Vanadium Market Size to Reach USD 4.6 Billion by 2032 growing at 7.2% CAGR - Exclusive Report by Acumen Research and Consulting

Author: Acumen Research and Consulting

As reported by Acumen Research & Consulting, the global Vanadium Market reached USD 2.3 Billion in 2022 and is expected to achieve USD 4.6 Billion by 2032, with a projected CAGR of 7.2% during the forecast period

Vanadium was discovered by Andrés Manuel del Río in 1801. It is a metallic element with atomic number 23 and symbol V, characterized by its silvery-grey, hard, malleable, and ductile transition metal properties. While vanadium is rarely found in its natural habitat, once synthetically isolated, the development of an oxide coating stabilizes the free ions of this metal, preventing further corrosion.

China holds the title of the world's largest producer of vanadium, with the total output exceeding 84,000 tons in 2017. Accounting for over 57% of the global vanadium production, China's dominance in the market is evident. The growing demand for vanadium spans various industries, including batteries, chemicals, and alloy production, contributing significantly to the global market. Furthermore, increased investments by various governments to deploy vanadium redox batteries in energy storage stations serve as a key factor driving the demand for the global vanadium market.

The vanadium industry is critical to several industries, including steel manufacturing and energy storage. Vanadium is largely used as an alloying element in the production of high-strength steel, where it improves the material's durability and corrosion resistance. The building and infrastructure industries are key consumers of vanadium, accounting for a large amount of worldwide consumption. Furthermore, vanadium has grown in popularity in the energy storage sector, notably in the form of vanadium redox flow batteries (VRFBs). VRFBs provide a dependable and scalable storage option for large-scale energy storage, supporting grid stability and the integration of renewable energy sources. As the need for renewable energy grows, the vanadium sector is expected to increase further, owing to the growing demand for energy storage technology.

The vanadium business, however, confronts a number of hurdles, including price volatility and supply chain concerns. Vanadium prices are volatile due to reasons such as geopolitical events, changes in steel output, and fluctuations in demand for energy storage solutions. Furthermore, the world's vanadium supply is concentrated in a few key producing nations, raising worries about supply chain interruptions and potential price hikes. To address these issues, vanadium industry players are investigating novel extraction technologies, seeking alternative sources, and encouraging research and development activities to improve the efficiency of vanadium consumption in diverse applications. Overall, the capacity of the vanadium sector to negotiate these hurdles and capitalize on possibilities coming from the altering energy and steel markets will affect its future growth.

Vanadium Market Value

Vanadium Market Statistics

  • The global vanadium market is poised to reach USD 2.3 billion in sales in 2022
  • Vanadium market growth is expected to grow with 7.2% CAGR from 2023 to 2032
  • Asia-Pacific dominated the vanadium market in 2022, holding over 44% of the share
  • The North America vanadium market is projected to grow at a CAGR of over 8% during the same period
  • In terms of type, the vanadium pentoxide accounted for 65% of the market in 2022
  • Biological application generated sales of over USD 805 million in 2022
  • Exploration of recycling processes to mitigate supply constraints acts as a key trend in the vanadium industry

Request for a sample of this premium research report@

Vanadium Market Dynamics

Demand and Supply Pressures Creating a Perfect Storm

The demand for vanadium is currently exceeding the supply, indicating positive trends in overall vanadium demand throughout the forecast period. Tightening inventories worldwide, along with increasing mining shutdowns and stricter environmental norms in major vanadium-producing countries are key factors creating pressure on suppliers. This is anticipated to lead to a price decline over the forecast period. However, several vanadium producers are now adopting sophisticated technologies to implement cost-efficient practices. China is expected to remain a major vanadium supplier until the end of the forecast period.

Vanadium in exploration:

The drop in iron ore prices has inadvertently led to an unexpected surge in vanadium. Vanadium is primarily produced as a by-product during steel production. The shutdown of several vanadium-producing sites has resulted in a 10% decline in overall supply in the past few years. However, increasing capacities, especially in China, are expected to balance the demand and supply. Additionally, key vanadium producers are investing heavily in the exploration of untapped areas, offering relief to the global vanadium industry.

An increasing number of energy storage units worldwide is a key factor anticipated to boost the overall demand for vanadium in the coming years. Energy storage companies are focusing on deploying vanadium batteries to maximize output and achieve cost-effectiveness in terms of battery installation and maintenance. Several vanadium redox battery manufacturers are also looking to deploy these batteries in automobiles for increased profitability and reduced maintenance. Some key investors in the global vanadium industry are primarily focusing on procuring fine vanadium for application across various end-use industries. The decoupling of vanadium, especially through integrated iron ore manufacturers, presents a lucrative opportunity for vanadium exploration giants to target multi-product deposits, as seen in the rising number of pure-play vanadium undertakings across the globe.

Vanadium Market Segmentation

The global market for vanadium has been segmented into type, grade type, application, end-user, and region.

  • The type segment split into vanadium chemicals, vanadium pentoxide, vanadium ferrovanadium, aluminium-vanadium alloys, and others
  • Grade type segment includes FeV40, FeV50, FeV60, and FeV80
  • The application segment covers iron & steel, energy storage, chemical, and titanium alloys
  • Automotive, Chemical, Energy Storage, and Others are the end-user segment of the market
  • Finally, the market is segmented by geography, with Asia-Pacific, Latin America, North America, Europe, and the Middle East and Africa (MEA) included

Vanadium Market Regional Outlook

In terms of both production and consumption, China is the major player in the worldwide vanadium market. The country is the largest vanadium producer, contributing considerably to world supplies. Vanadium demand in China is being pushed by its widespread usage in steel manufacturing and the growing use of vanadium redox flow batteries (VRFBs) for energy storage.

Other Asia-Pacific nations, in addition to China, are contributing to the expansion of the vanadium market. The demand for vanadium in nations such as Japan and South Korea is considerable, driven by technological breakthroughs and the need for effective energy storage solutions.

Vanadium is gaining popularity in Europe, owing to the rising renewable energy industry and the emphasis on energy storage solutions. The European Union's emphasis on clean energy and sustainability fits with vanadium's potential applications in energy storage technology.

The vanadium market in North America is expanding, with increased knowledge of the metal's potential in energy storage and steel manufacturing. The United States, in particular, is demonstrating interest in vanadium for grid-scale energy storage projects, which will help to increase total demand.

Vanadium Market Players

Some of the major companies operating in the global vanadium market include Australian Vanadium Limited, EVRAZ Group, Bushveld Minerals Limited, Pangang Group Vanadium Titanium & Resources Co., Ltd., Largo Resources, and Vanadium Corporation, among others. These players are strategically focusing on key market initiatives such as mergers and acquisitions with local and domestic entities to strengthen their presence and expand across the diverse global vanadium market. However, industry consolidation has resulted in market giants holding a significant share of the pie.

Click here to buy the Premium Market Research report

Receive our personalized services and customization by clicking here

Mr. Frank Wilson

Acumen Research and Consulting

USA: +13474743864

India: +918983225533