Steel Market Size

Global Steel Market Overview

Steel Market Size was valued at USD 1,787.45 billion in 2023. The steel industry is projected to grow from USD 1,826.59 billion in 2024 to USD 1,800.14 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.47% during the forecast period (2024 - 2032). Increasing infrastructural activities in commercial & residential construction and the domestic availability of raw materials such as iron ore and cost-effective labor are the key market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Steel Market Trends

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  Growing Prevalence of the automotive industry boosts the market growth

  
  

It is projected that increasing investments in the residential construction industry will drive the steel market. ly expanding smart city initiatives are anticipated to continue to be a major force behind the trend mentioned above. China's investment in residential buildings was valued at USD 1747.2 million in 2021, up 6.4% from the year before, according to the National Bureau of Statistics of China. Moreover, the nation accounts for 20.0% of all construction investments and has the largest building market in the world. In addition, the country aims to expand its urbanization rate to 65.0% by 2025 from 64.7% in 2021 under the 14th Five-Year Plan (2021-2025).

Over the forecast period, significant expenditures in water treatment facilities are anticipated to increase demand in the United States. For instance, the San Diego government launched the Pure Water project in 2021, which calls for building a 356 million dollar wastewater treatment facility, a 123 million dollar network of pipelines to transport wastewater, and a 110 million dollar pumping station. 

The automobile industry's significant growth produces a good prognosis for the market. Automobile structures like doors, engines, trunk covers, brake systems, fuel tanks, gears, steering, and braking systems are frequently made of alloy. In keeping with this, the growing demand for flat alloy from automakers seeking to improve fuel efficiency and reduce overall vehicle weight is boosting the market growth. Additionally, several technological developments, including the incorporation of artificial intelligence (AI) and the development of rolling and casting methods that help to enhance production techniques to create designs that are resistant to pressure, temperature, and corrosion, are boosting the market's expansion, enhanced the steel market CAGR across the globe in the recent years.

One of the most popular metals utilized ly in the building industry is alloys. It is also used as cladding for exterior walls and roofs. It makes various products, including roofs, purlins, interior walls, ceilings, cladding, and insulating panels for exterior walls. According to the United Nations (UN), around 50% of the world's population, expected to rise to 60% by 2030, now lives in urban areas. The economic and population expansion rate must coincide with the need for institutional, residential, and commercial construction projects, another factor driving the growth of the steel market revenue.

Steel Market Segment Insights

Steel Type Insights

The steel market segmentation, based on type, includes flat and long. The flat alloy segment held the majority share in 2021 of the steel market revenue. Slabs, coated alloys, hot- and cold-rolled coils, tinplates, and heavy plates are a few examples of flat alloy products. Because it is used to create pipes, various kinds of heavy machinery, tubes, appliances of all kinds, and packaging, flat alloy enjoys a moderate but consistent CAGR. It is also widely utilized in the building sector.

Steel Product Insights

The steel market segmentation, based on product, includes structural and prestressing. The structural segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period 2022-2030. Structural alloy is used more frequently to strengthen the bridge and building frames. It is a priceless material that may be used in transmission towers, freight cars, machinery, truck frames, and truck parts, positively impacting the market growth.

Steel Application Insights

The steel market data has been bifurcated by application into building & construction, automotive, and electrical appliances. The building & construction segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period 2022-2030. Over the projection period, increasing investment in construction activities is anticipated to increase alloy demand. The American Iron Association estimates that alloy makes up around 54% of the average vehicle. It is employed in producing a range of automotive components, including door panels, chassis, frames, and support beams. Although aluminum is replacing alloy in the production of vehicle parts due to its less weight, it is still preferred because of its strength, durability, and ongoing recycling capabilities.

Figure 2:  Steel Market by Application, 2021 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Steel Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific market accounted for USD 574.17 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. The primary drivers of this region's growth are the building industry's explosive growth, increasing infrastructure investment, the automobile industry's quick expansion, and the explosive growth of the electronics appliance sector.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  STEEL MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe steel market accounts for the second-largest market share. Germany's economy is one of the largest and fastest-growing in the European Union. The regional market in Central Europe is also booming. The sharp rise in new infrastructure projects and buildings explains this. Further, the Germany steel market held the largest market share, and the UK steel market was the fastest-growing market in the European region.

The North America Steel Market is expected to grow at the fastest CAGR from 2022 to 2030. Due to its cost-effectiveness, a duplex series alloy is becoming increasingly popular in electronic and engineering applications, contributing to North America's market growth. The expansion of industrial facilities and the number of businesses increasing their production capacity are credited with the growth in this area's building activities. Moreover, the US steel market held the largest market share, and the Canada steel market was the fastest-growing market in the North America region.

Steel Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the market grow even more. Market participants are also taking various strategic initiatives to grow their footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the steel industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies manufacturers adopt in the steel industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. In recent years, the steel industry has provided some of the most significant benefits. The steel market major player such as ArcelorMittal (Luxembourg), POSCO (South Korea), Shangang Group (Spain), NSSMC Group (Japan), China Baowu Group (China), HBIS Group (China), and others are working on expanding the market demand by investing in research and development activities.

State-owned iron and alloy firm China Baowu Group Corp., Ltd., also known as Baowu, has its headquarters in Pudong, Shanghai, China's Baosteel Tower. Baosteel Group absorbed Wuhan Iron Corporation, a smaller state-owned rival, to become the corporation. It is the biggest alloy manufacturer in the world. In 2019, 51% of the Masteel Group was freed up by the China Baowu Group from the SASAC of the Anhui Provincial People's Government.

Also, American alloy and associated product manufacturer Nucor Corporation is situated in Charlotte, North Carolina. It is the biggest "mini-mill" alloy maker, the biggest alloy manufacturer in the United States, and the greatest scrap recycler in North America. In June 2021, the company disclosed that it had purchased Cornerstone Building Products' insulated metal panel division.

Key Companies in the steel market include

• ArcelorMittal (Luxembourg)


• POSCO (South Korea)


• Shangang Group (Spain)


• NSSMC Group (Japan)


• China Baowu Group (China)


• HBIS Group (China)


• Tata Steel Group (India)


• Nucor Corporation (US)


• Hyundai Steel Company (South Korea)


• China Steel Company (Taiwan), among others

Steel Industry Developments

February, 2023: ArcelorMittal accelerates Fos’ decarbonisation through hydrogen - ArcelorMittal France is accelerating the decarbonisation of its steel processing through hydrogen. Spanish engineering company Idom has been contracted by “GravitHy”, the joint venture created last year by a consortium of energy and steel-related companies, to produce the pre-feasibility studies to build a green hydrogen-based direct reduced and hot briquetted iron (DRI/HBI) facility at the steelmaker’s plant in Fos-sur-Mer, southern France, Kallanish notes.The plant will generate green and low-carbon hydrogen to produce DRI that will be used either on-site as a feedstock for green steelmaking or traded globally as HBI. Construction is set to begin in 2024 for commissioning in 2027. The future facility is planned to have an annual throughput of 2 million tonnes of DRI. Located on the Mediterranean coast, the plant will have direct access to European trading markets.

February, 2023: India’s Essar Group to re-enter steel business through organic and inorganic routes - India’s Essar Group has drawn up to re-enter the steel industry through organic and inorganic routes, company sources said on Monday, February 27.Essar Steel’s assets located in the western state of Gujarat were acquired by the combination of ArcelorMittal and Nippon Steel through the bankruptcy resolution process and has since 2019 been operated by ArcelorMittal Nippon Steel Limited (AMNS).Essar Group sources said that, while it has been shortlisted among bidders for NMDC Steel Limited’s 3 million mt greenfield steel mill project nearing completion in Chhattigarh state, the group is also exploring options to construct a greenfield steel mill in Odisha and Karnataka. The sources said that land is being actively sought in these two states as the latter offers sufficient supplies of iron ore.For starters, Essar Group would be looking to set up greenfield steel mills in a capacity range of 3-4 million mt per year, with the option to ramp it up to levels of 8-10 million mt per year in subsequent phases.

February, 2023: Saudi Arabia announces another mega construction project - Saudi Arabian crown prince Mohammed bin Salman Al Saud announced the establishment of the New Murabba Development Company to construct the world's biggest modern downtown development in Riyadh. With the launch of this new development, Saudi Arabia's list of 15 upcoming mega projects has been increased by one.According to reports, the completion of the downtown area is anticipated for 2030, and it is projected to contribute SAR 180 billion ($48.6 billion) to non-oil GDP. 334,000 direct and indirect employment opportunities are anticipated to be generated by the project.Furthermore, the city, which will cover 19 square kilometers and be located at the intersection of King Salman and King Khalid roads to the northwest of Riyadh, will also be constructed with a focus on sustainability and featuring green areas as well as walking and cycling paths that aim to encourage productive lifestyles. Besides, it will also include a well-known museum, a university of technology and design, an immersive multi-purpose theater, and over 80 entertainment and cultural venues.

February 2022: Severstal, a Russian alloy and mining company, revealed its ambitions to provide various bands of "green alloy" products with reduced emissions, citing rising consumer demand for goods made with sustainable manufacturing practices and the need for more information on carbon emissions reductions. Olga Kalashnikova, Severstal's head of environment, stated during the webinar on green alloy making that her department worked closely with the steel marketing team to meet growing customer demand for low-emissions alloy and had developed a green alloy methodology for its product line.

July 2022: Outokumpu and Marcegaglia Group, a large industrial organization active in the alloy processing industry, agreed to the sale of the majority of Long Products' business operations. Outokumpu will concentrate on its primary industry, flat alloy goods. The deal includes the melting, rod, and bar activities of Long Products in Sheffield, the United Kingdom; the bar operations in Richburg, the United States; and the wire rod mill in Fagersta, Sweden. Outokumpu Long Products AB's operations in Sweden's Degerfors and Storfors are excluded from the transaction.

March 2020: VDM Metals was officially acquired by Acerinox for USD 534.0 million. VDM Metals is a leader in R+D+I in the industry and specializes in creating and manufacturing unique alloys.

Steel Market Segmentation

Steel Type Outlook

• Flat


• Long

Steel Product Outlook

• Structural Steel


• Prestressing Steel

Steel Application Outlook

• Building & Construction


• Automotive


• Electrical Appliance

Steel Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America