Steel Manufacturing Market size to record USD 369.6 billion growth from 2023-2027, Growing demand for steel and stainless steel scrap is one of the key market trends, Technavio
NEW YORK, April 22, 2024 /PRNewswire/ -- The global steel manufacturing market size is estimated to grow by USD 369.6 bn from 2023 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 4.02% during the forecast period. The steel manufacturing market is experiencing a shift towards the use of scrap steel and stainless steel to reduce carbon footprint and improve economic viability. This trend, driven by corrosion resistance needs in various sectors like construction, shipbuilding, and automobile production, saves 2.9 metric tons of CO2 per metric ton of scrap steel. Iron ore and scrap are used in combination for stainless steel production, lowering energy consumption, water usage, and air pollution. Rapid industrialization in emerging economies and volatile prices add complexity to this net zero steel market.
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Innovation Sparks Market Growth:
The global steel manufacturing market is experiencing significant growth, driven by the increasing use of corrosion-resistant steel and stainless steel. This trend is driven by the need to reduce greenhouse gas emissions, as recycling steel and stainless-steel scrap saves an average of 2.9 metric tons of CO2 per metric ton. The demand for steel and stainless steel is diverse, with applications in gas and water industries, construction spending, shipbuilding, agriculture, processing industries, and automobile production. Key sectors include roads, rails, skyscrapers, parking lots, and tunnels. The World Steel Association reports that rapid industrialization in emerging economies and the shift towards net zero steel production are major factors driving market growth. Steel and iron ore are the primary raw materials, with volatile prices influenced by minerals availability and cheap labor. The processing industry and electric arc furnaces are at the forefront of this transformation, as the steel segment navigates the environmental challenge of reducing net zero steel emissions. Artificial intelligence and advanced technologies are also playing a crucial role in optimizing production processes and reducing energy consumption.
Addressing Challenges:
The global steel manufacturing market faces challenges including excess production capacity, low utilization ratios, and declining profit margins. Energy savings, recycled metals, and new steel products are key areas of focus to address these issues. Consumer safety and construction costs are paramount in the construction sector, which is a significant consumer of steel. Business risks include poor quality welding, contractor performance, and carbon dioxide emissions. Innovative technologies, such as those used in the Basic Oxygen Furnace process, are essential for improving efficiency and reducing emissions. The construction industry, particularly in metropolitan cities undergoing rapid urbanization and infrastructure investment, drives demand for various steel products like tubes, sheets, profiles, and transformers. Product insights include hot rolled steel, cold rolled steel, and their surface finishes, tolerances, and applications in various construction segments, including offices, commercial buildings, multifamily houses, and single family houses. Price volatility and availability of raw materials like coking coal impact steelmaking and steel demand. Steel is used in various industries, from rail wheels and axles to fish plates and beverage cans manufacturing.
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Analyst Review
In the rapidly industrializing emerging economies, the demand for iron ore and minerals as raw materials for steel manufacturing remains high. However, the volatile prices of these resources and the associated greenhouse gas emissions pose significant environmental challenges. To address these issues, the net zero steel initiative aims to reduce emissions through energy savings, recycled metals, and new steel products. Consumer safety and construction costs are also key business risks in the construction sector, particularly in building and construction, shipbuilding, agriculture, processing industry, automobile production, and industrial infrastructure. Poor quality welding can lead to significant business risks and increased costs. Additionally, the use of lightweight building materials and energy savings can help mitigate these risks while also reducing overall production costs.
Market Overview
The Steel Manufacturing Market is a significant sector that involves the production of steel through various processes such as induction, electric arc furnace, and basic oxygen furnace. The industry employs technologies like consume, conveying, and rolling processes to transform raw materials into finished steel products. The market is driven by factors such as increasing demand for steel in various sectors like construction, automotive, and infrastructure. Emerging economies like China and India are major contributors to the global steel demand. The industry faces challenges like rising raw material costs, intense competition, and stringent environmental regulations. Producers are focusing on innovation, cost reduction, and sustainability to stay competitive. The market is expected to grow at a steady pace in the coming years due to the increasing demand for steel in various end-use industries.
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Key Companies:
Steel Manufacturing Market is fragmented ; the companies are competing with competitors and are trying to get greater market share. The market is growing, and the chances of new entrants cannot be overlooked. The major companies have well-established economies of scale and market presence and generally rely on positioning technological advances, and the price of the products. Steel Manufacturing Market report includes information on the product launches, sustainability, and prospects of leading vendors including Ansteel Group Corp. Ltd., Baosteel Group Corp., Beijing Shougang Co. Ltd., Benxi Steel Group Co. Ltd., China Jianlong Steel Industrial Co. Ltd., Gerdau SA, Hebei Jingye Group, Hyundai Steel Co., Jiangsu Shagang International Trade Co. Ltd., JSW STEEL Ltd., Nippon Steel Corp., Nucor Corp., POSCO holdings Inc., Steel Authority of India Ltd., Tata Sons Pvt. Ltd., thyssenkrupp AG, ArcelorMittal SA, Essar Global Fund Ltd., JFE Holdings Inc., NLMK Group
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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Website: www.technavio.com/
SOURCE Technavio
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