Steel Market Report

Steel Market Analysis By Product (Hot, Cold, Direct Rolled, Tubes), By Application (Pre-engineered Metal Buildings, Bridges, Industrial Structures), By PMB, By Region, And Segment Forecasts, 2014 - 2025

Published: May 2017  |  80 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-863-3

Industry Insights

The global steel market size was valued at USD 807 billion in 2016 and is projected to grow at a CAGR of 2.6% from 2017 to 2025. Growing popularity of pre-engineered metal buildings and lightweight building materials to foster energy savings has been a key driver of the industry. The transition from conventional casting processes to novel technologies using recycled metals is another key driving factor for the industry.

New steel products contribute to enhanced consumer safety, reduced construction costs, and also minimized business risks associated with poor quality welding quality. Contractors are increasingly integrating products such as hot & cold rolled, and tubes into their projects to meet building & safety standards.

Turkey steel market revenue by product, 2014 - 2025 (USD Million)

Turkey steel market

European steel companies are increasingly utilizing the Ultra-Low CO2 Steelmaking (ULCOS) process that reduces about 50% of carbon dioxide emissions & wastage, as compared to conventional processes such as the basic oxygen furnace. Increasing awareness regarding sustainable industrial manufacturing processes is expected to drive the growth of such technologies.

The global construction sector has rebounded post-recession in the developed countries, including the U.S. and Germany. The industry is currently growing at a moderate pace and contributes more to the overall economic growth in comparison with 2010. An increase in the number of building permits released by the U.S Census Bureau is further anticipated to boost construction spending & employment levels, which is crucial to the steel sector.

Modest improvements in offices, commercial buildings, and other construction segments have supported the demand for modern, efficient and streamlined processes to obtain products. The industry is anticipated to witness the development of innovative technologies as major companies are engaging in extensive R&D & collaboration to supplement industry growth.

Product Insights

Hot rolled steel emerged as the dominant product segment with over 75% of the volume share in 2016. The product is increasingly being preferred owing to its relatively more economic production and exceptional characteristics such as superior weldability, formidability, high residual strain during baking and good adhesion ability.

Cold rolled steel is usually manufactured below recrystallization temperatures and is essentially a hot rolled product that has been processed further to obtain superior surface finish and high tolerance. The end product is utilized in applications where the final appearance & texture is of utmost importance, including rail wheels, axles and fish plates.

Direct rolling practices are rapidly gaining popularity in the industry since they improve the final yield by almost 4-5%, while also providing cost savings. The process also reduces risks associated with lower production caused by multiple manual roles, such as ingots finishing, loading and mold settings.

Steel tubes, sheets, and other profiles are also gaining popularity, albeit at a slower pace than conventional product forms. Sheets are utilized not only in construction applications but also in numerous other end-use industries such as automotive, transformers, beverage cans and housing materials, owing to their durability, aesthetic appeal, and corrosion resistance.

Tubes are mostly used for applications such as underground transportation of gas and water across cities and also overhead electrical wire & cable protection. Rapid urbanization and growing construction spending are expected to remain major macro factors driving tubes growth, especially in emerging economies.

Application Insights

Pre-engineered metal buildings (PMB) is expected to remain the dominant application with nearly 40% of the volume share in 2016. Increasing demand for ready-made and hassle-free buildings for industrial applications is a major driving factor for this segment. Rapid industrialization in emerging economies and growing awareness regarding lower costs associated with PMB is expected to drive consumption in this segment.

Global steel market volume by application, 2016 (%)

Global steel market

PMB is most commonly found in industrial buildings and warehouses since they are easily dismantled or assembled, depending upon the duration of use. These structures also significantly lower construction costs, offer design flexibility and improve energy efficiency since they consume lower amounts of electricity for HVAC control.

The PMB segment has been further broken down into primary & secondary members, roofs & walls, and panels. Primary members alone accounted for around 30% of the revenue share in 2016. These form the main supports, such as columns, beams and braces, which is crucial to a building’s structural integrity. Cold rolled sections are increasingly being utilized for their production owing to their low weight, simplified design procedures, ease of erection and design flexibility.

Steel panels are expected to emerge as a fast-growing segment with about 8.2% CAGR from 2017 to 2025. These panels are utilized for both residential & non-residential infrastructures owing to their light weight, ease of installation and high resistance to adverse climatic conditions such as snow, storm and heavy rains.

Regional Insights

Asia Pacific is anticipated to emerge as the fastest growing market with over 2.3% CAGR regarding volume. Rapid infrastructure growth to support a burgeoning population along with a significant rise in residential construction projects has contributed largely to consumption. Consumers are increasingly opting for lightweight, sustainable yet low-cost building materials, prompting manufacturers to provide new products for domestic & export markets.

North America & Europe are expected to remain large, yet mature markets, with only a slight rebound in housing & construction activities in the U.S., Canada, and France. A buoyant Chinese steel market has helped support higher international prices in 2016, which allowed European steel producers to raise regional offer levels.

Highest growth potential lies with untapped markets such as Latin America and Middle East & Africa (MEA). The continued adoption of reserve funds not only in Dubai but the entire Middle East is being viewed as a vital tool for strategic asset management and the protection of real estate as a viable investment.

The outlook for Latin American steelmakers remains positive, as they have efficient and profitable operations, create significant levels of employment, do not receive subsidies or other state aid, and are in a position to operate and compete internationally. Countries such as Peru & Chile remain economic outperformers, overcoming regional obstacles to present significant investment opportunities.

Competitive Insights

The global industry is characterized by the presence of large players who are increasingly facing pressure owing to the advent of advanced technologies and new market players. Development of diversified product portfolios and extensive R&D activities for improved product offerings has driven competition in the market. Increasing focus on digitalization by the manufacturers to address various challenges has become a major trend.

The market is characterized by a fragmented amalgam of international manufacturers such as Nippon Steel & Sumitomo Metal Corp., Baosteel, POSCO & other domestic/local players with extensive portfolios and global networks.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 & 2015

Forecast period

2017 - 2025

Market representation

Volume in Kilo Tons, Revenue in USD Million & CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa

Country scope

U.S., Canada, UK, Germany, France, Japan, China, India, Mexico, Brazil, Saudi Arabia, Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Libya, Oman, Qatar, Saudi Arabia, Sudan, Syria, Turkey, UAE

Report coverage

Revenue forecast, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific market information, which is not currently within the scope of the report, we will provide it to you as a part of customization


Segments covered in the report

This report forecasts revenue growth and provides an analysis on the latest trends in each of the sub-segments from 2014 to 2025. For the purpose of this report, Grand View Research has segmented the global steel market on the basis of product, application and region:

  • Product Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

    • Hot Rolled Steel

    • Cold Rolled Steel

    • Direct Rolled Steel

    • Tubes

    • Other Profiles

  • Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

    • Pre-Engineered Metal Buildings

      • Primary Members

      • Secondary Members

      • Roofs & Walls

      • Panels

    • Bridges

    • Industrial Structures

  • Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S

      • Canada

    • Europe

      • Germany

      • UK

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      •  Mexico

      • Brazil

    • Middle East and Africa

      • Bahrain

      • Egypt

      • Iran

      • Iraq

      • Jordan

      • Kuwait

      • Libya

      • Oman

      • Qatar

      • Saudi Arabia

      • Sudan

      • Syria

      • Turkey

      • United Arab Emirates

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