 228.4 GW of solar capacity was added globally in 2022 with an investment of more than USD 320 billion, led by China, India, the U.S., the EU, and Brazil.

Due to the semiconducting properties of silicon, it is the chief raw material for solar cells. High-purity silicon is used to create the wafers that form the basis of PV cells. Ferrosilicon is not used directly in the manufacturing of solar cells, but the processes involved in producing high-purity silicon often rely on it. The silicon derived from the base alloy undergoes purification through various processes, such as the Siemens process and the upgraded metallurgical-grade silicon (UMG-Si) process. These methods play an important role in ensuring the purity and suitability of silicon for solar cell production.

Atomized Ferrosilicon Is Larger Market Contributor

By type, the atomized bifurcation dominates the market with more than USD 7.0 billion revenue in 2023. This variant is manufactured by spraying molten ferrosilicon into a chamber and allowing it to solidify into small particles or droplets. The resulting small particles possess a larger surface area, which makes it suitable for applications where a rapid reaction is required. Its key applications are the separation of dense media in the metallurgy sector and separation of heavy media in the coal industry. Further, its particle size consistency makes it ideal for usage in producing welding consumables and certain alloys.

Carbon & Other Alloy Steel End Use Generates Highest Revenue

The carbon & other alloy steel category held the largest share within the end use segment, of 35%, in 2023. Ferrosilicon is considerably used to produce carbon steel and various other alloy steels owing to its ability to enhance the structural integrity and performance of the end product. Essentially, the base material serves as a potent deoxidizer during the manufacturing of carbon steel. In this capacity, it effectively removes impurities and oxygen from the molten steel, helping attain the desired mechanical and chemical properties in the final product, which include improved ductility and strength.

Furthermore, the chemical acts as an alloying agent, contributing to the improvement of properties such as corrosion resistance and hardness. Its incorporation in the manufacturing process results in the development of durable, robust, and adaptable steel products with an improved overall quality and performance.

In the construction sector, carbon steel is the choice material for structural elements, such as columns, beams, and reinforcement bars, due to its remarkable durability and strength. Thus, the alloy steel employed in specialized projects must appreciably resist corrosion and have high strength.

The infrastructure development and industrialization in emerging markets, therefore, present a considerable potential for the ferrosilicon industry, because with industrialization, the number of buildings increases. Steel is a foundational element in a wide range of equipment, machinery, and building products. Therefore, the requirement for it from the construction sector continues to rise. Emerging economies are experiencing a significant socio-economic transformation with the increase in the number of construction projects, growth in urban population, and rise in industrial production.

According to the International Monetary Fund (IMF), developing and emerging Asian economies were expected to grow annually by 4.6% in 2023, compared to 3.8% in 2022. Such a rapid economic expansion propels the demand for steel, a foundational element for construction and manufacturing, which, in turn, boosts the need for ferrosilicon.

Furthermore, in the automotive industry, steel is an important raw material. With the growth in industrialization and urbanization, the automotive sector is experiencing an increasing demand for more-efficient and durable vehicles, resulting in the surging demand for steel. Due to its versatility, high specific gravity, strength, and high magnetism, ferrosilicon is employed in the automotive industry as an alloying agent.

In this regard, the growth in the electric vehicle market is driving the advance of the market. For instance, in April 2022, POSCO announced plans to begin the construction of an eco-friendly and high-efficiency electrical steel sheet plant in Gwangyang. This 300,000-tonne-per-annum plant is being developed with an investment of USD 831.4 million (KRW 1 trillion). The plant will cater to the manufacturers of EV traction motors.

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Cast Iron To Witness Fastest Growth

Cast iron is expected to have the highest CAGR, of 3.7%, over the forecast period. Cast iron is easy to melt and more economical, and it exhibits superior casting properties compared to steel. During cast iron production, ferrosilicon acts as an inoculant, preventing the formation of iron carbide, which can occur due to the rapid cooling of thin sections in the castings.

The stainless steel category also holds a significant share in the end use segment. Over 80% of the ferrosilicon is utilized in the production of steel and iron. In December 2021, Jindal Stainless Ltd. announced raising USD 82 million from KfW IPEX-Bank for the expansion of its production facilities in Jaipur, India. The facility expansion is expected to increase stainless steel production from 1.1 to 2.1 million tonnes per annum (MTPA). Corrosion has the potential to degrade resistance, strength, and other surface properties, ultimately impacting the chemical and mechanical properties of specific materials. Therefore, ferrosilicon is added to enhance wear resistance, aesthetics, and corrosion resistance.

The automobile and construction industries are experiencing a rising demand for corrosion-resistant material. Automotive bodies, bridges, and support materials require longevity, without succumbing to corrosion. As a result, many automotive and construction material companies are using ferrosilicon to ensure better quality of their products over a long time.

Deoxidizers Dominate Market

The deoxidizers category is leading the application segment of the ferrosilicon market, and its revenue is expected to reach around USD 9.5 billion by 2030. This is because ferrosilicon is extensively used as a deoxidizer in the steel industry. The deoxidization process effectively blocks the heat, thus preventing the loss of carbon from the molten steel and ensuring its quality.

In January 2022, AMNS India signed an MoU with the Government of Gujarat for an investment of more than USD 22 billion in six projects across the state. An investment of USD 5.97 billion will be directed toward expanding its steel production to 18 million tonnes per annum from 8.6 tonnes per annum at its Hazira plant.

Asia-Pacific Is Largest and Fastest-Growing Market

With a share of around 55% in 2023, Asia-Pacific is the largest market, and it is also expected to witness the fastest growth during the forecast period, driven by the increasing material demand from the construction industry. According to a study conducted by the Institution of Civil Engineers (ICE), the global construction sector is projected to reach USD 8 trillion by 2030, driven primarily by India, the U.S., and China. Therefore, steel production capacity is being expanded by key metallurgy companies in different countries.

Moreover, in the APAC region, China is projected to be the largest market till 2030. The People’s Republic has the largest manufacturing base for automobiles in the world, which, in turn, leads to a high-volume consumption of ferrosilicon. According to the China Association of Automobile Manufacturers (CAAM), Chinese carmakers achieved a production of 27.02 million units in 2022, marking a 3.4% increase year on year, while sales rose by 2.1%, to 26.86 million units.

Moreover, North America is projected to register significant market growth during the forecast period. The increase in the construction spending, along with the expansion of the EV sector, is projected to drive this advance. According to the IEA, electric car sales in the U.S. increased by 55% in 2022 from 2021, led by BEVs.

The European market is also driven by the growing automotive industry, which is one of the largest consumers of steel. In Europe, electric car sales increased by more than 15% in 2022 from 2021, to reach 2.7 million units. The growing sales are encouraging automotive original equipment manufacturers to increase their production. The rising demand for EVs supports the market growth as ferrosilicon-grade electric steel is essential for manufacturing EV motors.

Key Players in Global Ferrosilicon Market Are:

• Elkem
• RFA International
• DMS Powders
• Ferroglobe
• Eurasian Resources Group
• Feng Erda Group
• Finnfjord AS
• Mechel PAO
• Om Holdings Ltd.
• Maithan Alloys Ltd.

Market Size Breakdown by Segment

This report offers deep insights into the ferrosilicon market, with size estimation for 2017 to 2030, the major drivers, restraints, trends and opportunities, and competitor analysis.

Based on Type

• Atomized
• Milled

Based on Application

• Deoxidizer
• Inoculant

Based on End Use

• Carbon & Other Alloy Steel
• Stainless Steel
• Electric Steel
• Cast Iron

Region/Countries Reviewed for this Report

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.