At 5.2% CAGR, Middle East & Africa Ferroalloys Market is Projected to be Worth US$ 19.46 Billion by 2031, says Business Market Insights

According to Business Market Insights' research, the Middle East & Africa ferroalloys market was valued at US$ 13.01 billion in 2023 and is expected to reach US$ 19.46 billion by 2031, registering a CAGR of 5.2% from 2023 to 2031. Rising demand for ferroalloys in automotive industry and rise in infrastructure development investments by government bodies are among the critical factors attributed to drive the Middle East & Africa ferroalloys market growth.

The automotive industry is experiencing robust growth owing to technological advancement and a surge in preference for EVs, SUVs, crossovers, and other light trucks. The report published by the ACEA stated that global passenger car production accounted for 68 million units in 2022, recording a rise of 7.9% compared to 2021. Further, as per data released by International Organization of Motor Vehicle Manufacturers (OICA), the global vehicle production accounted for over 93 million units in 2023, recording a rise of 10% compared to 2022. Companies operating in the automotive sector are investing heavily in automobile manufacturing to increase production and sales. According to the International Energy Agency's annual Global Electric Vehicle Outlook, over 10 million electric cars were sold worldwide in 2022, and projected to grow by 35% in 2023 to reach 14 million. As the automotive industry witnesses a transformative shift toward electric vehicles (EVs), the role of ferroalloys has become more crucial. In March 2022, Saudi Arabia announced setting up its first electric vehicle manufacturing plant in the country as the government plans to ensure 30% of all vehicles in Riyadh's capital city run on electricity by 2030. In April 2022, Lucid Group announced a new agreement with long-time supporter Saudi Arabia to purchase up to 100,000 electric vehicles over a 10-year period. Furthermore, as per OICA, Morocco witnessed a 15% year-on-year increase in motor vehicle production from 4,64,864 in 2022 to 5,35,825 in 2023, representing a rise of 15%. Additionally, South Africa witnessed a surge of 14% in the production of motor vehicles from 2022 to 2023. Ferroalloys play a major role in the automotive industry by enhancing the properties of steel used in vehicle manufacturing. Ferroalloys impart specific properties to steel, enhancing its strength, durability, and corrosion resistance. Ferromanganese is generally added to steel to improve its mechanical properties such as tensile strength and toughness. Ferromanganese also helps in deoxidizing and desulfurizing the steel, which is important in achieving high-quality weld and preventing brittleness. Ferrosilicon is added to steel to enhance its resistance to corrosion and high temperatures. Thus, the rising demand for ferroalloys in the automotive industry drives the market.

On the contrary, fluctuations in raw material prices hamper the growth of Middle East & Africa ferroalloys market.

Based on type, the Middle East & Africa ferroalloys market is segmented into ferrochrome, ferromanganese, ferro silico manganese, special alloys, and others. The ferro silico manganese segment held 41.0% market share in 2023, amassing US$ 5.34 billion. It is projected to garner US$ 8.30 billion by 2031 to register 5.7% CAGR during 2023-2031.

In terms of application, the Middle East & Africa ferroalloys market is categorized into steel making, wire manufacturing, welding electrodes, superalloys, and others. The steel making segment held 80.3% share of Middle East & Africa ferroalloys market in 2023, amassing US$ 10.45 billion. It is anticipated to garner US$ 15.83 billion by 2031 to expand at 5.3% CAGR during 2023-2031.

By country, the Middle East & Africa ferroalloys market is segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. Our regional analysis states that the Rest of Middle East & Africa captured 82.7% share of Middle East & Africa ferroalloys market in 2023. It was assessed at US$ 10.76 billion in 2023 and is likely to hit US$ 15.81 billion by 2031, registering a CAGR of 4.9% during 2023-2031.

Key players operating in the Middle East & Africa ferroalloys market are Glencore Plc, Samancor Chrome, Brahm Group, Tata Steel Ltd, and Nava Ltd, among others.



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