Stainless Steel Market Size, Share & Trends Analysis Report By Grade (200 Series, 300 Series, 400 Series, Duplex Series), By Product (Flat, Long), By Application, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global stainless steel market size was valued at USD 104.23 billion in 2021 and is expected to exhibit a compound annual growth rate (CAGR) of 8.9% from 2022 to 2030. The private and public investments in infrastructure, as well as residential housing, is likely to provide a boost to the stainless steel demand. Stainless steel (SS) is an important material in industrial applications such as building & construction, infrastructure, railways, automotive & transportation, and process industries. SS has a unique edge over carbon steel as it has a combination of properties such as pliability, strength, corrosion resistance, aesthetic properties, low maintenance cost, and average product life cycle. These properties along with increasing penetration in numerous applications are anticipated to drive the market growth. 

The U.S. stainless steel market is expected to be driven by the demand for mechanical, chemical, and energy applications. These applications are diversified such as tubular in the oil industry; heat exchangers, heat vessels, & boilers in power plants; furnace plants; and components in processing machinery of pulp & paper, chemicals, and food & beverage industries.

Building & construction is one of the important applications of stainless steel. The segment accounted for a volume share of 11.3% of overall U.S. demand. For structural purpose, SS products are used in beams, columns, and general architectural applications. It is used in railings, roofing, lifts, staircases, swimming pool shades, canopies, and atriums among others.

In November, the U.S. government introduced USD 2 trillion plan for infrastructure. It includes heavy fund allocation for repair and renovation of bridges, highways, EV charging facilities, airports, water infrastructure, communication networks, high-speed Internet, clean energy & environment, and carbon reduction. This plan is likely to assist the SS demand for structural applications in infrastructure and construction.

Grade Insights

300 series was the largest segment in 2021 with a volume share of above 54.0% in 2021. Grade 303in the series is used almost entirely for every movable part requiring polishing, grinding, and machining where good corrosion resistance is also compulsory. Its non-seizing non-galling attributes make it suitable for moving parts. It has fairly good forming properties used for aircraft components, also valves, shafts, valve trim, gears, and all types of screw machine products.

Grade 304 in the 300 series is specifically suited for all kinds of dairy equipment including containers, sterilizers, milking machines, homogenizers, and storage & hauling tanks, including railroad cars, milk trucks, valves, and piping. This 18-8 alloy is similarly operative in the brewing business where it is used in storage & transport cars, fermentation vats, yeast pans, and pipelines.

Duplex series SS is anticipated to exhibit the highest CAGR of 10.9% during the forecast period, in terms of revenue. Superior properties of the product such as high strength, low weight, and high corrosion resistance particularly stress corrosion cracking is anticipated to drive product demand in the forecast period. The product finds applications in pharma, oil & gas, water desalination, and chemical & petrochemical industries.

Product Insights

Flat products accounted for a revenue share of over 73.0% in 2021 and is likely to dominate the market in the forecast period. Flat products mainly include sheets/coil and plates. SS flat products are widely used in mechanical parts and industrial tools along with construction and structural applications. These products are hot rolled and cold rolled and have properties such as corrosion resistance, high strength, and great thickness.

The demand for SS products is likely to be driven by the growth of the automotive and transportation industry. Railways are one of the important applications, wherein COR-TEN steel is being replaced by stainless steel for coaches. This was mainly due to the energy absorption capacity and high strength to weight ratio to improve the crash effectiveness of the coach.

Long products are widely used in industries such as textile, automotive, defense, shipbuilding, cement, fabrication, paper & pulp, and earth-moving machinery. Rounds bar is an important product in this category and can easily be machined and bent as per the requirement. These products are used in grills, fasteners, and machining applications along with the production of parts for automotive and machinery & equipment.

Application Insights

The consumer goods segment dominated the market and accounted for the largest revenue share of above 37.0% in 2021. The segment is projected to grow owing to increasing demand for the washing machine & fridge parts, sinks, utensils, kitchen parts, and many more. Characteristics such as easy fabrication, corrosion resistance, and aesthetic appeal are likely to contribute to the demand for consumer goods; thus, positively influencing the market growth.

The building & construction (B&C) segment witnessed a sizable impact in 2020 by the outbreak of the COVID-19 pandemic. Factors such as the global financial crunch, supply disruptions, global demand, and decline in 2020 have affected the market dynamics in the B&C sector in recent times. For instance, as per the data released by EUROCONSTRUCT, construction output in European countries witnessed a decline of 5.1% in 2020 from the previous year.

The automotive & transportation segment also observed a significant decline during 2020 in terms of automotive production and sales. For instance, global automobile production declined by 16.0% in 2020 as per the International Organization of Motor Vehicle Manufacturers (OICA). The production levels continued to struggle in 2021 owing to the chip shortages. However, the demand levels of automotive vehicles are likely to be driven by the need for private vehicles among consumers masses. 

Regional Insights

The Asia Pacific dominated the regional segment and held the largest volume share of nearly 74.0% in 2021 owing to the rapidly expanding defense, machinery, automotive, and shipbuilding industries in the countries such as India, China, South Korea, and Japan. Foreign direct investment in energy and infrastructure is likely to provide opportunities for the market vendors.

An increasing share of India and ASEAN countries in the demand for SS is likely to contribute to the expansion of the Asia Pacific SS market. Per capita consumption in India, Vietnam, Thailand, and Indonesia is gradually increasing, which is likely to remain a key contributing factor for the market growth. Additionally, the expansion of cold-rolled facilities is also expected to remain a vital factor for the growth of the market.

In terms of volume, Europe is expected to reveal a 5.6% CAGR during the forecast period. The market in Europe witnessed recovery because of the commencement of industrial operations in 2021, after the lockdown. For instance, as per the International Stainless Steel Forum (ISSF), SS melt shop production increased by around 11.0% on a y-o-y basis, through the first quarter of 2021. Increasing application in pre-engineered buildings is likely to drive market growth during the coming years.

Key Companies & Market Share Insights

Players in the stainless steel market are adopting several organic and inorganic growth strategies such as capacity expansion, mergers & acquisitions, and joint ventures, in order to maintain and expand their market share. For instance, in February 2021, Jindal Stainless announced a capex plan for its Odisha stainless steel plant worth Rs. 2000-3000 crore (~ USD 261.8-392.7 million) over the next few years. Some prominent players in the global stainless steel market include:

• Acerinox S.A.

• Aperam Stainless

• ArcelorMittal

• Baosteel Group

• Jindal Stainless

• Nippon Steel Corporation

• Outokumpu

• POSCO

• ThyssenKrupp Stainless GmbH

• Yieh United Steel Corp. 

Stainless Steel Market Report Scope

Segments Covered in the Report

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

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

  • 200 series

  • 300 series

  • 400 series

  • Duplex series

  • Others

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

  • Flat

  • Long

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

  • Building & Construction

  • Automotive & Transportation

  • Consumer Goods

  • Mechanical Engineering & Heavy Industries

  • Others

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

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • U.K.

    • Russia

  • Asia Pacific

    • China

    • Japan

    • South Korea

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • GCC