The global steel market size reached USD 1,823.5 billion in 2022. Over the forecast period, global steel demand is anticipated to rise at 4.4% CAGR. Total market revenue is set to increase from USD 1,893.9 billion in 2023 to USD 2,901.9 billion in 2033.
Demand for steel is projected to remain high in the building & construction. The latest steel market analysis predicts the target segment to grow with a CAGR of 3.8% during the assessment period.
| Attributes | Key Insights |
|---|---|
| Steel Market Size in 2022 | USD 1,823.5 billion |
| Estimated Steel Market Value (2023) | USD 1,893.9 billion |
| Projected Steel Market Revenue (2033) | USD 2,901.9 billion |
| Value-based Steel Market CAGR (2023 to 2033) | 4.4% |
| Collective Value Share: Top 5 Countries (2023E) | 56.2% |
Don't pay for what you don't need
Customize your report by selecting specific countries or regions and save 30%!
Market to Expand Nearly 1.5X through 2033
The global steel industry is set to expand around 1.5X through 2033, amid a 3.4% rise in anticipated CAGR compared to the historical one. The growth in the steel market will likely be propelled by factors like:
East Asia to Remain the Hotbed for Steel Manufacturers
East Asia is expected to retain its dominance in the global steel market during the forecast period. It is set to hold around 42.3% of the global market share in 2033. This is attributed to the following factors:
As per the report, carbon steel segment is expected to dominate the global steel market with a volume share of about 30.9% in 2023. Tool steel, on the other hand, is anticipated to witness a higher demand, rising at 5.2% CAGR during the forecast period.
Carbon steel can be manufactured using processes that have lower carbon footprints. This is expected to encourage their adoption. End users are shifting their preferences toward carbon steel due to low carbon emissions.
Growing usage of carbon steel in construction, automotive, and other applications is expected to boost sales. The versatility, strength, machinability, formability, and recyclability features of carbon steel will further expand its application area. This will prompt steel manufacturers to expand their carbon steel product portfolio.
Principal Consultant
Steel is gaining immense traction due to its high strength, lightweight, versatility, and cost-effectiveness. Its growing usage across diverse industries, including building & construction and shipbuilding, is expected to boost growth of the steel market.
Steel is an indispensable material in the realm of building and construction sector. It finds extensive applications in several components due to its exceptional properties, thereby fueling its demand.
In vehicle manufacturing, steel is widely employed for structural components, including the chassis, frame, and body. This is due to its ability to withstand impact forces and enhance overall safety. Steel components also contribute to light-weighting efforts, improving fuel efficiency and reducing emissions without compromising safety standards.
Steel is preferred for ship hulls, offshore platforms, and marine structures in shipbuilding and marine applications. This is due to its corrosive resistant nature with extraordinary endurance.
Steel is utilized in landing gear, engine parts, and aircraft structures in the aerospace industry, where stringent specifications for performance are essential. Steel's beneficial strength-to-weight ratio is important to achieving the goals of the aerospace industry.
Storage tanks, drilling equipment, and pipeline construction all require steel because of its high-pressure tolerance and resistance to corrosion. Steel is a preferred material that is durable in the harsh conditions of the oil and gas and energy sectors.
Steel's robust properties ensure the integrity and safety of critical infrastructure. It is used in the construction of power plants, transmission towers, and renewable energy infrastructure, which helps the energy sector generate and distribute electricity.
Steel is an ideal material for making consumer appliances, cutting tools, and agriculture equipment. This is because of its exceptional properties that cater to the unique demands of each industry.
In consumer appliances, steel's durability, corrosion resistance, and heat tolerance make it an ideal choice for manufacturing several components. For instance, it is widely used in refrigerator casings, washing machine drums, and oven interiors, ensuring longevity and reliability in household devices.
Steel's high machinability makes it an ideal material for cutting tools, where precision and durability are critical. From drill bits to saw blades, the hardness and wear resistance of steel enhance the cutting efficiency and lifespan of these tools.
In agriculture equipment, where ruggedness and reliability are paramount, steel is utilized for manufacturing components like plow blades, tractor frames, and harvesting equipment. Thanks to these wide applications, steel manufacturing and distribution is becoming a highly lucrative business globally.
Global sales of steel grew at a CAGR of 1.0% historically, totaling USD 1,823.5 billion in 2022. In the forecast period, the worldwide steel industry is set to thrive at a CAGR of 4.4%.
| Historical CAGR (2018 to 2022) | 1.0% |
|---|---|
| Forecast CAGR (2023 to 2033) | 4.4% |
The global steel industry witnessed steady growth between 2018 and 2022. This was due to increased demand from building, consumer electronics, and automotive sectors.
The COVID-19 pandemic caused a significant downturn in the global steel market, leading to decreased demand, production cuts, and disrupted supply chains. Lockdowns and economic uncertainties resulted in reduced consumption, impacting industries such as construction and automotive.
Future Scope of the Steel Market
Over the forecast period, the global steel market is poised to exhibit healthy growth, reaching a valuation of USD 2,901.9 billion by 2033. This is due to several factors, including increasing demand for downstream products, technological advancements in production processes, a shift toward sustainability, and the robust expansion of end-use industries.
Get the data you need at a Fraction of the cost
Personalize your report by choosing insights you need
and save 40%!
Infrastructure Investment Fueling the Global Steel Industry
Infrastructure investment is a powerful driver in the global steel market. This driver stems from urbanization, population growth, and government initiatives to enhance transportation, utilities, and public facilities.
With its exceptional strength, durability, and versatility, steel plays a central role in construction projects, including bridges, roads, buildings, and energy infrastructure. The demand for steel is rising as countries seek to modernize and expand their infrastructure to accommodate growing populations and support economic development.
Governments worldwide recognize the importance of robust infrastructure in promoting economic growth, job creation, and overall prosperity. Therefore, they allocate substantial resources to infrastructure development, resulting in sustained steel demand and supply.
Automotive Industry Transforming the Global Steel Market
As governments worldwide implement stricter emissions regulations and consumers embrace environmentally friendly transportation, EV adoption is on the rise. EVs rely on advanced high-strength steel for safety and structural integrity, creating substantial demand for these specialized steel products.
Light-weighting has become a central focus in the automotive sector. Reducing a vehicle's weight improves fuel efficiency and battery life in EVs. Automakers employ advanced high-strength steel and alloys to achieve this, further propelling steel demand.
The automotive industry continually introduces new safety features, infotainment systems, and autonomous driving technologies, all requiring specialized steel components. Steel is essential for building these advanced systems, positioning it as a central component in modern vehicles.
Global Economic Conditions Steering the Global Steel Market
Global economic conditions are instrumental in directing the global steel market. These conditions include GDP growth, industrial production, trade policies, and regional market stability. Understanding the impact of these economic drivers is vital in predicting steel consumption and production levels.
Economic growth often translates into increased steel demand. During periods of economic prosperity, construction, manufacturing, and infrastructure projects expand. These projects rely heavily on steel, which bolsters demand for the metal. For instance, new buildings and infrastructure construction are particularly robust during economic upturns, and steel is a fundamental component in these projects.
On the flip side, economic downturns can lead to reduced steel demand. In times of recession or financial instability, construction projects may be postponed or canceled, and industrial output can decline. This demand reduction can create overcapacity issues in the steel industry, causing price fluctuations and potential financial challenges for steel producers.
Environmental Regulations and Sustainability Fostering Growth
Environmental regulations and the broader trend toward sustainability are increasingly influential drivers in the global steel market. A growing international awareness of the ecological impact of industrial activities and the necessity of sustainable practices propels these drivers.
Stringent environmental regulations mandate reduced carbon emissions, water use, and waste generation in the steel industry. These regulations are pushing steel manufacturers to adopt cleaner production methods. For instance, electric arc furnaces and hydrogen-based steelmaking methods produce fewer greenhouse gas emissions than traditional blast furnaces.
Adoption of cleaner technologies not only helps companies comply with regulations but also position them favorably in a market where sustainability is a growing priority. This will benefit the overall growth of the market.
Overcapacity and Market Volatility Restraining the Steel Market
One significant restraint in the global steel market is the issue of overcapacity. This overcapacity is primarily driven by increased production capacity in several countries, often exceeding demand.
When the steel supply surpasses demand, it can lead to price volatility and market instability. Oversupply puts downward pressure on steel prices, which can negatively impact steel producers' profitability.
The table below highlights key countries’ steel market revenues. China, Japan, and the United States are expected to remain the top three consumers of steel, with expected valuations of USD 794.4 billion, USD 304.9 billion, and USD 271.6 billion, respectively in 2033.
| Countries | Steel Market Revenue (2033) |
|---|---|
| United States | USD 271.6 billion |
| Germany | USD 105.8 billion |
| China | USD 794.4 billion |
| Japan | USD 304.9 billion |
| South Korea | USD 129.0 billion |
| India | USD 167.4 billion |
The below table shows the estimated growth rates of the top five countries. India, South Korea, and Japan are set to record higher CAGRs of 5.2%, 5.8%, and 5.2%, respectively, through 2033.
| Countries | Projected steel CAGR (2023 to 2033) |
|---|---|
| United States | 3.3% |
| Germany | 2.4% |
| China | 4.6% |
| Japan | 5.2% |
| South Korea | 5.8% |
| India | 5.2% |
The United States steel market is projected to reach USD 271.6 billion by 2033. Over the assessment period, demand for steel in the United States is set to rise at 3.3% CAGR.
Several factors are expected to drive growth in the United States steel industry. These include the country’s expanding automotive and construction sectors and growing demand for lightweight materials.
There is an evident rise in the automobile industry, which is increasing demand for steel-intensive components, including engine parts, body frames, and chassis. Environmental rules, customer preferences, and technical improvements are driving the motor vehicle industry's rising production.
With rising popularity of electric vehicles, demand for steel in battery casings and other vehicle components will rise rapidly. This is expected to improve the United States steel market share.
Leading manufacturers are expected to cater to the needs of these industries by providing high-quality steel that meets the specific requirements of each sector. This will help them to boost their revenue and expand their customer base.
Due to several key factors, such as rising industrialization, urbanization, and massive infrastructure projects, steel will likely experience high demand in China. China's rapid urbanization, solid industrial growth, and huge infrastructure projects have kept it at the forefront of the global steel industry.
China drives the steel market by producing items that use steel as a critical commodity. Government initiatives like infrastructure programs and stimulus packages further increase steel demand.
Steel sales in China are projected to soar at a CAGR of around 4.6% during the assessment period. The total valuation in the country is anticipated to reach USD 794.4 billion in 2033.
India presents a promising new market for steel manufacturers due to several factors. The country is experiencing growth in building & construction, automotive, and railway sectors, leading to increased steel requirements.
The robust growth in infrastructure development, driven by increased urbanization and government initiatives, as well as the thriving automotive industry, underscores the pivotal role of steel in these sectors. This is expected to boost market revenue in India during the forecast period.
The government's focus on initiatives like "Make in India" and "Smart Cities" has triggered a surge in construction activities. This, in turn, is creating demand for substantial quantities of steel for buildings, roads, and bridges.
Increasing investments in the renewable energy sector, such as solar and wind power projects, are expected to present additional avenues for steel companies. The government's promotion of electric cars also fits in with the steel-heavy character of the automobile industry, which opens up new opportunities for the steel sector.
The steel market value in India is anticipated to total USD 167.4 billion in 2033. Over the forecast period, steel demand in the country is set to increase at a CAGR of 5.2%.
Japan steel market is poised to exhibit a CAGR of 5.2% during the assessment period. It is expected to attain a market valuation of USD 304.9 billion by 2033. This is attributable to rising demand for steel in the automotive and building sectors and increasing government support.
Japan is home to key steel producers, including Nippon Steel Corporation, JFE Steel Corporation, and Kobe Steel. These companies produce several types of steel, including carbon steel, stainless steel, and specialty steel products.
Japanese steelmakers are known for their focus on technological advancements and innovation in steel production processes. This has helped them maintain a competitive edge in the global market.
Japan has implemented policies supporting the development and adoption of electric vehicles (EVs). As the automotive industry undergoes a transformative shift towards electrification, the demand for steel in the production of electric vehicles, including battery casings and lightweight components, is expected to surge.
As per the latest report, South Korea is expected to register a CAGR of 5.8% during the forecast period. This is due to rising usage of steel in industries like automotive, consumer appliances, and industrial machinery.
Growing focus on sustainability and rising popularity of carbon steel will also boost Korea market. There has been a growing emphasis on sustainability and environmental regulations in recent years. Steelmakers in South Korea, as in other parts of the world, are increasingly adopting measures to reduce their carbon footprint and enhance environmental performance.
The below section shows the carbon steel segment dominating steel type. It is forecast to thrive at 3.8% CAGR between 2023 and 2033. Based on end use, building and construction segment is anticipated to hold a dominant share through 2033. It is set to exhibit a CAGR of 3.8% during the forecast period.
| Top Segment (Steel Type) | Carbon Steel |
|---|---|
| Predicted CAGR (2023 to 2033) | 3.8% |
Based on steel type, the global steel market is segmented into alloy steel, stainless steel, carbon steel, tool steel, austenitic stainless steel, and others. Among these, end users prefer carbon steel owing to its several advantages.
Carbon steel is widely used in construction, automotive, shipbuilding, oil & gas and energy sectors. Its high strength, durability, and versatile properties make it an ideal material for structural components, ensuring the integrity of buildings, bridges, and other infrastructure.
Automobile manufacturers are increasingly using carbon steel for producing different vehicle components. Rising usage of carbon steel for automotive component making, structural frameworks, staircases & handrails, rail tracks, etc., is set to boost the target segment. Over the forecast period, demand for carbon steel is projected to rise at a CAGR of 3.8%.
| Top Segment (End Use) | Building and Construction |
|---|---|
| Predicted CAGR (2023 to 2033) | 3.8% |
The building and construction segment commands a substantial 42.6% share of the global steel market. This is primarily due to the sector's robust demand for steel products in the development of infrastructure, residential, and commercial projects.
Steel's durability, structural strength, and versatility make it a preferred material for constructing buildings and bridges. As a result, the building and construction segment is projected to thrive at 3.8% CAGR during the forecast period.
The global steel industry is moderately consolidated, with leading players accounting for around 65 to 70% industry share of steel. Baowu Steel Group Corporation Limited, ArcelorMittal, Nippon Steel Corporation, and Thyssenkrupp AG are the leading manufacturers and suppliers of steel listed in the report.
Key steel companies are investing in continuous research to produce improved materials and increase their production capacity to meet end-user demand. Leading players are inclined toward adopting strategies, including acquisitions, distribution agreements, partnerships, mergers, and facility expansions, to expand their footprint.
Recent Steel Market Developments -
| Attribute | Details |
|---|---|
| Estimated Market Size (2023) | USD 1,893.9 billion |
| Projected Market Size (2033) | USD 2,901.9 billion |
| Anticipated Growth Rate (2023 to 2033) | 4.4% |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Value (USD billion) and Volume (‘000 tons) |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Market Segments Covered | Steel Type, End Use, Region |
| Regions Covered | North America; Latin America; Western Europe; Eastern Europe; East Asia; South Asia Pacific; Middle East; Africa |
| Key Countries Covered | United States, Canada, Mexico, Brazil, Chile, Peru, Germany, Italy, France, United States, Spain, BENELUX, Russia, Poland, Hungary, Balkan and Baltics, China, Japan, South Korea, India, ASEAN, ANZ, KSA, United Arab Emirates, Iran, Turkiye, Egypt, Algeria, South Africa |
| Key Companies Profiled | Baowu Steel Group Corporation Limited; ArcelorMittal; Nippon Steel Corporation; Thyssenkrupp AG; Nucor Corporation; JFE Steel Corporation; Tata Steel Limited; Posco International; Cleveland-Cliffs Inc; EVRAZ Plc; Gerdau S.A.; Hyundai Steel Co; Jiangsu Shagang Group Co., Ltd.; United States Steel Corp.; Novolipetsk Steel; Severstal; Steel Authority of India Limited; JSW Steel Limited |
The global market was valued at USD 1,823.5 billion in 2022.
The global market value is set to reach USD 1,893.9 billion in 2023.
Global steel demand is anticipated to rise at 4.4% CAGR.
The global steel market size is set to reach USD 2,901.9 billion by 2033.
Building and construction is expected to lead the market during the forecast period.
Renewed focus on renewable energy projects boosts steel production for wind turbines.
1. Executive Summary 2. Market Overview 3. Key Market Trends 4. Key Success Factors 5. Global Market Demand Analysis 2018 to 2022 and Forecast, 2023 to 2033 6. Global Market - Pricing Analysis 7. Global Market Demand (in Value or Size in USD billion) Analysis 2018 to 2022 and Forecast, 2023 to 2033 8. Market Background 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 9.1. Carbon Steel 9.1.1. Low-Carbon Steel 9.1.2. Medium-Carbon Steel 9.1.3. High-Carbon Steel 9.2. Stainless Steel 9.3. Austenitic Stainless Steel 9.3.1. Ferritic Stainless Steel 9.3.2. Martensitic Stainless Steel 9.3.3. Others 9.4. Alloy Steel 9.4.1. High Strength Steel 9.4.2. Low Alloy Steel 9.5. Tool Steel 9.6. Others 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use 10.1. Building and Construction 10.1.1. Escalators and Lifts 10.1.2. Cladding 10.1.3. Frames and Supporting Rails 10.1.4. Piping 10.1.5. Plumbing and Drainage 10.1.6. Roofing 10.2. Automotive 10.2.1. Chassis 10.2.2. Automotive Body Parts 10.2.3. Others 10.3. Railways 10.4. Shipbuilding and Marine 10.5. Aerospace 10.6. Oil and Gas and Energy 10.7. Heavy Machinery and Equipment 10.8. Consumer Appliances 10.9. Cutting Tools and Agriculture Equipment 11. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Region 11.1. North America 11.2. Latin America 11.3. Western Europe 11.4. Eastern Europe 11.5. East Asia 11.6. South Asia Pacific 11.7. Middle East 11.8. Africa 12. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 13. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 14. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033 15. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033 16. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033 17. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033 18. Middle East Market Analysis 2018 to 2022 and Forecast 2023 to 2033 19. Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033 20. Country-wise Market Analysis 21. Market Structure Analysis 22. Competition Analysis 22.1. Baowu Group Corporation Limited 22.2. ArcelorMittal 22.3. Nippon Corporation 22.4. Thyssenkrupp AG 22.5. Nucor Corporation 22.6. JFE Corporation 22.7. Tata Limited 22.8. Posco International 22.9. Cleveland-Cliffs Inc 22.10. EVRAZ Plc 22.11. Gerdau S.A. 22.12. Hyundai Co 22.13. Jiangsu Shagang Group Co., Ltd. 22.14. United States Corp. 22.15. Novolipetsk Steel 22.16. Severstal 22.17. Authority of India Limited 22.18. JSW Limited 23. Assumptions and Acronyms Used 24. Research Methodology
Explore Chemicals & Materials Insights
View Reports
Steel Market
