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The iron ore market size is estimated to grow at a CAGR of 2.93% between 2022 and 2027. The market size is forecast to increase by USD 51 billion. The accelerated growth of the market is caused by various factors, including the upsurge in consumption of high-strength iron ore and steel, industrialization in developing countries, and the growing demand from the construction industry.
This iron ore market report extensively covers market segmentation by product (fines, pellets, lump, and HBI/DRI), source (surface mining and underground mining), and geography (APAC, Europe, South America, North America, and Middle East and Africa). 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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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.
The upsurge in consumption of high-strength iron ore and steel is driving market growth. Steel is made from iron ore, a compound of iron, oxygen with its strength and hardness of iron depending on the concentration of phosphorus. Moreover, high phosphorus iron can be further hardened by cold forging. If phosphorus can be maintained between 0.07 and 0.12%, steelmakers can increase hardness by up to 30% without sacrificing impact strength. Furthermore, high-strength steel has high fatigue strength, adds toughness to steel products, and has exceptional strength at both room and high temperatures.
Due to various features and qualities such as its affordable cost and high strength-to-weight ratio, high-strength steel is used in various applications in architectural, industrial, automobile, and consumer applications. Factors such as strategic positioning and broadened product portfolios will increase the sales of high-strength stainless steel during the forecast period. Moreover, it is ideal for manufacturing passenger compartments and the crumple zone in the automotive industry. Hence, such factors are expected to boost market growth during the forecast period.
The economic growth in China and India boosting the demand for stainless steel is a key trend in the market. China and India are among the largest crude steel producers in the world. The iron ore market in China has been mainly driven by the speedy transformation of its economy and infrastructure. Moreover, increasing demand from the construction sector and manufacturing industries in these countries are accountable for the increasing demand for iron ore. India in particular has a flourishing iron ore market primarily because of the country's rapid industrialization and expanding automotive and construction industries. Moreover, factors such as the easy availability of raw materials and skilled and cost-effective labor will result in market growth in India.
Moreover, demand from other industries such as chemical, paper, and pulp industries is also responsible for increasing demand for iron ore. Rising urbanization and massive infrastructure projects conducted by the governments of both countries are the key drivers for iron ore products. Increasing construction projects of roads, highways, and railways in the region are making both countries among the largest producers as well as consumers of iron ore in the world. Hence such factors will contribute to market growth during the forecast period.
The growing preference for carbon fiber in automotive applications is challenging market growth. The volatility of fuel prices has resulted in increasing demand for fuel-efficient vehicles. This has resulted in automotive manufacturers looking for an alternative to steel, which despite having superior mechanical strength and corrosion resistance also has a high weight. Due to the heavy weight of steel, vehicles have reduced fuel efficiency.
Moreover, carbon fiber composites have been increasingly used in automobiles as it helps reduce total automobile weight by 40%-50% and in turn improve fuel efficiency by 30%-35%. Formerly, carbon fiber composites were used to enhance the design and aesthetic appeal of automobiles but recently they are being used by luxury car manufacturers in structural components of automobiles such as BMW i8 and BMW 7. Moreover, increasingly stringent regulations regarding fuel efficiency and emissions levels are compelling the automotive industry to shift from steel towards other alternatives which will hamper market growth during the forecast period.
The market research 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 Iron Ore 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.
Anglo American plc - The company offers iron ore for the steel industry, medicine, cosmetics, engineering, construction, and paint.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 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 fines segment is estimated to witness significant growth during the forecast period. Iron ore fines are iron ore in its crushed form, which upon further processing changes into sinter products. Fine iron ore upon being fed into a blast furnace smothers the airflow and if mixed with a binder (clay) and sometimes flux (limestone) will produce sinter. Moreover, there is the choice to blend iron ore products so as to achieve the required concentration of iron ore and contaminant materials entering the blast furnace.
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The fines segment was the largest segment and was valued at USD 158.76 billion in 2017. Iron ores are primarily used for the sintering process, where they are mixed with other materials such as coke breeze, limestone, and recycled sinter particles. This process helps improve the permeability of the iron burden in blast furnaces, which allows for more efficient iron production. Moreover, they are also exported and traded globally for further processing or to be used as raw material for steel production. Such factors will boost segment growth during the forecast period.
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APAC is estimated to contribute 84% 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, the iron ore demand is expected to grow due to the increasing steel demand for use in various infrastructural development projects in countries like Indonesia, South Korea, and India. In these countries, there are various industrial, commercial, and residential projects under development by their governments which require vast amounts of steel. For example, in 2021, Indonesia announced to invest more than USD 430 billion in infrastructure development by 2024. Moreover, India was the second largest crude steel manufacturing country in the world as a result of increasing investment in steel plants in India. In the fourth quarter of 2022, total Indian crude steel exports amounted to 6.25 million tons. Such statistics display the increasing importance of iron ore in the developmental projects of various countries in the region and are expected to result in regional market growth during the forecast period.
The COVID-19 outbreak had a negative impact on the market due to the ceasing of operations of ongoing industrial and construction projects in the region to limit the spread of the virus. Numerous markets in the region such as India, China, Nepal, Pakistan, South Korea, Malaysia, Sri Lanka, and the Philippines imposed a complete or partial lockdown which resulted in declining demand for iron ore in the region. However, large-scale vaccination drives and the announcement of stimulus packages helped various small- and medium-sized enterprises (SMEs) and industries, such as the iron ore market, to recover. Hence such factors will fuel regional market growth during the forecast period.
The iron ore market 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.
Iron Ore Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.93% |
Market growth 2023-2027 |
USD 51 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.73 |
Regional analysis |
APAC, Europe, South America, North America, and Middle East and Africa |
Performing market contribution |
APAC at 84% |
Key countries |
China, Japan, India, Russia, and Brazil |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Anglo American plc, Ansteel Group Corp. Ltd., ArcelorMittal SA, Atlas Iron Pty Ltd., BCI Minerals Ltd., BHP Group plc, China Hanking Holdings Ltd., Cleveland Cliffs Inc., Eurasian Resources Group Sarl, Ferrexpo Plc, Fortescue Metals Group Ltd., GFG Alliance, KIOCL Ltd., Luossavaara Kiirunavaara AB, Metinvest BV, Mideast Integrated Steel Ltd., Mount Gibson Iron Ltd., NMDC Ltd., Rio Tinto Ltd., and Vale SA |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the 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. |
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