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The steel manufacturing market size is forecast to increase by USD 369.6 billion at a CAGR of 4.02% between 2022 and 2027. Market expansion is contingent upon several factors, chief among them being the increasing consumption of high-strength steel. This surge in demand is fueled by its widespread application across various industries, particularly in construction. High-strength steel's ability to withstand high stress and its excellent mechanical properties make it indispensable for infrastructure projects worldwide. Moreover, its corrosion resistance further enhances its appeal, ensuring longevity and durability in diverse environments. As construction activities intensify globally, the demand for high-strength steel continues to escalate, driving market growth. Additionally, ongoing advancements in steel manufacturing technologies contribute to the market's expansion, enabling the production of high-quality steel products to meet evolving industry requirements. Consequently, the combination of rising consumption, growing construction demand, and superior material properties positions high-strength steel as a cornerstone of market growth.
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In emerging economies, the demand for steel remains robust, fueled by growth in sectors like shipbuilding and automobile production. However, volatile prices and environmental challenge persist, prompting innovations like net zero steel and recycled metals to address consumer safety concerns and reduce construction costs. With a focus on energy savings and lightweight building materials, the industry navigates business risks while striving for quality and efficiency in steel manufacturing.
This market forecast report extensively covers market segmentation by end-user (construction, machinery, automotive, metal products, and others), type (flat and long), and geography (APAC, North America, Europe, 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.
The market share growth by the construction segment will be significant during the forecast period. The growth of the market is driven by the construction of skyscrapers, technology parks, roads, highways, and bridges. Steel is widely used in the construction industry due to its excellent strength and ductility. It is widely used in the production of high-strength plates for roads and bridges, square tubes for welded frames, and structural beams. Rebar and hollow structural parts are also manufactured. Steel is also used for signposts, fences, caissons, pillars, culverts, supports, and handrails. Steel is more in demand in the construction industry due to properties such as durability, strength, affordability, and adaptability to long-term exposure to the elements.
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The construction segment was valued at USD 757.78 billion in 2017. Rapid industrialization and increasing housing projects in countries such as the United States, United Kingdom, Germany, China, and India are expected to create new opportunities in the construction sector. Improvements in the global economy have facilitated the construction of several health, education, and social facilities. The rising population, increasing demand for better infrastructure, and improving building practices are expected to boost the global construction industry and propel market growth during the forecast period.
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APAC is estimated to contribute 45% to the growth of the global steel manufacturing 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 is the largest geographic segment of the market and will remain the largest segment throughout the forecast period. Steel demand in the Asia-Pacific region is expected to grow steadily due to the region's rapid industrialization and infrastructure development. Several industrial, commercial, and residential projects are under development in countries such as Indonesia, South Korea, and India. Moreover, increasing initiatives of various countries' governments are expected to boost the steel demand, which will drive the steel demand and spur the growth of the market in this region during the forecast period.
The market relies on a steady supply of iron ore and other raw materials like minerals to meet demand across sectors such as agriculture, building and construction, and industrial infrastructure. However, challenges like environmental concerns and issues such as poor quality welding persist, driving innovation in pre engineered metal buildings and new steel products to address these concerns while catering to the diverse needs of the processing industry. 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.
An upsurge in the consumption of high-strength steel is notably driving market growth. The use of high-strength steel is increasing due to its high strength at normal and high temperatures. It also provides high fatigue strength and additional toughness to steel products. The use of high-strength stainless steel is increasing in architectural, industrial, and consumer applications. The increasing use of high-strength stainless steel is due to its superior properties, such as affordable price and high strength-to-weight ratio. Factors such as strategic positioning and product portfolio expansion will increase sales of high-strength stainless steel during the forecast period.
The expansion of production capacity by companies is a key trend influencing market growth. Steel is one of the most commonly used metals in industrial applications due to its durability, yield strength, and corrosion resistance. It is widely consumed in the mining, quarrying, chemical, petrochemical, electrical engineering, power generation, food, and beverage industries. Additives such as nickel, chromium, and manganese give stainless steel corrosion resistance and strength. It is also resistant to mechanical damage. Steel is used in many industrial applications for the storage and transportation of liquids, air, and gases. Steel products have high strength, formability, and recyclability. The automotive industry uses stainless steel products to manufacture axle shafts, steering components, chassis components, and seats. Stainless steel maintains and improves the strength of steel. It also improves the surface appearance and prevents corrosion.
Therefore, it improves the safety performance of the vehicle. This is a major requirement for modern automobiles. The excellent mechanical properties and corrosion resistance of steel facilitate its use in industrial applications. Due to the high demand for industrial steel products, the providers operating in the market are expanding their production capacities. Therefore, the market is expected to grow during the forecast period, owing to increasing demand for steel from various industries and expanding production capacity of suppliers.
The stringent government regulations are challenging market growth. Steel production releases large amounts of CO2 into the atmosphere due to the energy-intensive production process. For every tonne of steel produced, 1.5-1.9 tonnes of CO2 are produced. Every year, 1.5 to 1.8 billion tonnes of steel are produced, and over 1.5 to 2.5 billion tonnes of CO2 are released into the atmosphere. Greenhouse gas emissions from various industrial sectors are becoming a major cause of many environmental problems. To address this issue, in 2015, 196 governments around the world signed the Paris Agreement established under the United Nations Framework Convention on Climate Change.
Furthermore, several steel producers are falling short of the Paris Agreement emissions targets. The World Bank and International Monetary Fund are, therefore, persuading governments of various countries to raise carbon prices and force companies to pay taxes on their carbon emissions. Companies are looking for alternatives, but the high costs associated with alternative technologies can increase production costs by 15% to 35%. Therefore, increasingly stringent government regulations aimed at reducing carbon emissions are expected to hinder the growth of the market during the forecast period.
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 market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies 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.
Ansteel Group Corp. Ltd: The company is involved in the manufacturing, distribution, selling, and export of different types of steel products.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.
In the market, contractors play a crucial role in implementing conventional processes like the Basic Oxygen Furnace method, ensuring a robust supply for the global construction sector. As demand surges, obtaining building permits becomes essential for diverse projects, spanning from non-residential purposes to multifamily houses and single-family houses in upscale neighborhoods of metropolitan cities. Steel's significance extends to commercial and office construction, as well as establishments like food and retail stores. Its impact on employment levels is profound, especially in regions rich in coking coal for steelmaking. Product insights reveal the versatility of steel, with applications ranging from hot rolled steel to steel tubes and transformers, shaping various industries and providing vital housing materials and water infrastructure, including rails for transportation networks.
Further, the steel segment remains integral to various industries, leveraging technologies like Electric Arc Furnace for efficient production, often relying on cheap labor to enhance competitiveness in the global steel market. Both hot and cold rolled steel processes contribute to diverse construction segments, meeting demands for offices, commercial buildings, and residential purposes. Innovations like artificial intelligence drive advancements, crucial amid rapid urbanization and significant infrastructure investment. Steel finds applications in diverse products, including rail wheels, axles, and beverage cans, underscoring its versatility. Despite carbon dioxide emissions and price volatility challenges, steel remains a cornerstone in construction spending, utilized in essential structures like tunnels and parking lots, shaping urban landscapes and economies worldwide, according to insights from the World Steel Association.
Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.02% |
Market growth 2023-2027 |
USD 369.6 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.5 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 45% |
Key countries |
US, China, India, Japan, and Russia |
Competitive landscape |
Leading companies, market positioning of companies, competitive strategies, and industry risks |
Key companies profiled |
Ansteel Group Corp. Ltd., Baosteel Group Corp., Beijing Shougang Co. Ltd., Benxi Steel Group Co. Ltd., China Jianlong Steel Industrial Co. Ltd., Gerdau SA, Hebei Jingye Group, Hyundai Steel Co., Jiangsu Shagang International Trade Co. Ltd., JSW STEEL Ltd., Nippon Steel Corp., Nucor Corp., POSCO holdings Inc., Steel Authority of India Ltd., Tata Sons Pvt. Ltd., thyssenkrupp AG, ArcelorMittal SA, Essar Global Fund Ltd., JFE Holdings Inc., and NLMK Group |
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, 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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