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The carbon steel market size is projected to increase by USD 187.59 billion at a CAGR of 3.58% between 2023 and 2028. The building and construction sector relies heavily on various grades of steel, including high, medium, and low carbon steel, for its structural integrity. Silicon and copper are often alloyed with medium carbon steel to enhance its properties, making it a versatile material for diverse constructions and infrastructures worldwide. Steel, particularly high carbon steel, is among the most widely used materials in shipbuilding, providing strength and durability to vessels. The shipbuilding segment's growth is driven by the increasing demand for large-capacity container ships and the surge in liquefied natural gas trade.
Concurrently, there's a rising trend towards adopting sustainable manufacturing practices in the steel industry, aiming to reduce carbon emissions and conserve energy, which will further contribute to the market's expansion.
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The construction segment is estimated to witness significant growth during the forecast period. The global construction industry is growing at a moderate pace with the rising demand for residential and commercial buildings. The development of high-rise buildings, tech parks, roads, highways, bridges, and others across different countries globally drives the growth of the global construction industry. Owing to its high strength and ductility, carbon-steel is extensively used in the construction industry.
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The construction segment was the largest and was valued at USD 358.70 billion in 2018. Major industry players, such as ArcelorMittal, Nippon Steel, and Baoshan Iron and Steel are involved in developing carbon steel products with excellent ductility. For instance, ArcelorMittal produces flat and low-carbon steel-products, such as slabs, plates, rebars, sheet pilings, and other products, across Europe and the Americas, which are extensively used in the construction industry. The global construction industry is expected to grow at a CAGR of X%, primarily owing to the rapid industrialization and growing residential planning in countries such as the US, the UK, Germany, China, and India. Improvements in the global economy have driven the demand for the construction of several healthcare, education, and social facilities. The growing population, rising demand for better infrastructure, and improving architectural practices are expected to boost the global construction industry, which, in turn, will propel the growth of the market during the forecast period.
Based on the type, the market has been segmented into low-carbon steel, medium-carbon steel, and high-carbon steel. The low carbon steel?segment will account for the largest share of this segment.?This segment refers to a particular type of steel that has a relatively low carbon content compared to other types of carbon steel. Generally, low-carbon-steel has a carbon content below 0.25%, making it highly flexible, flexible, and easy to weld. Low-carbon-steel is in high demand due to its broad range of applications in a variety of industries. Furthermore, the growing use of Electric Vehicles and Renewable Energy Solutions is likely to further stimulate the demand for low-carbon Steel for the production of associated components. These factors under the segment of low-carbon-steel will boost the growth of the market during the forecast period.
APAC is estimated to contribute 76% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
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The region is expected to grow faster than the overall market during the forecast period. Its position will remain the same as the largest market in 2028. In countries such as China, Indonesia, South Korea, and India, several industrial, commercial, and residential projects are under development. Furthermore, the rising government initiatives in different countries are expected to propel the demand for steel in the region, which, in turn, will fuel the growth of the market in APAC during the forecast period. In India, which is the third-largest steel-consuming economy, the demand for steel increased by 4.3% in 2022 as compared with 2020. The country is gradually recovering from the after-effects of demonetization and the implementation of the Goods and Services Tax, owing to which the country's economy is expected to grow at a faster rate.
In addition, with the improving economy and the growing government-driven large-scale infrastructure projects such as the construction of auditoriums, bridges, airports, and other mega-projects, such as the metro rail projects, in different parts of the country, the demand for steels is expected to increase during the forecast period. Under the Make in India initiative, the country's shipping industry is expected to witness substantial growth. Under the initiative, six new mega ports are expected to be built by the end of 2025 to increase seaborne trading activities.
The market experiences a surge in demand propelled by the increasing demand from the shipbuilding industry. A notable trend in this market is the growing adoption of sustainable manufacturing practices, reflecting a shift towards environmentally friendly production methods. However, the industry faces challenges due to the volatile prices of raw materials, including iron, manganese, silicon, and copper, which serve as crucial alloying elements. carbon-steel, with its versatile material properties, finds extensive applications across various sectors such as building and construction, automotive, and shipbuilding.
From automobile body components to railway tracks and equipment parts, carbon steel serves as one of the most widely used materials worldwide. Its properties of being both strong and wear-resistant make it indispensable in infrastructural developments, including housing, energy industry, and oil and gas pipelines and rigs. Despite challenges, carbon-steel remains essential in shaping modern infrastructure amidst rapid urbanization and growing demand for durable materials.
Increasing demand from shipbuilding industry is notably driving market growth. Carbon steel is one of the major raw materials used in the shipbuilding industry. It is used for manufacturing large vessels or containers for cargo ships, such as LPG carriers, bulkers, and tankers. In addition, it is predominantly used in the construction of ship hulls. Carbon-steel is a preferred raw material as it is strong, lightweight, and highly ductile. The growing demand for large-capacity container ships is also expected to fuel the growth of the shipbuilding industry. The significant increase in the liquefied natural gas sector drove the demand for gas carriers in 2023. Therefore, the growing seaborne trade activities and an increase in the manufacturing of different cargo ship units are expected to boost the growth of the market during the forecast period.
An increase in the adoption of sustainable manufacturing practices is an emerging trend shaping market growth. Steel production is an energy-intensive process and results in the release of large amounts of greenhouse gases. To address this challenge, many major industry players, such as ArcelorMittal, Nippon Steel, POSCO, and Essar Steel-India Ltd. (Essar-Steel), are taking initiatives to reduce their carbon emissions and conserve energy during steel-production. Nippon-Steel is also promoting initiatives that are targeted at achieving a low-carbon society. The company has divided its energy conservation and CO2 emissions reduction plan into Action Plan phases. During Phase I of the Action Plan, the company is expecting to meet the low-carbon society targets by reducing around 5 million tons of CO2 emissions by the end of 2020. Several such initiatives are expected to increase the production of steel through eco-friendly means, which in turn will propel the growth of the market during the forecast period.
Volatile prices of raw materials are a significant challenge hindering market development. Iron ore is the primary raw material used for manufacturing carbon-steel. It is smelted in a blast furnace where the impurities, such as sulfur, phosphorus, and manganese, are removed, and the desired amount of carbon is added. In the past few years, the prices of iron ore have witnessed major fluctuations globally, in turn affecting the prices of carbon-steel and finished products that use carbon steel as a raw material. At the beginning of the second quarter of 2020, iron ore prices declined by 25%-35%, which disrupted the supply of iron for producing crude steel. Furthermore, the decrease in shipments from Australia and Brazil to China has impacted the steel import rates of the country. In addition, the revised Chinese environmental policies restrict domestic steel-production, which can further increase the prices of iron ore and steel. Therefore, the decline in production and increase in the prices of iron ore are expected to increase carbon steel prices, in turn hampering the growth of the global market during the forecast period.
Companies are implementing various market trends and analysis strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market and result in market growth analysis.
ArcelorMittal - The company offers carbon steel such as bars, rebars, special rebars threaded bars, and others.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including Ansteel Group Corp. Ltd., ArcelorMittal, Baosteel Group Corp., Cleveland Cliffs Inc., CRH Plc, Daido Steel-Co. Ltd., ERASTEEL, EVRAZ Plc, HBIS Group Co. Ltd., Hudson Tool-Steel, JFE Holdings Inc., Kennametal Inc., NACHI FUJIKOSHI Corp., Nippon-Steel Corp., NLMK Group, Omega-Steel Co., POSCO holdings Inc., Shandong Shounuo Metal Material Co. Ltd., Tata-Steel Ltd., and zq steel group Co. Ltd.
The market analysis and report of 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 forecasting report includes the adoption lifecycle of the market research and growth, 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting growth strategies.
Global Market Customer Landscape
The market is characterized by its essential attributes, including significant carbon concentration, ensuring high compressive strength ideal for various applications. Widely used in the production of automobile body components, structural shapes like angle iron and I-beams, and other critical building components such as bridge components and food cans, carbon steel exhibits excellent wear resistance and toughness. Its versatility extends to manufacturing railway tracks, train wheels, and diverse equipment parts.
With essential techniques like spheroidizing, complete annealing, and martempering, carbon steel assures robustness. The market's end-user industries span construction activity, small utensils, wires, and the automotive industry, benefiting from its exceptional weldability factor and forming qualities. Despite challenges like declining industry growth, carbon steel remains indispensable for its affordable price and desirable mechanical characteristics, providing solutions for building protection in various scenarios, including seismic events.
Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2023 |
Historic period |
2017-2021 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.58% |
Market growth 2024-2028 |
USD 187.59 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.21 |
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 Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ansteel Group Corp. Ltd., ArcelorMittal, Baosteel Group Corp., Cleveland Cliffs Inc., CRH Plc, Daido-Steel Co. Ltd., ERASTEEL, EVRAZ Plc, HBIS Group Co. Ltd., Hudson Tool-Steel, JFE Holdings Inc., Kennametal Inc., NACHI FUJIKOSHI Corp., Nippon-Steel Corp., NLMK Group, Omega-Steel Co., POSCO holdings Inc., Shandong Shounuo Metal Material Co. Ltd., Tata-Steel Ltd., and zq steel-group Co. Ltd. |
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 forecast period |
Customization purview |
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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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