ID: MRFR/CnM/4019-CR | February 2021 | Region: Global | 188 pages
The MRFR report suggests that the global steel market is projected to cross over USD 1.43 Trillion by the end of 2030 while flouring at a CAGR of 3.47% during the review timeframe.
Steel refers to an alloy derived from iron with usually a few tenths of a percent of carbon to enhance its fracture resistance and strength compared to other forms of iron. Several other elements may be added or present. Stainless steels, which are oxidation and corrosion-resistant, typically require an extra 11% chromium. Due to the low cost and high tensile strength of steel, it is used in electrical appliances, cars, ships, infrastructure, weapons, machines, trains, tools, and buildings. The global steel market has witnessed rapid growth in the pre-pandemic times. With the prevalence of the COVID-19 pandemic, the market is growing at a gradual pace. However, the business is picking up pace with the administration of vaccines and booster shots worldwide. With the rapid urbanization and industrialization across the globe, the market is hoping to witness a surge in demand for steel over the coming years. On the other hand, the volatility in the steel prices and the growing intensity of the competition is likely to impede the market's growth over the forecasted era.
COVID-19 is a dangerous virus. It’s the postmodern world’s version of the Bubonic Plague (5th century A.D.) and the Black Death (14th century A.D.) Unlike as is the case with the previous two plagues, most people who got COVID-19 recovered from it rather quickly. The issue was that it could cause serious health problems in some of those who recovered. It also caused serious health problems for some of the people who got it and even resulted in more than a few deaths. Finally, many of those who recovered got it again a few months later since the antibodies were short lived.
Governments around the world sought to contain the spread of this virus by imposing lockdowns and quarantines. These had limited effect so they were temporary. However, the impact that this had on many businesses was far from temporary. Many businesses were forced to either shut down temporarily or dramatically slow production down.
Companies in the global steel industry were no exception. Because construction and other end-user industries and sectors that use steel shut down or dramatically halted production, the demand for steel dropped dramatically. Many companies in the steel industry were forced to either temporarily shut down or dramatically scale back operations themselves.
Global Steel Market Revenue, by Product Type, 2019 (USD Bn)
Sources: MRFR Analysis
The global steel industry remains highly competitive and fragmented. What accounts for this is the fact that there are few barriers to entry - it doesn’t take a lot of capital for a large company to start to make steel. Also, the market is very lucrative and is growing at a respectable rate. Many companies around the world are seeing this and that’s why they’re entering the market in large numbers every year.
The existing companies find that they have to invest heavily in research and development if they want to survive. They are also finding that entering into strategic partnerships with other successful companies and merging with/acquiring other successful companies also helps them create the sustainable competitive advantage that they need to remain profitable.
Nucor Corporation is a major American player in the global steel industry. It has managed to remain profitable and competitive by investing heavily in research and development. This, essentially, allowed it to create a sustainable competitive advantage.
Sources: MRFR Analysis
Growth in the global steel industry is picking up, though at a much slower pace than it was in the pre-pandemic world. Now that a vaccine and booster shot for COVID-19 is being administered at a widespread pace business as usual is resuming. This is especially true for the global construction sectors - both residential and commercial. Also, many other end-user industries like automotive, electrical appliances, and others are starting to use steel more intensively in their overall operations.
Structural steel is used in the skeletons of buildings - both commercial and residential - around the world. It’s also extensively used in warehouses and bridges as support beams. As mentioned earlier, construction activities are picking up around the world. The United States’s construction industry has already reached the USD 1 trillion mark. It’s expected to be valued at USD 1.7 trillion in 2020.
This world is rapidly industrializing and urbanizing. This is creating unprecedented demand for steel. It’s also creating opportunities for manufacturers in the global steel industry. These manufacturers are upgrading facilities. This will allow them to create a new generation of steel that has more innovative applications, a higher tensile point, and is stronger and more durable than previous generations of steel were.
Steel is a commodity, therefore it is subject to daily fluctuations in price. This is a key factor that is holding back growth in the steel market.
The steel industry is highly competitive. Perhaps the biggest challenge that steel makers face lies in continuing to innovate in order to create the sustainable competitive advantage that will keep them profitable and financially viable in both the short and long term bases.
The global steel industry is expected to have a CAGR of 2.5% until 2027. It’s expected to be worth USD 963.6 billion by then.
Nucor Corporation is a major American player in the global steel industry. It has managed to remain competitive by creating a sustainable competitive advantage through research and development. This has allowed it to create a new generation of steel products that have far more innovative uses, are stronger, and are safer for use around humans and domestic animals.
The global steel industry can be grouped into the following sub-segments based on type:
The flat steel sub-segment had the largest market share in 2019. It is projected to have a CAGR of 2.5% during the time period that this report covers. Examples of flat steel products include slabs, coated steel, hot and cold rolled coils, tinplates, and heavy plates. The flat steel sub-segment is experiencing a modest but steady CAGR largely because it’s used to make pipes, various types of heavy machinery, tubes, appliances of all types, and all types of packaging. It’s also used heavily in the construction industry.
The global steel industry can be grouped into the following sub-segments based on product:
The structural steel sub-segment had the largest market share in 2017. It’s expected to register a CAGR of 3.15% for the time period that this report covers. The construction industry is starting to use structural steel more often to strengthen building frames, and bridge frames. It is also an invaluable material to use in freight cars, machinery, truck frames, truck parts, construction equipment, and transmission towers.
The prestressing steel sub-segment accounted for the second largest market share as of 2019.
The global steel industry can be grouped into the following sub-segments based on application:
The construction sub-segment had the largest market share in 2019 with a total valuation of USD 417.3 billion. Its projected CAGR is 2.5% until 2027. This sub-segment is expected to be worth USD 487.6 billion in 2027. Retail construction is picking up worldwide, especially in developing nations. This is largely what is driving growth in this sub-segment.
The global steel industry can be divided into the following region:
The Asia-Pacific region had both the largest regional market share and CAGR in 2019. In fact, its CAGR is projected to be 3.09% for the time period that this report covers. The steel industry in this region is expected to be worth USD 651.5 billion in 2027. Growth in this region can primarily be attributed to rapid growth in the construction industry, increased investment in infrastructure development, the rapidly growing automobile industry, and the fact that the electronics appliances industry is growing by leaps and bounds. India and China, especially, have some of the world’s fastest growing economies. These two nations have seen dramatic increases in construction and new infrastructure projects in recent years. It’s increased economic activity in these two nations that have been the main driver for the phenomenal growth in the steel industry in the Asia-Pacific region.
The European Union comes in second place both in terms of market share and CAGR. In fact, this region is expected to register a CAGR of 2.30% during the time period that this report covers. Germany happens to have one of the strongest and fastest growing economies in the European Union. Therefore, it is no surprise that it commands the lion’s share of the steel market in Europe. This is expected to continue for the time period that this report covers. Central Europe is also seeing strong growth in its regional steel market. The reason for this is attributed to dramatic increases in construction and new infrastructure projects.
The Middle East and North Africa is projected to have the weakest growth and market share for the forecasted time period. Yes, the Middle East and North Africa have relatively rapidly growing economies. This is what is driving growth in the construction industry and hence, what is driving growth in demand for various types of steel products. This market is expected to be worth USD 74.8 billion in 2027
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Product, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, Latin America and Middle East & Africa|
|Key Vendors||ArcerolMittal (Luxemborg), POSCO (South Korea), Shangang Group (Spain), NSSMC Group (Japan), China Baowu Group (China), HBIS Group (China), Tata Steel Group (India), Nucor Corporation (US), Hyundai Steel Company (South Korea), China Steel Company (Taiwan)|
|Key Market Opportunities||With the rise in construction activities in developed and developing economies|
|Key Market Drivers||The various factors supporting the demand include increasing infrastructural activities both in the commercial and residential construction|
Frequently Asked Questions (FAQ) :
The global steel market is set to touch USD 1.43 Trillion by 2028.
The global steel market is expected to expand at 3.47% CAGR from 2021 to 2028.
New infrastructure and construction projects
China Baowu Group, NSSMC Group, POSCO, Nucor Corporation, Hyundai Steel Company, Shangang Group, ArcerolMittal, China Steel Company, HBIS Group, and Tata Steel Group