The Steel Processing Market value was $578.5 billion in 2030, and it is expected to grow at a CAGR rate of 2% during the forecast period.
The steel processing market is expected to gain a market value of USD 578,500 million by 2030 at a CAGR of 2% over the forecast period of 2022-2030.
Steel processing is a procedure of producing steel by taking the nitrogen, carbon, silicon, and phosphorus impurities out of the iron ore. These impurities may hamper the quality of steel. Alloying elements such as nickel, manganese, and chromium are added to the steel processing method to increase the quality and tensile strength. Steel is ideal for various industries, including automotive, defense, and aerospace, among other sectors, for its great flexibility, strength, and high welding capability.
Worldwide steel production was temporarily stopped due to the implementation of social separation rules and lockdown measures. The pandemic has significantly impacted the building industry, which has cut steel demand and negatively impacted the market for steel processing. Additionally, the automotive industry also faced major trouble. Due to the lockdown and workforce scarcity, the manufacturing of automobiles dropped suddenly. The automobile industry is a significant consumer of steel, and the decline in car manufacturing was impeding the expansion of the market for steel processing.
Steel is used widely in the construction industries for railway tracks, roads construction, bridges, and others due to its the high-strength. It is also used in the building of commercial and residential properties, and it is one of the major drivers in the steel processing market outlook. Additionally, steel is also highly used in the automotive sector for building different parts. In 2018, the total consumption of steel was 1,712 MT. Due to the high demand of the automotive sector worldwide, the use of steel is also increasing, and it is boosting the steel processing market trends. Steel is also used in the production of aerospace and automotive defense due to its high welding capacity. The wide range of applications will also propel the market outlook demand. The rising urban pollution needs steel products, and the use of steel material in consumer goods will boost the market outlook.
The economic development and the changing lifestyle of people have a positive effect on the steel processing market. The increasing per capita income of people will generate more opportunities for the market. Apart from that increasing number of industries, especially in the developed countries, will bring opportunities for the market.
The fluctuation in the price of steel may hamper the growth of the steel processing market during the forecast period. There are many regulations on the raw materials used in the production of steel, and it is one of the major restraints in the market.
The substitute of steel has become one of the major challenges for the steel processing market. The extraction of impurities can be a complex process, and the lack of knowledge about the process is another challenge in the market. The key players are trying their best to overcome these challenges.
The various application of steel in various end-use industries, and the adoption of steel in the production process, and the construction work will boost the steel processing market forecast period. The market is expected to register a CAGR of 2% in the market forecast period.
The steel processing market has been segmented on the basis of steel type, steel shape, application and end-use.
On the basis of steel type, the steel processing market is divided into alloy steel and carbon steel. The carbon steel segment is expected to dominate the market demand in the forecast period because of its high strength. Carbon steel is used in bridges, roads construction, railway tracks, and others.
On the basis of steel shape, the steel processing market is divided into flat steel, long steel, tubular steel. Long steel was responsible for the highest market share, and it is expected to dominate the market forecast period due to its wide use in energy, shipping, construction, housing, packaging, automotive, and consumer appliances.
By application, the market is segmented into steel strips, steel wires, billets, and others.
On the basis of end-use, the steel processing market is divided into shipping, construction, packaging, housing, automotive, consumer goods, and others. The construction segment is expected to register the highest CAGR in the forecast period due to rapid urbanization. Steel is also used in the automotive sectors, ships due to its mechanical properties.
The major regions in the steel processing market are North America, Asia Pacific, the Middle East & Africa, and Europe. The Asia- Pacific accounted for the highest steel processing market share in the year 2018, and it is expected to dominate the market forecast period as well. The rapid urbanization and rapid growth of the automotive sector in this region are driving the market. In 2018, India was a big consumer of steel, and according to the Indian Brand Equity Foundation (IBEF), the production of steel in India was 106.5 Mt. North America is responsible for the second-highest market share due to the presence of big defense & aerospace industries and automotive industries. These sectors require a different type of steel; as a result, the market in this region is growing at a rapid speed. Europe also holds high shares in the market, which is due to the strict government's rules and adoption of steel due to low carbon emission. The steel processing market in the Middle East & Africa will show moderate growth due to growing construction activities. The market will grow more in all the regions in the future with the growing demand for steel.
The major key players in the steel processing market:
This global steel processing market report is based on the qualitative and quantitative analysis of the market. This report highlights the market on the market overviews, covid-19 analysis, market dynamics, and steel processing market analysis. This market also shows the regional analysis, competitive landscape, and recent development of the market.
By Steel Type
By Steel Shape
|Market Size||2030: USD 578,500 Million|
|CAGR||2% ( 2022-2030)|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||material type, product type, application, end-use industry, and region|
|Geographies Covered||Asia-Pacific, North America, Latin America, Europe, and Middle East & Africa|
|Key Vendors||SAIL (India), ThyssenKrupp AG (Germany), SHAGANG GROUP Inc. (China), Severstal PAO (Russia), HBIS GROUP (China), Hyundai Steel (South Korea), Bridon-Bekaert (UK), KOBE STEEL, LTD. (Japan), Maanshan Iron & Steel Company Limited (China), Tata Steel (India), United States Steel (US), ArcelorMittal (Luxembourg), Baosteel Group (China), Gerdau S/A (Brazil), JFE Holdings (Japan), and NIPPON STEEL CORPORATION (Japan).|
|Key Market Opportunities||The rapid growth of industries, and urbanization, and leading consumption of steel in construction and building|
|Key Market Drivers||The increasing application of steel in our daily lives. Steel is produced with a combination of iron, carbon, and alloy melting in the right proportion.|
The steel processing market is predicted to grow at a 2% CAGR between 2022-2030.
Asia-pacific holds the highest share in the steel processing market outlook.
It has extensive applications in consumer goods, automotive, marine, aerospace and defense, and building and construction.
Rapid urbanization and industrialization, innovations in steel production, and wide application in different end use industries is boosting market growth.
Fluctuating cost of steel may limit the steel processing market growth.
Hyundai Steel (South Korea), Bridon-Bekaert (UK), KOBE STEEL, LTD. (Japan, United States Steel (US), ArcelorMittal (Luxembourg), Baosteel Group (China), Gerdau S/A (Brazil), Maanshan Iron & Steel Company Limited (China), AIL (India), ThyssenKrupp AG (Germany), SHAGANG GROUP Inc. (China), Severstal PAO (Russia), HBIS GROUP (China), Tata Steel (India)JFE Holdings (Japan), are the major key players in the steel processing market.