Indian Steel Industry 2016-2020

This market research report identifies players like SAIL, JSW Steel, Tata Steel, Essar Steel, and RINL to be the key vendors in the Indian steel industry. This research report also presents a detailed segmentation of the market by product forms (flat products and long products), by end user (construction, infrastructure and transport, automotive, and others), and by steel type (carbon, alloy, and stainless steel).

Overview of the Indian steel industry

Technavio’s market research analyst predicts the Indian steel industry to grow at a CAGR of almost 7% by 2020. The Indian steel industry is highly advanced with cutting edge steel mills, consistent modernization, upgradation of existing plants, and high energy efficiency levels. Developments in the Indian steel industry are primarily driven by the domestic accessibility of cheap labor and iron ore. The increase in infrastructure projects such as power, bridges, dams, roads, and urban infrastructure development has boosted the demand for steel products owing to their strength, durability, corrosion resistance, hardening ability, formability, welding ability, and ductility. The growing requirement of adequate iron ore among the end-user industries will necessitate steel manufacturing during the forecast period.

One of the latest trends gaining grounds in this market is the rise of the renewable energy industry. Steel plays a crucial role in developing infrastructure for the generation of electricity from renewable energy such as solar, tidal, and wind energy. The use of steel in developing the infrastructure will enable the construction of stronger, taller, and lighter-weight tower for wind turbines, which will increase their productivity as well as reduce carbon emissions associated with their construction. With the wind and solar energy sector registering high growth rates, the demand for steel will increase considerably in the coming years.

Competitive landscape and key vendors

The Indian steel industry is characterized by the presence of giants such as Tata Steel, SAIL, and JSW Steel. The India steel market is also fragmented with the presence of regional players. Intense competition prevails in the market and has resulted in lower steel prices and reduced profit margins.

Leading vendors in the market are -

• SAIL
• JSW Steel
• Tata Steel
• Essar Steel
• RINL

Other prominent vendors in the Indian steel industry include Bhushan Steel, Facor Steels, Gerdau Steel India, Jindal Steel & Power, Mahamaya Steels Industries, MESCO Steel, and VISA Steel.

Segmentation by product forms and analysis of Indian steel industry

• Flat products
• Long products

During 2015, the flat steel products dominated the Indian steel industry and accounted for around 56% of the total market revenue. Much of this segment’s growth comes from the construction, infrastructure, and automotive segments. Tata Steel, SAIL, Essar Steel, Jindal Stainless, Bhushan Steel, JSW Steel, and Uttam Galva are the key vendors in the organized Indian flat steel market, in terms of  production. Hot-rolled sheets, coils, and plates is the largest product segment and accounted for around 60% of the flat steel products market.

Segmentation by end user and analysis of Indian steel industry

• Construction
• Infrastructure and transport
• Automotive

The construction sector is the largest end user of steel and is anticipated to occupy more than 35% of the total share of the steel market in India by 2020. Steel is consumed during the construction of buildings, including tall towers, petrol refineries, shopping malls, and residential houses. The strength, versatility, and attractive appearance of steel will lead to its high demand from both architects and engineers for the construction of a wide array of projects. Steel meets the requirements of the construction industries by providing high-yield strength, toughness at low temperatures, and outstanding weldability to buildings.

 Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the Indian steel industry?
• What are the key market trends impacting the growth of the Indian steel industry?
• What are the challenges to market growth?
• Who are the key vendors in the Indian steel industry?
• What are the market opportunities and threats faced by the vendors in the Indian steel industry?
• Trending factors influencing the market shares of India.
• What are the key outcomes of the five forces analysis of the Indian steel industry?

Technavio also offers customization on reports based on specific client requirement.

Related reports:

• Global Steel Rebars Market 2016-2020
• Global Steel Long Products Market 2016-2020
• Global Steel Flat-Rolled Products Market 2016-2020
• Global Steel Industry Market 2015-2019
• Steel Market in ASEAN Countries 2015-2019