The Construction and Automotive Industries Will Drive the Global Steel Market to Reach USD 1,895.3 Billion by 2033.

Introduction

The Global Steel Market is projected to grow substantially, with estimations suggesting it will reach a value of approximately USD 1,895.3 Billion by 2033, up from USD 1,325.2 Billion in 2023. This growth is anticipated to occur at a robust (CAGR) of 3.5% during the forecast period spanning from 2023 to 2033.

The steel market is the global marketplace where steel, a crucial industrial material, is bought, sold, and traded. It includes flat, long, and specialty steel products. Factors influencing the steel market include demand from industries like automotive, construction, and infrastructure development, economic growth, industrialization, urbanization, and government infrastructure investments. The market is also influenced by global supply and demand dynamics, raw material prices, energy costs, technological advancements, and environmental regulations. The steel market is crucial to the global economy.

Segmentation of the Steel Market

In 2023, the hot-rolled steel segment dominated the industry with a 75.2% revenue share, largely due to its low manufacturing costs and excellent properties. Cold-rolled steel, produced below recrystallization temperatures, has a superior surface finish and high tolerance, used in critical applications like rail wheels and axles. Direct rolling procedures are gaining popularity due to their 4-5% increase in yield and cost reduction. Steel tubes, sheets, and profiles are also gaining popularity due to their durability, aesthetic appeal, and corrosion resistance. The steel tubes category is expected to grow at a CAGR of 4.1%, primarily used for subsurface gas and water transit and overhead electrical wire and cable protection. Rapid urbanization and construction investment are expected to drive tube demand growth in emerging markets.

In 2023, the pre-engineered metal buildings (PMB) category accounted for 38.7% of total revenue, driven by the growing demand for hassle-free, ready-made buildings for industrial purposes. Rapid industrialization in emerging economies and awareness of lower costs are expected to drive steel consumption in this area. PMB is commonly found in industrial buildings and warehouses due to its ease of disassembly and design flexibility. The PMB component includes primary and secondary members, roofs and walls, and panels. Primary members, such as columns, beams, and braces, accounted for 31.2% of total revenue. The industrial structures segment is predicted to grow at a CAGR of 2.8%, with structural steel being widely used due to its strength and durability. Steel panels are predicted to grow at a CAGR of 2.5% when used in both residential and non-residential infrastructures.

Growth Factors of the Steel Market

Rising Construction and Infrastructure Projects: One of the primary growth drivers for the steel market is the increasing number of construction and infrastructure projects worldwide. Steel is a fundamental material in construction due to its durability, strength, and versatility. It is used in buildings, bridges, roads, railways, and other infrastructure projects. Rapid urbanization, population growth, and industrialization in emerging economies are fueling the demand for steel in construction. Government initiatives to invest in infrastructure development, such as China's Belt and Road Initiative and India's Smart Cities Mission, are further boosting the steel demand.

Automotive Industry Expansion: The automotive industry is another major driver of growth in the steel market. Steel is a crucial material in vehicle manufacturing, used in the production of car bodies, chassis, and various components. The growth of the automotive industry, particularly in emerging markets, is driving the steel demand. Increasing disposable incomes, urbanization, and demand for passenger and commercial vehicles are contributing to the expansion of the automotive sector. Moreover, the trend towards electric vehicles (EVs) and lightweight to improve fuel efficiency is creating new opportunities for advanced high-strength steel.

Industrial Manufacturing and Machinery: Steel is indispensable in industrial manufacturing and machinery, which are essential sectors driving the global economy. It is used in machinery, equipment, tools, and manufacturing facilities due to its strength and resistance to wear and tear. The expansion of manufacturing activities, particularly in sectors such as aerospace, shipbuilding, machinery, and equipment, is increasing the steel demand. The ongoing modernization and technological advancements in manufacturing processes are also driving the adoption of advanced steels, including high-strength and specialty steels.

Infrastructure Investments and Urbanization: Infrastructure investments and urbanization are key growth factors for the steel market. Governments worldwide are investing in infrastructure projects to support economic growth, improve connectivity, and enhance living standards. Steel is a critical material in infrastructure development, including buildings, bridges, airports, ports, and energy infrastructure. Urbanization trends, particularly in emerging economies, are increasing the demand for steel for residential and commercial construction. Mega infrastructure projects, such as high-speed rail networks and smart cities, are creating significant opportunities for steel manufacturers.

Technological Advancements in Steel Production: Technological advancements in steel production processes are driving market growth. Innovations in steelmaking technologies, such as electric arc furnaces (EAFs), continuous casting, and advanced rolling techniques, have improved the efficiency, quality, and environmental sustainability of steel production. These advancements have reduced production costs, enhanced product quality, and minimized energy consumption and greenhouse gas emissions. Additionally, the development of advanced steel grades and alloys with superior mechanical properties and corrosion resistance is expanding the application scope of steel in various industries.

Global Trade and Economic Recovery: Global trade and economic recovery play a crucial role in the growth of the steel market. Steel is a globally traded commodity, and economic growth and industrial activities in major economies impact steel demand. The recovery from the economic downturn caused by the COVID-19 pandemic, coupled with government stimulus packages and infrastructure investments, is supporting steel demand. Moreover, the revival of manufacturing activities, particularly in sectors such as automotive, construction, and industrial machinery, is driving the global steel market.

Regional Analysis

The Asia Pacific steel market, accounting for 68.9% of total revenue in 2023, is expected to grow at a CAGR of 3.9%. This growth is driven by the increasing demand for prefabricated engineered buildings (PEBs), offering energy efficiency, design flexibility, and faster project completion rates. The Indian steel market is also expected to expand due to increased industrial construction activity and population growth. Europe's steel production contributes to its goal of increasing the construction sector's GDP to 20% by 2020. The European steel sector faces higher energy costs than its overseas competitors.

List of Market Segmentation

By Product

o   Hot Rolled Steel

o   Direct Rolled Steel

o   Cold Rolled Steel

o   Tubes

o   Other Profiles

By End-Use

o   Pre-engineered Metal Buildings

·         Primary Members

·         Secondary Members

·         Roofs & Walls

·         Panels

o   Bridges

o   Industrial Structures

Competitive Landscape

o   NIPPON STEEL CORPORATION

o   POSCO

o   Baosteel

o   Hyundai Steel Co. Ltd.

o   ThyssenKrupp AG

o   Tata Steel Ltd. (Tata Group)

o   ArcelorMittal S.A.

o   Jiangsu Shagang Group Co. Ltd.

o   JFE Steel Corporation (JFE Holdings Inc.)

o   Other Key Players