MRFR (Market Research Future) claims that the steel industry is projected to cross over USD 1.43 Trillion by the end of 2030 while flouring at a CAGR of 3.47% during the review.
COVID-19 Impact on the Steel industry
MRFR reveals that the COVID-19 outbreak and the resultant lockdown have disrupted the steel production significantly, in the face of factory shutdown and various logistical challenges. SARS-CoV-2 has led to oversupply and slacked demand for steel, with the prices declining owing to the drop in scrap prices. The widening gap between supply and demand caused by the pandemic paired can be a huge deterrent for the steel industry.
However, despite the novel coronavirus and its severe impact on the global economy, the steel industry is set to remain strong over the coming years, owing to the rising focus of the big players on strengthening their supply chains. This could mean better recovery scope for the steel industry and a quantum jump in the near future, while players also rush to adopt automation and robotics technologies in their manufacturing sites to reduce the dependency on human labor.
Key Impacting Factors and Deterrents
Significant demand for steel in the construction and building industry in view of the increase in infrastructure initiatives taken up by governments, particularly in emerging countries can be favorable for the global market. Building and construction sector remains the top end-user in the settle market, with transportation and automotive catching up fast. The surging preference for pre-engineered metal buildings along with lightweight materials in buildings to facilitate energy savings is a huge growth booster for the global market. With the rising shift from traditional casting processes to modern technologies that use recycled metals is another growth rendering factor in the steel industry.
Advanced steel products are responsible for the better consumer safety, lower construction costs, and reduced business risks that are generally related to substandard welding quality. Therefore, contractors are progressively opting for products like hot cold rolled steel tubes in their construction projects to cater to the building safety standards. A number of steel vendors in European mostly use the Ultra-Low CO2 Steelmaking (ULCOS) method that helps bring down close to 50% of carbon emissions as well as wastage, compared to the traditional processes like the oxygen furnace. Mounting awareness level with regard to sustainable and eco-friendly manufacturing processes will induce favorable growth prospects for the global market
Modest developments in commercial buildings, offices, and various other construction points enhance the demand for efficient, streamlined and modern processes to achieve products. The global market anticipates development of a host of advanced technologies in the following years, with prominent firms actively engaged in rigorous RD activities, while also adopting acquisition strategy and other forms of alliances to supplement growth.
Segmental Analysis
Type, product and application are the key market segments listed in the MRFR report.
The different steel types in the market are long and flat steel. As of 2021, the flat steel segment was leading the market and could continue dominating while it procures a CAGR of 2.21% in the forthcoming period. Flat steel products such as tinplate, slabs, coated steel, cold-rolled coils, heavy plate and hot-rolled coils observe a huge demand, in line with rising applications in pipes, tubes, heavy machinery, construction, packaging and appliances.
Some of the key products studied in the report include braids, iron steel wire, welding wire/rod, bright steel, structural steel, prestressing steel, ropes, and others. The biggest market belongs to structural steel and has been since 2017, while MRFR expects it to continue growing at a rate of 3.15% over the review period. Structural steel’s high demand can be accredited to the surging use in several construction applications, mostly in bridges. On the other hand, the market for prestressing steel came second in 2017 and can retain its position throughout the analysis period.
The top applications of steel are automotive, building construction, metal products, mechanical equipment, electrical appliances, domestic appliances and other transportation. The building construction segment’s value in 2017 was USD 417.3 billion, while it is touted to record a growth rate of 2.72% and touch USD 487.6 billion by 2023-end. Steel’s applications in building and construction sector are quite extensive, primarily because of the dramatic surge in residential and commercial construction activities in the past few years and the metal’s several benefits that help contractors meet with the strict government regulations.
Regional Insight
Latin America, North America, Europe, MEA/Middle East Africa and Asia Pacific/APAC are the primary markets for steel across the globe.
Since 2021, APAC has been the global leader in the steel industry and can potentially secure a growth rate of 3.09% to hit USD 651.5 billion by 2023-end. Asia Pacific’s dominance is the outcome of the rising steel demand in infrastructural and construction development, and the increase in automotive production. Expansion of the electrical appliances industry also benefits the APAC market to a large extent. More and more consumers in the region now prefer sustainable, low-cost and lightweight building materials, which are encouraging manufacturers to come up with innovative products for export and domestic markets.
The European market stands second and is touted to surge ahead at a rate of 2.30% between 2018 and 2023. Germany remains in the lead and is expected to spearhead the European market in the near future owing to the increasing spending on infrastructure development.
However, the MEA market exhibits a significant growth potential, with the steel demand escalating at a promising rate in view of the expanding construction industry. Rapid industrialization rate in various North African economies also contribute substantially to the market growth. Therefore, it is projected that the MEA market can touch a stupendous valuation of USD 74.8 billion by the year 2023. Another reason for the strong market performance can be the rising uptake of reserve funds in Dubai and various other countries in the Middle East, which is considered to be a critical tool for effective asset management and real estate increasingly being viewed as a lucrative investment.
Read the Complete Report: https://www.marketresearchfuture.com/reports/steel-market-5465
Prominent Industry Contenders
Some of the most prominent contenders in the global industry are Nucor Corporation (US), Shangang Group (Spain), NSSMC Group (Japan), China Baowu Group (China), Tata Steel Group (India), POSCO (South Korea), Hyundai Steel Company (South Korea), HBIS Group (China), ArcerolMittal (Luxemborg), China Steel Company (Taiwan), to mention a few.
