Global Vanadium Market Overview
Vanadium Market Size was valued at USD 2.9 Billion in 2022. The Vanadium market industry is projected to grow from USD 3.04 Billion in 2023 to USD 4.49 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.00% during the forecast period (2023 - 2032). Increasing demand for vanadium in the steel industry and growing use of vanadium in the automobile industry are significant market drivers augmenting the growth of the market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Vanadium Market Trends
Rising demand for vanadium redox flow batteries (VRFB) is driving market growth.
The vanadium market has been expanding due to the rising demand for vanadium redox flow batteries (VRFBs). In addition to being utilized more frequently for grid-scale storage applications, VRFBs are a key technology for large-scale energy storage. They can offer dependable and affordable power in off-grid and distant locations. One of the main benefits of VRFBs is their capacity to deliver a long-duration, consistent energy output, making them ideal for load balancing, backup power, and the integration of renewable energy sources. The demand for large-scale energy storage technologies like VRFBs will only rise as the globe moves towards renewable energy sources, raising vanadium demand. Vanadium is utilized in a wide range of other applications in addition to VRFBs, such as steel manufacturing, aerospace and defense, and chemical manufacturing. The vanadium market is now being driven mostly by the expansion of VRFBs. For instance, in 2020, SABIC-owned Nusaned Investment, based in Saudi Arabia, formed a joint venture with SCHMID Group, a technology business based in Germany, to concentrate on producing and developing technologies for vanadium redox flow batteries (VRFB).
In recent years, investors have boosted their investment volume to keep up with the expanding demand for vanadium worldwide. For the production of synthetic vanadium, they are paying. This freshly created vanadium can be used in the steel and automotive industries. In addition, a sizable portion of the demand for synthetic vanadium comes from the aerospace sector.
New technologies are being developed for vanadium extraction, refinement, and use. For instance, several businesses are investigating solvent extraction methods to remove vanadium from ores, which may lessen the refining process's environmental effect and energy needs. Additionally, research is being done on creating brand-new vanadium-based materials with improved characteristics, which might create new markets and uses for vanadium.
Huge strains and corrosion are placed on the steel during oil and gas drilling, production, processing, storage, and transportation. The drilling tubing or pipes corrode when acid-containing fluids are utilized in the process. Thus, the oil industries' need for ferrovanadium is increasing to strengthen steels' corrosion resistance to acids and alkali solutions. To increase the strength of the steel used in the oil industry, thriving oil and gas companies are driving up demand for ferrovanadium. For instance, the International Energy Agency (IEA) estimates that by 2025, the world's oil demand will have increased by a total of 5.7 mb/d, with over half of that increase coming from China and India. The need for pipes is driven by the expanding cross-country pipeline and the growing city gas distributions (CGD) industry, which in turn drives the expansion of this market. Because of its strength and application in oil and gas pipelines, high-strength low-alloy steel (HSLA) incorporating vanadium is popular.
Vanadium Market Segment Insights
Vanadium Type Insights
The Vanadium market segmentation, based on type, includes Vanadium Pentoxide, Vanadium Ferrovanadium, Aluminum-Vanadium Alloys, Vanadium Chemicals, and Others. The Vanadium Pentoxide segment is expected to lead the Vanadium market during the forecast period. The high-strength steel utilized in manufacturing, building, and infrastructure projects is produced with the help of vanadium pentoxide. Steel is given an improvement in strength, longevity, and resistance to corrosion. The anti-tumor and anti-diabetic actions of vanadium pentoxide are utilized in the pharmaceutical sector as possible therapeutics.
The Vanadium Ferrovanadium segment is expected to be the fastest-growing segment of the Vanadium market during the forecast period. The government's concentration on constructing and enhancing infrastructure, such as highways, bridges, and dams, is increasing steel demand and, in turn, supporting the growth of the ferrovanadium sector. As a substantial alloy, ferrovanadium is largely used in the manufacturing process of steel to improve the hardness, strength, resistance to abrasion, and elasticity of the metal. For example, the Indian government's 2017 New Steel Policy, which directs the steel industry to reach 300 MT of steel production capacity by 2030, is projected to support market growth.
Figure 1: Vanadium Market, by Type, 2022 & 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Vanadium Grade Type Insights
The Vanadium market segmentation, based on grade type, includes FeV40, FeV50, FeV60, and FeV80. The FeV80 segment is expected to hold the largest market shares throughout the forecast period. Due to its highest vanadium content of 80%, FeV80 is being used more frequently in the steel industry, driving market growth. The yield strength and tensile strength of steel are both improved by increasing the vanadium content, which also encourages grain refinement. crude steel output climbed by 3.4% in 2019, according to the Worldsteel Association. To improve steel's strength, malleability, and corrosion resistance, rising crude steel production also drives up ferrovanadium demand.
Vanadium Application Insights
The Vanadium market segmentation, based on application, includes Iron & Steel, Chemical, Energy Storage, Titanium Alloys, and Others. The Iron & Steel segment is expected to hold the largest market shares throughout the forecast period. Steel is strengthened and more resilient by the addition of vanadium. As a grain refiner, vanadium smooths out the steel's grain structure and increases its resistance to fatigue, fracture, and wear. Vanadium also aids in keeping the steel from becoming brittle phases, which can cause failure and fissures.
The Energy Storage application segment is expected to be the fastest-growing segment of the Vanadium market during the forecast period. Vanadium has a high energy density, allowing it to store a lot of energy in a small volume. This makes it the perfect substance for energy storage devices, especially those made for large-scale applications.
Vanadium End-User Insights
The Vanadium market segmentation, based on the end-user, includes Automotive, Chemical, Energy storage, and others. The Automotive segment is anticipated to hold the major market shares during the forecast period. In the automotive sector, vanadium is largely used as an alloying element in steel to create high-strength and lightweight components. Vanadium aids in extending the lifespan of automobile parts, especially those that experience heavy strain or wear, including crankshafts and engine valves.
Vanadium Regional Insights
By region, the analysis offers market insights into North America, Asia Pacific, Europe and the Rest of the World. The Asia-Pacific region is expected to lead the Vanadium market throughout the forecast period. This is a result of the increasing demand for vanadium in the area. Increased construction activity in developing countries like China and India also expands the market. In India, the construction sector's gross value added grew from $183.5 billion in 2018-19 to $192 billion in 2019-20.
Further, the major countries studied in the market report are The US, Canada, France, German, the UK, Spain, Italy, Japan, China, India, Australia, South Korea, and Brazil.
Figure 2: VANADIUM MARKET SHARE BY REGION 2022 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The North American Vanadium market accounts for a significant market share throughout the forecast period. Due to a rise in demand from the construction sector, vanadium sales have increased in North America. It can be utilized alone or with other alloys to reinforce steel plates for various box girders and bridge types. Further, the U.S. Vanadium market held the largest market share, and the Canada Vanadium market was the fastest-growing market in the North American region.
Europe Vanadium Market is expected to grow at the fastest CAGR from 2023 to 2032. With a booming steel sector, Germany is one of the only nations in Europe where vanadium demand is increasing. Furthermore, increased production and use of vanadium in Germany is predicted to support higher sales. Moreover, the German Vanadium market held the largest market share, and the UK Vanadium market was the fastest-growing market in the European region.
Vanadium Key Market Players & Competitive Insights
Leading business players are spending a lot of money on R&D to expand their product lines, which will help the vanadium market grow. Participants in the market are also engaging in a number of strategic activities to broaden their presence internationally. Notable market developments include launching new products, legally binding agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. The vanadium industry must provide products at reasonable rates if it hopes to grow and thrive in today's challenging and competitive market environment.
One of the most vital business strategies used by manufacturers in the vanadium industry to assist customers and broaden the market sector is local production to reduce operational costs. One of the sectors that has benefited most recently from the vanadium industry is the iron and steel sector. Major companies in the Vanadium market, including Australian vanadium limited, Bushveld Minerals, EVRAZ plc, Largo Resources Ltd, Vanadium Corp Resource Inc., and others, are trying to increase market demand by capitalizing on research and development procedures.
A vertically integrated steel business is Evraz Plc (Evraz). It produces steel, coal, and vanadium-related goods. Coking coal concentrate, raw coking coal, tubular goods, semi-finished steel products, pipelines, raw materials and vanadium are all part of its product line. The company sells its goods to various industries, including steel rolling plants, railroads, rail carriers, industrial businesses, energy transmission operators, and steel manufacturing facilities. Additionally, it manages industrial facilities in Kazakhstan, the Czech Republic, Kazakhstan, the US, Canada, and the Czech Republic. The company operates in North America, Africa, Asia, and Europe. The UK's Greater London is home to Evraz's headquarters. EVRAZ Vanadium opened a new R&D facility in Zug, Switzerland, at East Metals AG, a group affiliate, in May 2020. Its main goal is to promote vanadium's sustainable and varied use as an alloying element in present-day and future steel products.
AMG is a leading provider of essential materials that are driving CO2 reduction trends. AMG serves the transportation, energy, infrastructure, and specialty metals and chemicals end sectors by producing highly engineered specialty metals and mineral products and providing related vacuum furnace equipment and services. AMG Critical Materials manufactures titanium alloys, coatings, ferrovanadium, antimony, niobium, silicon metal, and natural graphite, in addition to aluminum master alloys and powders. AMG Engineering creates vacuum furnace systems and equipment for upgrading specialized metals and alloys for the infrastructure, transportation, and auto industries. AMG employs 3,000 people worldwide and has production facilities in China, Mexico, Brazil, the Czech Republic, Germany, the United Kingdom, France, Japan, Sri Lanka, and the United States. It also has sales and customer service offices in Russia and Japan. AMG Advanced Metallurgical Group N.V. announced a long-term agreement in September 2019 to provide Glencore AG with 100% of its available ferrovanadium production from both the current and future Ohio facilities.
Key Companies in the Vanadium market include
- Australian vanadium limited
- Bushveld minerals
- EVRAZ plc
- Largo Resources Ltd
- Vanadium Corp Resource Inc.
- AMG advanced metallurgical group N.V
- Angang steel co. ltd
- HBIS Group
- Treibacher Industries AG
- Atlantic Ltd
- Tremond metals corp
- Bear Metallurgical Company
- Hickman, Williams & Company
- Shenzhen Chinary Co., Ltd
Vanadium Industry Developments
May 2020: EVRAZ Vanadium opened a new R&D facility in Zug, Switzerland, at East Metals AG, a group affiliate. Its main goal is to promote the sustainable and varied use of vanadium as an alloying element in present-day and future steel products.
September 2019: AMG Advanced Metallurgical Group N.V. announced a long-term agreement to provide Glencore AG with 100% of its available ferrovanadium production from both the current and future Ohio facilities.
Vanadium Market Segmentation
Vanadium Type Outlook
- Vanadium Pentoxide
- Vanadium Ferrovanadium
- Aluminum-Vanadium Alloys
- Vanadium Chemicals
Vanadium Grade Type Outlook
Vanadium Application Outlook
- Iron & Steel
- Energy Storage
- Titanium Alloys
Vanadium End-user Outlook
- Energy storage
Vanadium Regional Outlook
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Latin America
Market Size 2022
USD 2.9 Billion
Market Size 2023
USD 3.04 Billion
Market Size 2032
USD 4.49 Billion
Compound Annual Growth Rate (CAGR)
Market Forecast Period
Market Forecast Units
Value (USD Billion)
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Type, Grade Type, Application, End-User, and Region
North America, Asia Pacific, Europe and the Rest of the World
The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, South Korea, Australia, and Brazil
Key Companies Profiled
Australian vanadium limited, Bushveld Minerals, EVRAZ plc, Largo Resources Ltd, VanadiumCorp Resource Inc., AMG advanced metallurgical group N.V., Angang steel co. Ltd, Glencore, HBIS group, Treibacher Industrie AG, Atlantic Ltd, Tremond metals corp, Yilamaden, Bear Metallurgical Company, Hickman, Williams & Company and Shenzhen Chinary Co., Ltd
Key Market Opportunities
Rising demand for vanadium redox flow batteries (VRFB)
Key Market Dynamics
Increasing demand for vanadium in the steel industry and growing use of vanadium in the automobile industry
Frequently Asked Questions (FAQ) :
The Vanadium market size was valued at USD 2.9 Billion in 2022.
The Vanadium market is projected to grow at a CAGR of 5.00% during the forecast period, 2023-2032.
Asia Pacific had the largest share of the Vanadium market
The key players in the Vanadium market are Australian vanadium limited, Bushveld Minerals, EVRAZ plc, Largo Resources Ltd, VanadiumCorp Resource Inc., AMG advanced metallurgical group N.V., and Angang steel co. Ltd, Glencore, HBIS group, Treibacher Industrie AG, Atlantic Ltd, Tremond metals corp, Yilamaden, Bear Metallurgical Company, Hickman, Williams & Company and Shenzhen Chinary Co., Ltd.
The Vanadium Pentoxide category dominated the Vanadium market in 2022.
Iron & Steel had the largest share in the Vanadium market.
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