Steel Market Research Report - Global Forecast till 2027

Steel Market: Information by Type (Flat and Long), Product (Structural Steel, Prestressing Steel), Application (Building & Construction, Automotive, Electrical Appliance) and Region (Asia-Pacific, Europe, North America, Latin America and the Middle East & Africa) - Forecast till 2027

ID: MRFR/CnM/4019-CR | February 2021 | Region: Global | 123 pages

The global steel market is expected to register a CAGR of 2.5% to reach USD 963.6 billion by 2027. The global steel market is oversupplied due to production capacity additions by major players. The surplus supply in the global steel market resulted in decline in the prices in the past years. However, the increasing demand and capacity closures in China have traction the falling prices.


The global steel demand is expected to witness a growth though at a slower pace. The various factors supporting the demand include increasing infrastructural activities both in the commercial and residential construction followed by increasing adoption of steel in the automotive, electrical appliances, and other end-use industries.


Market Dynamics


Construction as an end-use industry accounts for more than half of the global demand in terms of revenue and tonnage. Hence, the construction industry dynamics across the globe is one of the major market determinants for steel demand. Structural steel products find applications in building frames, warehouses, beams, bridges, and other pre-fabricated products. With the rise in construction activities in developed and developing economies the demand for steel is expected to grow during the forecast period. For instance, the US construction revenue crossed the USD 1 trillion mark recently and is expected to reach USD 1.7 trillion by 2020. For the first time since 2007, the difference in GDP contribution from the construction sector with respect to the country’s economy is narrowing, i.e., a considerable increase in the rate of construction. In terms of revenue growth, the US residential, commercial, infrastructure, and industrial & institutional construction are expected to register CAGRs of 6.6%, 6.8%, 4.1%, 6.9%, and 4.4%, respectively, during the forecast period supported by urbanization and government initiatives such as Manufacturing Extension Partnership (MEP), and Telehealth Network Grant Program (TNGP). Similarly, the growing investments in infrastructural development in Asia-Pacific, the Middle East, and Eastern European countries is expected to boost the steel demand.


Some of the other market impetus factors for steel demand include the demand in the automotive and transportation industry, growing electrical and electronics industry in ASEAN, and increasing use of advanced high strength steel (AHSS) in electric vehicles.


Global Steel Market Revenue, by Product Type, 2019 (USD Bn) Global Steel Market Revenue, by Product Type, 2017 (USD Bn)
Sources: MRFR Analysis


Segmentation


Based on type, the global steel market has been segmented into flat and long steel. The flat steel segment accounted for the largest share of the global steel market in 2019 and is expected to register a CAGR of 2.5% during the review period. Flat steel products include slabs, hot-rolled coils, cold-rolled coils, coated steel, tinplate, and heavy plate. The growth of the flat steel segment is attributed to their increasing use in numerous applications including tubes, pipes, construction, heavy machinery, appliances, and packaging.


Based on product, the global steel market has been divided into structural steel, iron steel wire, bright steel, welding wire/rod, ropes, prestressing steel, braids, and others. The structural steel segment accounted for the largest share of the global steel market in 2017 and is expected to register a CAGR of 3.15% during the review period. The growth of the segment is attributed to the increasing use of structural steel in construction applications primarily in building frames of bridges and buildings. Structural steel grades find use in applications including freight cars, construction equipment, truck parts, machinery, truck frames, and transmission towers. The prestressing steel segment accounted for the second-largest share of the global steel market in 2019.


Based on application, the global steel market has been categorized into building & construction, automotive, mechanical equipment, metal products, other transportation, electrical appliances, and domestic appliances. The building & construction segment accounted for the largest share of the global steel market with a market value of USD 417.3 billion in 2019 and is expected to register a 2.5% CAGR to reach USD 487.6 billion by end of 2027. The growth of the segment is attributed to the increase in residential construction activities across the globe.


Global Steel Market Share, by Region, 2019 (%)


Global Steel Market Share, by Region, 2017 (%)


Sources: MRFR Analysis


Regional Analysis


Asia-Pacific accounted for the largest market share in 2019 and is projected to grow at the highest CAGR of 3.09% during the forecast period to reach USD 651.5 billion in 2027. The dominance of Asia Pacific region is mainly due to the increasing demand in construction and infrastructural development, growing automotive production, and the growth of electrical appliances market.


The European market accounted for the second-largest market share and is poised to register a CAGR of 2.30% during the forecast period. Germany was the leading market in the region and is expected to maintain the dominance throughout the forecast period. Besides, the increasing spending on infrastructure construction in Central Europe is likely to add to the regional market growth.


The Middle East & African market is trailing behind Europe. The demand for steel in the region is attributed toward the growing construction industry in the Middle East coupled with rapid industrialization in the North African countries. The regional market is slated to reach USD 74.8 billion by 2027.


Key Players


The prominent players in the global steel market are 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), and others.


Some of the key strategies followed by the players operating in the global steel market are innovation, product development, acquisitions, and expansion.



  • In February 2017, ArcellorMittal and Votorantim S.A. signed an agreement in which Votorantim will become a subsidiary of ArcelorMittal Brazil. With this combination the business will be in long product steel producer with annual crude capacity of 5.6 million tonnes and annual rolling capacity of 5.4 million tonnes



  • In October 2017, POSCO signed an agreement with Top Tubes, a UK based organization. Under this agreement the company will manufacture pipe with Top Tubes. With this agreement the company to accelerate and expand their presence to the European market by strong relationship with top tubes.



  • In December 2017, JSW Steel launched JSW Everglow, a premium and technologically advanced steel product in the Kerala market. With this product launch the company expand its portfolio and is focusing on roofing and wall category


Market Segmentation


Global Steel Market, By Type



  • Flat Steel

  • Long Steel


Global Steel Market, By Product



  • Structural Steel

  • Prestressing Steel

  • Bright Steel

  • Welding Wire/Rod

  • Iron Steel Wire

  • Ropes

  • Braids


Global Steel Market, By Application



  • Building & Construction

  • Electrical Appliances

  • Metal Products

  • Welding Wire/Rod

  • Metal Products

  • Automotive

  • Domestic Appliances

  • Mechanical Equipment

  • Domestic Appliances

  • Others


Global Steel Market, By Region


North America

  • US

  • Canada


Europe

  • Germany

  • Russia

  • France

  • Italy

  • UK

  • Spain

  • Poland

  • The Netherlands

  • Belgium

  • Rest of Europe


Asia Pacific

  • China

  • India

  • Japan

  • Australia & New Zealand

  • Indonesia

  • South Korea

  • Rest of Asia Pacific


Latin America

  • Brazil

  • Mexico

  • Argentina

  • Rest of Latin America


Middle East & Africa

  • Turkey

  • Saudi Arabia

  • UAE

  • Iran

  • Rest of Middle East & Africa


Available Additional Customizations


Company Profiles of Other Key Players

  • Jianlong Group

  • Maanshan Steel

  • Thyssenkrup

  • JFE Steel Corporation

  • JSW Steel Limited

  • Essar Steel

  • SAIL

  • Benxi Steel

  • Novolipetsk Steel

  • Gerdau S.A.


Steel Spot Pricing Raw Material Analysis

Intended Audience



  • Steels Manufacturers

  • Suppliers and Traders

  • Government, Associations, and Industrial Bodies

  • Investors and Trade Experts



Report Scope:
Report Attribute/Metric Details
  Market Size

  • 2023: USD 963.6 billion
  • cc2027: Significant Value
  •   CAGR   2.5% (2017-2023)
      Base Year   2019
      Forecast Period   2020-2027
      Historical Data   2018
      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   
      Key Market Drivers   


    Frequently Asked Questions (FAQ) :


    The global steel market is set to touch USD 963.6 billion by 2027.

    The global steel market is expected to expand at 2.5% CAGR from 2019 to 2027.

    Rise of infrastructural projects in commercial and residential sectors is the major driver of the global steel market.

    The APAC region can dominate the global steel market to touch USD 651.5 billion by 2023.

    China Baowu Group, NSSMC Group, POSCO, Nucor Corporation, Hyundai Steel Company, Shangang Group, ArcerolMittal, China Steel Company, HBIS Group, and Tata Steel Group are major players of the global steel market.