Ferro Silicon Market Research Report By Grade (High Grade Ferro Silicon, Medium Grade Ferro Silicon, Low Grade Ferro Silicon), By Purity (72%, 75%, 80%, 82%, 85%), By Application (Steelmaking, Foundry, Chemical, Electronics, Others), By Production Process (Submerged Arc Furnace, Electric Arc Furnace, Blast Furnace), By Supplier Type (Integrated Producers, Merchant Producers, Traders) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Global Ferro Silicon Market Overview

As per MRFR analysis, the Ferro Silicon Market Size was estimated at 12.28 (USD Billion) in 2022.

The Ferro Silicon Market Industry is expected to grow from 12.66(USD Billion) in 2023 to 16.7 (USD Billion) by 2032. The Ferro Silicon Market CAGR (growth rate) is expected to be around 3.12% during the forecast period (2024 - 2032).

Key Ferro Silicon Market Trends Highlighted

Most important market trends of Ferro Silicon Market:

Some of the factors, such as increasing demand from steel industries for Ferro Silicon, increased adoption for making solar cells, and increasing ferro silicon usage in automotive and aerospace industries, are the defining factors in the growth of the Ferro Silicon Market.

Some of the market opportunities include engaging in more of the renewable energy business, especially solar energy, whose photovoltaic cells utilize plenty of ferro silicon. As well, the emergence of electric vehicles and lightweight materials in transportation indicates the potential of ferro silicon, which it can be used as a deoxidation chemical and alloying agent.

New technologies or low-carbon technologies have come into the market, such as energy-efficient submerged arc furnaces. The increasing concern and the requirements of the environmental laws and the limiting of carbon emission have increased the supply of ferro silicon coming from scrap, hence providing opportunities for waste reduction and economic efficiency. Besides, through the improvement of metallurgy and alloy design, special categories of ferro silicon were created for some particular areas, which have broadened the range of products available in the market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Ferro Silicon Market Drivers

Rising Demand from the Steel Industry

Ferro silicon is used by the steel industry as a deoxidizer and alloying agent, and the steel industry is the largest consumer of the element, with the sector accounting for over 90% of global demand. Ferro silicon improves the strength, toughness, and machinability of the steel. The growing demand for steel from the construction, automotive, and infrastructure, among others, is driving the market for ferro silicon. The increasing production of high-strength steel and special steel, coupled with the demands from emerging economies, is expected to drive the market.

Expansion of Electric Arc Furnaces (EAFs)

Electric arc furnaces are being increasingly used for manufacturing steel rather than traditional blast furnaces, as, first of all, they have lower capital as well as operating costs, and this technology allows the production of high-quality steel. Actually, these furnaces require larger quantities of ferro silicon than blast furnaces because scrap steel is the main raw material for EAFs. Thus, the increasing popularity and use of EAFs, especially in developing countries, is the factor that will likely impact the future demand and consumption of ferro silicon.

Growing Adoption of Ferro Silicon in Foundries

The application of ferro silicon in the production of casting in foundries is increasing. Ferro silicon is added to molten metal to improve the fluidity, strength, and wear resistance of the casting. The growth of the ferro silicon market in the foundry sector is attributed to the increased demand for casting from the automotive, aerospace, and machinery sectors.

Ferro Silicon Market Segment Insights

Ferro Silicon Market Grade Insights

The Ferro Silicon Market by Grade analysis includes High Grade Ferro Silicon, Medium Grade Ferro Silicon, and Low Grade Ferro Silicon. The High Grade Ferro Silicon segment dominates the Ferro Silicon Market by Grade 2023 owing to its superior properties facilitating its use in a myriad of applications across various end-use industries. High Grade Ferro Silicon contains more than 90 % silicon. High grade Ferrosilicon is hard, extremely strong, and has a high resistance to corrosion. It is used in the production of silicon steel, which is one of the most commonly used steels in electrical transformers and most large electric motors.In addition, silicon steel is used as a ferrosilicon aluminum for electrical transformer cores and for all types of electromagnet devices other than welding equipment Medium Grade Ferro Silicon comprises 75 % to 90 % silicon. This grade is relatively new to the ferrosilicon market and is used in the manufacture of nodular or ductile iron, a type of cast iron known for its strength and ductility. Ductile iron is considerably stronger than regular cast iron and is used in a variety of applications in the construction, automotive, and engineering industries.The low grade comprises less than 75 % of silicon. Silica is a useful deoxidizer and alloying agent used in the production of steel. The purpose of a deoxidizer is to remove the remaining oxygen that is suspended in the molten steel and its alloys in the form of oxides. The removal of oxygen is a critical step in achieving steel of fine quality and surface finish. The major drivers of the Ferro Silicon Market by grade are the growing applications of ferrosilicon in the automotive, construction, and power industries. The increasing production of electric vehicles and the expansion of renewable energy projects are also expected to drive the market growth.The market is influenced by other factors such as technological advances, environmental safeguards, and the availability of raw materials.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Ferro Silicon Market Purity Insights

The degree of purity is also a significant factor in the quality and, therefore, price of ferro silicon. This is why while high purity ferro silicon is more expensive, it also has better electrical and magnetic properties. There are several different purity segments in the Ferro Silicon Market. As for now 72% purity segment is the largest segment by value. On the other hand, the 75% purity segment is a considerably close second. It is also expected that the 80% purity segment will be the fastest-growing segment of the market, with an annual growth rate of 5.6% between the years 2024 and 2032.The 82% purity segment is also significant and will make up more than $3.6 bln market by the year 2032. The 85% purity segment will remain the smallest segment of the market though it still will make quite a significant share of the Ferro Silicon Market revenue.

Ferro Silicon Market Application Insights

The application segment plays a crucial role in shaping the Ferro Silicon Market. Steelmaking dominates the market, accounting for around 80% of the Ferro Silicon Market revenue in 2023. The high demand for ferrosilicon in steel production stems from its ability to enhance steel's strength, toughness, and corrosion resistance. The foundry segment is another significant application, utilizing ferrosilicon as an alloying agent to improve the casting properties of iron and steel. The chemical industry also contributes to the Ferro Silicon Market, employing ferrosilicon as a reducing agent in the production of silicon-based chemicals.Additionally, ferrosilicon finds applications in the electronics industry, particularly in the manufacturing of semiconductors and solar cells. The 'Others' segment encompasses various applications, such as the production of refractories, welding electrodes, and abrasives. Overall, the segmentation of the Ferro Silicon Market based on application provides valuable insights into the diverse industries and end-uses driving the market growth.

Ferro Silicon Market Production Process Insights

The Ferro Silicon Market segmentation by Production Process includes Submerged Arc Furnace, Electric Arc Furnace, and Blast Furnace. Among these, Submerged Arc Furnace held the largest market share in 2023, accounting for nearly 85.2% of the Ferro Silicon Market revenue. This is attributed to its cost-effective production process and high energy efficiency. Electric Arc Furnace is expected to witness the highest growth rate during the forecast period due to its ability to produce high-quality ferrosilicon with low impurities. Blast Furnace is a traditional method of ferrosilicon production, but its market share is declining due to higher energy consumption and environmental concerns.

Ferro Silicon Market Supplier Type Insights

The Ferro Silicon Market is segmented by supplier type into integrated producers, merchant producers, and traders. Integrated producers are companies that mine the raw materials, produce the ferrosilicon, and sell the finished product. Merchant producers are companies that purchase the raw materials and produce the ferrosilicon, but do not mine the raw materials. Traders are companies that purchase the ferrosilicon from integrated producers or merchant producers and sell it to end users. In 2023, the integrated producers segment accounted for the largest share of the Ferro Silicon Market revenue, at approximately 60%.The merchant producers segment accounted for approximately 30% of the revenue, and the traders segment accounted for the remaining 10%. The integrated producers segment is expected to continue to account for the largest share of the Ferro Silicon Market revenue over the forecast period. This is due to the fact that integrated producers have a number of advantages over merchant producers and traders, including lower production costs, greater control over the supply chain, and better access to raw materials. The merchant producers segment is expected to grow at a faster rate than the integrated producers segment over the forecast period.This is due to the fact that merchant producers are able to offer more flexible pricing and delivery options than integrated producers. The traders segment is expected to grow at a slower rate than the merchant producers segment over the forecast period. This is due to the fact that traders are more exposed to price fluctuations in the raw materials market.

Ferro Silicon Market Regional Insights

The Ferro Silicon Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, APAC held the largest market share in 2023 and is projected to continue its dominance during the forecast period. The growth in the APAC region can be attributed to the increasing demand for ferrosilicon from steel and automotive industries in countries like China, India, and Japan. Europe is expected to witness significant growth in the ferrosilicon market due to the growing demand from the construction and automotive sectors.North America is also a key market for ferrosilicon, with the United States being the largest consumer. The South American and MEA markets are expected to exhibit moderate growth during the forecast period.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Ferro Silicon Market Key Players And Competitive Insights

Major players in the Ferro Silicon Market industry are continuously focusing on developing new products and expanding their global presence. These players are investing significantly in research and development to introduce innovative products and cater to the evolving needs of their customers. Leading Ferro Silicon Market, players are also adopting various strategies such as mergers and acquisitions, partnerships, and joint ventures to strengthen their market position and gain competitive advantage. The Ferro Silicon Market development is driven by the growing demand for low-carbon steel production and the increasing use of ferrosilicon in the automotive and construction industries. Ferro Silicon Market Competitive Landscape is characterized by the presence of a few large-scale players and several regional and local players. These players are competing on the basis of factors such as product quality, pricing, and customer service.Elkem is a leading Ferro Silicon Market player with a strong presence in Europe, North America, and Asia. The company has a diverse portfolio of ferrosilicon products and is known for its high-quality products and reliable supply chain. Elkem is committed to sustainability and has adopted several initiatives to reduce its environmental impact. The company is also investing in research and development to develop new products and processes.Ferroglobe is another leading Ferro Silicon Market player with a significant presence in Europe, North America, and South America. The company is known for its cost-effective production capabilities and its ability to meet the specific requirements of its customers. Ferroglobe is focusing on expanding its global reach and is actively pursuing opportunities in emerging markets. The company is also investing in capacity expansion and product innovation to meet the growing demand for ferrosilicon.

Key Companies in the Ferro Silicon Market Include

• China Ferroalloy


• SIMEC Atlantis Energy Ltd


• Molycorp Inc.


• JFE Steel Corporation


• Outokumpu Oyj


• Erdemir Group


• Globe Metallurgical, Inc.


• GCL Group


• Ferroglobe PLC


• Sichuan Bohua HiTech Materials Co., Ltd


• Tata Steel Ltd.


• Jindal Steel Power Ltd.


• Xiamen Tungsten Co., Ltd


• Votorantim S.A.


• Elkem ASA

Ferro Silicon Market Industry Developments

The Ferro Silicon Market is projected to reach USD 16.7 billion by 2032, exhibiting a CAGR of 3.12% during the forecast period. Increasing demand from steel and automotive industries, along with government initiatives to promote infrastructure development, are key factors driving market growth. The Asia-Pacific region dominates the market, with China being the largest consumer due to its robust steel production industry. Major players in the market include Elkem, Ferroglobe, and Globe Metallurgical. Recent developments include JSW Steel's plans to invest in a new ferro silicon plant in India and the increasing adoption of silicon-based alloys in electric vehicle batteries. Market growth is expected to be supported by rising investments in renewable energy and the growing adoption of electric vehicles.

Ferro Silicon Market Segmentation Insights

• Ferro Silicon Market Grade Outlook
  
  
  
  • High Grade Ferro Silicon
  
  
  • Medium Grade Ferro Silicon
  
  
  • Low Grade Ferro Silicon
  
  
  
  

• Ferro Silicon Market Purity Outlook
  
  
  
  • 72%
  
  
  • 75%
  
  
  • 80%
  
  
  • 82%
  
  
  • 85%
  
  
  
  

• Ferro Silicon Market Application Outlook
  
  
  
  • Steelmaking
  
  
  • Foundry
  
  
  • Chemical
  
  
  • Electronics
  
  
  • Others
  
  
  
  

• Ferro Silicon Market Production Process Outlook
  
  
  
  • Submerged Arc Furnace
  
  
  • Electric Arc Furnace
  
  
  • Blast Furnace
  
  
  
  

• Ferro Silicon Market Supplier Type Outlook
  
  
  
  • Integrated Producers
  
  
  • Merchant Producers
  
  
  • Traders
  
  
  
  

• 
  

  Ferro Silicon Market Regional Outlook

  
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa