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The blast furnaces market is estimated to increase by USD 1.92 billion, at a CAGR of 4.9% between 2022 and 2027. The growth of the steel market is influenced by several factors, including the large installed base of blast furnaces, which provides a solid foundation for steel production. The growing steel demand from countries like India and Russia is driving market growth, as these nations continue to invest in infrastructure and construction projects. Additionally, regulations requiring steel plants to reduce their environmental footprint are encouraging the adoption of cleaner and more sustainable production methods, which is further driving the market growth. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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This report extensively covers market segmentation by application (capacity additions and revamping projects), type (hot blast ovens and cold blast blowers), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth by the capacity additions segment will be significant during the forecast period. Despite the overcapacity in the global steel industry, new steelmaking capacities continue to be developed in various regions. One of the primary reasons behind this is the employment that the steel industry creates across the value chain. For instance, the US has imposed a 25% tariff on the steel imported from Canada, Mexico, China, and the EU to revive its indigenous steel industry and create employment. An increase in steel prices since 2016 and the rising profitability of the steel industry are also encouraging steel producers to invest in new integrated steel plants.
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The capacity additions segment was valued at USD 1.09 billion in 2017 and continued to grow by 2021. The overcapacity in the global steel industry, which hindered capacity development during 2013-2016, has also been addressed to some extent as China is expected to bring down its production capacity to 1,000 million tons per annum (MTPA) by 2025-2026 from 1,200 MTPA in 2015-2016. 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, key countries that are contributing significantly to the regional market include India and China. India is expected to invest heavily in infrastructure projects to cater to the needs of the growing urban population. Apart from this, the growth of the affordable housing sector and consistently increasing demand for automobiles will lead to the rising consumption of steel. India plans to meet this additional demand for steel with domestically produced steel as part of its National Steel Policy announced in 2017. As part of this policy, the Indian government plans to increase its steelmaking capacity by 175 mtpa between 2017-2030. Such a substantial increase in production capacity would require the construction of many blast furnaces. Moreover, increasing investments in steel plants in India are expected to drive the growth of the market.
The large installed base of blast furnaces is notably driving the market growth, although factors such as the increasing popularity of steel mini-mills may impede the market growth. Our researchers analyzed the data with 2022 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. These plants require substantial investments in electronics and automobile technology to reduce conversion costs (the cost of producing one ton of finished steel using iron ore and coking coal). Consequently, major global producers have invested in large plants to increase capacity, as the high capital costs of the BF-BOF (Blast Furnace-Basic Oxygen Furnace) route necessitate large-scale production for economies of scale. These plants also require significant investments in inbound logistics to ensure a steady supply of raw materials, leading to revamping projects. Due to the high capital cost and a typical plant lifecycle of 20-25 years, operators face significant barriers to exiting the market.
These barriers also extend to the entire global steel industry due to the large installed base of blast furnaces worldwide. This situation drives the replacement market for blast furnaces, with most new orders for cold blast blowers and Cold blast blowers coming from operators of existing plants as their blast furnaces near the end of their lifecycle. Major countries in this market include China, Japan, and Germany.
Equipment as a service is the major trend influencing the market growth. The blast furnace is one of the most important pieces of equipment in a plant. The performance of the blast furnace largely determines the operational efficiency of the plant. As a result, the producers in the global industry have increasingly entered into performance-based contracts with equipment suppliers, including blast furnace suppliers. Under these performance-based contracts, the vendors are required to deliver equipment and services to the steelmakers, and most of the fixed costs of the equipment and services are borne by the vendors.
Vendors are offered payments linked to the financial performance of the plant. Performance-based contracts have thus increased the importance of value-added services that increase the efficiency and profitability of factory operations. Therefore, vendors must expand their service and software offerings that help reduce costs, minimize waste, and improve quality to capture a larger share of the global blast furnace market.
The increasing popularity of steel mini-mills is one of the key challenges hindering market growth. The global demand has been fluctuating, which puts the plant operators at risk of reduced profitability or even losses when the prices fall or demand for their output is low. Thus, the inflexibility of these plants in terms of matching production with demand at optimum cost is making steel mini-mills the preferred substitute for plants. Developing and emerging countries are expected to account for the majority of the increase in demand during 2017-2022, and businesses in these countries usually lack the financial resources to invest in these plants.
Therefore, steel mini-mills account for most of the new capacity additions in developing countries. The global output increased by 63.6 mtpa in 2017. 56.6% of this incremental growth was contributed by the EAF route, which is far higher than the approximately 26% contribution of the EAF route in the global output in 2017. In 2017, global DRI production increased by 20% against a 4.5% increase in production. The use of DRI improves the quality of crude steel produced by EAFs in steel mini-mills.
The 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 growth strategies.
Global 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 such as a top pressure recovery turbine for power generation, closed circuit soft water circulation, high automation level, and a monitoring system. 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 report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is a dynamic sector with several key participants driving innovation and growth. The market landscape is characterized by a mix of private ownership and coastal areas, influencing production and distribution. Pricing and competition are key factors shaping the industry, with promotions and industry influencers playing significant roles in market dynamics. Qualitative research is crucial for understanding customer needs, while quantitative research provides valuable insights into market trends. Vendor selection methodology and Vendor analysis is critical for businesses to identify the right partners, and vendor analysis helps in evaluating their performance with Primary information and Secondary information. Overall, the market is a competitive industry that requires a strategic approach, Competition, and Blast furnaces market sizing to succeed.
The market has seen significant key developments and new product launches by leading and emerging players like Can-Eng Furnaces, JPW Industrial Ovens and Furnaces, Wisconsin Oven, and Allied Mineral. These companies have expanded their geographical penetration and regional footprint, enhancing their industry footprint and company ranking. To stay competitive, businesses are focusing on product strategy and business strategy, as well as leveraging subject matter expert advice and primary research. Secondary research from sources like company websites, annual reports, and news articles, along with access to paid databases, helps in gaining insights. Key opinion leaders also play a crucial role in shaping the market.
In the ever-evolving landscape of commercial development, understanding the intricate interplay of various factors is paramount for businesses to thrive and succeed. From analyzing market dynamics to identifying strategic imperatives, each component plays a crucial role in shaping the trajectory of companies and industries alike. Restraints often pose significant challenges to businesses, ranging from regulatory hurdles to technological limitations. Recognizing and addressing these restraints is essential for developing effective strategies and mitigating potential risks. The threat of new entry looms large in many industries, prompting existing players to fortify their positions through barriers to entry, such as patents or economies of scale. Similarly, the threat of substitution underscores the importance of differentiation and innovation to maintain a competitive edge.
Supplier bargaining power and buyer bargaining power are pivotal considerations in commercial negotiations, influencing pricing strategies and supply chain dynamics. Understanding these power dynamics enables companies to negotiate favorable terms and optimize resource allocation. Navigating through product growth stages requires a nuanced understanding of market demand, consumer preferences, and technological advancements. From inception to maturity, each stage presents unique opportunities and challenges that necessitate adaptive strategies.
A robust research methodology is indispensable for gathering actionable insights and informing strategic decisions. Integrating qualitative and quantitative data from diverse sources, including financial statements, SEC filings, and statistical databases, enhances the depth and reliability of market analysis. Identifying winning imperatives and benchmarking against major players provide valuable insights into competitive strategies and market trends. Regular monitoring of recent developments through press releases, webcasts, and investor presentations enables companies to stay agile and responsive to evolving market dynamics.
Tools like the ACE matrix facilitate strategic planning by evaluating market attractiveness, competitive strength, and potential risks. Leveraging information from national government documents and financial reports further enriches market intelligence, enabling companies to make informed decisions and drive sustainable growth. In conclusion, successful commercial development requires a holistic approach that integrates market analysis, strategic foresight, and continuous learning. By harnessing the power of data, insights, and innovation, businesses can navigate challenges, capitalize on opportunities, and chart a course toward long-term success.
Blast Furnaces Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Decelerate at a CAGR of 4.9% |
Market growth 2023-2027 |
USD 1.92 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.34 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 62% |
Key countries |
US, China, India, Japan, and Russia |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ansteel Group Corp. Ltd., China Metallurgical Engineering and Project Corp., Compagnie de Saint Gobain SA, 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 Forecasting, 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 market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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