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The steel market is estimated to grow at a CAGR of 2.17% between 2022 and 2027. The size of the market is forecast to increase by 207.46 million tons. The growth of the market depends on several factors, including an upsurge in consumption of high-strength steel, corrosion resistance and excellent mechanical properties, and growing demand from the construction industry.
This report extensively covers market segmentation by end-user (construction, machinery, transportation, metal goods, and others), type (flat steel and long steel), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.
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Technavio categorizes the global steel market as a part of the global diversified metals and mining market within the global materials market. The global diversified metals and mining market covers companies engaged in the production or extraction of metals and minerals such as non-ferrous metals (except bauxite), salt and borate, phosphate rock, and diversified metal mining operations. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The upsurge in consumption of high-strength steel is notably driving the market growth, although factors such as increasing technological developments in the global steel market 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.
Key Steel Market Driver
The upsurge in consumption of high-strength steel is notably driving the market growth. The consumption of high-strength stainless steel is gaining pace in architectural, industrial, and consumer applications due to its high strength at both room and high temperatures. The increased use of high-strength stainless steel has been due to its superior qualities, such as affordable cost and high strength-to-weight ratio. Factors such as strategic positioning and broadened product portfolios will augment the sales of high-strength stainless steel during the forecast period.
High-strength steel has a high strain-hardening ability and offers a superior combination of ductility and strength. Some other benefits are fast hardening rates, high weldability, increased malleability, and a high ability to endure stress. The increased demand for high-strength stainless steel is due to the increasing focus of the automotive industry on minimizing the weight of automobiles while meeting important criteria, including stiffness, forming requirements, and crash performance. The increased focus of the steel and automotive industries on developing environment-friendly vehicles is also driving the use of high-strength steel. Hence, such factors will drive the growth of the global market during the forecast period.
Significant Steel Market Trend
The expansion of production capacity by vendors is an emerging trend in the market. Steel is one of the commonly used metals in industrial applications due to its durability, yield strength, and resistance to corrosion. It is widely consumed in the mining and quarrying, chemicals, petrochemicals, electrical engineering, power generation, and food and beverage industries. Additives such as nickel, chromium, and manganese provide corrosion resistance and strength to stainless steel. They also provide resistance to mechanical damage.
Steel is used in many industrial applications for the storage and conveyance of liquid, air, and gas. Steel products offer high strength, formability, and recyclability. Superior mechanical and corrosion resistance properties of steel are driving its use in industrial applications. Therefore, owing to the high demand for steel in industrial applications, vendors operating in the market have been expanding their production capacity. For instance, in August 2021, Ansteel and Ben Gang Group Corp. (Ben Gang Group) merged and became the world's third-largest steelmaker. After the merger, Ansteel will have an annual production capacity of 63 million tonnes of crude steel. The company also targeted to make 70 million tonnes of crude steel annually by 2025. Thus, owing to the increasing demand for steel from various industries and the expansion of vendors' production capacity, it is anticipated that the market in focus will grow during the forecast period.
Major Steel Market Challenge
Increasing technological developments in the global steel market are major challenges impeding the market. The development of breakthrough technologies is crucial in the global market to reduce CO2 emissions from steel production plants. To address the problem of increasing CO2 emissions, several promising projects are being developed around the world, a few of which are in their early stages, while others are in the pilot or demonstration phase.
Carbon capture and storage is one example of such a project. It can help in generating, capturing, and storing a clean and concentrated CO2 stream. The introduction of this technology in the steel industry will require the retrofitting of steel plants with capture technology, the development of transportation networks, and access to storage sites. Furthermore, electrolysis is another significant example. This technology involves the reduction of iron ore using electricity. The use of electric arc furnaces instead of blast furnaces will significantly reduce CO2 emissions. Hence, technological advancements like these will likely hinder the global market in focus during the forecast period.
Key Steel Market Customer Landscape
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 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 operates under one segment. The company under this segment offers steel production, mining, ore dressing, sintering, ironmaking, steelmaking, rolling, coking and utility, and transportation products. The key offerings of the company include steel such as bridge steel, automotive steel, and others.
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, robust, tentative, and weak.
The market share growth by the construction segment will be significant during the forecast period. The development of high-rise buildings, tech parks, roads, highways, and bridges across the world drives the growth of the global market.
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The construction segment was valued at USD 805.12 million t in 2017 and continued to grow until 2021. Owing to its high strength and ductility, steel is extensively used in the construction industry. It is typically used in manufacturing beams for structural frameworks, rectangular tubing for welded frames, and high-strength plates for highways and bridges. It is also used in manufacturing rebars and hollow structural sections. Moreover, steel is used in handrails, culverts, columns, pilings, fences, caissons, and sign poles. Factors such as durability, strength, economical nature, and suitability for long-term weather exposures increase the demand for steel in the construction sector. Furthermore, rapid industrialization and growing residential planning in countries such as the US, the UK, Germany, China, and India are expected to create new opportunities in the construction segment. Improvements in the global economy have driven the construction of several healthcare, education, and social facilities. Moreover, the growing population, the rising demand for better infrastructure, and improving architectural practices are also expected to boost the global construction industry, which, in turn, will propel the growth of the market during the forecast period.
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APAC is estimated to contribute 76% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The demand for steel is expected to grow at a steady rate, owing to rapid industrialization and infrastructural developments in the region. In countries such as Indonesia, South Korea, and India, several industrial, commercial, and residential projects are under development. Furthermore, rising government initiatives by various countries are expected to propel the demand for steel, which, in turn, will fuel the growth of the market in APAC. For example, in July 2020, Indonesia announced it to invest more than USD 430 billion in infrastructure development by 2024. Such developments will fuel the demand for steel during the forecast period.
China is looking to consolidate its steel industry to have a greater influence on the formation of prices of raw materials and finished steel. With the consolidation of the steel industry, companies will be able to better control the rising costs of environmental protection arising from China's ambitions for decarbonization. In November 2022, Baowu received approval from the State Assets Supervision and Administration Commission to acquire a 51% stake in Xinyu Iron & Steel Group in Jiangxi Province. Thus, the consolidation of the steel industry in China will leverage the market in focus during the forecast period.
In 2020, the outbreak of COVID-19 negatively affected the growth of the market. However, the region entered a recovery phase in 2021, owing to the mass vaccination drives and ease of lockdown measures. Additionally, the region has been experiencing developments to increase the production of steel. Hence, such factors will contribute to the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and analyzes the latest trends and growth opportunities from 2017 to 2027.
Steel Manufacturing Market: The 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.
Steel Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.17% |
Market growth 2023-2027 |
207.46 mn t |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
1.78 |
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 Russia |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ansteel Group Corp. Ltd., ArcelorMittal SA, Baosteel Group Corp., Beijing Jianlong Heavy Industry Group Co. Ltd., Beijing Shougang Co. Ltd., China Baowu Steel Group Corp. Ltd., HBIS Group Co. Ltd., Hebei Jingye Group, Hyundai Steel Co., JFE Holdings Inc., JSW STEEL Ltd., Liuzhou Iron and Steel Co. Ltd., Nippon Steel Corp., NLMK Group, Nucor Corp., POSCO holdings Inc., Shagang Group Inc., Steel Authority of India Ltd., Tata Steel Ltd., and Benxi 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, and 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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