The global market for carbon steel was valued at USD 924.6 billion in 2021, and it is anticipated to reach USD 1238.38 billion by 2030 at a CAGR of 3.72%. Steel and an alloy with a minimum 2.1 per cent carbon content are called carbon steel. High, medium and low carbon steel make up the three main classifications for carbon steel. Carbon steels often have low compressive strength and are soft. However, they have high ductility, making them perfect for welding and machining and being naturally cheap. Low carbon steels are used in food cans, pipes, food structures like angle iron and I-beams, automobile body parts, and building and bridge parts. Railway rails, train wheels, equipment requiring great strength, wear resistance, and toughness are frequently made of medium-carbon steel. Because of their excellent wear resistance and hardness, high-carbon steels are used in cutting tools, springs, and high-strength wire.
Alloying, quenching, and martempering can all be used to improve the characteristics of carbon steel. It includes spheroidizing and other operations. Specific carbon steel can temper carbon steel in various end-user industries. With a high carbon content, carbon steel has a reduced weldability factor. Contrarily, adding carbon to steel makes it more robust and harder, making it a sought-after commodity for manufacturers in the construction and automotive industries.
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Carbon Steel market growth is fueled by the increasing scope of repair and rehabilitation work carried out on existing structures
Despite the challenges presented by the market, the construction industry has managed to preserve its equilibrium. Carbon steel infrastructures have seen an upsurge in investment. The constant need for building materials like beams, angles, wire rods, and bars that are anticipated to be driven by development projects in India and ASEAN across the globe is anticipated to boost the expansion of the market.
It is expected that the expenditures for repair and rehabilitation will account for a significant share of the total figures. It will result in a considerable scope of demand being generated for carbon steel products. In the years to come, several producers will place a greater emphasis on recycling carbon steel to satisfy the rising demand, as well as to cut down on emissions and ensure longer-term sustainability.
Expanding automobile industry and increasing demand for carbon steel in the automobile industry is driving the growth of the market
The demand for carbon steel is driven by the consistent expansion of the automotive sector in countries worldwide. This expansion is also a vital driver of the revenue growth that the market is seeing. The automobile sector uses carbon steel that has a high percentage of carbon and is quenched after heat treatment to achieve enhanced durability. Compared to Advanced High Strength Steel, High Carbon Steel has a lower ductility and a greater tendency toward brittleness (AHSS). However, because these steels are resistant to abrasion, these materials are employed for various manufacturing applications, including the production of tools and metal fasteners. In the automotive industry, these are utilised in producing a wide variety of components, including door panels, bushings, door frames, and chassis, amongst other things. In addition, high carbon steel is utilised in producing SAIL TMT bars.
Increased focus on infrastructure construction
The nations' governments still in the process of industrialisation are actively formulating and carrying out plans and procedures for expanding their infrastructure. The government is continually pouring money into research and development activities to facilitate the infrastructure's expansion. The expansion in infrastructure development in developed regions such as North America, Europe, and Asia-Pacific led to an increase in the demand for carbon steel. The government provides funding for various infrastructure development initiatives to foster economic growth. Completing these projects will increase the market's demand for carbon steel. Consequently, the growing emphasis on infrastructure development is offering attractive chances for the carbon steel market expansion throughout the forecast period.
Complex manufacturing process & susceptibility to corrosion is the restraining factors
The complex manufacturing process and use is a significant element that is anticipated to limit market revenue growth. Due to its tremendous strength and brittleness, carbon steel presents a challenging working environment. Its use is restricted in several applications due to the material's difficulties in being twisted and moulded into different shapes. Corrosion and rust are more likely to occur in carbon steel than in other types of steel. Manufacturers give steel a chromium coating to provide the appearance of "stainless steel," typically between 10% and 12%. The protective layer of chromium covering the substance protects the steel from moisture and subsequent corrosion. However, due to the absence of chromium in carbon steel, extended moisture exposure might result in rusting.
The global market for carbon steel is divided into three parts based on type, application and region. Further, based on type, the market is broken down into High Carbon Steel, Medium Carbon Steel and Low Carbon Steel. The carbon steel market is expected to be dominated by low carbon steel during the projected period. Low carbon steel has a carbon content of less than 0.25% of its weight. This steel can be shaped into many forms, from structural beams to flat metal sheets. It is ductile, malleable, and can be shaped coldly. It's a bargain when weighed against its competitors.
The medium carbon steel market, on the other hand, is expected to increase throughout the forecast period.
The market is split into Automotive, Construction, Shipbuilding, Infrastructure and Transport and Others based on application. Carbon steel is predicted to account for a considerable portion of the global market's revenue in the construction sector throughout the forecast period. There are numerous advantages to using carbon steel in construction projects. Carbon steel's key advantage is its long-term durability. Because it is strong and resistant to shock, it is an excellent building material. There are several advantages to using carbon steel in the construction of business and government buildings and private residences in the face of natural disasters like earthquakes and tornadoes. Carbon steel can be recycled and reused, and it is environmentally friendly. Unlike other metals, carbon steel can work more effectively and is much less expensive than copper-based products.
The market is broken down into Asia-Pacific, North America, Europe, Latin America and the Middle East & Africa. The Asia-Pacific region dominated the market in terms of revenue share.
The global market for carbon steel is divided into Asia-Pacific, North America, Europe, Latin America and the Middle East & Africa.
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The Asia Pacific market is anticipated to have the most significant revenue share during the projection period, mainly due to the region's thriving shipbuilding sector. For instance, China's shipbuilding industry earned 48.4 per cent of the global shipbuilding market's revenues in 2021 based on the number of deadweight tonnages completed. Additionally, in 2021, orders put by hand and newly received orders represented global shares of 52% and 48.1%, respectively. The Philippines, currently ranked fourth globally in the industry, has also significantly improved since 2010 to become one of the world's major shipbuilding centres. As shipbuilding grows in the region's countries, the need for carbon steel increases, which speeds up the market's growth.
Because of the increased demand for carbon steel and the expansion of the construction industry in the region's nations, North America is anticipated to see the quickest CAGR in market revenue throughout the projected period. For instance, the U.S. construction industry generated about USD 1.589 trillion in sales in 2021. 4.8 per cent of the U.S. workforce, or about 7.5 million people, were employed in the construction industry as of January 2022. The construction industry accounts for roughly 4.3 per cent of the US GDP. As a result, the region's expanding construction industries fuel market revenue growth.