May 21, 2024
Global Carbon Steel Market

Carbon Steel Market driven by increasing application in construction industry is estimated to reach US$ 1155.24 Bn by 2024

Carbon steel is one of the most widely used types of steel due to its high strength, ductility, and weldability that makes it suitable for a variety of applications. Carbon steel contains an amount of carbon less than 2%. This gives it strength and hardness without brittleness. Carbon steel finds applications in manufacturing of automotive parts, equipment, machines, shipping containers, nails, wire, tools, and other construction related products due to its mechanical properties. It is formable, joinable, and feasible to repair at reasonable costs which make it preferred material in construction industry. The global construction industry has been witnessing robust growth over past few years owing to growing urbanization and rising residential and commercial building projects. Rapid infrastructure development mainly in developing countries of Asia Pacific and Middle East & Africa has also augmented the demand of carbon steel in construction applications such as pipes, beams, bars, profiles and more.

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 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the key trend gaining traction in the carbon steel market is the product customization as per end-use industry requirement. With continuously evolving industrial needs, steel manufacturers are focusing on development of advanced steel grades by altering carbon content, adding alloying elements as well as adopting new production processes. For instance, dual phase steel contains a microstructure of both ferrite and martensite to provide high strength as well as ductility. Similarly, transformation induced plasticity (TRIP) steel exhibits ultrahigh strength along with formability suited for auto bodies. Owing to remarkable mechanical properties, these customized steel variants are fast replacing conventional carbon steel in applications that demand exceptional combination of strength and ductility.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the carbon steel market is moderate. The market requires high capital investments and established relationships with suppliers and customers.
Bargaining power of buyers: The bargaining power of buyers in the carbon steel market is high. Buyers can easily switch between established steel manufacturers based on price and quality.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While raw material costs significantly impact steel prices, major suppliers still depend on steel manufacturers.
Threat of new substitutes: The threat of substitutes such as aluminum, polymer composites is moderate. Steel remains irreplaceable for its strength and cost-effectiveness in construction and manufacturing applications.
Competitive rivalry: Competition in the carbon steel market is high. The market is fragmented with the presence of several global and regional players competing on pricing, product development and quality.

Key Takeaways

The Global Carbon Steel Market Size is expected to witness high growth over the forecast period. 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 to 2031.

Regional analysis:

Asia Pacific accounts for over 50% of the global carbon steel market share led by China. The ongoing industrialization and infrastructure initiatives are driving steel demand in the region. Countries like India are also expected to offer high growth opportunities with government plans to invest billions in road, railway, and smart city projects. Europe and North America are relatively mature markets but ongoing automotive, manufacturing, and construction activities will continue supporting demand.

Key players:

Key players operating in the carbon steel market are ArcelorMittal, POSCO, Nippon Steel, Ansteel Group Corporation Limited, Baosteel Group, JFE Holdings, Tata Steel, United States Steel Corporation. These players are investing in expanding production capacities, developing high-strength steel grades, and leveraging digital technologies to gain operational efficiencies.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it