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The blast furnaces market size is forecast to increase by USD 2.52 billion at a CAGR of 5.92% between 2023 and 2028. The market's growth is driven by various factors, notably the extensive presence of blast furnaces, which form a robust backbone for steel production. Increasing steel demand from countries such as India and Russia, fueled by ongoing investments in infrastructure and construction ventures, serves as a significant driver for market expansion. Moreover, regulatory mandates mandating steel plants to curb environmental impact are fostering the adoption of cleaner, sustainable production techniques, thereby bolstering market growth. These combined influences underscore a pivotal shift towards environmentally conscious practices within the steel industry, aligning with global sustainability objectives while meeting the escalating demand for steel across diverse sectors.
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The market is being driven by a surge in demand for steel and alloys, primarily fueled by the construction, automotive, and infrastructure sectors. This demand is pushing steelmakers to expand their blast furnace capacities globally. However, stringent emission regulations are posing challenges, leading to a shift towards EAFs (Electric Arc Furnaces) and innovative emission control strategies. Technological trends in the market include the adoption of advanced AC arc furnaces and the development of more efficient metallurgical furnace designs to reduce energy consumption and greenhouse gas emissions. Ferrous metals like lead and copper are also seeing increased demand, driving the market further. Challenges persist in managing waste gases and controlling emissions, particularly addressing slag phases and flue gas pollutants. The market's trajectory depends on balancing demand growth with environmental concerns and technological advancements. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the primary drivers of market growth is the extensive use of blast furnaces in integrated steel plants. The global steel industry employs two primary methods for crude steel production: Blast Furnace-Basic Oxygen Furnace (BF-BOF) and Electric Arc Furnace (EAF) routes. Approximately 75% of the world's crude steel is generated via the BF-BOF process. In steel-leading nations like China, which accounts for around 50% of global crude steel production, the BF-BOF route dominates, with over 90% market share. Integrated steel plants utilize iron ore and coking coal in the BF-BOF process to manufacture finished steel, while mini-mills follow the EAF route.
Moreover, the scarcity of affordable scrap steel and electricity in major exporting regions, such as China, Germany, and Japan, has hindered the widespread adoption of the EAF route to cater to the escalating steel requirements from sectors like electronics, automobile, and construction. Key players in the market include Noble Industrial Furnace, Can-Eng Furnaces, Wisconsin Oven, Allied Mineral, and others. Hence, such factors are driving the market during the forecast period.
Equipment as a service is the major trend influencing the market growth. The blast furnace market plays a pivotal role in the integrated steel industry, significantly impacting the operational efficiency and profitability of steel plants. Vendors supplying blast furnaces and related services have seen an upward trend in performance-based contracts. These agreements involve the provision of hardware and services, with vendors assuming a substantial portion of the equipment and service costs.
Moreover, payment structures under these contracts are contingent on the financial performance of the steel plant. Value-added services that boost operational efficiency and profitability are increasingly crucial for vendors seeking competitive advantage. Key participants in the market include Noble Industrial Furnace, Can-Eng Furnaces, Wisconsin Oven, Allied Mineral, and others. Industry reports and databases, such as SEC filings, statistical databases, web-casts, and paid databases, provide insights into market trends, steel demand, regulations, capacity additions, and revamping projects. Hence, such factors are driving the market during the forecast period.
The increasing popularity of steel mini-mills is one of the key challenges hindering market growth. The Blast Furnace market plays a pivotal role in the global steel industry, supplying pig iron as a primary raw material for steel production. This process, which involves reducing the carbon content of pig iron in Basic Oxygen Furnaces (BOF), necessitates substantial capital investment due to the large-scale production required for competitive pricing.
Moreover, blast furnaces undergo frequent shutdowns for relining, which can be costly and time-consuming. To achieve economies of scale, high capacity utilization is essential in integrated steel plants. The electronics and automobile industries are significant consumers of steel, driving product growth stages and the need for competitive advantage. Key participants in the Blast Furnace market include Noble Industrial Furnace, Can-Eng Furnaces, Wisconsin Oven, Allied Mineral, and others. Hence, such factors are hindering the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
MECON Ltd. - The company offers blast furnace equipment for applications including, power generation and closed circuit soft water circulation. Also, they offer technology, engineering, consultancy, supply, project contracting, and financial services in various industries including iron ore mining and beneficiation, sintering, coking, pelletization, blast furnace, and other sectors.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the revamping projects segment will be significant during the forecast period. The Blast Furnaces Market in the electronics, automobile, and casting industries experiences continuous development, driven by commercial expansion and product growth stages. Companies seek competitive advantage and winning imperatives, leading to company rankings and regional footprints. Key participants include Noble Industrial Furnace, Can-Eng Furnaces, Wisconsin Oven, Allied Mineral, and others, as outlined in SEC filings and statistical databases.
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The revamping projects segment was valued at USD 4.97 billion in 2018 and continued to grow by 2022. Industry footprint is influenced by steel demand, regulations, and capacity additions, with revamping projects in hot blast ovens and cold blast blowers. Coastal areas are a focus for study, with industry influencers and private ownership shaping market trends. Publishers provide insights on profit, pricing, promotions, and market dynamics. Steel industry regulations and capacity additions impact the market, with China reducing production capacity to 1,000 million tons per annum. Key participants engage in various initiatives, including mergers and acquisitions, partnerships, and technological advancements. Web-casts, paid databases, and steel industry reports offer comprehensive market intelligence. This is encouraging steel producers in fast-growing markets such as India, Russia, Vietnam, and Indonesia to ramp up their steelmaking capacity to meet the growing demand for steel in their respective countries, as the risk of volatility in steel prices seems to be declining during the forecast period.
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APAC is estimated to contribute 62% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In APAC, India and China are pivotal markets driving the regional steel industry's growth. India's focus on infrastructure development, affordable housing, and automobile sectors will fuel steel consumption. The National Steel Policy (2017) aims to expand domestic steelmaking capacity by 175 mtpa by 2030. Key players in the Blast Furnaces Market include Noble Industrial Furnace, Can-Eng Furnaces, Wisconsin Oven, Allied Mineral, and others.
Moreover, these companies leverage competitive advantages through product innovation, regional footprint, and industry influence. The market is influenced by steel demand, regulations, and capacity additions. Key participants publish statistical databases, SEC filings, web-casts, and paid databases for industry insights. Hot blast ovens and cold blast blowers are essential equipment in the steel industry. Private ownership and profitability are winning imperatives for market success. Key industry influencers include Electronics, Automobile, Casting, Commercial development, and the regulatory environment. Moreover, increasing investments in steel plants in India are expected to drive the growth of the market during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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In the market, where cutting-edge technology meets the demands of industrial metals production, innovation is the driving force. Companies actively pursue advancements in scalability to meet the industry coverage needed for sustainable growth. As innovators, they strive for efficiency in handling molten metal, optimizing processes for maximum output. This quest for excellence often leads to inorganic growth strategies, driving consolidation and expansion within the market. Social scenarios play a crucial role, as stakeholders navigate the balance between economic prosperity and environmental responsibility. With a focus on sustainability and emission reduction, the blast furnace industry continues to evolve, embracing new technologies and methodologies to meet the challenges of tomorrow while maintaining its position at the forefront of metal production. The companies strive to be active players by embracing cutting edge technologies, positioning themselves as innovator in metal production. This dynamic environment fuels growth and drives industry evolution.
Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.95% |
Market Growth 2024-2028 |
USD 2.52 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.53 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 62% |
Key countries |
China, India, US, Russia, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ansteel Group Corp. Ltd., China Metallurgical Engineering and Project Corp., Compagnie de Saint Gobain, Danieli and C. Officine Meccaniche Spa, Gillanders Arbuthnot and Co. Ltd., Heavy Engineering Corp. Ltd., IHI Corp., JP Steel Plantech Co., Krosaki Harima Corp., Larsen and Toubro Ltd., McNally Bharat Engineering Co. Ltd., MECON Ltd., Nippon Steel Corp., Noble Industrial Furnace Co. Inc., POSCO holdings Inc., Primetals Technologies Ltd., Qinhuangdao Qinye Heavy Industry Co. Ltd., Shandong Province Metallurgical Engineering Co. Ltd., Sinosteel Corp., and SMS group GmbH |
Market dynamics |
Parent market analysis, market report, Market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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