Vanadium Market Size, Share & Trends Analysis Report By Application (Steel, Non-ferrous Alloys, Chemicals, Energy Storage), By Region (North America, Asia Pacific, Europe, Central & South America), And Segment Forecasts, 2024 - 2030

“2030 vanadium market value to reach USD 3.28 billion.”

Vanadium Market Size & Trends

The global vanadium market size was estimated at USD 2.73 billion in 2023 and is estimated to grow at a CAGR of 3.0% from 2024 to 2030. Growing crude steel production on account of demand from construction, automotive, machinery, and transportation industries is expected to fuel the demand for vanadium over the coming years.

Vanadium is primarily used as an alloy in steel manufacturing, where it increases the strength, toughness, and wear resistance of steel. The global demand for high-strength steel in the construction, automotive, and aerospace sectors is on the rise, driving the demand for vanadium. As countries and companies invest in infrastructure and manufacturing, demand for vanadium is expected to observe growth. For instance, as reported by the World Steel Association, global crude steel production reached 1,892.6 million tons in 2023 from 1,878.6 million tons in 2019.

Drivers, Opportunities & Restraints

Vanadium is a key component in vanadium redox flow batteries (VRFBs), which are used for energy storage systems. Owing to shifts toward renewable energy sources, the demand for efficient, large-scale energy storage solutions is increasing. VRFBs are particularly suited for grid storage due to their scalability, long lifespan, and ability to discharge over a long period, making vanadium an essential material for the emerging clean energy economy. This shift represents a significant growth driver for the vanadium market as energy storage technologies become increasingly vital.

The nuclear energy sector represents a significant opportunity for vanadium products. In nuclear energy, vanadium alloys are highly valuable due to their low neutron-absorption characteristics and high temperature and corrosion resistance. These properties make vanadium-based alloys ideal for use in nuclear reactors, particularly in the construction of pressure vessels and structural components. The ability of vanadium alloys to withstand the harsh operating environments inside a nuclear reactor without significant degradation extends the service life of these components, enhancing the overall safety and efficiency of nuclear power plants.

The volatility in vanadium prices is expected to hinder market growth over the coming years. The price of vanadium is highly sensitive to changes in demand and supply dynamics, often influenced by the steel industry, which is the largest consumer of vanadium. Such price fluctuations can create uncertainty for producers and investors, potentially hindering long-term investments and projects centered around vanadium. This instability complicates forecasting and planning for stakeholders within the vanadium value chain.

Application Insights & Trends

“Steel held the largest revenue share of over 90% in 2023.”

In superconducting magnets, vanadium plays a crucial role, especially in the form of Vanadium Gallium (V3Ga) superconductors. These materials are essential for creating high-field superconducting magnets, which are a critical component in various applications, including magnetic resonance imaging (MRI) machines and particle accelerators. Moreover, superconducting magnets are vital for the research and development of sustainable energy technologies, such as magnetic confinement fusion, which promises an almost limitless source of clean energy.

Vanadium compounds have been explored for their catalytic capabilities in processes like the synthesis of sulfuric acid and in the oxidation of hydrocarbons, offering more efficient and environmentally friendly pathways for these essential industrial reactions. Additionally, its role in vanadium redox flow batteries underscores its significance in energy storage solutions, presenting opportunities for large-scale renewable energy storage systems. Thus demand in industries such as advancing materials science, energy solutions, and chemical engineering is expected to benefit the vanadium market demand.

Regional Insights

“Asia Pacific held over 62% revenue share of the global vanadium market.”

North America vanadium market is primarily driven by a strong focus on the aerospace and defense industry, which requires high-strength steel alloys. The region also shows increasing interest in green energy solutions, including large-scale energy storage systems that leverage vanadium's unique properties.

U.S. Vanadium Market Trends

The U.S. is one of the key consumers in the global vanadium market, with growing demand from steel, construction, automotive, and energy sectors. Innovations in vanadium battery technology are particularly noteworthy, promoting the U.S. as a leading player in sustainable energy storage solutions.

Asia Pacific Vanadium Market Trends

The vanadium market in Asia Pacific is growing due to significant growth in the construction sector, rising crude steel production, and rapid industrialization, especially in China and India. The region's demand is also fueled by the burgeoning energy storage sector, which utilizes vanadium redox batteries.

Europe Vanadium Market Trends

The vanadium market in Europe is characterized by its stringent environmental regulations, which drive demand for vanadium in applications such as catalytic converters and renewable energy storage systems. The region is also active in researching and deploying vanadium redox flow batteries for grid storage, reflecting its commitment to clean energy.

Key Vanadium Company Insights

Some of the key market participants include EVRAZ plc, HBIS Group., and Bushveld Minerals.

• EVRAZ plc stands is one of the leading steel manufacturing and mining conglomerates. The company excels in producing high-quality, steel products along with vanadium, catering to a diverse range of industrial applications worldwide.

• Glencore is a multinational commodity trading and mining company with a strong presence in the metals, minerals, energy products, and agricultural sectors. In the ferroalloys portfolio, the company produces ferrochrome, chrome ore, and vanadium.

Recent Developments

• In February 2024, AMG Vanadium acquired processing technologies and IP-related business from Transformation Technologies Inc. (TTI), which focuses on green energy and recyclable metals. With this acquisition, the company aims to improve its leadership position in recycling refinery waste. AMG Vanadium recycled vanadium from oil refining residues.

• In February 2024, Australian Vanadium Limited (AVL) completed the merger with Technology Metals Australia. AVL acquired all the shares of Technology Metals Australia. With this strategic move, the company wants to broaden its footprint in primary vanadium production.

Vanadium Market Report Scope

Vanadium Market Report Segmentation

This report forecasts volume & revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global vanadium market report on the basis of application, and region.

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Steel

  • Non-Ferrous Alloys

  • Chemicals

  • Energy Storage

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa