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The global stainless steel market size was USD 170.92 billion in 2020. The market is projected to grow from USD 175.72 billion in 2021 to USD 268.46 billion by 2028 at a CAGR of 6.2% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a huge decline of -7.7% in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Stainless steel is made up of a number of components that fuse together and form a powerful alloy. This alloy contains chromium, nitrogen, and molybdenum. Additionally, the product is eco-friendly, corrosion resistant, long-lasting, neutral alloy, strong, and infinitely recyclable. Such properties make steel a perfect choice in several industries such as automotive, construction, and electronics. The rapidly growing automotive industry is fueling the product demand. Furthermore, the ability of the product to resist corrosion coupled with rising manufacturing for recyclable material will further aid to propel the stainless steel market growth during the forecast timeframe.
Slowdown of Construction Sector Affected Market Growth during Pandemic Period
Various governments had imposed strict restrictions, which has affected the construction industry, in-turn affecting this market. This pandemic had caused containment measures, freeze in consumption activities, and disruptions in the supply chain. This resulted in machinery closures, a severe scarcity of qualified labor, factory shutdowns, and shortage of raw materials, due to which the production of the product remained closed. Also, emerging countries were highly susceptible to the pandemic due to tougher containment measures, declining raw material costs, and insufficient fiscal assistance
According to the World Steel Organization, in October 2020, the steel demand in various countries decreased severely. The Middle East accounted for the loss of 19.5 metric tons, whereas Africa witnessed 16 metric tons, Europe 15.2 metric tons, South America 10.1 metric tons, North America 15.3 metric tons, and Asia Pacific showed reduction of 16.5 metric tons. However, steel consumption is projected to recover more quickly in emerging nations than in developed ones, returning to pre-pandemic levels in 2021. As a result, the market is expected to stabilize over the next couple of years.
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Rising Consumption of Stainless Steel in Construction Industry to Augment Growth
Increasing product consumption in the construction industry will provide profitable opportunities for the market to grow significantly. This type of steel was not commonly utilized for building structural reasons at first, owing to its expensive cost. However, technological advancements have made this steel considerably more accessible and affordable over the last decade, while also improving corrosion resistance and longevity. According to the BS Stainless company, the product demand is not only increasing to fulfill construction purposes but also rising to offer enhancements to buildings and to make them more attractive. Moreover, the growing commercial sector and increasing number of residential buildings coupled with the increasing commissioning of infrastructural projects will boom the construction industry. As a result, these factors will increase the product demand during the forecast period.
Rapid Growth in Automotive Industry to Boost Market Growth
The rapid growth in the automotive industry will fuel the consumption of the product. This metal is ideal for offering corrosion, high strength, and heat resistance properties. This makes it a perfect choice in various automotive parts, including seatbelt springs and hose clamps. According to the World Steel Organization, stainless steel will be common in suspension, chassis, fuel tanks, bodywork, and catalytic converters in future. Moreover, increasing technological advancement in the automotive industry and rising innovation in the electric vehicles will contribute to the product adoption. Hence, rising product demand from automobile manufacturers will fuel the market growth.
Availability of Substitute Products to Affect Market Growth
The availability of substitute products, such as carbon steel and aluminum, restrains the product adoption. Moreover, the product is heavy and not water-resistant when compared with these alternatives. This results in restricting its consumption where the lightweight property in products is needed. Such factors restrain the market growth and reduce product adoption in a various application, including consumer goods, engineering, and electronics.
Cold Rolled Flat Segment to Account for Largest Share in Market during Forecast Period
On the basis of type, the market has been segmented into cold-rolled flat, hot plate & sheet, cold bars & wire, hot bars & wire rods, & others.
The cold-rolled flat segment is predicted to account for the largest share and witness the fastest growth in the global market. Cold-rolled flat, abbreviated as CRS, is a highly ductile material that is excellent for applications requiring perfection. It is highly utilized in home appliances, file cabinets lockers, and furniture.
Hot plate & sheet is also referred as structural steel and is the projected to be the second-largest segment in the market. It is a simple steel sheet that could be cut and welded to manufacture a more complicated product. It is mainly used in drums, general fabrication, automobile panels, containers, and trailer cladding. Increasing demand for cold bars & wire in engineering applications due to its excellent mechanical properties will propel the growth. Hot bars & wire rod is also called annealed bars and normalized bars. The product demand is increasing rapidly in the electrical & electronics industry, owing to its excellent tensile strength.
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Metal Products Segment was Largest Application of Stainless Steel in 2020
on the basis of application, the market is divided into metal products, electrical machinery, engineering, construction, automotive parts, and others.
The metal products segment is holding the highest share in this market. Growing consumer disposable income, along with rising adoption of metals in utensils and medical accessorize resulted in high demand. Hence, this will further fuel the overall market growth during the study period.
Engineering steel products generally includes exhaust systems, ship containers, cable trays, and pipelines. Increasing demand for these products from oil & gas and transportation industries will boost the segment growth. The construction segment is growing at the highest CAGR in the market. Steel products are utilized in modern construction due to their great strength and corrosion resistance. It is also used in the outside cladding of big, high-impact structures, and can be found in interior countertops, railings, and backsplashes. In motor vehicle parts, the product demand is rising owing to rapid innovation in the automotive industry coupled with increasing consumer expenditure. Steel is a reliable, versatile solution, which makes it an ideal choice in electrical machinery. The grades such as type 316 S and 304 SS of stainless steel are highly adopted in the electronic industry.
Asia Pacific Stainless Steel Market Size, 2020 (USD Billion)
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The market size in Asia Pacific stood at USD 126.01 billion in 2020. The rapid infrastructure development and increasing technological advancement in steel have fueled the market growth in Asia Pacific. In this region, China holds the highest market share and is the fastest-growing country. The increasing production of steel, rising research & development activities, and growing construction industry are some of the prominent factors, which are fueling the product demand in China.
In Europe, the high demand for the product is associated with rapid growth in the automotive industry and technological advancement. Around 45%-50% of steel is used in automotive exhaust systems. In addition, for complex designs, several firms are employing innovative processes, including tube hydroforming with austenitic steel. Hence, such factors will fuel the market growth in Europe.
In North America, the market growth is majorly attributed to the increasing demand for duplex series of steel in electronic and engineering applications, owing to its cost-effective property.
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In Latin America, Brazil and Mexico are the leading countries. The rising consumption of metal products in the medical and transportation industries will augment the market growth in this region. The growth of the construction industry in the Middle East & Africa will showcase significant market growth in future. The growth is attributed to rise in the number of firms expanding their production capacity and industrial facilities, which leads to an increase in construction activities in this region.
Business Expansion to be the Most Preferred Strategy Adopted by the Key Market Players
Key metal manufacturers operating in the market include ThyssenKrupp Stainless GmbH, Nippon Steel Corporation, ArcelorMittal, and Acerinox S.A. These players are actively involved in production capacity expansion, product development, mergers & acquisition, and collaborations in the market. ThyssenKrupp Stainless GmbH is a manufacturer of steel. The company uses both hot and cold rolled processes to manufacture steel-based products for customers. Moreover, the company is also involved in the acquisition, R&D activity, and steel innovation to meet the demand from consumers.
An Infographic Representation of Stainless Steel Market
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The global stainless steel market research report provides a detailed industry outlook and focuses on crucial aspects such as leading companies, types, applications, and products. Also, it provides quantitative data in terms of volume and value, market analysis, research methodology for market data, and insights into stainless steel market trends and highlights vital industry developments and competitive landscape. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years.
Value (USD Billion), Volume (Million Ton)
Type, Application, and Geography
Fortune Business Insights says that the global market size was USD 170.92 billion in 2020 and is projected to reach USD 268.46 billion by 2028.
In 2020, the market value stood at USD 170.92 billion.
Registering a significant CAGR of 6.2%, the market will exhibit considerable growth in the forecast period (2021-2028).
The metal products segment is expected to lead the market during the forecast period.
The increasing product demand in automotive industry is the key factor driving the market.
China held the highest share in the market in 2020.
ThyssenKrupp Stainless GmbH, Nippon Steel Corporation, ArcelorMittal, and Acerinox S.A are the leading players in the market.
The rapid growth in construction industry is anticipated to boost the consumption of the product.
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