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The Sinter Plant Market size is estimated to grow at a CAGR of 9.77% between 2022 and 2027 and the size of the market is forecast to increase by USD 1,158.59 million. The growth of the market depends on several factors, such as the improvement in sinter technology, the large share of the BF-BOF method in global steel output and new capacity additions, and the increasing focus on improving environmental footprints.
This report extensively covers market segmentation by product (MHMG system, sinter machine, WGR system, and SCS system), type (small scale sinter plant and large scale sinter plant), and geography (APAC, North America, Europe, 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.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Sinter Plant Market Customer Landscape
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The improvement in sinter technology is a growing trend in the sinter plant market. In the integrated steelworks, blast furnaces account for most of the energy consumption. The energy consumption and cost competitiveness of an integrated steel production facility will greatly improve with any increase in the energy efficiency of a blast furnace. Advances in technologies help produce sintered steel with better qualities, which helps minimize energy consumption in a blast furnace. This will enhance the efficiency of heat transported from hot gases to substrates or burden materials. Therefore, the consumption of pure fuel and cooking gas output is reduced.
Moreover, vendors offer sinter plants with advanced proportioning, mixing, and granulation system. This abolishes the requirement that raw materials shall be mixed in a holding yard which is deemed not to be effective. This results in improved material handling operation in a sinter plant. So, the availability of modern technology for sinter plants, which enhances the energy efficiency of the sinter plant and blast furnace, drives the global steel plant market. As a result of the price sensitivity of buyers for commodities and steel, steel producers continue to optimize their cost of production so that it remains competitive. This project shall include the installation of a new sinter plant in order to replace an obsolete one. The introduction of cost-effective sinter technology will drive the growth of the global sinter plant market during the forecast period.
The Improving share of coastal areas in global steel production is a primary trend in the sinter plant market. Except for some advanced countries like the U.S., Japan, and South Korea, world steel production is concentrated mainly in coastal areas. Inland areas accounted for almost 70% of the global steel output in 2020. However, growing concerns about inland pollution are accelerating the movement of steel mills from inland to coastal areas, as high wind speeds encountered in coastal areas can diffuse emissions from a steel plant more quickly than low wind speeds encountered in inland areas. As material handling improves, the cost of logistics will also be reduced due to the careful choice of a suitable beach site.
Moreover, exporting steel from a coastal area is easier than exporting it from an Inland area. The additional transport costs arising from steel production on the coastal site are offset by a reduced requirement for the transportation of raw materials to inland areas in which final steel consumption occurs. There is a net reduction in the weight and volume of material transported. The global shift of steel manufacturing facilities from inland areas to coastal areas also will drive the global sinter plant market, as plant operators may look at this as an opportunity to increase capacity during the forecast period.
The growing popularity of the EAF route is a major challenge in the sinter plant market. The most common raw materials used in the global steel industry are pig iron or hot metal. Pig iron is produced by blast furnaces and used as a raw material in BOF to reduce carbon content. This method requires significant capital expenditure, as large-scale production in an integrated steel plant is crucial to producing steel at a competitive cost. For the relining of refractory bricks, a number of interruptions in blast furnace operations are necessary and have an expensive effect on plant operators. In addition, it takes a lot of time to get the blast furnace up and running. This means that the shutdown and restart of blast furnaces will lead to substantial production losses and costs. This necessitates the high-capacity utilization of blast furnaces to produce pig iron at competitive rates.
However, the global steel demand has been fluctuating. Hence, steel plant operators cannot be assured of a consistent demand level for their output. This can lead to a risk of reduced profitability if the demand decreases. In addition to supply factors, the use of the EAF method is driven by increasing gas supplies, an increase in LNG exports, and a rise in scrap steel availability. As a consequence, the use of steel minimills is increasing because they do not require any capital investment. EAF, unlike pig iron used in BOF, uses scrap steel or sponge iron as the primary burden material. This might hinder the growth of the global sinter plant market during the forecast period.
Vendors 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.
China BaoWu Steel Group Corp. Ltd. - The company offers a sinter plant through its subsidiary Sinosteel Corp.
China Metallurgical Engineering and Project Corp. - The company offers sinter plants such as Annular, Winch driven, and Linear sinter plants.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The MHMG segment will account for a major share of the market's growth during the forecast period. Material handling, mixing, and granulation (MHMG) is the fastest-growing product segment of the global sinter plant market. This is mainly due to the decreasing amount of high-grade iron ore and investment in advanced sintered steel production facilities that can produce high-quality sinter using low-grade iron ore fines, which will require increased focus on improving the energy efficiency of blast furnaces. Increasing the use of low-grade iron ore fines requires a high oxygen-removal rate in a blast furnace.
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The MHMG was valued at USD 620.03 million in 2017 and continued to grow until 2021. High permeability and porosity, which may be achieved by upgrading the MHMG systems that improve the consistency of a mixture of iron ore fines, coking coals, and flux fines, shall be required for the sinter. Vendors of the global sinter plant market offer solutions that eliminate the need for mixing raw material at the stockyard by installing proportioning bins that pour raw material directly above the conveyor.
The sintering machine includes an ignition furnace that produces heat, which is applied over the mixture of raw materials like iron ore, coking coal, and flux fines travelling on a sinter grate. Proper distribution of this heat is essential to produce a sinter of appropriate strength and permeability and improve the efficiency of the reduction process in the blast furnace. As almost 70% of the charging burden in a blast furnace is a sinter, the quality of the sinter largely determines the operational efficiency of a blast furnace. Crude steel producers invest in new sintered steel machines to increase the production capacity of their existing plants and improve the effectiveness of the blast furnaces. This will drive the growth of the sinter machine segment in the global sinter plant market during the forecast period.
Based on the type, the market has been segmented into small scale sinter plants and large scale sinter plant. The small-scale sinter plants segment will account for the largest share of this segment. Sinter plants provide raw materials, such as iron ore, for manufacturing steel. The use of smaller metal castings used to produce flat steel is also dealt with by mini-scale sinter plants. These plants use hot isostatic pressing technology to produce the raw materials for steel. In different applications, e.g. in metal manufacturing or ceramic production, tiny-scale sintering plants are used. Increasing demand for sinter plants in ceramic production is expected to boost the growth of the small-scale sinter plants segment in the global sinter plant market during the forecast period.
Large-scale sinter plants are the biggest type of sinter plant that deals with the largest size of iron ore or hold large pieces of metal castings together to produce crude steel. The production of steel raw materials using the heat process takes place at these plants. The heating furnace, then a cooling zone, and eventually the sinter line help to obtain Sint from large Sinter. In the metallurgical industry, large scale sinter plants are used primarily. The increasing growth of the metallurgical industry is expected to enhance the growth of the large-scale sinter plant segment in the global sinter plant market.
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APAC is estimated to contribute 34% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
The demand for sinter plants is expected to grow at a steady rate, owing to rapid industrialization and infrastructural developments in the region. Several manufacturing, business, and house-building projects are now under development in countries such as Indonesia, South Korea, and India. In parallel, the demand for heat-treated steel plates in Asia's emerging market is projected to be driven by growing policy initiatives from different countries across the region during the forecast period and will also lead to an upward trend in the Asian sinter plant market. For instance, in July 2020, the federal government of Indonesia announced its plan to invest more than $430 billion in infrastructure development in five years span of time. Developmental initiatives are expected to fuel the demand for steel for production purposes in this region, propelling the growth of the sinter plant market in APAC during the forecast period.
In 2020, the rise in the number of COVID-19 cases in APAC had a negative influence on the regional sinter plant market. However, in 2021, the success of vaccination campaigns across the region, as well as an increase in investment inflows from various sources into the manufacturing and construction industry, led to the reopening of steel production plants, which regained the demand for sinter plants in 2021. Additionally, with increasing construction projects, the growth of the sinter plant market in this region is expected to accelerate during the forecast period.
The sinter plant 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.
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Sinter Plant Market Scope |
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Report Coverage |
Details |
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Page number |
166 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 9.77% |
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Market growth 2023-2027 |
USD 1,158.59 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
8.45 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 34% |
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Key countries |
US, India, China, Russia, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
China BaoWu Steel Group Corp. Ltd., China Metallurgical Engineering and Project Corp., China Minmetals Corp., CTCI Corp., General Electric Co., Gillanders Arbuthnot and Co. Ltd., Hitachi Ltd., IMASA INGENIERIA Y PROYECTOS SA, Kanikavan Shargh Engineering Co., Larsen and Toubro Ltd., McNally Bharat Engineering Co. Ltd., MECON Ltd., Nippon Steel Corp., Perantech GmbH, Primetals Technologies Ltd., Shandong Province Metallurgical Engineering Co. Ltd., Shandong Qingneng Power Co. Ltd., Siemens AG, Simplex Engineering and Foundry Works Pvt. Ltd., and Metso Outotec Corp. |
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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. |
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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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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