Market Research Report
Global Blast Furnaces Market 2019-2023
|Published by||TechNavio (Infiniti Research Ltd.)||Product code||743345|
|Published||Content info||109 Pages
Delivery time: 1-2 business days
|Global Blast Furnaces Market 2019-2023|
|Published: November 6, 2018||Content info: 109 Pages||
The operational efficiency of an integrated steel plant is largely determined by the performance of blast furnaces. This have resulted in steel producers entering into performance-based contracts with blast furnace manufacturers. These contracts require the equipment vendors to provide hardware and services and bear most of the equipment and services fixed cost. Vendors are paid according to the financial performance of the steel plant. These performance-based contracts help the steel producers achieve improved operational efficiency and profitability. Thus, by providing equipment as a service, blast furnace vendors will be able to increase their market share and thereby boost market growth. Technavio's analysts have predicted that the blast furnaces market will register a CAGR of over 4% by 2023.
Approximately 70% of the world's crude steel is produced by following the BF-BOF route in integrated steel plants. Owing to the high capital investment, integrated steel plants have to carry out production on a large scale to achieve economies of scale. This makes the exit barriers very high for integrated steel plant operators which leads to the creation of a large installed base thereby driving blast furnace replacement market growth.
The production of pig iron which is a raw material in BOF is a costly process. Moreover, blast furnaces require frequent shutdown for relining and the process of starting up the furnace is also costly and time consuming. The low fixed costs and investment requirement of steel mini mills is making it a preferable option for steel production. Thus, the increasing popularity of steel mini mills is hampering the growth of blast furnaces market.
For the detailed list of factors that will drive and challenge the growth of the blast furnaces market during 2019-2023, view our report.
The market appears to be fairly concentrated and with the presence of companies such as DANIELI, and LARSEN & TOUBRO the competitive environment is intense. Factors such as the large installed base of blast furnaces, will provide considerable growth opportunities to blast furnace manufacturers. DANIELI, LARSEN & TOUBRO, MCC Group, NIPPON STEEL AND SUMIKIN ENGINEERING (NSSMC Group), Primetals Technologies, and SMS group are some of the major companies covered in this report.1