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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.
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 -
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.
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.
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.
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PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Global iron ore market
PART 06: Global steel scrap market
PART 07: Global steel industry
PART 08: Market landscape
PART 09: Market segmentation by product forms
PART 10: Market segmentation by end-user
PART 11: Market segmentation by steel type
PART 12: Market drivers
PART 13: Impact of drivers
PART 14: Market challenges
PART 15: Impact of drivers and challenges
PART 16: Market trends
PART 17: Vendor landscape
PART 18: Appendix
PART 19: Explore Technavio
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