Flat Steel Market size was over USD 484.5 Billion in 2023 and is poised to exceed USD 984.2 Billion by the end of 2036, witnessing over 5% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of flat steel is estimated at USD 517 Billion.
The rising demand for steel is believed to drive this market expansion. As a result, demand for flat steel goods that are stronger and thicker would likely rise and be used in demanding applications where high strength and load-bearing capacity are necessary. As per the World Steel Association, the demand for steel increased by 2.2% in 2023 to reach 1 881.4 Mt.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
5% |
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Base Year Market Size (2023) |
USD 484.5 Billion |
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Forecast Year Market Size (2036) |
USD 984.2 Billion |
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Regional Scope |
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End-Use (Building & Construction, Automotive & Aerospace, Railways & Highway, Packaging, Energy)
Building & construction segment is estimated to capture flat steel market share of around 80% by the end of 2036. This growth of the segment is set to be encouraged by the expanding construction industry.
The construction industry's adoption of flat steel is driven by the growing demand for environmentally friendly building materials since they are strong, flexible, and cheap, and are frequently used as supports, brackets, and structural elements.
Moreover, flat steel bars are utilized in many additional home construction components, such as heaters, latches, and garage doors, and are also used for cladding roofing, and structural purposes.
Before the coronavirus pandemic, the construction industry had grown to a spending value of over USD 10 trillion, and it is predicted to expand by around 2% per year.
Product (Sheets & Coils, Plates)
In flat steel market, plates segment is projected to capture revenue share of around 67% by the end of 2036. The major factor for the expansion of the segment is rising investment in road construction projects. For instance, the significant ongoing road upgrades are valued at around USD 0.6 trillion, while new road construction projects are anticipated to be worth over USD 3 trillion globally.
Steel plates are typically flat, rectangular steel components that are utilized to replace potholes, trenches, excavations, damaged pedestrian walkways, and newly constructed roads.
Steel plates are thicker than flat steel and are typically used to handle larger loads or give more structural integrity to highways, railroads, and pipelines and enhance site access and safety.
Process (Basic Oxygen Furnace, Electric Arc Furnace)
By the end of 2036, the basic oxygen furnace segment is predicted to have the largest CAGR. The growing use of this process for the production of steel is the primary driver of the segment's growth.
The Basic Oxygen Furnace (BOF), alternatively referred to as the Oxygen Converter Process, Linz-Donawitz Steelmaking (LD), Basic Oxygen Process (BOP), or Basic Oxygen Furnace, is a fundamental steelmaking technology is, where molten steel scrap and pig iron are converted to steel by the oxidizing effect of oxygen pushed into the melt beneath a basic slag.
For instance, these days, a basic oxygen steelmaking processing pathway accounts for more than 65% of the global crude steel manufacturing output.
Our in-depth analysis of the flat steel market includes the following segments:
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Product |
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End-Use |
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Process |
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Type |
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APAC Market Statistics
Asia Pacific region in flat steel market is set to hold more than 61% revenue share by 2036. The market growth in the region is propelled by the growing food and beverage industry.
Strict health and safety requirements and regulations must be adhered to by the food processing business in the region which necessitates the usage of flat steel since it upholds the highest standards of food safety and hygiene, and is utilized in processing machinery, storage tanks, and other pieces of equipment. For instance, Asia's food industry is expected to expand by over 5% between 2024 and 2028, reaching a value of about USD 5810 billion by that year.
The largest high-speed rail network in the world is found in China, which is also considered special since it is the only nation in the world expanding its rapid rail network. This may drive the demand for flat steel in the country as it gives railway tracks stability and reinforcement by acting as ties or track sleepers.
Half of South Korea's stainless steel imports are flat goods, and the majority of the flat steel plates imported into the region come from Germany, Belgium, and Vietnam.
In 2023, Korea imported over 9 million tons of flat steel, around a 21% increase.
Similarly, Japan became the 36th highest importer of flat-rolled steel in the world in 2022 after importing over USD 175 million worth of the material.
European Market Analysis
The Europe region will also register enormous market revenue for the flat steel market in the coming years and will hold the second position owing to the increasing demand for flat steel products in this region. It is anticipated that in 2024 the demand for flat steel goods in Europe will rise by around 3%.
In addition, with an estimated 31 million metric tons produced in 2022, Germany was the EU's top producer of hot-rolled steel. Particularly, more than 9 million tons of steel goods were sold in Germany in total in 2023. About 59% of sales were made up of flat items, over 25% of long products, and 9% of other steel products.
Furthermore, Acciaierie d'Italia (ADI), an Italian integrated flat steel producer, has announced that it will increase crude steel production to around 3 million metric tons in 2023 and over 4 million metric tons in 2024, and has also stated that it intends to reopen Blast Furnace 2 this year and begin relining Blast Furnace 5 in the second half of 2023.
It is anticipated that the top five companies will control the majority of the flat steel market through constant growth, joint ventures, agreements, and cooperation. Some significant businesses in the flat steel sector are starting strategic activities to solidify their positions within the industry.
Author Credits: Rajrani Baghel
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