Steel Industry Data Book Covers Stainless Steel, Carbon Steel, Electrical Steel, Weathering Steel, Sintered Steel Markets.
Steel is a vital industry for global economic growth. It is one of the key raw materials for building & construction and various manufacturing activities. As per the World Steel Association, the total value contribution by the steel industry is USD 2.9 trillion, which is equivalent to 3.8% of global GDP.
Carbon Steel Market Growth & Trends
The global carbon steel market size is expected to reach USD 1,156.5 billion by 2027, expanding at a CAGR of 3.4%, according to a new report by Grand View Research, Inc. Increasing investment in construction sector on account of rising housing needs is likely to positively contribute to the rising demand for carbon steel products.
Carbon steel is one of the key materials used in the construction sector on account of its strength and hardness. It is used in rectangular tubing, highway construction plates, structural framework beams, and bridges. It is also popularly used material in the manufacturing of hollow structural sections and rebars. Plain carbon steel, also popularly known as mild steel, exhibits various properties such as plasticity, ductility, flexibility, and bending ability. During natural calamities, such as earthquakes, it is a very useful material owing to its crack resistance.
In 2019, the manufacturing sector performed poorly. Particularly, the automobile sector had got affected in several countries. However, despite a slowdown, the construction sector has maintained positive momentum. Rising demand for carbon steel and related products from China’s real estate sector is likely to create a positive impact on the market. Newly implemented construction standards and the relaxation of control policies in tier 2 and tier 4 cities are anticipated to provide an extra boost to the demand for finished products in China.
The imposition of 25% import duties on steel products on March 8, 2018, by the U.S. government on the grounds of national security under Section 232 of the Trade Expansion Act on 1962 was responsible for the initiation of Trade war between China and U.S. However, this impacted various other countries in both positive and negative ways including U.S. itself.
Availability of substitutes such as aluminum alloys and other lightweight alloys in shipbuilding is anticipated to hinder market growth over the coming years. Aluminum alloys are the major substitutes for carbon in shipbuilding and are expected to gain a higher preference owing to properties such as light weight. Light weight helps reduce weight of the ship and enhances fuel efficiency, higher corrosion resistance, non-magnetic properties, and low cost maintenance. One drawback associated with aluminum alloys when compared to carbon steel is its high cost, which can be compensated with higher earnings.
Apart from availability of substitutes, the decline in ship-building capacity is another restraint for the carbon steel market. According to the Shipbuilder’s Association of Japan, major shipyards including China and Europe witnessed decline in new orders in 2018. Factors including weak freight market, the decline in order book for shipyards, and fluctuation in oil prices are hindering the ship-building industry, which is expected to negatively impact the market.
Stainless Steel Market Growth & Trends
The global stainless steel market size is expected to reach USD 223.60 billion by 2030, registering a CAGR of 8.9% during the forecast period, according to a new report by Grand View Research, Inc. Higher penetration of the product and its vital importance in numerous applications is expected to support the market growth, during the forecast period.
Stainless steel has extensive utilization in the automotive sector because of its visual appeal and corrosion resistance properties. Corrosion resistance helps its use in catalytic converters and exhaust silencers. These parts face exhaust gas attacks from the inner side and road dirt, salt, and water from the external side. In such cases, stainless steel is the best suitable material. Automotive applications of the product include fuel tanks, trim, gaskets, suspension systems, and bodies of the buses.
Characteristics of diverse stainless steel materials depending upon the application make them advantageous and preferable when compared to other materials. This is a major reason for their growing demand. For example, if we compare steel and aluminum since they are often considered alternatives in many applications, steel is preferable over aluminum because of its low cost, strength, and less likely to damp, bent, or warp.
Numerous applications have propelled the demand for stainless steel during these years and by enlargement in the end-use industries, the need for these materials is expected to increase further at a rapid rate. As a result, the production of the commodity is carried out on a large scale where iron ore is the key raw material. This ore is mined from the earth’s crust.
The increasing demand together with certain disadvantages, associated with conventional production processes such as the negative environmental effect of iron ore mining, has compelled vendors to opt for an alternative step, which is recycling. The phenomenal property of stainless steel can be recycled frequently without having any impact on the quality eventually promoting the stainless steel scrap industry.
Stainless steel scrap recycling has various benefits economically and environmental. Every ton of recycled steel saves 1.5 tons of iron ore, and 0.5 tons of coal, and reduces water consumption by 40.0%. In addition, carbon dioxide emissions are reduced by 50-60%. As a result, the advantages of metal recycling along with increasing demand for stainless steel in end-use applications are propelling the growth of the stainless steel market.
Structural Steel Market Growth & Trends
The global structural steel market size is expected to reach USD 146.41 billion by 2028, according to a new report by Grand View Research, Inc., expanding at a CAGR of 5.3% over the forecast period. The market growth is attributed to the growth in the construction sector and rising demand for steel as a green and sustainable material. Structural steel is utilized for construction-related applications. Its high carbon content offers high strength and low ductility. It is available in the form of various shapes such as I-beam, Z-shape, angle, tee, bar, and rod, depending upon the applications. It can be customized into a variety of shapes in different thicknesses and sizes owing to its ductility. Based on application, the market is segmented into residential and non-residential, where the latter dominates the market, in terms of revenue share.
Growing spending on the commercial sector & infrastructural developments across various nations is augmenting the product demand in non-residential applications. The segment is further divided into industrial, commercial, offices, and institutional. Structural steel is widely used in numerous industrial sectors owing to its high strength-to-weight ratio. In the construction industry, it is utilized in designing and building industrial spaces, such as warehouses, bridges, and factories. Growth in the manufacturing sector is expected to propel the need for new factories and plants. For instance, after the emergence of the COVID-19 pandemic, various new facilities were established to meet the rising demand for PPE in the U.S.
Asia Pacific was the dominant regional market in 2020 and this trend is anticipated to continue over the forecast period. The growing construction spending in the developing economies of the region is anticipated to augment the product demand. For instance, in August 2021, India announced that it aims at spending INR 100 trillion (USD 1.35 trillion) on infrastructure development for boosting economic growth and jobs in the country. The competitive rivalry is extremely high in the market due to the presence of several small- and large-scale players spread across the world. The companies are striving to recover from their losses caused by the COVID-19 pandemic and are taking initiatives, such as mergers & acquisitions and capacity expansions, to further widen their reach.
Access the Global Steel Industry Data Book, 2022 to 2030, compiled with details like market sizing information & forecasts, trade data, pricing intelligence, competition benchmarking, macro-environmental analyses, and regulatory & technological framework studies
Electrical Steel Market Growth & Trends
The global electrical steel market size is expected to reach USD 34.3 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 4.9% from 2021 to 2028. The growing need for power generation has augmented the demand for transformers, generators, and other such products that require electrical steel to deliver enhanced performance.
Electrical steel is an iron alloy that contains varying amounts of silicon. Based on its composition and application, it is also referred to as lamination steel, silicon steel, transformer steel, and relay steel. Its phenomenal magnetic properties make it of vital use in rotating and static machines.
Based on product, the market is segmented into grain-oriented and non-grain-oriented. The non-grain-oriented segment is anticipated to maintain its dominance over the forecast period owing to its widespread applications in all stages of the energy value chain from generators to appliances. The grain-oriented electrical steel mainly finds application in transformers. It is expected to register faster growth across the forecast period on account of growing production capacity for transformers.
Based on application, the transformer segment dominated the market in 2020 and this trend is expected to continue during the forecast period. On account of the growing expansion of electricity grids worldwide and rising government focus towards rural electrification, the demand for transformers has accelerated. For example, in February 2021, Sylvan Technologies Limited began manufacturing power transformers. This production will help reduce Bangladesh’s dependence on imports and play a vital role in ensuring 100% electrification in the country.
Based on region, Asia Pacific held the largest revenue share of the market in 2020 and is anticipated to maintain its dominance across the forecast period. Growing electricity generation and rising production of electric vehicles in the region have augmented the need for products including transformers, generators, and motors. The increase in manufacturing of these products in turn is anticipated to boost the consumption of electrical steel over the forecast period.
Considering the huge potential growth in the electric vehicles market, companies from different industries are expressing interest in electric car manufacturing. For instance, in March 2021, Xiaomi announced that it plans to produce electric vehicles in partnership with Great Wall Motor. The company expects to launch its electric vehicles around 2023.
Growth in the end-use industries has made the market highly competitive. The market players are engaged in developing new grades, increasing their production, and expanding their reach to cater to the growing demand for the product. For instance, in March 2021, ArcelorMittal announced to invest a sum of EUR 13 million (~USD 15.9 million) in its Saint Chély d’Apcher plant in France, which manufactures iCARe electrical steel for the automotive sector.
Weathering Steel Market Growth & Trends
The global weathering steel market size is expected to reach USD 1.45 billion by 2025, exhibiting a CAGR of 5.6% during the forecast period, according to a new report published by Grand View Research, Inc. Increasing investments in infrastructure development projects, such as bridges and road connectivity are anticipated to augment the growth.
Weathering steel is used in facades and cladding systems for buildings and is also used in the construction of bridges as this steel can attain 120-year design life and incur low maintenance costs. Increasing global population and rapid urbanization are likely to drive the demand for buildings and vehicles, resulting in traffic congestion. This is anticipated to boost the demand for the road over bridges, which in turn is anticipated to drive the market growth in the forthcoming years.
The inclined growth of the weathering steel market in Europe is due to the rising demand for bridges, sculptures, and railway vehicles. Masts and structures for Overhead Line Equipment (OLE) are generally manufactured using mild steel rolled sections. Weathering steel is anticipated to witness a rise in demand from the region, with the ongoing electrification projects in the region, as the metal is used for replacing the mild steel to reduce costs and environmental pollution.
However, product penetration in high humid atmospheric conditions and in higher pollution areas is likely to limit the market growth over the forecast period. Conditions with corrosive industrial or chemical fumes creates hurdles in the development of protective oxide patina. Patina is a protective layer of rustic nature which protects the structure from corrosion, failure in patina formation results in the deterioration of the structure. Thus, atmospheric conditions of the location is likely to play a key role in driving the adoption of the product.
The market is consolidated in nature with the presence of established players, such as ArcelorMittal, HBIS Group, BlueScope Steel Limited, SSAB, JFE Steel Corporation, Nippon Steel Corporation, and Tata Steel. These players focusing on capacity expansion to meet the growing product demand from potential customers.
Sintered Steel Market Growth & Trends
The global sintered steel market size is anticipated to reach USD 177.9 million by 2027, according to a new report by Grand View Research, Inc. It is anticipated to expand at a compound annual growth rate (CAGR) of 5% from 2020 to 2027, The advantages such as low manufacturing cost, freedom in component design, and flexibility over other processes like forging and casting is anticipated to augment market growth.
Steel is a versatile material with various characteristics and is easily available at low cost. These attributes make it preferable over other materials in producing components, equipment, and tools. The demand for sintered steel parts is majorly driven by the automotive components industry followed by tools, electrical appliances, machinery equipment, and others.
The advantage of producing complex parts at ease has propelled the demand for sintered metal products, which has resulted in increased production capacity. For instance, Höganäs, a key market player invested in a new sintering furnace with an aim to cater to the rising demand for 3D printed components and additional material alternatives. The new furnace increased the company’s production capacity and is capable of catering to a wide range of metal powder. Growing production and demand for sintered metal parts is anticipated to positively influence market growth.
Electrical appliances is anticipated to be amongst the fastest growing application segments over the forecast period. Growing investment in the industry is expected to augment product demand over the forecast period. For instance, in November 2018, Bosch Home Appliances announced about investing USD 111.9 million (€100 million) in India over the next 3 to 4 years. This is expected to positively influence the market growth as sintered steel finds application in producing various components of home appliances like washing machines and refrigerators.
Cutting tools is another prominent application segment, which is expected to register a steady growth rate over the forecast period. Increasing demand from the manufacturing sector and other industries is anticipated to bode well for the segment growth. The cutting tool market is witnessing various strategic initiatives by the key players which is anticipated to have a positive impact on the product demand. For instance, in January 2020, GWS Tool acquired Inrepid Tool Industries.
Automotive components is the major application segment. However, the outbreak of the Coronavirus (COVID-19) epidemic in one of the largest economies of the world, China, is anticipated to negatively impact the country’s production sector along with other major countries such as Japan, Germany, and India.
China is a hub for manufacturing ample products and is involved in major imports and exports including automotive components, machine tools, and electrical appliances. As a result, Asia Pacific is anticipated to register a sluggish growth over the next couple of years on account of decline in production. The market growth is expected to pick up from 2021 to 2022, once the manufacturing sector in China resumes and definitive alternate options are sorted and put in place by the key countries for bring the trade and manufacturing sector on track.
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Competitive Landscape
Key players operating in the steel industry are –
- Ansteel Group
- ArcelorMittal
- Baotou Steel
- China Baowu Group
- China Steel Corporation
- Cleveland-Cliffs
- Delong Steel Group
- Fangda Steel
- Gerdau S.A.
- HBIS Group
- Hyunda Liuzhou Steeli Steel
- IMIDRO
- JFE Steel Corporation
- Jianlong Group
- Jingye Group
- JSW Steel Limited
- Liuzhou Steel
- Nippon Steel Corporation
- NLMK
- Nucor Corporation
- POSCO
Grand View Research’s steel industry data book is a collection of market sizing information & forecasts, trade data, pricing intelligence, competitive benchmarking analyses, macro-environmental analyses, and regulatory & technological framework studies. Within the purview of the database, such information is systematically analyzed and provided in the form of outlook reports (1 detailed sectoral outlook report) and summary presentations on individual areas of research along with an agricultural statistics e-book.
Go through the table of content of Steel Industry Data Book to get a better understanding of the Coverage & Scope of the study
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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