Flat Steel Market
Flat Steel Market - Global Industry Assessment & Forecast
- By Processes Basic Oxygen Furnace, Electric Arc Furnace
- By Types Sheets & Strips, Plates
- By End-Use Sectors Building & Infrastructure, Mechanical Equipment, Automotive & Other Transport, Others (Domestic Appliances, Electrical Appliances, Food Processing, Packaging, & Defense)
- By Region North America, Europe, Asia Pacific, Latin America, Middle East & Africa
|Forecast Years:||2021 - 2028|
|Historical Years:||2016 - 2020|
|Revenue 2021:||USD 503.4 Billion|
|Revenue 2028:||USD 694.1 Billion|
|Revenue CAGR (2021 - 2028):||5.5%|
|Fastest Growing Region (2021 - 2028)||Asia Pacific|
|Largest Region (2021):||Asia Pacific|
- Cross-segment Market Size and Analysis for Mentioned Segments
- Additional Company Profiles (Upto 5 With No Cost)
- Additional Countries (Apart From Mentioned Countries)
- Country/Region-specific Report
- Go To Market Strategy
- Region Specific Market Dynamics
- Region Level Market Share
- Import Export Analysis
- Production Analysis
- Others Request Customization Speak To Analyst
The Global Flat Steel Market is valued at USD 503.4 Billion in 2021 and is projected to reach a value of USD 694.1 Billion by 2028 at a CAGR of 5.5% over the forecast period.
The growth of the Flat Steel market is mainly driven by the rising demand for carbon and low alloy steels in various industries such as automotive, aerospace, shipbuilding, offshore wind power, and others. The demand for Flat Steel has been steadily increasing in recent years due to the growth of the construction and manufacturing industries. The construction industry is booming, leading to an increased demand for steel structures, such as bridges and buildings. The manufacturing industry is also growing steadily, leading to an increased demand for metal products, such as Flat Steel plates. Several factors contribute to this increase in demand for Flat Steel plates. One factor is the rising popularity of green building initiatives across the globe. These initiatives seek to save energy by using more sustainable materials, and one of the main sources of sustainability for building materials is Flat Steel. Flat Steel panels are lighter than other types of metal paneling, making them more efficient when using energy in construction projects. Another reason why the demand for Flat Steel is increasing is that it offers a variety of benefits over other types of metal paneling. For example, Flat Steel panels have high corrosion resistance and are relatively easy to weld together, making them ideal for use in constructing industrial or commercial buildings. The Flat Steel market is experiencing increasing popularity due to the increasing demand for green infrastructure and the increasing awareness of climate change. The increase in green infrastructure is primarily attributed to the growing trend of urbanization, leading to an increase in construction projects involving green buildings and smart city initiatives.
Flat Steel Market Size, 2021 To 2028 (USD Billion)
Additionally, the Flat Steel Market is seeing increased demand from the automotive sector due to its versatile applications and accurate construction. Traditional building materials are often expensive and require high maintenance. Flat Steel is a better option because it is durable and can be reused multiple times. However, the costs associated with Flat Steel are increasing, which is why it is becoming more popular.
Several factors are driving the cost of Flat Steel: oil prices, production costs, and tariffs. The main drivers of this increase include population growth and rising demand from developing countries. Concrete is the most expensive material to produce due to the need for large amounts of raw materials and labor. Lumber also sees high costs, as trees are harvested selectively to maintain their quality. Steel prices have increased primarily because of increased production costs and global demand.
The Flat Steel market is witnessing rapid advancements in structural engineering technology, driven by the increasing demand for Flat Steel in various industries, including automotive and construction. The key drivers of the Flat Steel market include increased demand from the automobile industry for lightweight and strong vehicles, increasing construction activities around the globe, and developments in new bridge technologies. In addition, technological advancements such as laser cutting and cold working also benefit the Flat Steel market. Vendors cater to various customer needs by developing innovative products such as advanced alloys, processing methods, and frame designs. One of the key drivers of the Flat Steel market growth is increasing spending on infrastructure development. The government is heavily investing in various transportation and infrastructure projects across the globe, which is expected to boost the demand for Flat Steel products in these areas. Green building initiatives are also likely to bolster the demand for Flat Steel in coming years as developers seek lightweight and sustainable options for construction. Additionally, growing awareness about climate change and its negative environmental impact is expected to bolster the demand for green building materials such as Flat Steel in the coming years. Apart from governmental investments, other factors that are driving the growth of the Flat Steel market include growing replacement needs of existing stock due to aging infrastructure and advances in technology, increasing awareness about the benefits of using ultra-high strength steels (UHS) for advanced structural applications, increasing concerns about energy conservation, and growing adoption of advanced manufacturing techniques among producers of metals products.
The key restraints of the market include:
1. Economic constraints: The Flat Steel market is highly competitive, as many players strive to gain a foothold in this growing industry. As such, companies must be able to offer a low price point to remain profitable. Additionally, the high demand for Flat Steel has driven up the cost of production, which has restrained growth in the market.
2. Transportation constraints: Steel is mostly used for construction projects and other forms of infrastructure, which means that it needs to be transported long distances across various countries. This transportation hurdle has limited the distribution and utilization of steel resources, restraining growth in the Flat Steel market.
3. Labor constraints: Skilled labor is required to produce good quality Flat Steel products. However, due to the tight labor market, many companies have needed help hiring enough experienced workers to meet the increasing demand for this product type. As a result, low productivity levels and high costs associated with employee training and ongoing recruitment efforts have constrained Flat Steel output.
Top Market Trends
1) Adopting new manufacturing processes and technologies that improve product quality and yield. For example, advances in rolling and extrusion technologies have made it easier and faster to produce high-quality Flat Steel products with consistent specifications.
2) Growing demand for Flat Steel products from the automotive sector. This is attributable to growing trends such as self-driving cars and electric vehicles, which require various components made of lightweight, robust materials like Flat Steel.
3) Continuing investment by key players in the Flat Steel industry. Major players are investing in new production lines and facilities to meet rising demand. This has helped create a more competitive environment for producers and increased innovation across the entire sector.
4) One significant advancement in welding technology is using MIG welders. This type of welding process is well-suited for Flat Steel because it can produce a weld that is both strong and durable. In addition, a MIG welder is less expensive than other welding processes, making it a popular choice for manufacturers who want to produce high-quality products quickly and at a low cost.
5) 3D printing technology has allowed the development of custom solutions that were not feasible before. Moreover, this technology has also made it easier to make design changes without going through the process of retooling.
The market is segmented based on Process, Type, End-use Sector, and Region. Based on Processes, the market is segmented into Basic Oxygen Furnaces and Electric Arc Furnaces. Furthermore, based on Types, the market is segmented into Sheets & Strips and Plates. In addition, based on the End-Use Sectors, the market is segmented into Building & Infrastructure, Mechanical Equipment, Automotive & Other Transport, and Others (Domestic Appliances, Electrical Appliances, Food Processing, Packaging, and Defense).
Below tree is interactive. You can click the nodes to get more information.
Based on Processes
The Basic Oxygen Furnace dominated the market for Flat Steel production in 2021-22. The benefits of using a furnace for steelmaking are that it is faster and produces higher-quality steel. However, several other furnaces can be used to make Flat Steel, which will be discussed in further detail below. Oxygen Furnace dominated the market for Flat Steel production because of its speed and quality. Several other furnaces can be used to make Flat Steel, but they tend to have lower speeds and lower quality standards. These include electric arc furnaces (EAFs), induction furnaces, Siemens-Martin furnaces, and subcritical water tube furnaces (SWTFS). Electric arc furnaces (EAFs) produce high-quality Flat Steel, but they tend to have low production speed. They primarily produce small rounds or billets rather than sheet goods. Induction furnaces produce good-quality sheet goods but also tend to have slow production speed. Siemens-Martin furnaces produce intermediate-quality sheet goods, but they have fast speeds. Subcritical water tube furnaces (SWTFS) are a newer type of furnace with high speeds and good quality standards, although they are less common than O2 or EAF.
Based on Types
The Sheets segment dominated the market during 2021-22, accounting for close to 75% of the total volume. This can be attributed to the increasing demand from the construction industry for high-quality sheets. The reason behind this growth is the growing infrastructure and housing sector in developed countries, which necessitates using Flat Steel panels in new buildings. However, the Strip segment held a modest share (~15%) of the total market in 2021-22. This can be attributed to increasing demand from the automotive industry for polished strips. Rising investments in R&D by automakers are expected to drive growth in this segment over the next few years. Hot-rolled and cold-rolled sheets are the two broad categories of sheets available. Cold-rolled sheets' more malleable spans from everyday to industrial use make them ideal for use in electronics and vehicles. Chain components, automotive AT components, automotive clutch components, sprocket gears, and automobile safety belt components are only some of the many uses for carbon sheets in machine structures. Whether a discrete plate mill or a coiled plate mill, the steel plates are always thicker than 3/16 inches. Low-alloy, heat-treated, high-strength plates are made for specific uses, such as logging and mining machinery.
Based on the End-Use Sectors
Building & Infrastructure dominated the Flat Steel market and accounted for over two-thirds of the total revenue in 2021. This trend will likely continue as global construction activity remains robust over the forecast period. In addition, the increasing adoption of passive and intelligent building systems will also drive demand for Flat Steel products in this sector. Other end-users include automotive, industrial, and electrical & electronics. The growth prospects of the Flat Steel market are high due to robust global construction activity and increased adoption of passive and intelligent building systems. The major challenges faced by the market include tariffs imposed by some countries on imported Chinese products, although these restrictions are expected to be removed in the future. About 70% of a car's mass comprises iron and steel. A significant percentage of the world's steel supply goes into the automobile industry; the World Steel Association puts that percentage at close to 12%. Regarding automotive steel, ArcelorMittal is a major player in the industry.
Based on Region
Asia Pacific segment dominated the Flat Steel market in 2021. This was attributed to increasing demand from the construction sector and advancement in infrastructure projects in regions such as China, India, and Australia. North America also contributed significantly to the Flat Steel market growth. However, Asia Pacific held a dominant position. Asia Pacific accounted for 48% of the total market revenue in 2021. This is attributable to high demand from the construction sector in China, India, and Australia and the burgeoning infrastructure sector in these regions.
Furthermore, the increasing adoption of steel construction methodologies and stringent environmental regulations favors the Flat Steel market growth in the Asia Pacific region. North America accounted for 36% of the total market revenue. Increasing demand from the aerospace and automotive industry is driving this growth. In addition, growing Expenditure on Infrastructure projects across the United States is the impetus to the growth of the Flat Steel market in North America.
The key players in the Global Flat Steel market include- POSCO (South Korea), Nippon Steel and Sumitomo Metal Corporation (Japan), China Baowu Steel Group Corporation Limited (China), Arcelor Mittal (Luxembourg), Ansteel Group Corporation Limited (China), Tata Steel (India), Shagang Group (China) and others.
Recent Market Developments
● Nippon Steel Corporation is releasing ZAM®-EX, a coated steel sheet with exceptional corrosion resistance, into international markets in April 2021.
● Nippon Steel Corporation's two Thai manufacturing and sales subsidiaries for cold-rolled and hot-dip galvanized steel sheets and tinplate and tin-free steel, NS-Siam United Steel Co., Ltd. and Siam Tinplate Co., Ltd., respectively, agreed in November 2021 to combine in April 2022.
● China Baowu Steel Group Corporation Limited (Baowu) will be finished in March 2021, owned by the State-owned Assets Supervision and Administration Commission (SASAC), and rated one notch below the Chinese sovereign by Fitch Ratings using their Government-Related Entities (GRE) Rating Criteria.
● In 2020, After announcing its CO2 technology strategy, ArcelorMittal Europe can now offer its customers the world's first green steel solutions. Through this effort, the corporation plans to accomplish its 30% CO2 emissions reduction goal by 2030 and reach net zero by 2050. To further cut down on carbon dioxide emissions, the company is working on initiatives at nearly all of its flat product locations to pump various gases into the blast furnace.
Segmentation of the Global Flat Steel Market
|Regions & Countries Covered||
|Report Coverage||Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis|
Frequently Asked Question
What is the global demand for Flat Steel in terms of revenue?
The global Flat Steel valued at in 2020 and is expected to reach in 2028 growing at a CAGR of 5.5%.
Which are the prominent players in the market?
The prominent players in the market are POSCO (South Korea), Nippon Steel and Sumitomo Metal Corporation (Japan), China Baowu Steel Group Corporation Limited (China), Arcelor Mittal (Luxembourg), Ansteel Group Corporation Limited (China), Tata Steel (India), Shagang Group (China).
At what CAGR is the market projected to grow within the forecast period?
The market is project to grow at a CAGR of 5.5% between 2021 and 2028.
What are the driving factors fueling the growth of the market.
The driving factors of the Flat Steel include
- Increasing Urban Population
Which region accounted for the largest share in the market?
Asia Pacific was the leading regional segment of the Flat Steel in 2020.