Blast Furnaces Market size is set to grow by USD 2.51 billion from 2024-2028, Large installed base of blast furnaces boost the market, Technavio

NEW YORK, June 17, 2024 /PRNewswire/ -- The global blast furnaces market size is estimated to grow by USD 2.51 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 5.95% during the forecast period. Large installed base of blast furnaces is driving market growth, with a trend towards equipment as a service. However, increasing popularity of steel mini mills poses a challenge. Key market players include 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.

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Market Driver

The blast furnace market is driven by performance-based contracts between steel producers and vendors. These agreements require vendors to deliver hardware and services, with the majority of costs covered. Payments to vendors are linked to the financial performance of the integrated steel plant. Consequently, vendors must focus on value-added services that boost operational efficiency and profitability.

To secure a larger market share, they need to offer cost reduction, waste minimization, and quality improvement solutions. 

The Blast Furnace market is currently experiencing significant growth due to increasing demand for steel. Automobile and construction industries are major consumers of blast furnace products. The use of advanced technologies like Casing, Control, and Furnace Efficiency technologies are trending in this market. These technologies enhance productivity and reduce costs.

Furthermore, the implementation of Industrys and Greenhouse Gas Calculation methods is essential for sustainable practices. The future of the Blast Furnace market lies in its ability to adapt to these trends and meet the demands of various industries. 

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Market Challenges

• The global steel industry relies heavily on pig iron produced in blast furnaces. Integrated steel plants using blast furnaces have high capital expenditures due to large-scale production requirements. Frequent shutdowns for relining and costly start-ups necessitate high capacity utilization. Steel mini-mills, with lower investment requirements and flexible production, are increasingly preferred.
• Developing countries, which account for most of the steel demand growth, often lack the resources for integrated plants. Scrap steel availability and competitive natural gas prices boost mini-mill production, using DRI and sponge iron. In 2021, global DRI production reached 119.2 Mt, up 13.7% from 2020. Despite improving crude steel quality, DRI use hinders market growth.
• The Blast Furnace Market faces several challenges in the current business landscape. Furnaces require large amounts of fuel and iron ore to operate effectively. The cost of these raw materials has been increasing, making it difficult for manufacturers to maintain profitability.
• Additionally, technological advances have led to the development of more efficient furnaces, putting pressure on traditional blast furnace operators to innovate and improve their processes. Lead and copper ore, as well as tin and nickel, are essential inputs for blast furnaces. However, their availability and cost can significantly impact market dynamics. Furthermore, environmental regulations and sustainability concerns are driving the need for greener and more eco-friendly production methods. These challenges require continuous adaptation and strategic planning from market players to remain competitive.

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Segment Overview 

1. Application 
• 1.1 Revamping projects
• 1.2 Capacity additions
2. Type 
• 2.1 Hot blast ovens
• 2.2 Cold blast blowers
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Revamping projects- The global steel industry, despite overcapacity, witnesses ongoing capacity development due to employment creation and improved industry profitability. China's anticipated reduction in production capacity to 1,000 million tons per annum by 2025-2026 is driving capacity expansions in fast-growing markets like India, Russia, Vietnam, and Indonesia. These additions will primarily use the blast furnace-basic oxygen furnace (BF-BOF) route, with Russia and Ukraine leading the way. India, historically relying on electric furnaces, will also adopt this method for most new capacities.

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Research Analysis

The Blast Furnaces market encompasses the production and application of this essential metallurgical furnace in various industries, including Electronics, Automobile, and Industrial Metals. Blast Furnaces are utilized for the production of Ferrous metals, such as Pig iron, from raw materials like Iron Ore and Coal. The process involves high Energy consumption and generates significant Greenhouse gas emissions and Waste gases.

To mitigate these issues, advanced Emission control strategies, like Flue Gas Desulfurization and Carbon Capture, are being implemented. Technological trends include the integration of AC arc furnaces and Molten metal treatment systems to enhance efficiency and reduce environmental impact. The market for Blast Furnaces is driven by the demand for Steel and alloys, including Lead, Copper, and their respective Slag phases.

Market Research Overview

The Blast Furnace Market encompasses the production, supply, and application of blast furnaces in various industries. These furnaces are essential for the production of iron from iron ore. The casting process involves melting the iron in the blast furnace and pouring it into molds to create ingots. The metallurgical process takes place in a reducing atmosphere, where coke and iron ore are heated to high temperatures.

The slag is generated as a byproduct and is removed during the casting process. The strategy for the blast furnace market focuses on increasing efficiency and reducing costs through technological advancements and optimization of the production process.

The market is influenced by factors such as the availability of raw materials, energy prices, and global economic trends. The demand for blast furnaces is driven by the steel industry, which is a significant consumer of iron produced through this process. The market is expected to grow due to the increasing demand for steel in various sectors, including infrastructure, automotive, and construction. The blast furnace market is a critical component of the global industrial sector, providing the foundation for the production of iron and steel.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Revamping Projects
• Capacity Additions
• Type
• Hot Blast Ovens
• Cold Blast Blowers
• Geography
• APAC
• Europe
• North America
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio