The India special steel market size was valued at $7.0 billion in 2020, and is projected to reach $38.8 billion by 2035, growing at a CAGR of 10.9% from 2021 to 2035.
Specialty steel is value-added steel wherein finished steel is passed through various processes including coating, plating, heat treatment, and others, to convert it into high value-added steel. It can be used in various applications such as defense, space, power, apart from the automobile sector, specialized capital goods, building & construction, and others. Special steel offers high strength, improved physical & chemical properties, recycling, high performance, and others as compared to traditional steel. Special steel products are available in various profiles including round bars, round-cornered squares in straight bars, wire rods, hot rolled sheets, cold rolled sheets and others.
Increase in infrastructural developments, replacement of existing railway gauges with modern ones as well as deployment of smart power grids, and building & construction activities in India are the major drivers that boost the growth of the India special steel market. The development of electric vehicles and incentives to deploy them and their charging infrastructure is increasing the consumption of special steel in the automotive sector, which in turn is projected to drive the market growth in the coming years. Moreover, government initiatives & investment toward different infrastructure projects in energy, railways, real estate and others is expected to create opportunity for key players operating in the market during the analyzed timeframe.
For the purpose of analysis, the India special steel market is segmented on the basis of product type, product, and application. Depending on product type, the market is categorized into carbon constructional steel, alloy construction steel, spring steel, free cutting steel, ball bearing steel, high speed steel, tool & die steel, and valve steel.
On the basis of product, it is classified into billets, squares, bars, wire rods, hot rolled sheets, cold rolled sheets, and others. The applications covered in the study include automotive, machinery, petrochemicals and energy, railways, aerospace and defense, building and construction, and others. The key players operating in the India special steel market are ArcelorMittal, ESL Steel Ltd., Jindal Steel & Power Limited, JSW Steel, Mahindra Sanyo Special Steel Private Limited, Rashtriya Ispat Nigam Limited, Steel Authority of India Limited, Tata Steel Ltd., Tarun International Limited, and Vardhman Special Steels Limited.
These key players are adopting various strategies, such as joint venture, merger, partnership, and product launch, to stay competitive in the India special steel market.
For instance, in July 2021, ArcelorMittal Nippon Steel (AMNS) India designed and manufactured indigenously developed specialist-grade steel plates (16Mo3) that can operate under extreme temperature, pressure and radioactive conditions. This new product will be used in Nuclear Power Corporation of India Ltd. (NPCIL)'s heavy water reactors. This has enhanced the product portfolio of the company.
The India special steel market is analyzed and estimated in accordance with the impacts of the drivers, restraints, and opportunities. The period studied in this report is 2020–2035. The report includes the study of the India special steel market with respect to the growth prospects and restraints based on the product analysis. The study includes Porter’s five forces analysis of the industry to determine the impact of suppliers, competitors, new entrants, substitutes, and buyers on the market growth.
Special steel market, by product type
By product type, the ball bearing steel segment held the largest market share in 2020. This is attributed to rise in demand for ball bearing steel from applications such as machine tools, automotive, building & construction, mining, and others. In addition, rise in demand for precision engineering across various industries is projected to fuel the market growth in the coming years.
By Product Type
Ball Bearing Steel is projected as the most lucrative segment.
Special steel market, by product
On the basis of product, the hot rolled sheet segment dominated the India special steel market in 2020, in terms of share, owing to rise in demand for hot rolled sheets in the manufacturing of truck frames, doors & shelving, railroad tracks, railroad car parts, chassis, underbody components and others. In addition, rapid investment toward building & construction in power generation, transportation, and other industrial sectors is expected to fuel the growth of the market during the analyzed timeframe.
By Product
Hot rolled sheets holds a dominant position in 2020 and would continue to maintain the lead over the forecast period.
Special steel market, by application
On the basis of application, the automotive segment dominated the India special steel market in 2020, in terms of market share, owing to rise in demand for passenger and commercial vehicles from various consumers in the country. In addition, rapid growth of EV industry and government initiatives toward promotion of EV sector in India is further projected to be the key driving factor in the India special steel market in the coming years.
By Application
Automotive holds a dominant position in 2020 and would continue to maintain the lead over the forecast period.
COVID-19 impact on the market
Lockdown imposed due to the outbreak of the COVID-19 pandemic resulted in temporary ban on the import and export, thereby disrupting the supply chain and hampering the special steel market growth in the second, third, and fourth quarter of 2020. In addition, there was some impact on the growth of the market in 2021, owing to the second wave of COVID-19 pandemic across the globe. However, the market is expected to recover by the second or third quarter of 2021 as the production in various industries restarts with rapid vaccination across the globe.
Key Benefits For Stakeholders
- The report includes in-depth India special steel market analysis of different segments and provides market estimations between 2021 and 2035.
- A comprehensive analysis of the factors that drive and restrict the India special steel market growth is provided.
- Porter’s five forces model illustrates the potency of buyers & sellers, which is estimated to assist the market players to adopt effective strategies.
- Estimations and India special steel market forecast are based on factors impacting the growth in terms of value.
- Key market players are profiled to gain an understanding of the strategies adopted by them.
- This report provides a detailed analysis of the current trends and future estimations from 2021 to 2035, which helps identify the prevailing India special steel market opportunities.
India Special Steel Market Report Highlights
| Aspects | Details |
 By Product Type |
|
| By PRODUCT |
|
 By APPLICATION |
|
 Key Market Players | JSW STEEL, ESL STEEL LTD., STEEL AUTHORITY OF INDIA LIMITED, ARCELORMITTAL, JINDAL STEEL & POWER LIMITED, MAHINDRA SANYO SPECIAL STEEL PRIVATE LIMITED, TARUN INTERNATIONAL LIMITED, TATA STEEL LTD., RASHTRIYA ISPAT NIGAM LIMITED, VARDHMAN SPECIAL STEELS LIMITED |
Analyst Review
According to the insights of CXOs of leading companies, the demand for special steel is fueled by increased construction renovation activities, increase in cross-country power transmission & distribution networks, replacement of old units, rapid growth in aerospace & defense sector, and mainstream adoption of renewable energy generation provide growth opportunities for the special steel market expansion.
The high capital cost, fluctuating raw material prices, and logistic challenges are expected to be major restraining factors in the India special steel market. On the contrary, R&D activities in developing high strength special steel products and investment toward ramping up the production capacity & export are anticipated to create opportunities in the India special steel market during the analyzed timeframe.
The India special steel market is segmented on the basis of product type, product, and application. The automotive and building & construction are the largest consumer of special steel in India. Its other applications include petrochemical & energy, power generation, manufacturing plants, railways, and mining industries, which is expected to further drive the growth of the market in the coming years.
Rise in demand for special steel from various end use industries and government initiatives towards infrastructural development across country are expected to be the driving factors and opportunities in the India special steel market.
The potential customers of the India special steel industry are Industrial, commercial, utilities and residential.
On the basis of product type, ball bearing cutting steel segment will drive the India special steel growth during the forecast period. By product, hot rolled sheets will fuel the India special steel growth. On the basis of application, automotive segment will drive the growth of the India special steel market.
The key growth strategies of India special steel market players are merger, partnership, joint venture, and product launch.
Top players in the India special steel are ArcelorMittal, ESL Steel Ltd., Jindal Steel & Power Limited, JSW Steel, Mahindra Sanyo Special Steel Private Limited, Rashtriya Ispat Nigam Limited, Steel Authority of India Limited, Tata Steel Ltd., Tarun International Limited, and Vardhman Special Steels Limited.
In terms of revenue, the market size of the India special steel is anticipated to reach $38.75 billion by 2035, growing at CAGR of 10.9% from 2021 to 2035.
The key benefits of the India special steel market are information on key trends, market size & forecast, top players and their development strategies, and others.
Rapid growth of EV industry and building & construction industry is expected to influence the India special steel market in the next few years.
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