The Vanadium Trioxide Market size is estimated to reach US$3,432.1 million by 2027 after growing at a CAGR of around 4.5% from 2022 to 2027. Vanadium trioxide is a dark grey crystalline powder that is orthorhombic system structure and odorless. The powder has rich chemicals and mechanical properties and acts as a catalyst in the oxidation of sulfur dioxide to sulfur trioxide and ethyl alcohol to acetaldehyde. Vanadium trioxide is used as a coloring agent for glass & ceramics, as an anode material in lithium batteries, in the production of high-performance metals and alloys like ferrovanadium, and as raw material for making yellow glass & nigrosine. Hence due to such high applicability, Vanadium Trioxide is used in sectors like automotive, aerospace, metallurgy, glass, and construction. Factors like an increase in the volume of steel production, high demand for electric vehicles and growing construction activities are driving vanadium trioxide market growth. However, negative health effects of vanadium trioxide like skin irritation and kidney problem can raise serious concerns regarding its industrial usage which can hamper the growth of the global vanadium trioxide industry.
COVID-19 Impact
Vanadium trioxide has many applications in various end-use industries. It is used in the preparation of lithium-ion batteries for electric vehicles, as a coating agent in carbon nanotubes which is used in reinforced concrete in construction, while its mixture with titanium alloy is used in jet engines and airframes. The lockdown was implemented globally to curb the effects of COVID-19 and caused disruption in the functioning of such manufacturing sectors, resulting in a reduction in their productivity. For instance, according to International Energy Agency, in 2020, new electric car registration in New Zealand decreased by 22%. Also, according to General Aviation Manufacture Association, in 2020, total airplane deliveries were 2,399 compared to 2,658 showing a 9.7% decrease from 2019. Further, according to Office for National Statistics, in 2020, the total new work construction output in UK decreased by 16.3% with a percentage reduction of 17.2% in public construction and 16% in private construction. Such a decrease in productivity of these sectors reduced the usage of vanadium trioxide in them which resulted in negative growth of the global vanadium trioxide industry.
Report Coverage
The “Vanadium Trioxide Market Report – Forecast (2022 – 2027)”, by IndustryARC covers an in-depth analysis of the following segments of the global vanadium trioxide industry.
By Form – Powder, and Chunks
By Application – Oxidizing Agent, Reducing Agent, Coloring Agent, Battery Manufacturing, Alloy Production (Ferrovanadium, and VAI Master Alloy), Coating Material, and Others
By End User – Automotive, Construction (Residential, and Commercial), Metallurgy, Aerospace (Commercial Aviation, and General Aviation), Electronics, Chemicals, Glass Industry, Power Industry (Wind, Hydro, and Solar), and Others
By Geography - North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherland, Spain, Russia, Belgium, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), Rest of the World (Middle East, Africa)
Key takeaways
- Asia-Pacific dominates the global vanadium trioxide industry as the region consists of a major economy like China is the leading market for electric vehicles and steel production in the world.
- Vanadium trioxide has high applicability in the glass industry as it is used as raw material in glass production and being a kind of eikonogen, it is used for making yellow glass and nigrosine.
- Rising investments in the social infrastructures and government buildings has increased the scale of construction activities globally which has provided growth opportunities for global vanadium trioxide industry.
Vanadium Trioxide Market Segment Analysis – By Form
The powder segment accounted for approximately 58% of the vanadium trioxide market share in 2021 and is estimated to grow at a significant CAGR during the forecast period. Vanadium trioxide is found in black or grey powder which is odorless and is majorly used in the production of high purity alloys like ferrovanadium, for coating carbon nanotubes, and as an electrode in lithium-ion batteries used in electric vehicles. Hence, the powder of vanadium trioxide is used in sectors like automotive, construction, and metallurgy. The rapid development in these sectors has increased their productivity resulting in a positive impact on vanadium trioxide usage. For instance, according to International Energy Agency, in 2020, global electric car sales reached 3 million units showing a 40% increase from 2019. Also, according to Eurostat, in October 2021, production in construction increased by 4.2% in the EU. Further, according to the data of the government of India, crude steel production stood at 77.74 million tons for January-August 2021, showing a 25.6% increase for the same period in 2020. Such an increase in productivity of these sectors will create more usage of vanadium trioxide in them, resulting in positive growth for the global vanadium trioxide industry.
Vanadium Trioxide Market Segment Analysis – By End-Use Industry
The metallurgy segment accounted for approximately 70% of the vanadium trioxide market share in 2021 and is estimated to grow at a significant CAGR during the forecast period. Vanadium trioxide has high applicability in making high purity alloys like ferrovanadium and VIA master alloy which are majorly used as an additive in steel making process as it increases steel’s strength, refined grains, and yield ratio. The increase in demand for steel from major end-users has increased the production level of steel. For instance, according to World Steel Association, in June 2021, world crude steel production for the 64 countries was 167.9 million tones, an 11.6% increase compared to June 2020. Such an increase in steel production will lead to more usage of vanadium trioxide in making high purity alloys that would be used in steel making. This will boost the growth of global vanadium trioxide industry.
Vanadium Trioxide Market Segment Analysis – By Geography
The Asia-Pacific region accounted for approximately 44% of the vanadium trioxide market share in 2021 and is estimated to grow at a significant CAGR during the forecast period. The region consists of major countries like China and India which comprise of major end-user industries of vanadium trioxide like automotive, metallurgy, and construction. Hence, due to rapid economic development in these nations, their industrial productivity has also increased. For instance, according to International Energy Agency, in 2021, China led the growth in the electric car market as sales for electric vehicles tripled to 3.4 million units which were higher than global sales in 2020. Also, according to the Ministry of Statistics and Programme Implementation, in Q4 of 2020, the Indian construction industry grew by 6.2%. Further, according to the National Bureau of Statistics, in 2020, China’s steel output increased by 5.2% to a record 1.053 billion tons. Such an increase in industrial productivity will create more usage of vanadium trioxide in the automotive, metallurgy, and construction sector, which will boost the growth of the global vanadium trioxide industry.
Vanadium Trioxide Market Drivers
Increase in Volume of Steel Production
Vanadium trioxide is majorly used in the making of high-performance alloys like ferrovanadium whose addition as an additive in steelmaking increases the strength of steel and makes it resistant to temperature and torsion. The increase in steel production volume on account of growing demand from the major end-user of steel like construction and automotive has positively impacted the usage of vanadium trioxide as raw material in steel production. For instance, according to World Steel Association, in June 2021, world crude steel production for the 64 countries was 167.9 million tones (Mt) in June 2021, an 11.6% increase compared to June 2020. An increase in steel production will create more demand for ferrovanadium to be used in steel making. This results in more usage of vanadium trioxide in ferrovanadium alloy manufacturing, thereby having a positive impact on the growth of global vanadium trioxide industry.
High Demand for Electric Vehicles
Vanadium Trioxide which acts as a catalyst during sulfur trioxide oxidation has rich chemical properties due to which it is used as anode material for the fabrication of lithium-ion batteries. The growing technological advancements in the automotive sector and consumer shift from manual to hybrid electric vehicles have resulted in an increase in sales of electric vehicles. For instance, according to International Energy Agency, electric car registration increased by 41% in 2020 globally, with China and Europe being the largest electric vehicle market. Hence, such an increase in the registration of electric vehicles on account of high demand will increase the production scale of electric vehicles. This results in more usage of vanadium trioxide for fabricating lithium batteries which results in the positive growth of global vanadium trioxide industry.
Vanadium Trioxide Market Challenge
Negative Impact on Health
Vanadium trioxide is hazardous in nature and exposure to such compound can cause serious skin disease, kidney issues, nausea, and since it is found in powder form so if inhaled, it can cause acute upper & lower airway irritation. Hence, such a negative impact on health can limit vanadium trioxide usage in certain sectors like electronics and glass sectors where it is used as a coloring agent. This can hamper the growth of global vanadium trioxide industry.
Global Vanadium Trioxide Industry Outlook
The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. In the vanadium trioxide market report, the global vanadium trioxide top 10 companies are:
- Vanadium Corp
2. HBIS Group
3. Hunan Hanrui
4. Shinwa Bussan Kaisha
5. Evraz Lgok
6. Energy Fuel Inc.
7. Bushved Minerals
8. Largo Resources
9. Glencore
10. US Vanadium Holding Company
Recent Developments
- In 2020, EVRAZ Vanadium established a new Research and Development Centre located in Group subsidiary East Metals AG, Zug, Switzerland whose objective was to support sustainable and diversified usage of vanadium as an alloying element in current and future steel products.
- In September 2019, AMG Advanced Metallurgical Group N.V. has signed a long-term agreement to supply 100% of its available ferrovanadium production from both the existing and the future Ohio facilities to Glencore AG.
- In 2019, Bushveld Minerals acquired Vanchem Vanadium Products and this acquisition will increase Bushveld Minerals’ production capacity of vanadium products and ferrovanadium.
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