Vanadium Market Size, Share, Growth, and Industry Analysis, By Type (Vanadium Slag, Petroleum Residue and Vanadium-containing Spent Catalyst, and other), By Application (Carbon Steel, Low-alloy Steel, High Alloy Steel, Tool Steel, and Non-ferrous Alloy), Regional Outlook, and Forecast To 2034

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Vanadium Market Overview

The global vanadium market size stood at USD 42.72 billion in 2024 and is projected to reach USD 44.7 billion in 2025, growing further to USD 67.73 billion by 2034 at an estimated CAGR of 4.7% from 2025 to 2034.

Chemical element vanadium has an atomic number of 23 and is denoted by the letter V. Vanadium is a hard, ductile, uncommon, gray-white element that has been identified in combination with specific minerals and is mostly utilized to create specific alloys. Vanadium prevents corrosion by forming oxide, which acts as a shield on the surface of other materials. Varied applications of this product are driving the market growth.

The vanadium market is anticipated to be driven by the growing demand for the metal in the automotive industry. Ferro vanadium, a vanadium alloy, is used in the production of vehicle parts to lighten and improve the fuel efficiency of the components. Increased demand and production of this product has proportionally increased the vanadium market share and revenue also proliferated the market expansion across the globe.

KEY FINDINGS

COVID-19 Impact

COVID-19 to have a Negative Impact on the Vanadium Market

The COVID-19 pandemic has been unprecedented and staggering, with Vanadium Market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The pandemic's effects on the vanadium market were conflicting. Market interruptions brought on by the global economic slump and supply chain problems first had an impact. After the pandemic, there have been prospects for market recovery thanks to the increased focus on infrastructure development, renewable energy, and energy storage. As economies stabilize and industrial activity picks up, the need for high-strength steel and energy storage technologies is anticipated to increase.

Latest Trends

Risen Demand in the Steel Industry to Drive the Vanadium Market Growth

The steel industry is the largest consumer of vanadium, and in recent years, interest in vanadium for potential applications, such as the manufacture of vanadium redox batteries, has increased. The steel industry's high consumption of vanadium will lead to favorable opportunities for the market's expansion. The increased demand for vanadium has compelled investors to consider making investments in the creation of synthetic vanadium. in order to utilise this synthetic vanadium in the steel and automobile industries. The expansion of vanadium in a number of industries paves the way for the expansion of the vanadium market. The market for vanadium is expected to have further room to develop as its application in aircraft increases.

• China contributed nearly 64% of global vanadium production in 2024, with 70,000 metric tonnes out of 109,000 t total supply.
• U.S. imports of vanadium-bearing materials dropped 41% month-on-month in December 2024 and 9% year-on-year, reflecting reduced dependency on foreign supply.

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Vanadium Market Segmentation

By Type Analysis

According to type, the market can be segmented into vanadium slag, petroleum residue and vanadium-containing spent catalyst, and other amongst which vanadium slag is anticipated to be the leading segment.

• Vanadium Slag: Vanadium slag is a by-product of steelmaking that contains valuable vanadium compounds. It is often processed to extract vanadium for use in alloys and energy storage.
• Petroleum Residue: Petroleum residue is the heavy by-product left after refining crude oil. It can be a secondary source of vanadium recovery while also serving as industrial fuel.
• Vanadium-Containing Spent Catalyst: Spent catalysts from petroleum refining often hold significant vanadium content. Recycling them reduces waste and provides an eco-friendly route to vanadium extraction.
• Other: Other sources of vanadium include coal ash, phosphate rock, and industrial wastes. These unconventional resources are increasingly studied to meet rising vanadium demand.

By Application Analysis

Based on application, the market can be divided into carbon steel, low-alloy steel, high alloy steel, tool steel, and non-ferrous alloy amongst which carbon steel is expected to be the leading segment.

• Carbon Steel: Carbon steel is primarily made of iron and carbon, offering strength and affordability. It’s widely used in construction, pipelines, and automotive parts.
• Low-Alloy Steel: Low-alloy steel contains small amounts of alloying elements like chromium or nickel. It balances strength, toughness, and weldability for industrial applications.
• High-Alloy Steel: High-alloy steel has a greater percentage of alloying elements, improving corrosion and heat resistance. Stainless steel is the most common example.
• Tool Steel: Tool steel is designed for cutting, shaping, and forming materials. Its hardness and wear resistance make it essential in manufacturing tools and dies.
• Non-Ferrous Alloy: Non-ferrous alloys, such as aluminum, copper, and titanium blends, are lightweight and corrosion-resistant. They are crucial in aerospace, electrical, and marine industries.

Driving Factors

Increased Usage in the Medical Sector to Augment the Market Growth

Vanadium is a supplement used in medicine to treat heart disease, diabetes, pre-diabetes, low blood sugar, and to enhance sports performance. Since vanadium has been shown to enhance the effects of insulin, it may function similarly to an insulin. The vanadium market is anticipated to be driven by the growing demand for the metal in the automotive industry. Ferro vanadium, a vanadium alloy, is used in the production of vehicle parts to lighten and improve the fuel efficiency of the components. These factors are driving the vanadium market growth and market expansion.

• Around 94% of U.S. vanadium consumption in 2023 was for metallurgical purposes, mainly for steel alloy strengthening.
• A single large-scale project in Queensland is projected to process USD 7.8 billion worth of vanadium over 28 years, with nearly 100% of its planned production targeting the fast-growing battery sector.

Huge Demand in the (VRFB) to Increase Vanadium Market Expansion

Vanadium redox flow batteries (VRFB) are becoming more popular due to a few advantages they have over other batteries, such as the capacity to provide infinite capacity for use in larger storage tanks, the capacity to be recharged by adding electrolyte, and the capacity to discharge for extended periods of time.  The market for vanadium is expanding as a result of all of these factors.

Restraining Factors

Toxin Emitting Nature of the Product to Hinder Vanadium Market Growth

The rate of vanadium deposition into the environment is constantly rising, which may be a major contributing cause to the rise in environmental discharges of vanadium-rich industrial by-products, including ash and steel slags from increased waste incineration. Due to this significant area of jurisdiction, numerous nations are implementing environmental protection strategies and regulations to lessen the toxic effects of vanadium on the environment. These regulations will impede the growth of the vanadium market and are the main market restraints that will slow the market's growth rate.

• Vanadium prices have been trading below sustainable production costs for more than 50% of primary and secondary producers, creating profitability risks.
• Although Queensland holds about 18% of global vanadium reserves, workforce shortages could delay project expansions by up to 20% of planned output capacity, despite government training programs.

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Vanadium Market Regional Insights

Asia Pacific to Dominate the Vanadium Market Growth

In terms of revenue share, market dominance, and projected revenue throughout the projection period, Asia-Pacific will lead the vanadium market. This is a result of the increasing vanadium demand in this area. The Asia-Pacific area dominates the vanadium market, with Japan leading the way in terms of both consumers and consumers of vanadium. This region also has a very advanced steel sector.

Due to the region's increasing demand in the construction sector, North America is predicted to see the greatest growth during the projected period. Europe is also recorded to grow rapidly during the forecast period and contribute to the global vanadium market expansion.

Key Industry Players

Leading Players adopt Acquisition Strategies to Stay Competitive

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

• EVRAZ KGOK (U.K./Russia): Company operations linked to vanadium alloys faced suspension in the U.K., reducing its market share contribution by over 15% in Europe due to trade restrictions.
• Pangang Group (China): Pangang Group contributes significantly to China’s 64% global production share, with most vanadium sourced from steel slag, highlighting its dominant market position.

LIST OF TOP VANADIUM COMPANIES

• EVRAZ KGOK (U.K.)
• Pangang Group (China)
• China Vanadium Titano-Magnetite Mining (China)
• Synergy Group (Switzerland)
• Beijing Jianlong (China)
• Desheng Group (China)
• Tranvic Group (China)
• Huayuan (China)
• Largo Resources (Canada)
• AMG Vanadium (USA)
• Bushveld Minerals (South Africa)
• VanadiumCorp (Canada)
• Australian Vanadium (Australia)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.