Steel Market: Urbanization Impact, Structural Steel Use & Growth Outlook

According to IMARC Group's latest research publication, The global steel market size was valued at USD 1,004.9 Billion in 2025. Looking forward, IMARC Group estimates the market to reach USD 1,308.7 Billion by 2034, exhibiting a CAGR of 2.98% during 2026-2034.

How AI is Reshaping the Future of Steel Market

• Automated Quality Control Systems: AI-powered computer vision instantly detects surface defects like cracks and scratches with 99% accuracy, eliminating subjective manual inspections and reducing production waste while ensuring consistent product quality across manufacturing facilities.
• Predictive Maintenance Operations: Machine learning algorithms analyze equipment vibrations, temperatures, and operational data to forecast failures before breakdowns occur, cutting unplanned downtime by 30-50% while extending asset lifecycles and minimizing costly repairs.
• Smart Furnace Optimization: AI determines ideal air-fuel mixtures in real-time by analyzing historical trends and current conditions, improving energy efficiency by 15-20%, reducing fuel consumption, and maintaining consistent production temperatures for superior steel quality.

Access the Latest 2026 Market Data & Forecasts

Steel Industry Overview:

Asia Pacific dominates the steel market with over 62.7% share, powered by massive infrastructure investments and manufacturing growth. India's JSW Group and South Korea's POSCO signed agreements in October 2024 to build a 5 million tonnes integrated plant using green technologies. Tata Steel aims to lead digital steelmaking through AI optimization of yield and energy consumption. ThyssenKrupp and major producers are implementing predictive maintenance with MindSphere platforms, while 78% of global companies plan increased AI investments.

Steel Market Trends & Drivers:

Automotive electrification is driving unprecedented steel demand as manufacturers invest over USD 500 billion in EV production facilities. Hyundai committed USD 1.5 billion for a new EV factory in Ulsan, South Korea in November 2023, joining Honda, Volkswagen, and Ford in substantial facility expansions. Advanced high-strength and lightweight steel alloys are essential for meeting fuel efficiency standards and emissions regulations while maintaining safety. Electric vehicle sales reached 14% of global new car sales, with China commanding 60% of worldwide EV sales, Europe increasing 15%, and U.S. sales surging 55%. This transition demands specialized steel solutions.

Military modernization and defense spending growth are accelerating steel consumption for aircraft manufacturing. Global military expenditures increased 3.7%, with top five spenders—United States, China, Russia, India, and Saudi Arabia—contributing 63% of total spending. Fighter jets, transport planes, and helicopters require high-tensile steel for airframes, landing gear, and engine components. The Russia-Ukraine conflict intensified worldwide defense budget increases and military readiness initiatives. Modern military aircraft demand materials with exceptional strength, durability, and extreme condition resistance, ensuring continuous robust steel demand for defense applications.

Green steel initiatives and sustainability commitments are transforming production methods across the industry. India launched the National Steel Policy targeting 300 million tons domestic production with investment incentives for new plants and reduced tariffs on raw materials. China aims for 30% emission reductions in steel manufacturing. Europe's steel sector contributes 1.3% to GDP while directly employing 328,000 people and supporting two million indirect jobs. Producers are adopting hydrogen-based steelmaking, electric arc furnaces, and renewable energy integration to meet international emission targets while maintaining competitiveness and improving energy efficiency across operations.

Leading Companies Operating in the Global Steel Industry:

• ArcelorMittal S.A.
• EVRAZ plc
• Gerdau S.A.
• Hyundai Steel Co. Ltd
• JFE Steel Corporation (JFE Holdings Inc.)
• Jiangsu Shagang Group Co. Ltd
• Nippon Steel Corporation
• Nucor Corporation
• Shougang Group Co. Ltd.
• Tata Steel Ltd. (Tata Group)
• thyssenkrupp AG
• United States Steel Corporation

Steel Market Report Segmentation:

By Type:

• Flat Steel
• Long Steel

Long steel leads the market with 49.0% of market share in 2025.

By Product:

• Structural Steel
• Prestressing Steel
• Bright Steel
• Welding Wire and Rod
• Iron Steel Wire
• Ropes
• Braids

Structural steel leads the market with 45.5% of market share in 2025.

By Application:

• Building and Construction
• Electrical Appliances
• Metal Products
• Automotive
• Transportation
• Mechanical Equipment
• Domestic Appliances

Building and construction leads the market with 49.0% of market share in 2025.

Regional Insights:

• North America (United States, Canada)
• Europe (Germany, France, United Kingdom, Italy, Spain, Others)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

Asia Pacific accounted for the largest market share of over 62.7% in 2025.

Recent News and Developments in Steel Market

• January 2025: The Indian government initiated another phase of the Production-Linked Incentive scheme for specialty steel to enhance local production and decrease imports. The earlier PLI scheme drew investments totaling ₹27,106 crore and generated 14,760 jobs, demonstrating significant industry impact and economic contribution.
• January 2025: The UK government established the Steel Council to advance its Steel Strategy, focusing on revitalizing the industry through a £2.5 billion investment initiative. This effort highlights the sector's importance in national defense and economic stability while supporting modernization efforts.
• January 2025: AM/NS India introduced Optigal®, a high-quality color-coated steel brand in Karnataka, highlighting its 25-year warranty and excellent corrosion resistance. The Bengaluru launch showcased applications in roofing, cladding, and architectural projects, reflecting growing sustainable material demand.
• September 2024: The Ministry of Steel organized "Greening Steel: Pathway to Sustainability" in New Delhi, launching the report "Greening the Steel Sector in India: Roadmap and Action Plan." The report details strategies including renewable energy and green hydrogen for decarbonizing India's steel sector.
• June 2024: SteelAsia inaugurated its Compostela Works, the biggest steel mill in the Philippines, boasting 1 million tons annual production capacity. The facility concentrates on manufacturing high strength rebar and welded rebar mesh for construction applications across Southeast Asia.

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