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The global flat steel market size was valued at USD 513.55 billion in 2022 and is projected to grow from USD 433.83 billion in 2023 to USD 734.77 billion by 2030, exhibiting a CAGR of 4.6% during the forecast period.
Flat steel is a type of steel mainly produced from iron ore, scrap steel, and coal. The product enhances the toughness, reliability, consistency, and quality of end products and reduces waste. Also, it improves the end-user products' performance and helps in hassle-free processing while improving yield and product shelf life. Such factors augment product demand in the automotive and construction industries.
Furthermore, the growing adoption of steel in various applications for providing greater quality products and cost reduction will fuel the adoption of flat steel. Furthermore, technological advancements to make the product more reliable and lightweight, coupled with the rapid development of infrastructure in developing countries, such as India and China, will fuel the flat steel market growth during the forecast timeframe.
Supply Chain Disruptions in the Steel Industry Declined the Product Consumption
Disruptions in the steel industry due to stringent government regulations implemented during the COVID-19 pandemic significantly influenced the market. The pandemic caused disturbances in the supply chain, containment measures, and suspension of consumption activities, resulting in a shortage of raw materials, machinery closures, and severe unavailability of skilled and trained labor. Factories were shut down, due to which steel production decreased. Furthermore, the global lockdown resulted in the stoppage of mining activities, affecting the availability of scrap iron and iron ore. This factor affected the producing companies and caused a drop in raw material availability, transportation of material, and decreased distribution activities.
Moreover, automotive producers, such as Tesla, Tata Industries, and Maruti Suzuki, reported production capabilities due to the shutdown of operations during COVID-19. This closure of operations created an impact on flat steel adoption. However, product demand was expected to recover more swiftly in emerging nations than developed ones. It was also expected to return to its pre-pandemic levels by 2021. The adoption of steel from emerging countries is owed to the recovery of the mechanical industry from the COVID-19 impact. As a result, the market is projected to stabilize in the coming years.
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Rapid Inclusion of Steel in the Automotive Industry Attributable to its Characteristics to Propel Market Progress
The automotive industry is redesigning due to various factors that aim to improve profit margins, where steel is replaced with composite materials and aluminum. However, substantial parts of vehicle bodies, such as guards and vehicle frames, are produced from steel. Such factors make the automotive industry one of the primary consumers of flat steel products accounting for more than 10% of all steel manufactured globally. In addition, the demand for cold rolled steel is increasing in automotive for interior parts and exterior body applications due to its dent resistance and high formability. Also, auto parts requiring impact resistance and good surface finishing observe strong sales. Such factors lead to higher demand for flat steel, thus providing lucrative opportunities for the market.
Robust Demand for Flat Steel from the Construction Industry to Drive Market Growth
The increasing pace of nuclearization of the population and growing urbanization are the key factors driving the construction industry’s growth. This industry adopts flat steel in construction frames and structural support for staircases, roofing, welded structure, and sheds applications. The increasing affluence of the middle class, the rising trend of owning multiple houses, and the redevelopment or renovation of houses further propel the construction industry, thereby driving the market. Moreover, construction projects, such as skyscrapers, infrastructure, and steel bridges, consume many steel plates. At the same time, demand from the infrastructure sector for highways, roads, and rail projects is projected to grow during the review period. Hence, rising innovation in the steel industry and rapidly growing construction projects will fuel market growth.
Fluctuation in Steel Prices is Likely to Hamper the Market Proliferation
Fluctuations in steel prices and raw materials for coal, iron, and scrap steel are observed regularly. The price of raw materials is highly unstable due to the laws of demand and supply. Additionally, the manufacturing costs impact storage capacity and prices. Such fluctuations in steel prices influence steel production costs. Moreover, product prices are directly dependent on steel. Hence, changes in steel prices affect the final product price. Furthermore, steel prices have augmented promptly due to a significant rise or fall in demand and geopolitical events, hindering market expansion in the forecast period.
HRC Segment to Dominate the Market Owing to High Demand from Equipment and Machinery Applications
Based on type, the market is classified into Hot Rolled Coil (HRC), Cold Rolled Coil (CRC), sheets, and others.
The HRC segment is estimated to continue its dominance during the forecast period owing to increasing demand from agriculture equipment, construction, machinery, and pipe-making applications. This product aids in providing high strength, durability, temperature-resistant, and formability characteristics. Furthermore, growing its preference in areas that do not necessitate much force and shape change, along with growing technological innovations in HRC, would augment the segment’s growth.
CRC is essentially hot-rolled steel, further processed in cold-reduction materials. It is mainly utilized in applications where tolerance, surface conditions, concentricity, and straightness are essential. The rising consumption of steel sheets from the automotive industry to make the bodies of cars is anticipated to propel the segment’s growth.
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Construction Segment to Dominate Owing to Increasing Applications of Flat Steel
Based on application, the market is segmented into construction, automotive & transportation, mechanical equipment, energy, packaging, and others. The construction segment accounted for the largest market share in 2022. The product is mainly adopted in roofing, sheds, welded structures, and staircases in the construction industry owing to its optimal cost, safety, and lightweight characteristics. Additionally, the rising preference for modern techniques, including monolithic construction for faster implementation of projects will further boost the demand for the product in the construction industry.
Due to the rising adoption of electric vehicles in China, Germany, and the U.S., the rapidly growing automotive industry is anticipated to fuel the consumption of the product. The formability and high strength of CRC and HRC products will increase their adoption of mechanical equipment, such as industrial and agricultural tractors. Rising adoption of corrosion resistant material from several equipment producers will boost product demand in the mechanical equipment segment.
The others segment includes metal products, domestic appliances, consumer goods, defense, packaging, and electronics. Product consumption is high in such applications due to its ultimate shear and tensile strength. Moreover, the rising adoption of electronics accessories and increasing consumer disposable income coupled with the increasing demand for metals in producing industries resulted in high product demand. Hence, such factors would further flourish the market growth rate during the forecast period.
Asia Pacific Flat Steel Market Size, 2022 (USD Billion)
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The Asia Pacific market size stood at USD 260.79 billion in 2022, dominating the global market share. Increasing industrialization and rising technological innovation in steel are estimated to fuel market growth in the region. The major market share was held by China, owing to rising steel manufacturing, and growing development of the construction industry while increasing research & development activities are likely to fuel the product’s demand in China.
In Europe, technological innovation and rapid growth in the automotive sector are anticipated to attract robust adoption of flat steel. This factor increases the demand for steel sheets and HRC. In North America, the product’s greater strength and temperature-resistant characteristics are expected to boost the demand for CRC in electronic and engineering applications.
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In Latin America, Mexico and Brazil are the primary countries. Increasing product adoption in consumer goods industries, metal products, and mechanical equipment will drive market progress. The expansion of the construction sector in the Middle East & Africa is anticipated to contribute to the market’s growth in the coming years due to increasing developments of industrial facilities and manufacturing capacities by several firms, thereby facilitating the growth of construction activities in the region.
Business Expansion in the Construction Industry to Retain More Customers is the Key Strategic Initiative Implemented by Companies
Key players operating in the market include ArcelorMittal, ThyssenKrupp Steel Europe, and Nippon Steel Corporation. They are engaged in product innovation, capacity improvement, collaborations, and acquisition in the market. Nippon Steel Corporation is a steel producer and uses hot and cold-rolled processes to produce steel-based products for customers. The company is further involved in steel research & development, acquisitions, and innovation to satisfy consumer demands.
An Infographic Representation of Flat Steel Market
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The flat steel market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, types, applications, and products. Also, it provides quantitative data in terms of volume and value, market analysis, research methodology for market data, and insights into market trends. It highlights vital industry developments and the competitive landscape. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market in recent years.
ATTRIBUTE | DETAILS |
Study Period | 2019-2030 |
Base Year | 2022 |
Estimated Year | 2023 |
Forecast Period | 2023-2030 |
Historical Period | 2019-2021 |
Growth Rate | CAGR of 4.6% between 2023 and 2030 |
Unit | Value (USD Billion), Volume (Million Ton) |
Segmentation | By Type, Application, and Region |
By Type |
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By Application |
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By Geography |
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Fortune Business Insights says that the global market size was USD 513.55 billion in 2022 and is projected to reach USD 734.77 billion by 2030.
Registering a significant CAGR of 4.6%, the market will exhibit considerable growth over the forecast period (2023-2030).
The HRC segment is expected to lead the market during the forecast period.
Robust demand for the product from the construction industry is the key factor driving the market.
China held the highest share of the market in 2022.
ThyssenKrupp Steel Europe, Nippon Steel Corporation, ArcelorMittal, and Tata Steel are the leading players in the market.
The rapid growth of the construction and automotive industries is anticipated to boost the consumption of the product.