Carbon Steel Market Expected to Reach $1.3 Trillion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Carbon Steel Market" The global carbon steel market size was valued at $0.9 trillion in 2022, and is projected to reach $1.3 trillion by 2032, growing at a CAGR of 3.6% from 2023 to 2032.

Carbon steel is an alloy composed of steel and carbon, with carbon content greater than 2.1 percent. Carbon steel may be heat treated in a variety of ways to improve its basic properties, including spheroidizing, full annealing, isothermal annealing, quenching, martempering, and many others. Carbon steel may be used in a variety of end-use industries by tempering with the inherent properties of a specific type of carbon steel.

The rise in number of infrastructure developments, rise in usages of the product in pipelines, frame materials, gates, fencing, and other applications, rise in demand for polymer foams, and rise in number of applications from aerospace and other end-use industries are some of the vital and impactful factors. In addition, rapid urbanization, rise in levels of disposable income among people, rise in adoption of light weight advanced composites for new generation aircrafts, and a growth in number of environmental concerns is anticipated to all contribute to the growth of the carbon steel market during the forecasted timeframe.

However, volatility in the prices of lightweight materials, combined with a decrease in steel capacity utilization ratio, is anticipated to act as market restraints for the growth of carbon steel during the forecasted timeframe. The easy availability of product substitutes is projected to be the biggest and most pressing challenge to the growth of the market. Furthermore, the rapid development of low bio-permanent materials, the emergence of applications in the aerospace and automotive industries, and the rise in concerns about energy conservation and greenhouse gas emissions across various countries are expected to provide a variety of growth opportunities for the high-temperature insulation materials market during the forecast period.

 The carbon steel market analysis is divided on the basis of type, product, end-user, and region. On the basis of type, the market is classified into low carbon steel, medium carbon steel, high carbon steel, and others.  On the basis of product, the market is classified into carbon steel, alloy steel, and stainless steel. On the basis of the end-user, the market is segregated into building and construction, automotive, shipbuilding, and others. On the basis of region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of type, the low carbon steel segment dominated the global carbon steel market trend, both in terms of value in 2022. Low carbon steel is by far the largest segment and has observed the highest penetration in various end-use industries. Low carbon steel contains carbon content below 0.25 percent by weight. It is also referred as mild steel and can be used to create various shapes ranging from structural beams to flat sheets. It possesses versatile properties such as ductility, malleability, and cold forming abilities. It is available at a low cost compared to its counterparts.

On the basis of product, the stainless steel segment dominated the global carbon steel market, both in terms of value in 2022. Stainless steel alloys may provide superior mechanical properties compared to carbon steel by adding alloying elements such as nickel, molybdenum, or titanium. This makes stainless steel an ideal choice for applications that require high strength, toughness, and resistance to wear, such as construction equipment, automotive components, and industrial machinery. 

On the basis of end-user, the building and construction segment dominated the global carbon steel market, both in terms of value in 2022. Low carbon steel offers excellent forming and welding capabilities along with advantages such as no cracks on bending, flexibility, ductility, plasticity, and endurance in case of calamities like earthquakes, which make it a preferable choice in the construction industry. Carbon steel’s strength in calamity situations is its major benefit, which prevents the building from collapsing and saving its occupants.

On the basis of region, Asia-Pacific has a dominant share in the market and is anticipated to experience rapid carbon steel market growth.  Expansion of shipbuilding in the recent years coupled with high industrial output from construction and automotive sectors are likely to contribute in the rising demand for the product. The shipbuilding industry in Southeast Asia and China has witnessed growing demand in several past years. The industry has performed well after economic crisis in 2008. For instance, Philippines has been gradually growing as one of the leading shipbuilding centers since 2010 and has become the industry’s fourth largest shipbuilding hub in the world.

The key players operating in the global carbon steel market are  AK Steel International B.V., ArcelorMittal S.A., Daido Steel Co., Ltd., Dongbei Special Steel Group International Trade Co., Ltd., HBIS Group Co., Ltd., Kobe Steel, Ltd., Marcegaglia, Nippon Steel Corporation, NLMK, and United States Steel Corporation These players have adopted various key strategies including agreement, collaboration, expansion, and partnership to increase their carbon steel market shares.

Key findings of the study

• Asia-Pacific would exhibit CAGR of 3.8% during 2023-2032.
• By product, the stainless-steel segment was the leading segment in 2022.
• By type, the low-carbon steel segment was the leading segment in 2022.
• By end-user, the building and construction segment was the dominating segment in 2022.