Structural Steel Market Size, Share & Trends Analysis Report By Application (Residential, Non-Residential), By Region (Asia Pacific, North America), And Segment Forecasts, 2021 - 2028

Report Overview

The structural steel market size was valued at USD 96.94 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 5.3% from 2021 to 2028. Infrastructural developments, in both developing as well as developed countries, are anticipated to remain primary factors driving the demand for structural steel. The growing housing needs, as a result of the increasing population across the globe, is also among the key factors driving the product demand. As per the projections estimated by the United Nations, the global population will reach 11.2 billion by 2100, which, in turn, is expected to augment the demand for new houses, thus, indirectly contributing to the growth of the market. The growing preference for sustainable materials is driving the market in the U.S.

Structural steel is considered a green construction material due to its recyclability and thus, a rising number of green buildings in the country is anticipated to propel market growth in the coming years. According to the World Green Building Council, LEED-certified buildings use 11% less water and 25% less energy in the U.S. Furthermore, green buildings help reduce harmful impacts on the environment, hence, focus on their construction is increasing in the country.

California holds the major share in the overall green buildings segment in the U.S., in terms of area, and the state is expected to achieve zero net energy by 2030. The market growth was, however, obstructed in 2020 owing to the COVID-19 pandemic. According to the World Steel Association, the demand for finished steel declined by 2.4% in 2020. The pandemic led to factory shutdowns and a shortage of labor, which disrupted the supply chain. The confinement measures froze consumption activities, which reduced demand.

The economies are striving hard to recover from the COVID-19 impact and thus, are spending on infrastructural developments, which is expected to boost the market growth. For instance, in October 2020, the Mexican government announced a USD 14.2 billion infrastructure investment plan along with private sector companies for 29 projects as part of the Economic Recovery Agreement amid the COVID-19 pandemic.

Application Insights

The non-residential emerged as the dominant application segment in 2020 with a revenue share of more than 53%. It is estimated to expand further at the fastest CAGR over the forecast period owing to the increasing spending on healthcare facilities, data centers, big-box retail stores, stadiums, airports, and manufacturing facilities. The segment is further divided into industrial, commercial, offices, and institutional.

The industrial sub-segment accounts for the maximum share in the non-residential segment. Structural steel is majorly used in industrial buildings due to its extreme strength, which is beneficial not only for structural integrity but also for subsiding the potential impact of repairs. It is also ideal for building large bridges owing to its high durability and excellent strength-to-weight ratio, which ensures withstanding the weight of cars and pedestrians.

The residential application segment accounted for the second-highest revenue share in 2020. The product is widely utilized in housing and residential buildings owing to its lightweight and high-strength characteristics, which minimizes the load on the foundation and reduces sub-structure costs.

In addition, due to its excellent flexibility and adaptability in modular construction, it can be dismantled and moved easily, thus maintaining the asset value of buildings. Structural steel can be used in various ways in residential buildings ranging from a single-family house to a big mixed-space building. Moreover, it also provides environmental benefits as it is 100% recyclable with no degradation.

Regional Insights

Asia Pacific held the largest revenue share of more than 67% of the global market in 2020 and is anticipated to maintain its dominance growing at the fastest CAGR over the forecast period. Increased investments in the housing and commercial sectors of the developing economies, such as China and India, are anticipated to prove fruitful for market growth.

Furthermore, Southeast Asia is one of the emerging regions in the global market. There is a need for huge investments to reduce the infrastructure gap in this region. From 2000, Japan has financed projects worth USD 230 billion, while China invested around USD 155 billion for the improvement of infrastructure in the Southeast Asian region. Such investments are expected to augment the product demand over the coming years.

North America is anticipated to register a CAGR of 3.4%, in terms of revenue, over the forecast period. The region suffered a heavy economic loss, especially in the U.S. and Mexico, due to the COVID-19 pandemic. However, the construction industry in this region is witnessing recovery since the second half of 2020. The aging of infrastructure is expected to remain a key factor for rising product demand in the region.

Middle East & Africa is expected to grow at a considerable CAGR over the forecast period. The region is anticipated to witness a plethora of projects in the coming years, which is expected to propel market growth. Some of the projects include the Development of Residential Villas in Bahrain, Construct Volumetric Modular Assembly Plants Factory, and King Fahad Medical City Expansion in Saudi Arabia.

Key Companies & Market Share Insights

The market is fragmented with the presence of various small- and large-scale companies operating in different parts of the world. Companies focus on acquisitions and capacity expansions to broaden their presence worldwide. For instance, in July 2021, ArcelorMittal announced to upgrade its plant in Spain to a zero-carbon emissions facility. The plant is expected to produce 1.6 million tons of zero-carbon-emissions steel annually by 2025. Some of the prominent players in the global structural steel market include:

• ArcelorMittal

• Baogang Group

• Evraz plc

• Gerdau S.A.

• JSW Steel

• POSCO

• Nippon Steel Corp.

• Tata Steel

• SAIL

Structural Steel Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global structural steel market report on the basis of application and region:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Residential

  • Non-Residential

    • Industrial

    • Commercial

    • Offices

    • Institutional

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • U.K.

    • Spain

    • Russia

    • Turkey

    • Poland

  • Asia Pacific

    • China

    • Taiwan

    • Japan

    • Hong Kong

    • Thailand

    • Malaysia

    • Singapore

    • Vietnam

    • Philippines

    • India

    • Australia

    • New Zealand

    • Indonesia

  • Central & South America

    • Brazil

    • Chile

    • Colombia

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • Iran

    • South Africa