Australia Steel Market to Reach USD 25.8 Billion by 2033 as Infrastructure, Mining & Manufacturing Drive Growth

The Australia steel market is projected to experience steady growth over the coming decade as key end-use sectors — including construction, infrastructure, mining and renewable energy — continue to underpin demand for steel products. According to the latest IMARC Group analysis, the Australia steel market reached USD 19.5 billion in 2024 and is expected to grow to USD 25.8 billion by 2033, exhibiting a compound annual growth rate (CAGR) of 3.16 % during 2025–2033.

This trajectory reflects Australia’s evolving industrial landscape, where steel remains indispensable for structural applications, machinery manufacturing and energy infrastructure. Domestic market dynamics are shaped by a combination of government investments, localized manufacturing initiatives, sustainability efforts and demand shifts in construction and export markets.

Request a Sample Report with Latest 2026 Data & Forecasts:

Why the Market Is Growing So Rapidly

1. Expanding Construction and Infrastructure Activity

Australia’s robust pipeline of urban development and transport infrastructure projects is a foundational driver of steel demand. Steel is the primary material for structural frameworks, reinforcements and critical components in highways, railways, bridges and commercial facilities. Increased investments at both federal and state levels to enhance connectivity and support population growth are driving consistent procurement of steel products.

2. Strengthening Residential and Commercial Building Sectors

Population growth and lifestyle changes in metropolitan areas — such as Sydney, Melbourne and Brisbane — are boosting residential and commercial construction. High-rise apartment complexes, mixed-use developments and public buildings depend heavily on steel for foundational strength and durability. Private sector investments in housing and commercial real estate amplify the overall market forecast.

3. Government Support for Domestic Manufacturing

Policies designed to bolster local manufacturing are strengthening the steel market. The Australian government’s initiatives to enhance domestic steel production through protective trade measures, procurement preferences for infrastructure projects, and support for modernization of steel facilities provide stability for local producers. These efforts help counteract competitive pressures from imported steel and promote sovereign capability in this strategic industry.

4. Renewable Energy and Equipment Manufacturing Demand

Australia’s transition toward renewable energy infrastructure — such as wind farms, solar installations and associated equipment — is fostering demand for high-performance steel. Steel is essential in the structural integrity of renewable energy components as well as in the supporting infrastructure for energy storage and transmission systems. Enhanced investments in clean energy projects are broadening steel consumption beyond traditional sectors.

5. Export Potential and Regional Trade Dynamics

Australia’s proximity to emerging markets in Southeast Asia presents export opportunities for domestic steel producers. Nations such as Indonesia, Vietnam and the Philippines are undergoing rapid industrialization and infrastructure build-outs, increasing their need for quality steel. By leveraging regional trade agreements and logistical advantages, Australian steel suppliers can diversify revenue streams beyond the domestic market and capture share in regional supply chains.

What the Opportunities Are

1. Smart Manufacturing and Industry 4.0 Integration

Steel producers that adopt automation, IoT, robotics and data analytics can improve operational efficiency, reduce waste and optimize production processes — enhancing competitiveness in both domestic and export markets.

2. Development of High-Performance and Specialty Steels

There is growing demand for advanced steel grades used in defense, mining, automotive and energy sectors. Investing in R&D to diversify product portfolios into high-strength, corrosion-resistant and lightweight steel alloys can open premium market segments.

3. Sustainable and Green Steel Production

Companies investing in lower-carbon steelmaking technologies — including electric arc furnaces and direct reduced iron methods — can attract ESG-focused investments and align with global emissions targets. Government funds aimed at green iron initiatives further support this transition.

4. Expansion of Export Channels

Targeting Southeast Asian and Pacific markets with strategic export partnerships offers growth beyond domestic consumption. Australia’s reputation for quality steel and proximity to fast-growing regional economies enhances export potential.

5. Aftermarket Services and Technical Support

Offering value-added services — such as logistics solutions, customization and post-sale technical support — strengthens customer relationships and enhances long-term revenue prospects.

6. Infrastructure-Aligned Product Innovation

Tailoring steel products to meet the needs of smart infrastructure — including bridge components, transport frameworks and sustainable construction materials — drives deeper integration into future projects.

7. Strategic Joint Ventures and Capital Investments

Collaboration with international partners and capital investments in capacity expansion can accelerate production capability and technology adoption, supporting long-term competitiveness.

Recent News & Developments in Australia Steel Market

• February 2025: The Australian government launched a A$1 billion green iron fund, which includes A$500 million to support the Whyalla steelworks and related supply chains. The initiative targets the advancement of low-emission iron and paves the way for broader decarbonization and manufacturing resilience in the steel industry.

• September 2025: Sanjeev Gupta’s InfraBuild — a major domestic steel player — announced plans to expand production capacity at its Melbourne and Sydney plants, targeting a 25 % increase in output by 2026 at Laverton and growth at Rooty Hill, positioning the firm for increased local steel supply amid import competition.

• December 2025: A consortium including Australia’s BlueScope Steel received an acquisition proposal offering a significant premium over market valuation, reflecting renewed investor interest in the country’s largest steel producer and indicating ongoing strategic M&A attention in the sector.

Why Should You Know About Australia Steel Market?

The Australia steel market represents a pivotal industrial sector with enduring relevance to national economic development, infrastructure delivery and manufacturing competitiveness. With steady growth projected through 2033, robust demand from construction and renewable energy applications, and supportive government policies, the sector offers strategic opportunities for investors, producers and policymakers alike. Local producers that innovate in sustainability and specialty products are well positioned to benefit from global and regional market shifts. For construction professionals and industrial buyers, understanding steel market dynamics helps optimize procurement and project planning. For policymakers, strengthening domestic steel capacity enhances national resilience in critical supply chains and supports broader economic goals. As Australia navigates evolving market conditions and technological change, the steel industry remains central to the country’s industrial and infrastructure landscape — making it essential knowledge for stakeholders across sectors.