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The iron and steel market size is projected to increase by USD 478.1 billion, at a CAGR of 5.65% between 2023 and 2028. The market's expansion hinges on various critical factors. Firstly, there's a increase in the consumption of advance high-strength stainless steel, driven by its superior properties and diverse industrial applications. Additionally, the growing demand for both steel and stainless steel scrap reflects the increasing importance of recycling in the industry, highlighting sustainability efforts and cost-effectiveness. Moreover, there's a noteworthy shift in automotive applications, with carbon fiber gaining momentum over stainless steel, driven by its lightweight properties and potential for enhancing fuel efficiency and performance. These trends underscore the dynamic nature of the market, shaped by technological advancements, sustainability considerations, and evolving consumer preferences. As industries continue to innovate and adapt, the market is poised for sustained growth, driven by these key factors.
The market thrives on a well-defined steel production process, incorporating ferrous scrap metal and ores to meet diverse demands. From tall buildings to foundation structures, steel's resilience against weathering and pests makes it a preferred choice in construction. The acceptance of steel remains strong across the transportation sector and construction sector, driven by its versatility and durability. Pig iron production continues to fuel the market, ensuring a steady supply for the manufacturing of various steel and structures essential for infrastructure and industrial applications.
The construction segment is estimated to witness significant growth during the forecast period. Iron and steel play pivotal roles in construction, ensuring structural stability, durability, and versatility across various building applications. They serve as the backbone for structural frameworks, offering strength and support for buildings and bridges. Additionally, steel reinforces concrete structures, enhancing tensile strength and longevity. Its adaptability extends to roofing, cladding, doors, and windows, providing weather resistance, security, and aesthetic appeal.
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The construction segment was the largest segment and was valued at USD 564.11 billion in 2018. Further, the demand for iron and steel in construction is driven by their inherent strength, versatility, fire resistance, and eco-friendliness, aligning with modern construction standards. Moreover, their cost-effectiveness, low maintenance, and prefabrication construction capabilities make them economically attractive. As essential construction materials, iron and steel will continue to foster safe, efficient, and sustainable structures, propelling growth in the global iron and steel market.
The steel segment will account for the largest share of this segment. Steel, a vital segment in the market, finds extensive use across industries due to its versatility. Carbon steel, renowned for its strength and affordability, is prevalent in construction and automotive sectors. Stainless steel, prized for its corrosion resistance, serves consumer and industrial needs, from kitchenware to medical instruments. Alloy steels, including tool and electrical steels, offer enhanced mechanical properties for aerospace, oil, machinery, and electrical equipment industries. Leading market players like Varma Steel provide diverse steel solutions, driving market growth during the forecast period.
APAC is estimated to contribute 75% 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 APAC region leads global iron and steel market growth, fueled by expanding construction and consumer goods sectors. Aging infrastructure drives construction demand while rising oil production boosts pipe and tube manufacturing needs. Despite oil price fluctuations and supply shortages, vehicle production and construction activities propel market growth. China dominates APAC's iron and steel market, driven by extensive infrastructure projects and industrial expansion. Key players like POSCO and China BaoWu Steel Group meet China's steel demand. APAC's diverse industrial base, spanning automotive, construction, and machinery sectors, sustains steel demand. India's burgeoning automotive sector further boosts regional market growth 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.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 10 market companies, including:
ArcelorMittal, China BaoWu Steel Group Corp. Ltd., Cleveland Cliffs Inc., EVRAZ Plc, HBIS Group Co. Ltd., Hitachi Ltd., Hyundai Steel Co., JFE Holdings Inc., Jiangsu Shagang International Trade Co. Ltd., JSW Group, Nippon Steel Corp., Nucor Corp., Olympic Steel, POSCO holdings Inc., Reliance Inc, Steel Authority of India Ltd., Steelmor Industries, Sumitomo Electric Industries Ltd., Tata Steel, Ternium, thyssenkrupp AG, TimkenSteel Corp., Vale SA, Varma Steel, and Voestalpine AG
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 is intricately linked to various sectors, from residential construction to automotive & transportation. Raw material prices, including minerals, oxide, and hydroxides, profoundly influence steel production processes. Industrial gases play a crucial role in refining processes, alongside coal and ferroalloys. As demand rises for iron & steel products in construction & infrastructure and heavy machinery, concerns over depletion of iron ore mines persist. Innovations like synthetic steel aim to mitigate this challenge, ensuring a sustainable supply chain for the transportation and construction sectors.
The rise in the consumption of high-strength stainless steel is the key factor driving the market. The utilization of high-strength stainless steel is surging, offering superior strength, fatigue resistance, and toughness in architectural, industrial, and consumer applications. Its cost-effectiveness and impressive strength-to-weight ratio drive its expanded adoption. With exceptional strain-hardening capabilities and a balance of ductility and strength, high-strength stainless steel facilitates rapid hardening, enhanced weldability, and greater malleability. This meets the stringent weight reduction goals of the automotive industry, ensuring structural integrity and crash performance while reducing vehicle weight. From passenger compartments to structural components, high-strength stainless steel caters to automotive and construction needs, aligning with the demand for eco-friendly vehicles and propelling market growth.
Growing demand for steel and stainless steel scrap is the primary trend shaping the market. Globally, recycled steel and stainless steel are pivotal in reducing carbon footprint. Recycling steel scrap enhances economic viability and minimizes environmental impact by lessening reliance on iron ore extraction. This curtails CO2 emissions, conserves energy and water, and diminishes air pollution. Steel boasts remarkable circularity, easily recyclable without compromising properties. Emissions from steel production predominantly stem from primary iron ore processing. In contrast, utilizing recycled steel, powered by clean electricity, yields low emissions, aligning with the shift towards a carbon-neutral circular economy. Steel scrap, preferred by stainless steel producers, mitigates demand fluctuations driven by iron ore price variations. Growing concerns over global warming propel the use of steel scrap, fostering market growth.
Carbon fiber gaining pace over stainless steel in automotive applications is the major challenge that affects market growth. Rising fuel prices drive demand for fuel-efficient vehicles. While stainless steel offers strength and corrosion resistance in automotive applications, its weight and cost pose challenges. To improve fuel economy, automotive manufacturers seek lightweight solutions. Carbon fiber composites, reducing vehicle weight by 40%-50%, are increasingly favored. Initially used for aesthetics, they now serve as structural components, notably in luxury cars like Mercedes Benz S class. Regulatory standards, like those set by the EPA, mandate fuel efficiency, prompting the shift to lightweight materials. Taxes on high CO2-emitting vehicles pressure manufacturers to innovate, hindering the growth of the iron and steel market.
The market forecasting 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 market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting.
Global Market Customer Landscape
The market faces mounting pressure to address greenhouse gas emissions and combat climate change amidst growing concerns over environmental degradation. Innovations like net-zero steel production and adoption of green technologies aim to reduce pollutants and mitigate water and soil pollution stemming from cement production and fossil fuel use. Technologies such as Electric Arc Furnace (EAF) ,Basic Oxygen Furnace (BOF) and Blast Furnace offer sustainable alternatives in crude steel manufacturing, leveraging metal alloys like molybdenum, vanadium, and chromium. In the Asia Pacific region, where building & construction activities and infrastructure development projects are booming, investments from domestic and foreign investors drive demand for long-lasting steel plate used in appliances, ships, and bridge cables.
Additionally, the market operates within a complex framework, balancing technology advancements with environmental concerns like carbon dioxide emissions and water pollution. While fossil fuels remain a key feedstock, the industry grapples with waste disposal challenges, addressing the environmental challenge posed by metal alloy production. Processes like batch melting and furnace turn-around optimize molten steel production, catering to diverse sectors from construction industries to automobiles. As domestic investors drive growth amid burgeoning population and new construction projects, the market leverages cheap labor and innovative materials like electric steel and iron powder to meet demand. Mining regulations and sustainable practices guide the steelmaking process, ensuring responsible utilization of fossil resources while maintaining competitiveness in iron and steel product prices.
Furthermore, the market relies on efficient processes like batch melting, charging, and tapping to transform raw materials including oxides and powdered iron into various products. Utilized across diverse sectors such as the agricultural sector, printing presses, and conveyors, steel serves as the backbone of modern infrastructure. With the rise of electric vehicles, demand for sustainable steel production methods utilizing reduction agents and synthesis gas increases. Through innovations in chemical processes and rolling mills, the industry adapts to evolving needs, ensuring the continued relevance of steel in manufacturing and construction.
Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.65% |
Market Growth 2024-2028 |
USD 478.1 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.88 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 75% |
Key countries |
US, China, India, Japan, and Russia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ansteel Group Corp. Ltd., ArcelorMittal, China BaoWu Steel Group Corp. Ltd., Cleveland Cliffs Inc., EVRAZ Plc, HBIS Group Co. Ltd., Hitachi Ltd., Hyundai Steel Co., JFE Holdings Inc., Jiangsu Shagang International Trade Co. Ltd., JSW Group, Nippon Steel Corp., Nucor Corp., Olympic Steel, POSCO holdings Inc., Reliance Inc, Steel Authority of India Ltd., Steelmor Industries, Sumitomo Electric Industries Ltd., Tata Steel, Ternium, thyssenkrupp AG, TimkenSteel Corp., Vale SA, Varma Steel, and Voestalpine AG |
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 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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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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