Iron And Steel Market Size, Share & Trends Analysis Report By Application (Building & Construction, Automotive & Transportation, Heavy Industry, Consumer Goods), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global iron and steel market size was valued at USD 1,538.72 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.1% from 2022 to 2030. The market is anticipated to be driven by rising investments in the residential construction sector. The development of smart city projects across the globe is projected to remain a key factor in driving the aforementioned trend. According to the National Bureau of Statistics of China, in 2021, China’s investment in residential construction was valued at USD 1747.2 million i.e., a 6.4% increase compared to the previous year. Moreover, the country has the world’s largest buildings market, accounting for 20.0% of global construction investments. Furthermore, according to the 14th Five-Year Plan (2021-2025), the country is planning to increase its urbanization rate to 65.0% by 2025 as compared to 64.7% in 2021.

Rising automotive production, investments in construction, and infrastructure development are expected to propel market growth over the forecast period. According to the Federal Reserve, motor vehicles and parts production in the U.S. rose to 7.8% in March 2022 from 4.6% in February 2022. In March 2022, the total assemblies of light trucks and cars reached around 9.5 million vehicles from 8.3 million in February 2022.

Large-scale investments in water treatment facilities are expected to boost the demand for iron and steel in the U.S. over the forecast period. For instance, in 2021, the San Diego government announced the Pure Water project, which involves the construction of a wastewater treatment plant worth USD 356 million, a network of pipes worth USD 123 million for carrying wastewater, and a pumping station worth USD 110 million.

Various announcements by the U.S. government are expected to drive the demand for iron and steel in the country over the forecast period. For instance, in April 2022, the U.S. government mandated that the government-funded infrastructure package worth USD 1.2 trillion must use iron and steel produced in the country. According to the U.S. government, all the production processes, from the melting stage to coating, must take place in the U.S.

Application Insights

The building and construction segment held the largest revenue share of more than 45.0% in 2021 and the trend is expected to continue over the forecast period. Rising investments in construction activities are expected to boost the demand for steel over the forecast period. For instance, in April 2022, Alliance Group, a leading real estate developer, announced to invest USD 1,125.8 million for its construction projects in Hyderabad, Chennai, and Bengaluru, India.

According to the American Iron and Steel Association, steel constitutes about 54% of an average vehicle. It is used for manufacturing various automotive parts such as door panels, chassis, frames, and support beams. Although aluminum is replacing steel due to its lightweight property, it is still preferred in automotive parts manufacturing owing to its durability, strength, and ability to be continuously recycled.

To reduce the dependency on aluminum, steel manufacturers are now investing in the production of advanced high-strength steel products, which enable car manufacturers to reduce vehicle weight by 35-40%. For instance, one of the largest steel manufacturers in the world, ArcelorMittal, has developed various advanced high-strength steel products such as Fortiform, Ductibor 1000, and Usibor 2000 to respond to the sudden shift toward lightweight automotive parts.

Steel is widely used in various heavy industries such as shipbuilding, defense products manufacturing, and oil and gas. Rising investments in these industries are expected to fuel market growth over the forecast period. For instance, in February 2022, the German government decided to invest USD 112.0 billion in military equipment manufacturing and is planning to allocate over 2% of the country’s economic output to the defense sector annually.

Regional Insights

Asia Pacific held the largest revenue share of more than 55.0% in 2021. Growing investment in infrastructure development projects is anticipated to boost the demand for iron and steel in the region over the forecast period. In October 2021, China commenced the construction of a 237.78 km railway line from Liuzhou to Wuzhou, Guangxi, China. This project is worth USD 4,793 million and is expected to be completed by 2025.

According to the European Steel Association, the apparent steel consumption in the European Union increased by 40.5% in Q2 2021 compared to a 10.6% fall in 2020. Moreover, steel consumption is expected to increase by 4.7% by the end of 2022. The demand for iron and steel in the region is expected to be driven by various investments by governments in infrastructure development projects.

Europe is trying to improve its rail connectivity and reverse the decline of the rail freight industry. The European Union (EU) has set an ambitious plan to double its freight rail modal by 2030 and reduce CO2 emissions from the transportation sector. The EU is also working to improve its water supply and sanitization and hence is investing to improve its infrastructure. The European Investment Bank (EIB) invested EUR 19.8 million (~USD 21.86 million) in the development of new wastewater management facilities.

Key Companies & Market Share Insights

The market is competitive with the presence of numerous players worldwide. The steel producers face stiff competition not only from other steel-producing companies but from companies engaged in the production of substitutes such as aluminum, glass, concrete, wood, and plastic. The increasing use of aluminum in the automotive industry is expected to reduce the market share of the companies over the forecast period.

Capacity expansion and decarbonization measures are some of the strategies adopted by the key players. For instance, in January 2022, ArcelorMittal Nippon Steel India signed a memorandum of understanding (MoU) with the government of Gujarat, India, to invest USD 5,893.25 million in its Hazira steel manufacturing facility in Gujarat, India. The investment is intended to increase the production capacity to 18 million metric tons per annum (MMTPA) from 8.6 MMTPA. Some prominent players in the global iron and steel market include:

• ArcelorMittal

• China BaoWu Steel Group Corporation Limited

• Nippon Steel Corporation

• HBIS Group

• Jiangsu Shagang Group

• POSCO HOLDINGS INC.

• Tata Steel

• JFE Steel Corporation

• Shougang Group

• Nucor Corporation

• JSW

• SAIL

• NLMK

• Techint Group

• U.S. Steel Corporation

Iron And Steel Market Report Scope

Global Iron And Steel Market Segmentation

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global iron and steel market report on the basis of application and region:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2030)

  • Building & Construction

  • Automotive & Transportation

  • Heavy Industry

  • Consumer Goods

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Spain

    • Italy

    • Russia

    • Turkey

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Iran