Home Advanced Materials Steel Market Size, Share, Analysis and Forecast to 2031

Steel Market

Steel Market Size, Share & Trends Analysis Report By Product Type (Carbon steel, Alloy steel, Stainless steel, Tool steel, Structural Steel, Prestressing Steel), By Application (Industrial Structures, Building and Construction, Automotive, Electrical Appliance, Tools and Machinery), By Steel Type (Flat, Long) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRAM676DR
Study Period 2019-2031 CAGR 3%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 928 Billion
Forecast Year 2031 Forecast Year Market Size USD 1210 Billion
Largest Market Asia Pacific Fastest Growing Market North America
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Market Overview

The global steel market size was valued at USD 928 billion in 2022. It is projected to reach USD 1,210 billion by 2031, growing with a CAGR of 3% during the forecast period (2023–2031). Factors like rapid urbanization, the expanding automotive industry, and demand from the shipbuilding industry stimulate market growth.

Steel is the world's most important engineering and construction material. It finds application in the manufacturing of electrical appliances, cargo ships, and surgical scalpels, among others, for its strength, weldability, and ductility. Steel is also eco-friendly and can be recycled repeatedly without losing quality. China is the world’s largest producer and consumer of steel. The Market has had consistent growth over the past few years due to reasons such as increasing urbanization and rising investments in the infrastructure sector. These factors will continue to drive the growth of the Global Market over the forecast period. Increasing demand for steel in the agriculture, consumer product, and processing industries are further factors driving the global market. In addition, global building and construction activity, particularly in developing nations, contributes to the increase in steel consumption. In addition, with an increase in automobile production and expansion in the electrical appliance industry, both segments are seeing rapid growth and are significant contributors to the market. In addition to technological development and the expansion of industrial infrastructure, the global market is propelled by economic growth. With technical improvement, the Market's total ownership cost has decreased, and more energy-efficient production and fabrication processes have been implemented. The availability of sustainable, long-lasting, and inexpensive steel materials in the building and construction industry is boosting the global demand for steel.

Market Dynamics

What are the factors driving the market growth?

Rapid Urbanization & Expanding Automotive Industry

The construction sector is the largest consumer of steel worldwide and accounts for over 50% of the world’s steel. Steel provides a robust framework for the construction of roads, rails, skyscrapers, parking lots, and bridges tunnels, among others. As per the recent United Nations report of 2019, the world’s population is estimated to rise by 2 billion in the next 30 years, up from 7.7 billion to almost 9.7 billion by 2050. Thus, rapid urbanization, engendered by the rising population, will provide the requisite impetus to market growth. Steel manufacturers are actively working to offer highly efficient and recyclable steel for the construction of carbon-neutral and energy-efficient buildings. The US Bureau of Economics depicts that global construction activities have increased by almost 21% since 2011. The construction sector generates nearly USD 1.3 trillion worth of infrastructure every year. The automotive sector has been witnessing considerable growth in the last few years. The extensive adoption rate of steel for the manufacturing of vehicles drives the market. As per the reports of the International Organization of Motor Vehicle Manufacturers, in 2018, around 95.6 million vehicles were produced globally. As per the World Steel Association, on average, about 900 kg of steel is used for the manufacturing of a vehicle.  

Demand from Shipbuilding Industry

The international shipping industry is accountable for the transportation of around 90% of world trade. The United Nations Conference on Trade and Development (UNCTAD) anticipates that the operation of merchant ships provides for around USD 380,000 million in freight rates in the worldwide economy, which amounts to 5% of the total world trade. As the world’s population is on a continuous rise, emerging economies will further demand more raw materials and goods that need transpiration via ships, trains, etc. The emergence of new orders further boosted the demand for steel in the market. As per the Observatory Economics of Complexity, the top exporter of passenger and cargo ships in Asia, with South Korea, China, and the Philippines accounting for USD 27,900 million. Europe accounts for 31% of the total passenger and cargo ship exports, i.e., USD 49,200 million.

Regional Analysis

Asia Pacific is expected to dominate the market over the forecast period. China is the world's greatest steel manufacturer, with an annual crude steel production output that has exceeded one billion metric tonnes for the past two years in a row. Despite the fact that China consumes the majority of its manufactured steel, exports play an essential role for Chinese steelmakers. End-users growing preference for prefabricated engineered buildings (PEBs) due to their energy efficiency, design flexibility, and the faster project completion rate is anticipated to drive the Asia-Pacific market. Due to increased construction and population growth, the Indian market is expanding rapidly. Increasing disposable income per capita and increased urbanization are anticipated to drive residential buildings during the forecast period. It is projected that favorable government policies and untapped potential will encourage foreign investments in construction projects and propel the country's steel industry expansion.

North America’s robust infrastructure drives steel consumption in the region. Currently, the construction of tunnels is underway in the region, accelerating the demand for steel as it can withstand arduous conditions. For instance, a new six-lane tunnel construction project in Virginia, U.S., worth about USD 3.3 billion, is slated for completion in 2024. Similarly, the Parallel Thimble Shoal Tunnel Project, a new two-lane tunnel under the Thimble Shoal Channel, is expected to cost USD 755.98 million. Such projects are expected to drive the demand for steel in North America.

The European Union is the second-largest steel-generating region after China which produces over fifty percent of the world's total steel. The decline in crude steel production in the EU in 2019 is attributable in part to altering global trade and market conditions. Europe has some of the world's oldest and largest steel businesses, such as Luxembourg City-based ArcelorMittal. It is the second largest steel producer in the world, after the Chinese Baowu Group, with an output of approximately 78,5 million metric tonnes. The majority of Europe's steel consumption is driven by the construction, automotive, and mechanical engineering industries. Steel production continues to be a significant contributor to Europe's GDP. The European Commission is mobilizing various funding and policy mechanisms to reduce societal costs and secure the retention of competitive steel-producing skills. The European steel sector is confronted with higher energy costs than its overseas rivals, a trend that has intensified over the past few years.

The LAMEA region is anticipated to witness substantial growth over the forecast period. Middle Eastern nations are renowned for their enormous oil reserves and output. In recent years, these nations have taken steps to enhance their infrastructure. One of the primary causes has been the expansion of tourism in these nations.   In recent years, the focus in African and Latin American nations has been on residential and community buildings, as well as improved healthcare facilities. These segments use a significant amount of steel for construction purposes. All of these reasons have significantly contributed to the expansion of the steel industry. To further strengthen the sector in Latin America, corporations are enthusiastically turning to innovation, implementing new practical applications based on digital advancements. For instance, there is the implementation of artificial intelligence (AI) algorithms that may forecast potentially serious accidents in particular segments of operations, such as the presence of liquid steel near the mill crane. It is also possible to analyze photographs captured by autonomous drones in order to monitor the condition of towering structures and identify problem areas. The work performed by these robots decreases the need for humans to do high-risk tasks at the factory, eliminates hours of repetitive work, and improves process productivity.

Report Scope

Report Metric Details
By Product Type
  1. Carbon steel
  2. Alloy steel
  3. Stainless steel
  4. Tool steel
  5. Structural Steel
  6. Prestressing Steel
By Application
  1. Industrial Structures
  2. Building and Construction
  3. Automotive
  4. Electrical Appliance
  5. Tools and Machinery
By Steel Type
  1. Flat
  2. Long
Company Profiles Nucor Corporation Shougang Group Hyundai Steel Co. Ltd ArcelorMittal SA Kingspan Group Jiangsu Shagang Group POSCO, Shangdong Iron and Steel Group Co.Ltd Gerdau S.A Tata Steel Maanshan Iron and Steel Hesteel Group Nippon Steel Wuhan Iron and Steel Cor Baosteel Group Thyssenkrupp Steel Europe AG
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The steel market is segmented based on type and application.

Based on type, the market is segmented into carbon steel, alloy steel, stainless steel, and tool steel.

Carbon steel accounts for 90% of total steel production. It is further segmented into low-carbon content steel, medium-carbon content steel, and high-carbon content steel. The low-carbon steel segment is projected to grab the largest market share among the three. Medium carbon steel is used for building train wheels, railway tracks, crankshafts, gears, and other machinery parts that require the combined properties of steel. High-carbon steel is used in cutting tools and equipment for its hardness and high wear resistance.  

Stainless steel is a chromium or iron alloy with 10–30% chromium content. Several grades of stainless steel are available in the market. The most commonly used is the AISI type 304 SS with chromium-nickel constituent and low carbon content. Stainless steel is known for its corrosion resistance, formability, and cleanability, which is why it is primarily used in kitchen and lab sinks.

Based on application, the market is segmented into industrial structures, building & infrastructure, automotive, electrical appliances, and tools & machinery.

The building & construction subsegment has the greatest market share. It is also projected to be the fastest-growing market due to a significant increase in building and construction activities worldwide, particularly in emerging countries.

Market Size By Product Type

Market Size By Product Type
  • Carbon steel
  • Alloy steel
  • Stainless steel
  • Tool steel
  • Structural Steel
  • Prestressing Steel
  • Recent Developments

    • July 2022- Nucor Corporation agreed to buy Summit Utility Structures LLC and Sovereign Steel Manufacturing LLC, manufacturers of metal poles and other steel structures for utility infrastructure and highway signage.
    • May 2022- ArcelorMittal purchased multiple steel scrap recycling facilities from environmental services and recycling provider ALBA International Recycling. This transaction involves ten scrap yards in the south of Germany, owned by three distinct companies: ALBA Electronics Recycling, ALBA Metall Süd Rhein-Main, and ALBA Metall Süd.

    Key Players

    Steel Market Share of Key Players

    Steel Market Share of Key Players
    Nucor Corporation Shougang Group Hyundai Steel Co. Ltd ArcelorMittal SA Kingspan Group Jiangsu Shagang Group POSCO, Shangdong Iron and Steel Group Co.Ltd Gerdau S.A Tata Steel Maanshan Iron and Steel Hesteel Group Nippon Steel Wuhan Iron and Steel Cor Baosteel Group Thyssenkrupp Steel Europe AG Others

    Frequently Asked Questions (FAQs)

    What is the growth rate for the Steel Market?
    Steel Market size will grow at approx. CAGR of 5.8% during the forecast period.
    Some of the top industry players in the Market are, Nucor Corporation, Shougang Group, Hyundai Steel Co., Ltd., ArcelorMittal S.A., Kingspan Group, Jiangsu Shagang Group, POSCO, Shangdong Iron and Steel Group Co., Ltd., Gerdau S.A., Tata Steel, Maanshan Iron and Steel, Hesteel Group, Nippon Steel, Wuhan Iron and Steel Cor., Baosteel Group, Thyssenkrupp Steel Europe AG, etc.
    In the Market, North America has established itself as the market leader with a significant market share.
    The Market has seen the most substantial growth rate in Asia Pacific.
    The global Market report is segmented as follows: By Type, By Application

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