Steel Market Size, Share & Trends Analysis Report By Product (Hot, Cold, Direct Rolled, Tubes), By Application (Pre-engineered Metal Buildings, Bridges, Industrial Structures), By PMB, By Region, And Segment Forecasts, 2020 - 2025

Report Overview

The global steel market size was valued at USD 861.64 billion in 2019 and is projected to grow at a CAGR of 2.6% from 2020 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.

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.

Steel Market Trends

The revival of the global construction industry post-recession is anticipated to drive market growth. Especially in developed countries such as U.S. and Germany, the construction industry contributed to overall economic growth in 2016 when compared to 2010. Rapid urbanization has led to increased infrastructure investment for residential and non-residential purposes. Multifamily houses & single-family houses in upscale neighborhoods and metropolitan cities are expected to grow rapidly in developed regions owing to high income among consumers. Modest improvement in other areas such as the office market and healthcare are also helping to establish market growth.

In 2016, the U.S. government increased the residential construction budget by 1.9% to encourage homeownership and community development projects. An increase in non-residential construction spending is expected due to stabilization in the overall U.S. economy. Commercial and office construction is expected to exhibit a high growth rate during the forecast period. Factors such as the increasing number of food & retail stores, coupled with office construction attributing to rising employment levels across the country are anticipated to drive growth in the construction industry, thus benefiting steel demand.

The EU has adopted numerous policies in order to stabilize growth in the construction industry. The “Construction 2020” Action Plan had been established in 2013 for the sustainable competitiveness of the construction sector. Fewer construction firms could make it to the 2014 Inc. 5000 list in comparison with 2007, however, the average three years growth of these companies has doubled (403% in 2014 than 195% in 2007) during this time period. Strong economic development coupled with population expansion is expected to increase construction spending in emerging economies, especially in Asia Pacific and Middle East. This is anticipated to boost steel demand over the forecast period.

Price volatility of iron ore and coking coal, the key raw materials in steelmaking, is likely to be the key market restraint during the forecast period. Oversupply due to increasing production in China is the primary factor leading to price volatility. The global trade of iron ore and coking coal is dominated by a few major players who can reduce their production levels to alter the market balance and impact prices. Steel demand is another factor impacting prices, which is driven by an uncertain global economic environment. These factors are expected to have a bearing on overall steel market growth.

Product Insights

Hot rolled steel emerged as the dominant product segment with over 75% of the volume share in 2019. 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 share in 2019. 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.

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 lightweight, ease of installation, and high resistance to adverse climatic conditions such as snow, storm and heavy rains.

Regional Insights

The Asia Pacific steel market held the highest revenue share in 2019. Increasing preference for prefabricated engineered buildings (PEBs) among end-users owing to advantages such as energy efficiency, design flexibility, and faster completion rate of projects is expected to drive the steel market in the Asia Pacific.

The Indian steel market is expected to grow significantly over the forecast period owing to increasing industrial construction coupled with population expansion. Increasing per capita disposable income along with rapid urbanization is expected to fuel residential construction over the forecast period. Favorable government policies and untapped potential is anticipated to increase foreign investments in construction projects and drive steel market growth in the country.

Steel production remains a crucial contributor to Europe’s goal to increase the share of construction in GDP to 20% by 2020. Various EU funds and policy instruments such as Horizon 2020, Structural Funds, and the Research Fund for Coal and Steel are being mobilized by the European Commission to alleviate social costs and ensure the retention of competitive steel-producing skills. The European steel industry is faced with higher energy prices than its international competitors, a trend that has been amplified by price increases in recent years.

German steel sector remains resilient with a competitive advantage owing to its high technology products. Residential construction is witnessing strong growth in the country. Increasing construction spending owing to favorable financing conditions coupled with a lack of investment alternatives is expected to drive steel market growth. Rising public construction on account of increasing investment from the municipal segment is further expected to drive steel demand over the forecast period.

Key Companies & Market Share 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.

Steel Market Report Scope

Global Steel Market Segmentation

This report forecasts revenue growth and provides an analysis of 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