Ferrosilicon Market (By Application: Deoxidizer, Inoculants, Others; By End use: Carbon & Other Alloy Steel, Stainless Steel, Electric Steel, Cast Iron, Others) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2033

The global ferrosilicon market size was valued at USD 11.62 billion in 2023 and is anticipated to reach around USD 14.92 billion by 2033, growing at a CAGR of 2.53% from 2024 to 2033. The growth of the market is anticipated to be driven by the rising use of ferrosilicon as a deoxidizer in the steel industry and as an inoculant in cast iron.

Ferrosilicon Market Size 2024 to 2033

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Key Takeaways

  • Asia-Pacific led the market with the largest market share of 67% in 2023.
  • North America is expected to expand at a CAGR of 2.21% over the forecast period.
  • By application, the deoxidizers segment has generated more than 70% of market share in 2023.
  • By application, the inoculants segment is expected to grow at the fastest rate of the forecast period.
  • By end use, in 2023, the carbon and other alloy steel segment has accounted more than 45% of markets share in 2023.
  • By end use, during the forecast period, the cast iron segment is anticipated to witness significant growth in the market.

Ferrosilicon Market Size in Asia Pacific 2024 to 2033

The Asia Pacific ferrosilicon market size was estimated at USD 7.79 billion in 2023 and is projected to surpass around USD 10.07 billion by 2033 at a CAGR of 2.60% from 2024 to 2033.

Asia Pacific Ferrosilicon Market Size 2024 to 2033

Asia-Pacific led the global ferrosilicon market in 2023 due to its well-developed construction industry and ongoing investments in the automobile and construction sectors over the years. Adding ferrosilicon to steel improves various desirable properties in the automotive industry, such as strength and quality.

Asia-Pacific is also the largest producer of electronic components, and the growing demand for semiconductors in electronic devices has increased the need for ferrosilicon in semiconductor production. As a result, the consumption of ferrosilicon in the region is expected to rise.

Ferrosilicon Market Share, By Region, 2023 (%)

North America is expected to witness significant growth in the ferrosilicon market over the forecast period. This growth is linked to the expansion of the electric vehicle (EV) industry and increased spending on construction projects. The demand for ferrosilicon in the region is mainly driven by the growing need for steel and metal alloys, particularly in sectors such as automotive and construction.

Governments and international organizations are actively promoting the use of ferrosilicon to address environmental concerns and support the development of emerging economies. As a result, the ferrosilicon market is steadily expanding in North America.

Ferrosilicon Market Overview

Ferrosilicon is an alloy used in various applications such as manufacturing silicon, high-temperature-resistant ferrous silicon alloys, corrosion-resistant alloys, and silicon steel for electro motors and transformer cores. It's also used in cast iron production to speed up graphitization. Ferrosilicon possesses properties like corrosion and abrasion resistance, high specific gravity, strength, magnetism, hardness, and resistance to high temperatures. More than 80% of ferrosilicon is used in making iron and steel.

Corrosion can weaken materials, affect surface properties, and reduce resistance to fluids, ultimately diminishing their mechanical and chemical properties. The demand for corrosion-resistant materials is rising in the construction and automobile industries. Structures like bridges and automotive bodies need to withstand corrosion for longevity.  Many companies are opting for ferrosilicon in construction and automobiles to ensure better quality.

Growth Factors

  • The rise in the usage of ferrosilicon in automotive and steel production worldwide is fueling the growth of the ferrosilicon market in the future.
  • Increasing investment in infrastructural projects in developing countries like India, Indonesia, South Africa, etc., is creating the demand for steel.
  • Growing production of electric vehicles globally, along with the rising investment in commercial projects, are expected to create opportunities for the ferrosilicon market.
  • Mergers and acquisitions by key players in the market are expected to boost its growth shortly.
  • Technological advancement is also observed to propel the growth of the ferrosilicon market over the projected period.

Ferrosilicon Market Scope

Report Coverage Details
Global Market Size in 2023 USD 11.62 Billion
Global Market Size in 2024 USD 11.91 Billion
Global Market Size by 2033 USD 14.92 Billion
Growth Rate from 2024 to 2033 CAGR of 2.53%
Market Volume in 2023 8,190.3 Kilotons
Market Volume in 2024 8,373.76 Kilotons
CAGR 2.24%
Market Volume by 2033 10,221.35 Kilotons
Largest Market Asia Pacific
Base Year 2023
Forecast Period 2024 to 2033
Segments Covered By Application and By End-use
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa


Ferrosilicon Market Dynamics


Increasing adoption of semiconductors

Ferrosilicon is vital for producing high-quality silicon, a key material in making semiconductors. These semiconductors are essential in modern technology, enabling devices like smartphones, computers, and IoT gadgets to function. They're used across various industries, including electronics, telecommunications, automotive, and healthcare.

With the increasing use of electronic devices and the demand for advanced technology, the semiconductor market is growing. Semiconductors play a crucial role in several applications of the ferrosilicon market, such as data processing, storage, communication, and automation in these devices. Ongoing innovations in semiconductor manufacturing are driving this market's growth trend.

  • In February 2022, HCL Technologies (HCLTech) expanded a longstanding collaboration with Intel Foundry to co-develop customized silicon solutions for semiconductor manufacturers, system OEMs (Original Equipment Manufacturers), and cloud services providers to enhance foundry services

Rise in demand for steel globally

The ferrosilicon market is growing due to increased demand for steel and its products in the construction, infrastructure, and automotive industries. Ferrosilicon is crucial in steel production, making the material stronger, more durable, and heat resistant. It's also used in vehicles to improve performance. Additionally, it's widely used in construction globally. The demand for ferrosilicon is rising because it's essential in manufacturing steel.


Slower crude steel production

Ferrosilicon consumption has declined globally recently due to slower crude steel production and a shift towards alternative materials like crude steel, especially in China and other countries. Moreover, the steady growth in iron casting worldwide has led to increased use of aluminum in automobile manufacturing. This preference for alternative materials presents a significant challenge for the European ferrosilicon market, affecting its growth prospects from 2024 to 2033.


Growth of automobile and construction industries

The need for materials that can resist corrosion is growing, especially in the construction and automotive sectors. Structures like bridges and vehicle bodies need to withstand corrosion for a long time. That's why Ferrosilicon is widely used in buildings and cars because it offers protection against corrosion. The automotive industry is anticipated to see a surge in demand for steel soon. Additionally, the ferrosilicon market is propelled by construction activities in developing countries worldwide due to rapid urbanization, which is expected to boost market growth.

  • In March 2024, - Coreshell, a US-based battery technology company, and Ferroglobe PLC, a world-leading producer of silicon metal and ferroalloys, announced the signature of a memorandum of understanding.  Ferroglobe and Coreshell expect to produce the first battery-ready metallurgical silicon for the development of low-cost, high-range EV batteries in compliance with the U.S. Inflation Reduction Act

High demand for atomized ferrosilicon due to its beneficial properties

Atomized ferrosilicon is considered a high-tech product due to its unique properties. It has low oxygen content and excellent spreading properties, making it efficient for various applications. Its spherical particles ensure proper blending with welding flux, and the atomization process reduces or eliminates the generation of hydrogen gas. Because of these advantages, manufacturers are increasing the production of powdered Ferrosilicon, leading to further growth in the ferrosilicon market.

Application Insights

The deoxidizers segment dominated the ferrosilicon market in 2023. Ferrosilicon is extensively used as a deoxidizer in the steel industry. The automotive, construction, and aerospace industries are increasingly relying on deoxidized steel to meet strict performance and safety standards. This trend is driving up the demand for deoxidizers.

Deoxidizers are crucial in ensuring precise control over steel composition and properties by removing oxygen from molten metal. This process greatly contributes to high-quality steel products. The growing demand for deoxidizers is driven by the rising requirements across various industries. The critical role of deoxidizers in meeting these standards positions them as the main driver in the dynamic and evolving ferrosilicon market.

Ferrosilicon Market Share, By Application , 2023 (%)

In the ferrosilicon market, the inoculants segment is expected to grow at the fastest rate over the projected period. Ferrosilicon acts as an inoculant in the cast iron industry, preventing the formation of iron carbide due to quick cooling in thin sections of castings. Increased investments in cast iron production are anticipated to boost the demand for ferrosilicon in this sector in the foreseeable future.

End-use Insights

The carbon and other alloy steel segment dominated the ferrosilicon market in 2023 is expected to maintain its position throughout the forecast period. Ferrosilicon plays a crucial role in the steel production process as a deoxidizer and alloy agent.  Ferrosilicon powder can generate significant heat when burned at high temperatures, making it useful as a heat-producing agent in capped steel manufacturing.

The cast iron segment is anticipated to witness significant growth in the ferrosilicon market during the forecast period. This is attributed to its cost-effectiveness, ease of melting, and superior casting capabilities compared to steel. Ferrosilicon acts as an inoculant in the cast iron sector, preventing the appearance of iron carbide resulting from instantaneous cooling in thin castings. The rising investment in cast iron production is expected to drive increased demand for ferrosilicon in the foreseeable future.

  • In December 2023, Proterial, a leading international producer of high-performance materials for mobility, industrial infrastructure, and electronics, announced the signing of a definitive agreement for Monomoy Capital Partners to acquire Waupaca Foundry, Inc., North America’s leading supplier of cast and machined iron castings.

Recent Developments

  • In May 2023, Elkem and the Zero Environmental Foundation agreed to address industrial climate change. Zero will share expertise about climate change and policy as part of the engagement with Elkem.
  • In July 2022, Ferroglobe PLC, one of the world's leading producers of silicon metal and silicon and manganese-based ferroalloys, entered a new phase in its silicon metal powder project for batteries and other advanced technologies, reaching a high purity production (up to 99.995%), in micrometer and sub-micrometer size.
  • In June 2022, Ferroglobe PLC announced a Memorandum of Understanding ('MOU') with REC Silicon. Under the MOU, Ferroglobe commits to leveraging its asset platform in the United States to supply high-purity silicon metal to REC Silicon, aiming to jointly establish a low-carbon and fully traceable U.S.-based solar supply chain.
  • In July 2022, OM Holdings' smelting plant in Sarawak’s Samalaju Industrial Park recorded higher production volume in Q2 for ferrosilicon, manganese alloys, and manganese sinter ore.
  • In January 2022, POSCO commenced construction of a new galvanized steel plant in Tangshan, Hebei, China, which HBIS Group jointly owns.
  • In February 2022, Elkem ASA acquired the remaining 50% stake in the Salten energy recovery plant from Kvitebjørn Energi, thus taking 100% ownership. This acquisition aims to enable environmentally friendly ferrosilicon-grade production.

Ferrosilicon Market Companies

  • Elkem ASA
  • Eurasian Resources Group
  • Ferro Alloys Corporation Limited (FACOR)
  • Ferroglobe
  • IMFA
  • OM Holdings Ltd.
  • Russian Ferro-Alloys Inc.
  • VBC Ferro Alloys Limited

Segments Covered in the Report

By Application

  • Deoxidizer
  • Inoculants
  • Others

By End-use

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

By Geography

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East and Africa

Frequently Asked Questions

How big is the ferrosilicon industry?
The global ferrosilicon market size is expected to increase USD 14.92 billion by 2033 from USD 11.62 billion in 2023.
What is the growth rate of the ferrosilicon industry?
The global ferrosilicon market will register growth rate of 2.53% between 2024 and 2033.
Who are the prominent players operating in the ferrosilicon market?
The major players operating in the ferrosilicon market are Elkem ASA, Eurasian Resources Group, Ferro Alloys Corporation Limited (FACOR), FINNFJORD AS, Ferroglobe, IMFA, OM Holdings Ltd., Russian Ferro-Alloys Inc., SINOGU CHINA, VBC Ferro Alloys Limited, and Others.
Which are the driving factors of the ferrosilicon market?
The driving factors of the ferrosilicon market are the increasing adoption of semiconductors and rise in demand for steel globally.
Which region will lead the global ferrosilicon market?
Asia Pacific region will lead the global ferrosilicon market during the forecast period 2024 to 2033.


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