Iron & Steel Market by Type (Iron and Steel), Production Technology(Basic Oxygen Furnace, Electric Arc Furnace, Open Hearth and Others), End-use Industry (Construction & Building, Automotive & Transportation, Heavy Industry, Consumer Goods), and Region - Global Forecast to 2027
Updated on : March 12, 2023
Iron & Steel Market
Iron & Steel Market was valued at USD 1,599.4 billion in 2022 and is projected to reach USD 1,928.6 billion by 2027, growing at a cagr 3.8% from 2022 to 2027. The global market is growing due to the growing global construction industry, rapid industrialization, and faster infrastructure development, especially in emerging economies.
Attractive Opportunities in Iron & Steel Market
Note:e-estimated,p-projected.
Source: Expert Interviews, Secondary Sources, and MarketsandMarkets Analysis
To know about the assumptions considered for the study, Request for Free Sample Report
Iron & Steel Market Dynamics
Driver: Abundance of iron ore & other minerals for steel
The abundance of iron ore has a significant impact on the iron & steel industry. Iron ore is a mineral, typically found in the form of oxides and hydroxides, which is mined and used to make steel and other metal products. The abundance of iron ore has enabled the industry to meet the increasing demand for steel products and sustain global growth and prosperity. The abundance of iron ore and its availability to the industry, have enabled the global production of steel to increase. . It has also allowed the industry to produce a wide range of steel products, making steel a cost-effective and attractive choice for many projects
Restraint: Volatile prices of raw materials
Volatility in raw material prices can be a significant restraint for the iron and steel industry. Due to the fact that the steel production process requires a large number of raw materials, fluctuations in the global demand for certain materials can lead to unforeseen changes in the cost of production, resulting in reduced profitability and potential losses for producers. The price of steel is dependent on the supply and availability of raw materials such as iron ore, coal, industrial gases, ferrous scrap, and ferroalloys for the production and processing of steel. The prices of these materials depend on their availability, trade relations, and tariffs between countries, which makes them highly volatile. An increase in the prices of raw materials impacts the production costs of long steel, thereby resulting in inflated prices of finished products.
Opportunity: Transitions towards Net-zero steel.
Steel manufacturing is a significant contributor to greenhouse gas emissions, ranking as the second-highest emitting industry after cement production. At present, consumers, manufacturers, retailers, advocacy groups, and governments across the globe are encouraging to reduce greenhouse gas emissions. Net-zero steel is one of the biggest opportunities for the iron & steel industry today as it involves creating steel production processes that reduce the amount of carbon released into the atmosphere to net zero. It is an ambitious goal, but one that can be achieved with the right technology and investment
Challenge: Environmental Challenge
The iron & steel industry is one of the largest emitters of carbon dioxide and other pollutants, making it a major contributor to global climate change and environmental degradation. The industry is responsible for increasing levels of air, water, and soil pollution, primarily due to the burning of fossil fuels and the production of hazardous by-products. To mitigate its environmental impact, the iron & steel industry must adopt green technologies and more sustainable methods of production and waste disposal. The most crucial factor to be considered is the environmental challenge.
Steel segment amongst other types projected to grow at a highest CAGR from 2022 to 2027, in terms of value
Steel is a well-known metal alloy composed of iron & carbon. It is widely used in construction, automotive, and engineering applications due to its excellent strength-to-weight ratio, durability, and malleability. Steel is also known for its high tensile strength and resistance to corrosion, making it an ideal choice for many industrial applications. Steel is composed of iron & carbon in a specific ratio and can be alloyed with other elements, like molybdenum, vanadium, and chromium, to improve its properties. Steel is not a single product. There are more than 3,500 different grades of steel with many different physical, chemical, and environmental properties.
Electric Arc Furnace(EAF) production technology projected to grow at highest cagr from 2022 to 2027, in terms of value
The Electric Arc Furnace (EAF) is another popular steelmaking process today. Steel scrap is the most common feedstock for EAFs, but they can also smelt solidified iron or sponge iron. The heat source for the refining process is an electric arc. The EAF method produces molten steel through its batch melting process. The process includes the important phases of charging, melting, refining, de-slagging, tapping, and furnace turn-around. This process is cheaper compared to the basic oxygen furnace steelmaking process. As EAF steelmaking technology has improved in recent years, EAF steelmakers now have access to high-quality steels. Despite the difference in capital costs, EAF steelmaking is expected to grow proportionally faster than BOF steelmaking in the coming years.
Asia Pacific is accounted for the largest share in the iron & steel market during the forecast period.
The Asia Pacific region has emerged as the largest market for iron & steel in terms of value, and is expected to witness significant growth during the forecast period. This growth can be attributed to the increasing building & construction activities, especially in China, Japan, and India, coupled with increasing investments from domestic and foreign investors in the public and private sectors. China is projected to lead the Asia Pacific market during the forecast period, owing to the high population of the country, the increase in new construction and infrastructure development projects, along with the availability of cheap labor.
To know about the assumptions considered for the study, download the pdf brochure
Iron & Steel Market Players
The key players in the iron & steel market include China Baowu Steel Group Corporation (China), ArcelorMittal (Luxembourg), Nippon Steel Corporation (Japan), POSCO (South Korea), and Nucor Corporation (US), HBIS Group (China), Ansteel Group Corporation(China), Tata Steel Limited(India), JSW Steel(India) and SAIL(India). The iron & steel market report analyzes the key growth strategies, such as new product launches, investments & expansions, joint ventures, agreements, partnerships, and mergers & acquisitions adopted by the leading market players between 2018 and 2022.
Iron & Steel Market Report Scope
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Report Metric |
Details |
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Years considered for the study |
2020–2027 |
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Base year considered |
2021 |
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Forecast period |
2022–2027 |
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Units considered |
Volume (Million/Billion ton) and Value (USD) |
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Segments |
Type, Production Technology, End-use Industry and Region |
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Regions |
North America, Asia Pacific, Europe, Middle East & Africa, and South America |
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Companies |
The major players are ArcelorMittal (Luxembourg), Nippon Steel Corporation (Japan), Nucor Corporation(US), China Baowu Steel Group Corporation(China), HBIS Group (China), POSCO(South Korea), Ansteel Group Corporation(China), Tata Steel Limited(India), JSW Steel(India), SAIL(India)and others are covered in the iron & steel market |
This research report categorizes the iron & steel market based on type, production technology, end-use industry and region.
By Type:
- Iron
- Steel
By Production Technology:
- Basic Oxygen Furnace
- Electric Arc Furnace
- Open Hearth
- Others
By End-use Industry:
- Building & Construction
- Automotive & Transportation
- Heavy Industry
- Consumer Goods
- Others
By Region:
- North America
- Aisa Pacific
- Europe
- Middle East & Africa
- South America
The iron & steel market has been further analyzed based on key countries in each of these regions.
Recent Developments
- In December 2022, The China Baowu Steel Group Corporation has signed the Simandou Infrastructure Project Term Sheet with SMB-Winning Consortium (Guniea) and Guinean Government. The main aim of this joint investment is the development of infrastructure, such as railways and ports, which further leads to the overall development of the Simandou project.
- In August 2022, The Tata Steel Limited signed an MoU with the Government of Punjab for setting up a 0.75 MnTPA long products steel plant with a scrap-based electric arc furnace (EAF).
- In March 2022, China Baowu Steel Group Corporation and Shell signed two cooperative agreements, including an enterprise framework cooperation agreement (EFA) on green steel products supply and a master agreement on emission trading, symbolizing that the cooperation between both parties of low-carbon development advances to a new level.
- In February 2022, The JSW Steel Limited acquired Mivaan Steels Limited, a manufacturing company of steel products. With the help of this acquisition, the company will produce and market ferro alloys, billets, pellets, sponge iron, structural steels, and thermo mechanically treated (TMT) bars.
Frequently Asked Questions (FAQ):
What is the current size of the global iron & steel market?
The global iron & steel market size is projected to grow from USD 1,599.4 billion in 2022 to USD 1,928.6 billion by 2027, at a CAGR of 3.8%.
Are there any regulations for iron & steel?
Several countries in Europe and North America have introduced regulations for iron & steel market. For e.g The Environmental Protection Agency (EPA) works to protect the environment by regulating the iron & steel industry, which has a significant impact on the environment due to the large amount of emissions they produce. It has set standards and regulations to help reduce the environmental impact of the industry, such as limiting the amount of emissions, controlling air pollution, and providing incentives for the industry to undertake pollution-preventing measures. The European Union has a dedicated regulatory body known as the European Steel and Iron Association (ESIA). This organization is tasked with overseeing the steel & iron industry in the EU, including both production and trade. It sets standards, creates regulations, and provides guidance to ensure the industry is sustainable, healthy, and environmentally friendly.
Who are the winners in the global iron & steel market?
Companies such as China Baowu Steel Group Corporation (China), ArcelorMittal (Luxembourg), Nippon Steel Corporation (Japan), POSCO (South Korea), and Nucor Corporation (US) under the winner’s category. They have the potential to broaden their product portfolio and compete with other key market players. Such advantages give these companies an edge over other companies.
What are some of the drivers in the iron & steel market?
Increasing consumption of iron and steel in the automotive and energy & power industries, increased investments and required support from governments in emerging economies, and rapid rate of urbanization are some of the major drivers for iron & steel. .
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This research involved using extensive secondary sources and databases, such as Factiva and Bloomberg, to identify and collect valuable information for a technical and market-oriented study of the iron steel market. Primary sources included industry experts from related industries and preferred suppliers, manufacturers, distributors, technologists, standards & certification organizations, and organizations related to all segments of this industry's value chain. In-depth interviews have been conducted with various primary respondents, such as key industry participants, subject matter experts (SMEs), executives of key companies, and industry consultants, to obtain and verify critical qualitative and quantitative information and assess growth prospects.
Secondary Research
In the secondary research process, various sources such as annual reports, press releases, and investor presentations of companies, white papers, and publications from recognized websites and databases have been referred to for identifying and collecting information. Secondary research has been used to obtain key information about the industry's supply chain, the total pool of key players, market classification and segmentation according to the industry trends to the bottom-most level, regional markets, and key developments from both market-and technology-oriented perspectives.
Primary Research
The iron & steel market comprises several stakeholders in the supply chain, which include suppliers, processors, and end-product manufacturers. Various primary sources from the supply and demand sides of the markets have been interviewed to obtain qualitative and quantitative information. The primary participants from the demand side include key opinion leaders, executives, and CXOs of companies in the iron & steel market. Primary sources from the supply side include associations and institutions involved in the iron & steel industry, key opinion leaders, and processing players.
Following is the breakdown of primary respondents
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and validate the size of the global iron & steel market. The research methodology used to estimate the market size includes the following:
- The key players in the industry were identified through extensive secondary research.
- The supply chain of the industry and market size, in terms of value, were determined through primary and secondary research.
- All percentage share split, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research includes the study of reports, reviews, and newsletters of key industry players, along with extensive interviews with key officials, such as directors and marketing executives.
Data Triangulation
After arriving at the overall market size—using the market size estimation process explained above—the market was split into several segments and sub-segments. In order to complete the overall market engineering process and arrive at the exact statistics of each market segment and sub-segment, the data triangulation, and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply of iron & steel and their applications.
Report Objective:
- To analyze and forecast size of the iron & steel market in terms of value and volume.
- To provide detailed information about the key factors (drivers, restraints, opportunities, and challenges) influencing the growth of the market
- To analyze and forecast the market by type, by production technology, by end-use industry and region.
- To forecast the size of the market with respect to five regions: Asia Pacific, Europe, North America, South America, and the Middle East & Africa, along with their key countries
- To strategically analyze micro markets with respect to individual trends, future prospects, and their contribution to the overall market
- To analyze opportunities in the market for stakeholders and provide a competitive landscape for market leaders.
- To analyze competitive developments such as mergers & acquisitions, new product developments, investments & expansions, and agreements & partnerships in the market
- Strategically profile key players and comprehensively analyze their market shares and core competencies.
Available Customizations:
MarketsandMarkets offers customizations according to the specific needs of the companies with the given market data.
The following customization options are available for the iron & steel market report:
Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolio of each company
Regional Analysis
- A further breakdown of the iron & steel market, by segments
Company Information
- Detailed analysis and profiling of additional market players (up to five)
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Growth opportunities and latent adjacency in Iron & Steel Market