The Structural Steel Market is estimated to be valued at US$ 82.4 Mn in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Structural steel refers to load-bearing steel construction materials, such as steel wide flanges, columns, beams, tubular sections, and others. It is extensively used in construction of buildings, bridges, ships, stadiums, and other structures. Structural steel provides various advantages over traditional concrete construction materials such as flexibility in design, high strength-to-weight ratio, and reusability. With its properties of high tensile strength and ductility, structural steel is increasingly being adopted in modern construction practices.
Market Dynamics:
Rising infrastructure development activities across both developed and emerging economies is a major factor driving growth of the global structural steel market. New infrastructure projects such as commercial buildings, railroads, bridges, schools, hospitals etc. require huge amounts of structural steel. According to World Bank, the global infrastructure investment needs stood at USD 94 trillion between 2016 and 2040. Another key driver is rapidly growing construction sector. Construction output is expected to grow by 85% to USD 15.5 trillion worldwide by 2030 according to Global Construction Perspectives and Oxford Economics.
The stringent environmental regulations regarding carbon emissions from steel production practices pose a challenge to market growth. However, steel manufacturers are focusing on adoption of sustainable practices and new production technologies to reduce carbon footprint. Additionally, volatility in steel prices due to fluctuations in raw material prices can hamper market demand.
Segment Analysis
The structural steel market is dominated by the commercial segment. Commercial construction like office buildings, shopping malls, multiplexes etc widely use structural steel frames owing to their high strength, light weight, durability and corrosion resistance which make it suitable for high rise structures. Within commercial construction, large office buildings have the highest demand for structural steel due to large floor plates that require heavy-duty structural support.
PEST Analysis
Political: Trade policies impacting steel imports and availability are key. Recent protectionist measures have increased local steel production.
Economic: Growth of the construction industry, driven by urbanization and infrastructure development, boosts demand. The global construction industry is expected to grow over 4% annually till 2025.
Social: Changes in lifestyle and work culture require modern commercial buildings over conventional structures furthering structural steel consumption.
Technological: Advancements in design and production technology help make structural steel competitive against alternatives through reduced costs and construction timelines. Use of BIM for digital fabrication is a key trend.
Key Takeaways
The Global Structural Steel Market Size is expected to witness high growth, exhibiting CAGR of 5.7% over the forecast period, due to increasing urbanization and infrastructure development especially in developing economies of Asia Pacific and Latin America.
The Asia Pacific region dominated the global structural steel market in 2023 accounting for over 35% of the global demand. China alone accounts for over 25% of the global consumption. Other major markets include India, Japan, and South East Asian countries. The region is expected to maintain its lead during the forecast period owing to strong growth of the construction industry led by increasing investments in infrastructure, real estate and industrialization.
Key players operating in the structural steel market are Arcelormittal, Nippon Steel Corporation, Shougang, Tata Steel, Hyundai Steel, Anyang Iron & Steel Group Co., Ltd., British Steel, China Ansteel Group Corporation Limited, Emirates Steel, Evraz Plc, And Gerdau S/A. Arcelormittal is the global market leader with a market share of over 13%, while Nippon Steel Corporation is among the top Japanese players with a share of around 9%. Consolidation through mergers and acquisitions is a key trend observed in the structural steel industry landscape.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Alice Mutum
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights. LinkedIn