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The steel manufacturing 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. The growth of the market depends on several factors, including an upsurge in consumption of high-strength steel, growing demand from the construction industry, and corrosion resistance and excellent mechanical properties.
This steel manufacturing market 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.
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The upsurge in the consumption of high-strength steel is notably driving the market growth, although stringent government regulations 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.
An upsurge in the consumption of high-strength steel is notably driving the steel manufacturing 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 vendors is a key trend influencing the steel manufacturing 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. For example, Ansteel and Ben Gang Group Corp. merged with Ben Gang Group and became the third-largest steel producer in the world. After the merger, Ansteel will have a crude steel production capacity of 63 million tons per year. The company has also set a goal of producing 70 million tonnes of crude steel annually by 2025. 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 the steel manufacturing 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. The agreement aims to limit global warming to 1.5 degrees Celsius. According to this agreement, companies engaged in business related to CO2 emissions must pay a tax (carbon price) on their emissions. Currently, the range of carbon prices is diverse. However, according to the United Nations, the price of CO2 should continue to rise until 2030.
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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Steel Manufacturing 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.
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 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 construction segment will be significant during the forecast period. The construction sector was the largest contributor to the market in 2022. 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 and continued to grow until 2021. 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.
In 2020, the COVID-19 outbreak had a negative impact on the growth of the market as it reduced demand for steel products from end-users, such as the machinery, construction, and automotive industries. Due to the 2020 lockdown measures, various governments from across the world imposed restrictions on the movement of vehicles and people, negatively impacting imports and exports of steel products. Additionally, the COVID-19 outbreak negatively impacted the growth of several vendors globally due to the economic downturn and supply chain disruptions. However, with massive vaccination campaigns and the easing of lockdown measures, the world entered a recovery phase in 2021. Steelmaking activity increased as demand for steel products from key sectors such as construction, infrastructure, and automotive recovered.
The steel manufacturing market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global steel manufacturing market as a part of the global steel market within the overall metals and mining market. The parent market includes products and companies involved in producing steel for a wide range of industrial applications. Technavio calculates the global steel market size based on the total revenue generated by aluminum producers/suppliers. The global steel market includes producers of steel and related products, including metallurgical (coking) coal mines used for steel production.
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Steel Manufacturing Market Scope |
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Report Coverage |
Details |
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Page number |
177 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.02% |
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Market growth 2023-2027 |
USD 369.6 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
3.5 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 45% |
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Key countries |
US, China, India, Japan, and Russia |
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Competitive landscape |
Leading vendors, market positioning of vendors, competitive strategies, and industry risks |
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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 |
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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 |
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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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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