The global sales of carbon steel stood at USD 1,050.8 billion in 2023. The industry is projected to exhibit a y-o-y growth of 3.6% in 2024 and reach USD 1,088.4 billion in the same year and surge at a CAGR of 4% between 2024 and 2034. The demand is estimated to reach USD 1,622.8 billion by 2034.
Low carbon steel, which contains a carbon content typically below 0.3%, is extensively utilized in various industries due to its superior versatility and advantageous properties. In the construction sector, it is commonly employed in the production of structural beams, reinforcing bars, and various components in building infrastructure.
| Attributes | Key Insights |
|---|---|
| Estimated Carbon Steel Market Size (2024E) | USD 1,088.4 billion |
| Projected Carbon Steel Market Value (2034F) | USD 1,622.8 billion |
| Value-based CAGR (2024 to 2034) | 4% |
The automotive industry utilizes low-carbon steel for the manufacturing of body panels and frames due to its ability to provide strength and formability.
In the consumer goods sector, the type of steel is favored for producing appliance casings and furniture due to its exceptional ductility, weldability, and malleability. Such characteristics make it well-suited for applications requiring easy shaping and forming without compromising strength, particularly in large-scale production processes.
As of 2024, low carbon content steel grade holds a prominent share of about 60.1% in terms of volume. The demand for low carbon content steel grade is anticipated to rise and is projected to witness a promising CAGR of 2.7% over the assessment period.
By 2034, the demand for carbon steel is estimated to rise to 1.4X of its present value on the back of a substantial surge in construction, automotive and infrastructure projects.
The ongoing tide of industrialization, especially in emerging economies has generated a greater need for sturdy and multi-purpose materials. Due to its advantageous properties, such as malleability, weldability and relative low cost, steady consumption of low carbon steel will likely be observed.
The construction sector is anticipated to use more steel for frameworks, reinforcing bars, and structural components as a result of the rising demand for homes and businesses.
Low-carbon steel is also set to be used in the automotive industry to meet high-strength requirements and facilitate efficient vehicle body production. The need for carbon steel in pipelines for oil and gas along with renewable energy infrastructure is estimated to rise in tandem with population expansion and surging energy consumption.
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The annual growth rates of the global carbon steel market from 2024 to 2034 are illustrated in the table below. Starting with the base year 2023 and going up to the present year 2024, the report examined how the industry growth trajectory changes from the first half of the year, i.e. January through June (H1) to the second half consisting of July through December (H2).
This gives stakeholders a comprehensive picture of the sector’s performance over time and insights into potential future developments.
The figures provided show the growth of the market for each half-year between 2023 and 2024. It was projected to report a CAGR of 3.5% in the first half (H1) of 2023. However, in the second half (H2), there is an increase in the growth rate with 3.7%.
| Particular | Value CAGR |
|---|---|
| H1 2023 | 3.5% (2023 to 2033) |
| H2 2023 | 3.7% (2023 to 2033) |
| H1 2024 | 3.9% (2024 to 2034) |
| H2 2024 | 4.1% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2024, the CAGR is projected to slightly decrease to 3.9% in the first half and relatively increase to 4.1% in the second half. In the first half (H1), the industry saw an increase of 40 BPS while in the second half (H2), there was a slight increase of 40 BPS.
Rising Demand in Building and Construction Cultivates the Industry
The fast expansion of infrastructure and urbanization in emerging economies, such as China, India, and Africa is anticipated to create prominent growth in the construction sector. Both public and private investors are estimated to make significant investments in brand-new infrastructure projects, such as the construction of homes, businesses, and factories, as well as high expenditures on transportation infrastructure.
Building materials, particularly low and medium-carbon steel, is vital for such innovations because of its strength, adaptability, and low cost.
A large amount of the need for contemporary construction is met by alloyed steel, which is frequently utilized to manufacture structural building components, including beams, angles, channels, and reinforcing bars. Consumption of carbon steel is estimated to propel the need for such materials in the building industry to rise in the projected period.
Expansion of the Automotive Industry Boosting Carbon Steel Usage for EVs
The growing demand for automobiles in North America, Western Europe, and East Asia is estimated to lead to a significant reliance on alloyed steel in the automotive industry for the production of vehicle components, such as engine parts, body frames, and chassis. Owing to its exceptional strength, affordability, and durability, carbon steel is foreseen to be the material of choice for creating lighter, more fuel-efficient automobiles.
The use of carbon steel in battery casings and associated components is envisioned to inflate along with the manufacturing of electric vehicles. The international development and launch of new car models are predicted to increase demand for carbon steel.
Growth in Oil and Gas and Energy Sectors Fuels Carbon Steel Demand
The oil and gas, as well as energy industries, are among the prime consumers of alloyed steel, as new infrastructure continues to be built up and existing ones are maintained regularly. Carbon steel, particularly medium and high carbon grades, is estimated to possess superior strength and durability coupled with better resistance to environmental conditions.
An increasing number of oil and gas exploration activities in the Middle East, Africa, and North America require massive amounts of alloyed steel for building pipelines and storage tanks. The rise in renewable energy projects, such as wind farms and solar power plants also consumes substantial quantities of alloyed carbon infused with steel for structural use as well as for galvanized steel utility components.
Volatility in Raw Material Prices Hinders Growth of the Market
The price volatility of raw materials including, coal, iron ore, and scrap steel, presents difficulties for the carbon steel industry. Demand variations, supply chain interruptions, environmental restrictions, and geopolitical concerns all affect prices on a global scale.
The impact on manufacturers' profit margins results in a drop in demand. In addition to causing uncertainty among key participants, price instability is estimated to avert the market from developing in the projected period.
Stringent Environmental Regulations to Restrain Growth Worldwide
The steel industry is among the most prominent contributors to industrial carbon emissions, and governments across the world are imposing increasing regulations to curb the environmental impact of steel production.
Compliance with these mandatory regulations demands substantial investments in new technologies, such as carbon capture and storage (CCS), energy-efficient production process, and waste management systems that can be high priced for moderate or small scale manufacturers.
It is anticipated to increase operation costs and lower competition. Growing pressure from environment-friendly alternatives is set to hamper growth potential in the years to come.
Principal Consultant
The global carbon steel industry recorded a CAGR of 1.3% during the historical period between 2019 and 2023. The growth of the industry was positive as it reached a value of USD 1,050.8 billion in 2023 from USD 994.5 billion in 2019.
During the historical period, the industry experienced significant fluctuations due to economic qualms. The global economy encountered several challenges, such as trade disputes, currency fluctuations, and geopolitical conflicts impacting industries dependent on these compounds.
The COVID-19 pandemic disrupted global supply chains and industrial activities, causing a temporary downturn in the carbon steel industry, and leading to delays and reduced manufacturing capacity. Lockdowns and restrictions impacted transportation and logistics, making it difficult to maintain regular supply and distribution channels.
Decreased industrial activities and demand fluctuations in key end-use industries such as automotive, construction, and paints and coatings made the situation further challenging for key participants. The industry demonstrated resilience post the crisis period with slow but steady recovery being evidenced with easing of lockdowns globally and changes being incorporated within supply chains as part of new normal.
Once economic activity reaches pre-crisis levels, industrial activity is anticipated to reach its trend performance after a delay of 3 years, growing for the following 4 years before stabilizing post-2030. The demand pattern is anticipated to reflect the same trend during the period.
Tier 1 companies include industry leaders with annual revenues above USD 35,000 million. These companies are currently capturing a significant share of 65% to 70% globally. These frontrunners are characterized by high production capacity and a wide product portfolio.
They are distinguished by extensive expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base. The firms provide a wide range of products and utilize the latest technology to meet regulatory standards.
Prominent companies within Tier 1 include Baowu Steel Group Corporation Limited, Nippon Steel Corporation, ArcelorMittal, Nucor Corporation, Thyssenkrupp AG, Nucor Corporation, and JFE Steel Corporation among others.
Tier 2 companies encompass mid-sized participants with revenues ranging from USD 120,000 to USD 30,000 million, holding a presence in specific regions and exerting significant influence in local economies. These firms are distinguished by their robust presence overseas and in-depth industry expertise.
They possess strong technology capabilities and adhere strictly to regulatory requirements. However, the firms may not wield cutting-edge technology or maintain an extensive global reach. Noteworthy entities in Tier 2 include Tata Steel Limited, Posco International, Cleveland-Cliffs Inc., and a few others.
Tier 3 encompasses most of the small-scale enterprises operating within the regional sphere and they cater to specialized needs with revenues up to USD 20,00 million. These businesses are notably focused on meeting local demand and are hence categorized within the Tier 3 segment.
They are small-scale participants with limited geographical presence. In this context, Tier 3 is acknowledged as an informal sector, indicating a segment distinguished by a lack of extensive organization and formal structure in comparison to the structured one. These companies are mostly domestic players with small-scale production capacities and heavily reliant on intra-region trade and domestic demand.
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The section covers assessments of carbon steel sales across key countries. Countries from East Asia and North America are anticipated to exhibit promising double-digit growth over the forecast period. All the below-listed countries are collectively set to reflect a CAGR of around 4% through the forecast period.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| United States | 4.6% |
| South Korea | 4.5% |
| Japan | 3.9% |
| India | 3.8% |
| China | 3.4% |
The United States is projected to surge at a CAGR of 4.6% from 2024 to 2034, with sales estimated to reach USD 91,523.5 million by 2034. The country is envisioned to augment, particularly in the oil and gas and energy sectors. The growing demand for steel with carbon in pipelines, drilling equipment, and storage tanks is anticipated to be compelled by shale gas exploration and new drilling technologies.
The government's focus on energy independence and the resurgence of domestic manufacturing industries are predicted to propel demand for steel with carbon. Renewable energy projects like wind farms and solar power plants also demand more carbon steel for structural components and support systems.
As manufacturers in the United States are estimated to invest in energy infrastructure and develop their oil and gas resources, the need for carbon alloyed steel is predicted to evolve in the projected period.
South Korea is projected to surge at a CAGR of 4.5% from 2024 to 2034, with sales envisioned to reach USD 77,574.8 million by 2034. Being a global leader in shipbuilding and marine industries, the demand for alloyed steel in South Korea is highly dependent on these sectors. Billions of tons of high-strength carbon steel are used by local shipbuilders to fabricate offshore platforms, hulls, and structures.
Large commercial ships, maritime constructions, and offshore oil rigs have been more and more in demand in the last several years. The nation's emphasis on exporting top-notch vessels and marine gear maintains a steady demand for steel infused with carbon. The future of the industry is anticipated to be pushed by the shipbuilding sector in South Korea due to rising endeavors for energy exploration.
In the forecast period, the industry in Japan is predicted to rise steadily at a CAGR of 3.9% and attain a total worth of USD 80,635 million by 2034. The automotive industry and industrial sector are estimated to propel growth of the country’s carbon steel industry. Japan uses advanced high-strength steels (AHSS), which are lightweight yet impact-resistant, to make high-quality, precisely built automobiles and machinery and this increases vehicle safety.
The economy of Japan is anticipated to be helmed by the automobile sector, which uses these classifications for safety and fuel efficiency. The robust manufacturing sector of the country assures the use of common applications, such as industrial tools and other machinery and equipment.
The ongoing need for high-strength steel in the aforementioned industries is fueled by Japan's emphasis on quality, innovation, and high-value industrial and automotive goods, which is propelling expansion.
The section explains the growth trajectories of the leading segments in the industry. In terms of carbon content, the low carbon content steel category will likely dominate and generate a share of around 58.2% in 2024.
Based on end-use, the building and construction segment is projected to hold a share of 18.9% in 2024. The analysis would enable potential clients to make effective business decisions for investment purposes.
| Segment | Low Carbon Content Steel (Carbon Content) |
|---|---|
| Value Share (2024) | 58.2% |
The low-carbon content steel segment is forecast to attain a value share of 58.2% in 2024. This growth is anticipated to be driven by its extensive application across several industries due to its excellent ductility, weldability, and cost-effectiveness.
In the construction industry, the rising demand for affordable and durable materials for infrastructure projects, such as residential buildings, bridges, and road networks, fuels the growth of the low-carbon content steel segment.
The automotive sector’s increasing focus on producing lightweight yet strong vehicle components also contributes to the demand for low carbon steel. Its versatility makes it suitable for manufacturing a wide range of products, including pipes, structural beams, and sheets, which are essential in both industrial and consumer applications.
| Segment | Building and Construction (End Use) |
|---|---|
| Value Share (2024) | 18.9% |
The building and construction segment, with a projected value share of 18.9% in 2024, is poised to significantly impact the global industry. Global infrastructure development, particularly in developing nations like China, India, and Africa, is estimated to propel demand for steel with carbon in the building and construction sector.
Governments and private investors are anticipated to invest heavily in large-scale infrastructure projects, including residential, commercial, and industrial buildings. The demand for modern, sustainable urban spaces necessitates durable, versatile, and cost-effective materials, positioning shear steel as the preferred material for structural components.
The construction industry is anticipated to experience a surge in demand for smart cities and green building materials, making the building and construction segment poised to dominate on the global scale.
The section provides comprehensive assessments and insights that highlight current opportunities and emerging trends for companies in developed and developing countries. It analyzes innovations in manufacturing and identifies the latest trends poised to drive new applications in the industry.
A few key players in the carbon steel industry are actively enhancing capabilities and resources to cater to the growing demand for the compound across diverse applications. Leading companies also leverage partnership and joint venture strategies to co-develop innovative products and bolster their resource base.
Significant players are further introducing new products to address the increasing need for cutting-edge solutions in various end-use sectors. Geographic expansion is another important strategy that is being embraced by reputed companies. Start-ups are likely to emerge in the industry through 2034, thereby making it more competitive.
Industry Updates
In terms of carbon content, the industry is divided into low, medium, and high-carbon-content steel.
In terms of product type, the industry is divided into flat product types (galvanized corrugated sheets, hot roll coils, cold roll sheets, pipes, electrical sheets, tin plates, hot roll plates, and plates) and long product types (bars and rods, steel structural, and railway material).
In terms of end-use, the industry is divided into building and construction, automotive, railways, shipbuilding and marine, aerospace, oil and gas and energy, heavy machinery and equipment, consumer appliances, and, cutting tools and agriculture equipment.
Key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, and the Middle East and Africa have been covered in the report.
The global market was valued at USD 1,050.8 million in 2023.
The global market is set to reach USD 1,088.4 million in 2024.
Global demand is anticipated to rise at 4% CAGR.
The industry is projected to reach USD 1,622.8 million by 2034.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Carbon Content 6.2. Product Type 6.3. End Use 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Carbon Content 7.1. Low Carbon Content Steel 7.2. Medium Carbon Content Steel 7.3. High Carbon Content Steel 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Product Type 8.1. Flat Product Type 8.1.1. Galvanized Corrugated Sheets 8.1.2. Hot Roll Coils 8.1.3. Cold Roll Sheets 8.1.4. Pipes 8.1.5. Electrical Sheets 8.1.6. Tin Plates 8.1.7. Hot Roll Plates 8.1.8. Plates 8.2. Long Product Types 8.2.1. Bars & Rods 8.2.2. Steel Structural 8.2.3. Railway Material 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use 9.1. Building & Construction 9.2. Automotive 9.3. Railways 9.4. Shipbuilding & Marine 9.5. Aerospace 9.6. Oil & Gas and Energy 9.7. Heavy Machinery & Equipment 9.8. Consumer Appliances 9.9. Cutting Tools & Agriculture Equipment 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 10.1. North America 10.2. Latin America 10.3. Western Europe 10.4. South Asia 10.5. East Asia 10.6. Eastern Europe 10.7. Middle East & Africa 11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. Sales Forecast 2024 to 2034 by Carbon Content, Product Type, and End Use for 30 Countries 19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 20. Company Profile 20.1. ArcelorMittal 20.2. Baowu Steel Group Corporation Limited 20.3. Nippon Steel Corporation 20.4. Thyssenkrupp AG 20.5. Nucor Corporation 20.6. JFE Steel Corporation 20.7. Tata Steel Limited 20.8. Posco International 20.9. Cleveland-Cliffs Inc 20.10. EVRAZ Plc 20.11. Gerdau S.A. 20.12. Hyundai Steel Co 20.13. Jiangsu Shagang Group Co., Ltd. 20.14. United States Steel Corp. 20.15. Novolipetsk Steel 20.16. Severstal 20.17. Steel Authority of India Limited 20.18. JSW Steel Ltd.
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Carbon Steel Market
