Global Iron Ore Market Size is Projected to Reach USD 350.80 billion by 2031, Growing at a CAGR of 2.74%: Straits Research
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Iron Ore Market Size, Share & Trends Analysis Report By Product Type (Hematite, Magnetite, Limonite, Siderite, Others), By Form (Mining Sites, Sinter Fines, Lumps, Pellets, Others), By End-User (Steel Manufacturing, Others) and By Region (North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031
New York, United States, Feb. 21, 2024 (GLOBE NEWSWIRE) -- Iron ore is insufficient for construction, and other uses, so raw iron is alloyed with, among other elements, tungsten, manganese, nickel, vanadium, and chromium. Globally, nearly 97% of steel is produced from iron. Steel is a product of iron ore that has a variety of industrial applications, including the production of automobiles. Iron ore is essential to the iron and steel industries worldwide.
Healthy Growth of the Construction Industry Drives the Global Market
According to Straits Research, “The iron ore market size was valued at USD 275.04 billion in 2022. It is estimated to reach USD 350.80 billion by 2031, growing at a CAGR of 2.74% during the forecast period (2023–2031).” BHP reports that 98 percent of iron ore is converted into pigment iron for steel production. This steel is used to construct buildings, bridges, and other infrastructure. Structural steel has numerous applications in the construction of low and high-rise buildings, sports stadiums, bridge deck plates, harbors, cladding and roofing, offices, security fencing, and coastal and flood defenses. This application is due to its tremendous strength, which makes it an ideal material for building construction.
Investments in tourism-promoting infrastructure, affordable housing, healthcare, education, and hospitality are anticipated to be crucial to the expansion of the global construction industry. Iron ore market growth is driven by the expansion of the construction industry in emerging regional markets, particularly India and China, where both residential and commercial construction are on the rise, as well as by rising living standards and disposable incomes per person.
Increasing Adoption of Iron Oxide Pigments in Various Applications Creates Tremendous Opportunities
Iron oxide is used to eliminate hydrogen sulfide on oil drilling rigs, as a catalyst in the oil industry, and to produce hydrogen gas. In a steam environment, iron oxide catalysts with zirconium and aluminum crack residual oil from petroleum to produce light hydrocarbons. In addition, due to their high transparency, color strength, and strong UV absorption, iron oxide pigments function as UV absorbers that protect the contents of containers from UV radiation. In the coming years, the growth of the iron ore market is likely to be fueled by the growing demand for packaged food and drinks. This is because packaged food and drinks are easier to use and last longer, which creates growth opportunities for the market.
Report Scope
Study Period
2019-2031
CAGR
2.74%
Historical Period
2019-2021
Forecast Period
2023-2031
Base Year
2022
Base Year Market Size
USD 275.04 Billion
Forecast Year
2031
Forecast Year Market Size
USD 350.80 Billion
Largest Market
Asia Pacific
Fastest Growing Market
Europe
Regional Analysis
Asia-Pacific is the most significant shareholder in the global iron ore market and is anticipated to grow at a CAGR of 2.69% during the forecast period. In the Asia-Pacific region, China produces the most iron ore, followed by Japan, India, and Korea. Due to rapid industrialization and economic growth, iron ore production in Asia-Pacific is anticipated to increase. China has historically been the leading driver of global iron ore sector growth, a trend that is expected to continue in the coming years. China's demand for iron ore is primarily driven by its expanding cities and industries and its robust GDP growth, which is faster than most western nations.
Europe is expected to grow at a CAGR of 1.96% over the forecast period. European nations like the United Kingdom and Germany primarily supply iron ore. In 2021, the steel industry in the European Union will employ over 326,400 people, with Germany employing over 83,200. This was more than double the employment of the steel industry in Italy. Over the past decade, Germany has been the largest exporter of semi-finished and finished steel products in the European Union, with exports exceeding 24 million metric tons. In 2021, Turkey was the leading importer of European steel due to its substantial automobile manufacturing industry. The rising demand for steel from the automotive industry in the region will likely increase the market's demand for steel. This is anticipated to accelerate the growth of the region's iron ore industry in the coming years.
Key Highlights
By product type, the global iron ore market is divided into hematite, magnetite, limonite, siderite, and others. The hematite is the highest contributor to the market and is anticipated to grow at a CAGR of 2.82% over the forecast period.
By form, the global iron ore market is divided into mining sites, sinter fines, lumps, pellets, and others. The sinter fines segment owns the highest market share and is anticipated to grow at a CAGR of 2.76% over the forecast period.
By end-user, the global iron ore market is divided into steel manufacturing and other applications. The steel manufacturing segment is the highest contributor to the market and is anticipated to grow at a CAGR of 2.73% over the forecast period.
Asia-Pacific is the most significant shareholder in the global iron ore market and is anticipated to grow at a CAGR of 2.69% during the forecast period.
Competitive Players
The Top 10 players in the global iron ore market areVale, Rio Tinto, BHP, Fortescue Metals Group Ltd, Ansteel Group Corporation Limited, ArcelorMittal, Anglo American, HBIS Group, EVRAZ PLC, Metalloinvest MC LLC, LKAB, and Cleveland-Cliffs Inc.
Market News
In December 2022, Metalloinvest fixed up the kiln complex at OEMK's pelletizing and metallization plant. As a result, the complex can make 4.5 million metric tons of oxidized pellets per year, which is 10% more than it could before.
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