Steel Market Size, Share, Price and Forecast 2025–2034
- Saurabh Badoni
- Jul 8
- 5 min read
Global Steel Market Overview
According to Expert Market Research, the global steel market attained a volume of approximately 1738.39 million metric tons (MMT) in 2024. Driven by rising demand from construction, automotive, infrastructure, and machinery industries, the market is expected to grow at a compound annual growth rate (CAGR) of 2.24% during 2025–2034, reaching an estimated volume of 2169.48 MMT by 2034. The steel industry continues to be the foundation of modern development and urbanization, contributing to sectors across both emerging and developed economies.
Steel is a key material used in manufacturing, infrastructure, transportation, energy, and household appliances. With advancements in metallurgy, sustainable steel production practices, and increasing demand from key sectors like construction and automotive, the global steel industry is poised for steady and sustainable growth over the next decade.
Understanding the Steel Industry and Its Importance
Steel is an iron-based alloy that is renowned for its strength, durability, and versatility. It is primarily composed of iron and carbon, along with varying amounts of other alloying elements. Depending on the application, steel can be produced in different grades, such as carbon steel, stainless steel, alloy steel, and tool steel.
The global economy heavily depends on steel as a structural material for buildings, bridges, railways, vehicles, pipelines, wind turbines, ships, and industrial machinery. As demand for renewable energy, sustainable construction, and green mobility increases, so does the need for high-strength, low-carbon steel solutions.
Market Drivers
Growth in Construction and Infrastructure Development
One of the primary drivers of global steel demand is the construction and infrastructure sector. From urban housing and commercial buildings to transportation networks and public utilities, steel provides the strength and flexibility needed for large-scale development. Emerging economies, particularly in Asia Pacific and the Middle East, are investing in smart cities, highways, railways, and renewable energy installations that require vast quantities of steel.
Automotive Industry Expansion
The global shift toward electric vehicles (EVs), lightweight vehicles, and sustainable mobility is significantly influencing steel production. Advanced high-strength steels (AHSS) are now widely used to enhance vehicle safety and fuel efficiency. The automotive sector’s evolving manufacturing needs are contributing to the steel market’s growth.
Request a free sample report with table of contents: click here
Industrialization and Urbanization in Developing Nations
Rapid industrialization in countries such as India, Indonesia, and Brazil is increasing steel consumption for machinery, mining equipment, transportation, and manufacturing plants. Simultaneously, rising urbanization is driving the need for housing and urban infrastructure, boosting demand for both long and flat steel products.
Technological Advancements in Steel Production
Modern steel production methods, including electric arc furnaces (EAFs) and hydrogen-based direct reduced iron (DRI), are reducing carbon emissions and improving energy efficiency. These innovations are attracting investment from environmentally conscious stakeholders and enhancing global production capacity.
Market Segmentation
By Product Type
Long Steel Products (Rebars, Wire Rods, Angles, Channels)
Flat Steel Products (Hot Rolled Coil, Cold Rolled Coil, Coated Steel)
Tubular Steel Products (Pipes and Tubes)
Flat steel products dominate due to their extensive use in automotive, appliances, and manufacturing. Long products are crucial in construction and infrastructure development.
By Steel Type
Carbon Steel
Stainless Steel
Alloy Steel
Tool Steel
Carbon steel holds the largest market share due to its cost-effectiveness and wide application across sectors. Stainless steel demand is increasing, especially in food processing, medical instruments, and energy sectors.
By End Use
Construction and Infrastructure
Automotive and Transportation
Industrial Machinery
Energy and Power
Consumer Appliances
Others (Shipbuilding, Defense, Packaging)
Construction and infrastructure remain the largest consumers of steel. However, automotive and energy applications are expected to witness the highest growth rates during the forecast period.
Regional Insights
Asia Pacific
Asia Pacific is the largest producer and consumer of steel, accounting for over half of the global market volume. China, India, Japan, and South Korea are the top contributors, with significant investments in construction, railways, energy, and automotive manufacturing.
Europe
Europe is focusing on sustainable steel production by reducing emissions and adopting circular economy practices. Demand is growing from automotive, infrastructure, and aerospace sectors.
North America
North America is witnessing stable demand supported by smart infrastructure projects, advanced manufacturing, and a rebound in the construction sector. The U.S. and Canada are investing in modernizing steel mills and implementing eco-friendly production technologies.
Middle East and Africa
This region is experiencing increased steel consumption due to infrastructure development, energy projects, and growing industrialization in countries like Saudi Arabia, UAE, and South Africa.
Latin America
Brazil, Mexico, and Argentina are seeing steady growth in steel demand for transportation, appliances, and housing. Government-led infrastructure programs are contributing to market expansion.
Key Market Trends
Rise of Green Steel
Green steel production methods using hydrogen or electric furnaces powered by renewable energy are gaining momentum. As ESG compliance becomes critical, steelmakers are investing in low-emission production techniques.
Increased Mergers and Acquisitions
Leading steel producers are engaging in strategic mergers and acquisitions to expand capacity, secure raw material sources, and enter new regional markets. Consolidation is enhancing operational efficiency and market competitiveness.
Supply Chain Digitization
Digitalization of steel supply chains, with the use of AI, blockchain, and IoT, is streamlining production planning, quality control, and inventory management. These innovations are reducing costs and delivery times.
Diversification into Value-Added Products
Manufacturers are focusing on producing coated, fabricated, and precision-engineered steel products to meet specialized demands in industries such as aerospace, healthcare, and defense.
Challenges
Volatility in Raw Material Prices
The steel industry is highly sensitive to fluctuations in prices of raw materials such as iron ore, coal, and scrap metal. Unpredictable pricing affects profit margins and supply contracts.
Environmental Regulations
Stringent global environmental regulations aimed at reducing carbon footprints are forcing traditional steel producers to invest heavily in green technology, which increases capital expenditure.
Global Trade Tensions
Tariffs, trade wars, and anti-dumping duties have impacted the movement of steel across borders, affecting production planning and market access for several countries.
Opportunities
Circular Economy and Scrap Steel Recycling
The growing trend of recycling scrap steel supports cost-effective and environmentally friendly production. It offers immense potential, especially in regions with abundant scrap availability.
Growth in Offshore Wind Energy
The offshore wind energy sector is a growing consumer of high-grade structural steel. The global push for renewable energy is expected to drive steel demand in this niche.
Rising Demand from Defense and Aerospace
With increased defense spending and demand for high-performance materials, the aerospace and defense sector is emerging as a high-value steel consumer.
Market Forecast 2025–2034
The global steel market is projected to witness steady growth, reaching a volume of nearly 2169.48 MMT by 2034. Factors such as government infrastructure projects, industrial automation, sustainable building materials, and electrification of transport will contribute to long-term demand. Manufacturers focused on innovation, environmental sustainability, and strategic partnerships are expected to gain a competitive edge.
Frequently Asked Questions (FAQs)
What is the current size of the global steel market?As of 2024, the global steel market reached a volume of 1738.39 million metric tons, with projected growth to 2169.48 MMT by 2034.
Which industries use the most steel globally?The construction and infrastructure sector is the largest consumer, followed by automotive, industrial machinery, energy, and appliances.
What are the main types of steel?The major types of steel include carbon steel, stainless steel, alloy steel, and tool steel, each used for different applications based on strength and
corrosion resistance.
What is green steel and why is it important?Green steel refers to steel produced using low-emission methods, such as hydrogen-based or electric arc furnace processes, aimed at reducing environmental impact.
Which country is the largest producer of steel?China is the largest producer and consumer of steel globally, followed by India, Japan, the United States, and Russia.
Media Contact:
Company Name: Claight Corporation
Toll Free Number: +1-415-325-5166 | +44-702-402-5790
Address: 30 North Gould Street, Sheridan, WY 82801, USA
Website: https://www.expertmarketresearch.com
Comments