The global iron and steel market size is expected to reach USD 2,253.52 billion by 2030, according to a new report by Grand View Research, Inc. expanding at a CAGR of 3.8% from 2023 to 2030. Rising demand for heavy machinery and growth in the construction industry is expected to augment market growth over the forecast period.

Over 98% of the total iron ore transforms into pig iron, which is a crucial component in the production of steel. Finished steel products are used in various industries, such as heavy industry, construction, automotive, and consumer goods. In heavy industry, steel is a strong material that can handle heavy weights and tough conditions. It provides stability and safety to heavy machinery, equipment, and infrastructure by maintaining their structural integrity. Thus, it is widely used in heavy industries such as shipbuilding, defense products manufacturing, and oil gas.

Investment in the oil gas industry is expected to drive the demand for steel over the forecast period. For instance, in April 2022, Cairn Oil Gas, a Vedanta Group subsidiary, announced investing USD 700.0 million in oil gas exploration projects in India. The company plans to invest in 100 exploratory wells, including the project in the Barmer region of Rajasthan, India.

Despite the rising penetration in various end-use industries, the product faces hindrances in the automotive industry. Electric vehicles prefer to use aluminum because of its lightweight and robust characteristics. This lightweight property helps reduce fuel consumption and lowers carbon emissions. As a result, aluminum is increasingly being used as a substitute for steel in electric vehicles, and this trend is expected to negatively affect the global market growth in the foreseeable future.

Region-wise, Asia Pacific is projected to undergo substantial revenue growth with a CAGR of 3.6% across the forecast period. This growth can be attributed to substantial investments in the region's construction and infrastructure sectors of developing economies. For instance, The Indonesian parliament approved the Capital City Bill in January 2022, paving the way for constructing a new capital city in the East Kalimantan province. The country has plans to invest USD 35 billion in the project, which is projected to be finalized by 2024.

In terms of competitive rivalry, the global market is characterized by intense competition and fragmentation. Major market players are implementing strategies such as mergers and acquisitions to strengthen their positions to expand their capacities. For instance, in January 2022, POSCO agreed with Adani Group, an Indian multinational conglomerate, to set up a mill worth USD 5.0 billion in Gujarat, India. The new mill utilizes green hydrogen and renewable energy sources for steel production. Furthermore, the companies agreed to collaborate in various industries, including logistics, renewable energy, and hydrogen.

Iron And Steel Market Report Highlights

• Based on iron ore application, the steel segment is expected to register a growth rate of 2.0% in terms of revenue over the forecast period. The production of steel is expected to increase over the forecast period on account of rising investments in the construction of smart cities, led by increasing urbanization rates.
• For example, Saudi Arabia’s NEOM project is anticipated to consume the largest amount of iron and steel. Further, at a capacity of 650 tons per day, the NEOM project will commence hydrogen production in 2026, which will be used by green steel and cement industries, for the city to run at 100% renewable energy.
• Based on steel end-use, the building construction segment captured the largest revenue share of the market, with over 45.0% in 2022. Rising investment by emerging economies to modernize their infrastructure is expected to propel the demand for the product.
• Based on region, the Middle East Africa is expected to achieve a revenue growth rate of 4.3%, over the forecast period. This growth is primarily driven by the emergence of infrastructure projects in the Middle East, which in turn is boosting the demand for products in the region.

Iron And Steel Market Segmentation

Grand View Research has segmented the iron and steel market report on the basis of product, iron ore application, steel end-use, and region.

Iron Steel Product Outlook (Volume, Kilotons; Revenue, USD Million; 2018 - 2030)

• Iron Ore
• Steel

Iron Ore Application Outlook (Volume, Kilotons; Revenue, USD Million; 2018 - 2030)

• Steel
• Other

Steel End-Use Outlook (Volume, Kilotons; Revenue, USD Million; 2018 - 2030)

• Building Construction
• Automotive Transportation
• Heavy Industry
• Consumer Goods
• Other

Iron Steel Regional Outlook (Volume, Kilotons; Revenue, USD Million; 2018 - 2030)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Russia
  • Turkey
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
• Central South America
  • Brazil
  • Argentina
  • Middle East Africa
  • Iran

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