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The stainless steel market is estimated to grow at a CAGR of 3.38% between 2022 and 2027. The size of the market is forecasted to increase by 10,299.64 thousand tons. The growth of the market depends on several factors, including an upsurge in consumption of high-strength stainless steel, economic growth in China and India, and corrosion resistance and excellent mechanical properties.
This report extensively covers market segmentation by end-user (metal products, mechanical engineering, automobile and transportation, infrastructure and construction, and electrical engineering), product (flat and long), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The reports categorize the global stainless steel market as a part of the global steel market, which covers products and companies engaged in the production of steel for a wide range of industrial applications. The global steel market includes producers of iron and steel and related products, including metallurgical (coking) coal mining used for steel production. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
Upsurge in the consumption of high-strength stainless steel is notably driving the market growth, although factors such as volatility in raw material prices may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Stainless Steel Market Driver
Upsurge in the consumption of high-strength stainless steel is notably driving the stainless steel market growth. The use of high-strength stainless steel is increasing in architectural, industrial, and consumer applications due to its qualities such as affordable cost and high strength-to-weight ratio. Strategic positioning and branched-out product portfolios are some of the factors that will boost the sales of high-strength stainless steel during the forecast period.
In the automotive industry, high-strength stainless steel is used for manufacturing passenger compartments as well as the crumple zone. It is used in cross members, beams, and other structural components of vehicles. High-strength steel is also used to develop environment-friendly vehicles. These factors will fuel the growth of the global stainless steel market.
Significant Stainless Steel Market Trend
The growing demand for steel and stainless steel scrap is a key trend influencing the stainless steel market growth. The use of scraped steel and stainless steel is increasing due to the need to reduce carbon footprint. Recycling improves the industry's economic viability and reduces the environmental impact. On average, 1.79 metric tons of CO2 is saved for each metric ton of scrap steel. Therefore, stainless steel producers prefer steel and stainless steel scrap as raw materials.
Iron ore and steel or stainless steel scrap can be used alone or in combination with other raw materials for the preparation of stainless steel. The fluctuating prices of iron ore influence the demand for steel and stainless steel scrap. Manufacturers use steel and stainless steel scrap as major raw materials to decrease their overall cost of production. Thus, concerns regarding global warming are propelling the use of steel and stainless steel scrap to produce stainless steel products, which will increase their demand during the forecast period.
Key Stainless Steel Market Challenge
Volatility in raw material prices may impede the stainless steel market growth. The manufacturing of stainless steel depends on various commodities, metals, and industrial raw materials, including iron ore, ferrochrome, scraped steel, chromium, nickel, and others. However, the volatility in the prices of raw materials influences the profit margins of stakeholders. In January 2021, the average price of iron ore was about USD 158 per ton, which rose to USD 168 per ton in mid of 2021 and declined to USD 85 per ton in November 2021. The pricing differs from one region to another based on import and export tariffs.
The prices of stainless steel are unstable due to the volatility in raw material prices and the excess production of steel. The decline in oil prices also influences steel prices. This makes it difficult for stainless steel makers to predict raw material prices due to constant price fluctuations. Therefore, high volatility in the cost of raw materials is one of the major challenges for the global stainless steel market.
Key Stainless Steel Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Stainless Steel Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the metal products segment will be significant during the forecast period. The use of stainless steel in metal products provides an aesthetic appeal, extensive textures, strength, functionality, corrosion resistance properties, and ease of cleaning properties such products. The demand for stainless steel for manufacturing metal products is high due to its ease of fabrication and mechanical properties.
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The metal products segment showed a gradual increase in the market share of 20,426.71 thousand t in 2017 and continued to grow by 2021. Stainless steel is used in jewelry, belt buckles, clips, casings, watch straps and backs, cooker hoods, kitchen cabinets, worktops, drainers, sinks, and others. It is also used in kitchen vessels due to its hygiene properties, durability, and resilience to food discoloration and spoilage. The shift in consumer preference toward hygienic and easy-to-clean products is likely to increase the demand for stainless steel in metal products during the forecast period.
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APAC is estimated to account for 76% of the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC has some of the largest stainless steel-producing countries in the world, such as China, Japan, South Korea, and India. China was the largest producer and consumer of stainless steel in 2020. Manufacturers are shifting to the consumption of scrap steel and stainless steel as raw materials to reduce pollution as well as manufacturing costs. These factors will drive the growth of the market in APAC during the forecast period.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The lifting of lockdowns in several countries, coupled with various government initiatives such as mass vaccination drives, resulted in a gradual increase in economic activities. In addition, several regional governments have announced stimulus packages for helping small- and medium-sized enterprises (SMEs) and have also modified a few policies such as tax rebates and installation payments of loans. Such initiatives by the governments in the region for the support of SMEs and large enterprises are expected to drive regional market growth during the forecast period.
The report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by End-user (Metal products, Mechanical engineering, Automobile and transportation, Infrastructure and construction, and Electrical engineering), Product (Flat and Long), and Geography (APAC, Europe, North America, Middle East and Africa, and South America).
Steel Manufacturing Market: The market size is estimated to grow at a CAGR of 4.02% between 2022 and 2027. The market size is forecast to increase by USD 369.6 billion.
Stainless Steel Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.38% |
Market growth 2023-2027 |
10,299.64 thousand t |
Market structure |
Fragmented |
YoY growth 2022-2023 (%) |
2.81 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 76% |
Key countries |
US, China, India, Japan, and South Korea |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acerinox SA, Aperam, Cleveland Cliffs Inc., Foshan Maysky Stainless Steel Co. Ltd., HONG YUE STAINLESS STEEL Ltd., JFE Holdings Inc., Jindal Stainless Ltd., JSW STEEL Ltd., Mirach Metallurgy Co. Ltd., Nippon Steel Corp., Outokumpu, Penn Stainless, POSCO holdings Inc., Reliance Metalcenter, Sandmeyer Steel Co., Tata Steel Ltd., Tsingshan Holding Group Co. Ltd., Ulbrich Stainless Steels and Special Metals Inc., WJH Stainless Steel, and Yieh Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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