Carbon Steel Market is Estimated to Witness High Growth Owing to Opportunity in Construction and Manufacturing Sector Expansion

Global Carbon Steel Market Size
Global Carbon Steel Market Size



Carbon steel is an alloy of iron and carbon with small amounts of other elements. The presence of carbon in these steels makes them hardenable by heat treatment, enabling them to have a variety of strength levels and compromise between strength, formability and weldability. Carbon steel products are used across various industries such as construction, infrastructure, manufacturing, oil & gas and energy. The rise in construction and infrastructure development activities across both developed and developing economies is creating substantial demand for carbon steel products such as rolled steel products, pipe & tubes, and bars & rods. Furthermore, the growth of the manufacturing sector along with increasing investments in process industry equipment and oil & gas pipelines is also fueling the consumption of carbon steel globally.

The global Carbon Steel Market is estimated to be valued at US$ 1155.24 Bn in 2024 and is expected to exhibit a CAGR of 9.2% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
The expansion of the construction and manufacturing sectors is a major market opportunity for carbon steel producers. Rapid urbanization and growing investments in public infrastructure in developing countries are expected to drive the demand for carbon steel bars, angles, beams and other long products used in construction applications over the forecast period. Additionally, the revival of manufacturing activity and industrial capex particularly in developed regions along with ongoing capacity additions in China and India will augment carbon steel consumption in machinery, equipment and heavy fabricated metal components over the coming years. Carbon steel manufacturers should focus on leveraging these opportunities by catering to rising demand from infrastructure, equipment OEMs and industrial end-use segments globally.

Porter's Analysis
Threat of new entrants: The threat of new entrants in the carbon steel market is moderate. Although there are no major capital requirements for entering the market, established players possess significant brand recognition and economies of scale that deter new players.
Bargaining power of buyers: The bargaining power of buyers in the carbon steel market is high. Buyers have a wide range of alternatives and carbon steel is a commodity product. This enables buyers to negotiate on price margins.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While raw material costs contribute significantly to overall production costs, the availability of substitute materials provides some flexibility to buyers.
Threat of new substitutes: The threat of substitutes is high for the carbon steel market. Alternatives such as aluminum and stainless steel are encroaching market share from carbon steel in various applications.
Competitive rivalry: The competitive rivalry in the carbon steel market is high owing to many global and regional players competing for market share. Pricing pressure and risk of forward integration by competitors further intensifies competition.

SWOT Analysis
Strengths: Carbon steel has excellent mechanical properties, durability, corrosion resistance and strength to weight ratio. It also has wide availability and cost-effectiveness compared to other alternatives.
Weaknesses: Carbon steel has low resistance to corrosion when exposed to moisture and coastal conditions. It also has limited formability and weldability compared to advanced alloy steels.
Opportunities: Growing construction and infrastructure development activities across emerging economies offer significant growth opportunities. Rising demand for steel pipes and tubes from oil & gas industry also presents opportunities.
Threats: Availability of substitutes like aluminum and stainless steel poses a threat. Implementation of stringent environmental regulations also affects market growth owing to carbon steel's impacts during production.

Key Takeaways

Global Carbon Steel Market Size is expected to witness high growth over the forecast period of 2024 to 2031. Growth will be driven by increasing investments in infrastructure development and recovery of the automotive industry. The global Carbon Steel Market is estimated to be valued at US$ 1155.24 Bn in 2024 and is expected to exhibit a CAGR of 9.2% over the forecast period 2024-2031.

Regional analysis: Asia Pacific dominates the global carbon steel market and is expected to maintain its lead through 2031. China contributes significantly to regional market growth owing to large production and consumption. Presence of key manufacturers and an expanding construction industry supports market expansion in India as well.

Key players operating in the carbon steel market are ArcelorMittal, POSCO, Nippon Steel, United States Steel Corporation, Baosteel Group, Hyundai Steel Co., Tata Steel Group, China Steel Corporation, JFE Steel Corporation, Nucor Corporation. ArcelorMittal holds the largest market share globally.

 

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