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.
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.
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.
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
Report Attribute |
Details |
Market size value in 2022 |
USD 1,728.71 billion |
Revenue forecast in 2030 |
USD 2,405.29 billion |
Growth rate |
CAGR of 5.1% from 2022 to 2030 |
Base year for estimation |
2021 |
Historical data |
2017 - 2020 |
Forecast period |
2022 - 2030 |
Quantitative units |
Volume in kilotons, revenue in USD million/billion, CAGR from 2022 to 2030 |
Report coverage |
Volume forecast, revenue forecast, competitive landscape, growth factors, and trends |
Segments covered |
Application, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
Country scope |
U.S; Canada; Mexico; Germany; U.K.; France; Spain; Italy; Russia; Turkey; India; China; Japan; South Korea; Argentina; Brazil; Iran |
Key companies profiled |
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 |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options. |
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
b. The global iron and steel market size was estimated at USD 1,538.72 billion in 2021 and is expected to reach USD 1,728.71 billion in 2022.
b. The global iron and steel market is expected to grow at a compound annual growth rate of 5.1% from 2022 to 2030 to reach USD 2,405.29 billion by 2030.
b. Based on application, building & construction accounted for largest revenue share of more than 46.0% in 2021 of the overall market. The rapidly increasing investments in infrastructure in different countries is projected to drive the demand iron and steel products.
b. The key players operating in the 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 and U.S. Steel Corporation.
b. Low interest rates for mortgage loans along with government subsidies is expected to drive the residential and commercial construction and thus drive the iron and steel market.
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The global construction industry, once thriving with increased investments, has been severely affected by the suspension of the construction activities in the wake of the ongoing pandemic. Shortage of labors coupled with potential supply chain bottlenecks of materials and equipment is expected to cause project delays in the ongoing funded projects and may lead to reduced spending in the upcoming projects. Uncertainty around the actual duration of the prevailing lockdown makes it hard to anticipate how a recovery in the construction industry will unfold. On similar lines, the HVAC industry has been adversely affected by the COVID-19 outbreak due to the shutting down of several component manufacturing facilities across China, European countries, Japan, and the U.S. This has consequently led to a significant slowdown in the production of HVAC equipment. Lockdowns imposed by the governments in the wake of the Covid-19 outbreak has not only affected manufacturing but also pegged back the consumer demand for HVAC equipment. The report will account for Covid19 as a key market contributor.
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