The iron ore market is expected to reach a value of $2.42 billion by 2028 with a CAGR of around 5.2%. The iron ore market is expected to reap positive results from the Asia Pacific region where the demand for iron due to increased development activities is high. Moreover, the segment by end-use industries is expected to contribute maximum towards iron ore market share.
Iron ores are metallurgical mines and ores from which iron can be extracted for the production of iron, steel, and other raw materials for use in the manufacture of various appliances. The iron ore market mainly consists of activities such as mining iron ores to extract useful metals out and to use them to the personal advantage and manufacture daily based useful end-products by large manufacturers.
The iron ore industry is focused on the mining of iron sites, beneficiate iron ore and sinter iron ore, and also includes additional operations such as crushing, grinding, washing, drying, concentrating, leaching, etc. to transform the raw iron into a more processed form which could be used in different industries to manufacture consumer products.
The iron ore market has been experiencing a historic growth due to a large number of reserves located globally and the continuous extraction of minerals from such mines by large companies due to increase in construction activities, reduced governmental regulations, increase in production capacities, emerging market trends, and improved infrastructure facilities which have led to iron ore market growth.
The novel coronavirus or the Covid 19 pandemic has negatively impacted the iron ore industry since the demand for steel and iron manufactures consumer products have declined which has created a negative impact on the iron ore industry and the iron ore companies have faced shortages in personnel, accumulated stocks, and forced shutdowns. Due to the lockdowns in various countries, the demand for iron ore equipment and buildings has also significantly marked the slow growth rate of the iron ore industry.
Due to the Covid 19 effect, it has been observed that a large number of producers have been forced to shut down their production units and lay off employees but it is assumed that the market will soon pick up the pace and the demand would increase. It is expected that the post-lockdown period would be a great success for the iron ore market revenue. It is also analyzed that every segment would be contributing significantly towards the growth of iron ore market value.
The competitive landscape in terms of the iron ore market has been immense and nail-biting with new players easily entering the market and the existing players making huge investments in this segment. The big names in this market are:
The key players in the market are more focused on developing future strategies and set themselves as joint ventures to increase the iron ore market share and size.
The iron ore market has been experiencing a diversified growth in all segments and across different regions due to the rising populations and the increasing per capita incomes of people which has shifted the demands of people to highly sophisticated and technologically advanced products and equipment which have acted as a motivating factor to the iron ore market.
Secondly, the Government policies have also acted in favor of the production of iron ores which has given a strategic boost to the iron ore market revenue. The increased level of support from the Government in the form of financial aids from public institutions reduced restrictions on imports and exports which has allowed foreign direct investments and increased global awareness for the iron ore manufacturers.
Also, the emerging market trends and the demand for improved infrastructural facilities, logistics, etc have driven the iron ore market to directly produce end-use products for fulfillment of needs of such industries.
The overall growth in the iron ore market has been expediently rising but certain factors hinder the growth process of the market which include large sums of money to be invested initially in setting up of iron ore companies and thus it restricts various new players to enter the markets.
Secondly, the lack of skills needed for the mining of iron ore is another hindrance that has been observed lately in the iron ore industry. The employees and engineers required for mining the iron ores are not fully skilled and hence it creates an imbalance and increases the need for more employees.
Also, the health hazards related to the mining of iron ores have significantly impacted the iron ore industry since it has limited the period for which an employee can work and has also increased expenditures to be paid to each employee as compensation.
The increased operations in the iron ore market have led to various technological developments in the overall industry. One such technological development in the iron ore market has been observed as the use of robotics in the mining operations which has significantly reduced time and also the operational costs associated with the mining activities.
The use of robots has significantly reduced the need for a human workforce and also the health hazards related to the human mining of iron reserves. Robotics is used in critical mining activities such as drilling, blasting, guiding trucks in iron mines, etc.
Another major development used in the iron ore market has been the use of driverless trucks and rock drilling rigs to haul mines for 24 hours a day which has significantly boosted the production capacity. Thus, the rapid technological improvements have increased the iron ore market share and size.
By Type Of Ore
The global iron ore market has been divided into seven regions where each region has been contributing significantly in terms of its capabilities and population demands. However, among the seven regions, the Asia Pacific region has been accounting for the major iron ore market share whereby the key drivers towards the growth of the iron ore industry are developed here, and the population seems to be quite interested in the innovations in terms of new products in the market.
The major iron ore market revenue is expected to come from countries like China, Japan, Korea, and India. The iron ore statistics indicate that the population along with the disposable incomes of people of these countries has been increasing which has led to shifts in lifestyles and changing demands.
The European region has also been experiencing major growth with contributions coming from developed nations such as France, Germany, Denmark, Belgium, etc. . The North American region is also experiencing vast growth in iron ore market shares as the countries in this region have been reaping the benefits of technology thereby maximizing the level of operations and reducing operational cost.
The Global report helps the investors to gain meaningful information about the iron ore market and make decisions wisely. The report discusses the steps taken by the iron ore market leaders to boost the market growth and inflate market valuation for their good. The report fully summarises the ongoing market scenario in the iron ore market which would help the intended audience to seek more information about the market. The objective of the report was to fully summarise the key players in the market and their role in boosting the iron ore market value. The report also discusses the future growth prospects and the competitive landscape in the iron ore industry and lays down the expected growth rate of the market along with the hindrances it might have to face.
|CAGR||4.29% (2022 to 2030)|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||product type, form, end-use industry, and region|
|Geographies Covered||Asia-Pacific, North America, Europe, Latin America, and the Middle East & Africa|
|Key Vendors||Vale, Rio Tinto, BHP, Fortescue Metals Group Ltd, Ansteel Group Corporation Limited, ArcelorMittal, Anglo American, HBIS Group, EVRAZ plc, METALLOINVEST MC LLC, LKAB, and Cleveland-Cliffs Inc.|
|Key Market Opportunities||The growth is supported by the increasing need to reduce vehicular emission due to the strict regulations by the US Environmental Protection Agency|
|Key Market Drivers||The global market is primarily driven by the use of steel in the construction of low- and high-rise buildings, sports stadiums, bridge deck plates, harbors, etc.|
Frequently Asked Questions (FAQ) :
The Asia-Pacific region is expected to have a high growth rate and market share in the iron ore market.
The key manufacturers who hold a dominant position in the iron ore market are Vale S.A., Rio Tinto, BHP, Fortescue Metals Group Ltd. (FMG), Anglo American Plc, and Ansteel Group.
The segment by end-users is expected to provide maximum growth due to its wide applications and uses in a variety of manufacturing processes.
The expected growth rate of the iron ore market is estimated to be 5.2% by 2025.