ID: MRFR/CnM/1598-HCR | February 2021 | Region: Global | 113 pages
The Steel Processing Market value was $578.5 billion in 2018, and it is expected to grow at a CAGR rate of 2% during the forecast period.
Steel processing is a method of producing steel materials by removing the impurities from it like nitrogen, carbon, silicon, and phosphorus from the iron ore. These impurities can decrease the quality of the steel. In the steel processing method, alloying elements like nickel, manganese, chromium are added that improves the quality and strength of the steel. Steel offers high strength, flexibility, and high welding capacity that is perfect for a wide range of sectors such as automotive, marine, defense, and aerospace.
The steel processing market will see significant growth over the forecast period due to 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 rapid growth of industries, and urbanization, and leading consumption of steel in construction and building driving the steel processing market growth. Increasing the use of steel in the end-use industries also boost the steel processing market size. Steel also has properties like welding ability, high ductility, high strength, and anti-corrosive that makes it useful for many applications.
Despite the economic slowdown in the year 2007-2009, the steel processing market has shown great results. The market has gained momentum from the consumer appliances, automotive, and construction sectors. The construction sector plays a huge role in the growth of the steel processing market. Steel is widely used in the construction work of buildings, roads, bridges, and many more; apart from that, steel has many applications in various industries and the production of many machines for industries. The automotive sector also uses steel for the manufacturing process. Due to various use of steel in different sectors, the steel processing market will show promising results in the forecast period.
The outbreak of coronavirus was first started in Wuhan city, and now it has spread across the world. Now it has become a major concern for all countries. Governments around the world have imposed temporary lockdown in the country. Due to the imposition of lockdown and social distancing guidelines, the production works are on a halt across all industries worldwide. The construction work has been highly affected due to the pandemic; due to this, the demand for steel in the construction sector has decreased, which had a negative impact on the steel processing market. Apart from the construction sector, the automotive sector is struggling as well. The productions of vehicles have decreased due to a shortage of laborers and lockdown. The automotive sector is a huge consumer of steel, and the reducing production of vehicles is hampering the growth of the steel processing market. The key players played a huge role in keeping the steel processing market growth stable.
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 steel processing market outlook demand. The rising urban pollution needs steel products, and the use of steel material in consumer goods will boost the steel processing 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 steel processing market. Apart from that increasing number of industries, especially in the developed countries, will bring opportunities for the steel processing 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 steel processing 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 steel processing market is expected to register a CAGR of 2% in the steel processing 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 steel processing market share, and it is expected to dominate the steel processing market forecast period due to its wide use in energy, shipping, construction, housing, packaging, automotive, and consumer appliances.
By application, the steel processing 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 steel processing market forecast period as well. The rapid urbanization and rapid growth of the automotive sector in this region are driving the steel processing 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 steel processing 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 steel processing 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 steel processing market. This report highlights the steel processing market on the market overviews, covid-19 analysis, market dynamics, and steel processing market analysis. This steel processing market also shows the regional analysis, competitive landscape, and recent development of the market.
By Steel Type
By Steel Shape
|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.|
Frequently Asked Questions (FAQ) :
The steel processing market is predicted to grow at a 2% CAGR between 2019-2025.
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.