Steel Market Size

Steel Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

Steel is a comparatively recent discovery, and has only recently been used in a large extent in the United States, in a form which is comparatively unknown to the rest of the world. The market is a very large one, and is increasing rapidly, the total value of the market in 2024 being expected to be about $ 969,696,000,000. The annual growth of this market is estimated at about 1.96% between 2025 and 2035. Steel is used in many different industries, but the main ones are construction, automobiles, and the construction of railways and other public works, especially in the developing countries. There are many advances in the steel industry, such as the electric arc furnace and the new processes for the manufacture of steel from scrap. The great steel-makers, such as Arcelor, Tata Steel, and Nippon Steel, are preparing to take advantage of these trends. There are more and more collaborations in the development of light, high-strength steels, aimed at satisfying the changing requirements of the automobile industry. And there is an increase in the development of “green” steels, in response to the growing demand for sustainable development, and to the increasing regulatory pressures. These strategic moves not only place the companies in a position to increase their future prosperity, but they also add to the flexibility and resilience of the steel industry in the coming years.

Regional Market Size

Regional Deep Dive

North America is characterized by a high demand for steel, mainly from the construction, automobile and energy sectors. This region has the advantage of an advanced manufacturing industry and a strong focus on the environment, which has led to innovations in the production of steel. The growth in this market is also supported by the many ongoing construction projects and government initiatives to stimulate the manufacturing industry.

North America

• The American government has enacted the American Recovery and Reinvestment Act, which allocates significant funds for the rehabilitation of the nation's roads and highways, and this will increase the demand for steel for construction and transportation.
• The electric arc furnaces of Nucor and U. S. Steel are the most advanced in the world, and are reducing the region's carbon dioxide emissions and bringing it into line with the region's green goals.
• Since the recent import tariffs on steel have risen, the local steel industry has been encouraged to increase production.

Europe

• The Green Deal of the European Union, whose aim is to make Europe the first climate-neutral continent by 2050, is pushing the steel industry to adopt low-carbon technology and to increase the rate of its own steel production.
• The steel industry is a good example of this. Large companies such as ArcelorMittal are investing in hydrogen steelmaking, which is expected to reduce CO2 emissions from traditional steelmaking.
• The steel industry is subject to a number of regulatory requirements that affect its market position and its operations. These requirements include tighter emission limits, which are causing the steel industry to improve its environmental performance and to modify its market strategy.

Asia-Pacific

• China is still the largest producer and consumer of steel. The government is implementing a policy of industry concentration and overcapacity reduction, which will change the market landscape.
• India's National Steel Policy aims to increase its steel production capacity to 300 million tons by 2030. This will make it possible to reshape its economy, especially in the areas of manufacturing and construction.
• In the countries of Japan and Korea, the development of electric vehicles has increased the demand for high-strength steel and has pushed the development of new materials.

MEA

• The Middle East, mainly the UAE and Saudi Arabia, is experiencing a boom in construction projects, mainly in the UAE and Saudi Arabia, which will largely boost the demand for steel.
• The companies of the United Arab Emirates, such as the Steel Company, are concentrating on increasing their production and improving their products to meet the growing demands of the region.
• The competition of the steel market is determined by the regulations which, by promoting local production and reducing the dependence on imports, are shaping the market.

Latin America

• Brazil's steel industry is undergoing a process of modernization, with companies like Gerdau investing in new technology to improve productivity and reduce its environmental impact.
• There is a strong growth in the use of steel in the field of alternative energy, especially in the field of wind and solar energy. This is driving innovation in the use of steel.
• In Latin America, the government's policy of encouraging local production and reducing import tariffs is expected to increase the competitiveness of the steel market.

Did You Know?

“Steel is the most recycled material in the world, with more than 80% of the world’s steel production coming from recycled sources.” — World Steel Association

Segmental Market Size

Steel market is now undergoing a steady growth, especially in the construction and the automobile industries. The demand for steel is mainly driven by the need for new constructions, as well as the stringent regulations on the reduction of carbon dioxide emissions. Moreover, the technological advancement in steelmaking, such as electric arc furnaces, is enhancing the efficiency and reducing the environmental impact of the industry, which is expected to boost the demand.

In the field of steelmaking, the application of advanced steelmaking technology is now in the process of being widely applied, with the likes of Tata Steel and ArcelorMittal leading the way in new production methods. Steel is mainly used in the construction of buildings and bridges, in the manufacture of motor vehicles and for energy projects. The main growth drivers at present are the government’s green building policies and the emergence of electric vehicles, which both require advanced steelmaking solutions. The application of automation in the production process and the use of artificial intelligence in quality control will be a determining factor in the development of this field, ensuring that steel remains an important material for many industries.

Future Outlook

From 2024 to 2035, the market for steel is expected to grow steadily. The market is expected to rise from $ 969.69 billion to $ 1,200 billion, resulting in a CAGR of 1.96%. This growth is due to the fact that the demand for steel is very high in the construction, automobile and infrastructural sectors, especially in emerging economies. Steel is the most widely used material in the construction industry. Steel is used in the construction industry for over 50% of the total consumption of steel.

Technological development and policy initiatives will play a crucial role in the future of the steel market. Production innovations, such as the use of electric arc furnaces and hydrogen-based steelmaking, are expected to improve the efficiency of steelmaking and reduce carbon emissions in line with international goals for sustainable development. Furthermore, policy initiatives to encourage “green” steelmaking and reduce carbon emissions are likely to encourage investment in newer, cleaner production methods. This will result in a growing share of low-carbon steel products, which could amount to up to 30% of the market by 2035. In conclusion, the steel market is set to change considerably in the coming decades, driven by a combination of rising demand, technological development and policy initiatives.