Special Steel Market - Forecast(2023 - 2028)

Report Code: CMR 63971 Report Format: PDF + Excel

Special Steel Market Overview

The Special Steel Market size is estimated to reach US$250 billion by 2027, after growing at a CAGR of 4.0% during the forecast period 2022-2027. Special steel comprises a different chemical composition, is manufactured by a special process and has special organization and characteristics to meet special requirements. Special steels exhibit higher strength, physical and chemical properties, biocompatibility and process characteristics than ordinary steel. The growing automotive sector is driving the special steel market growth. It is utilized in various automotive components and parts. Moreover, there is an increasing requirement for special steel such as carbon steel, carbon tool steel, ordinary low-alloy steel, alloy steel for engineering structure, stainless steel and others. These steels are used in the aerospace & defence industry for the manufacturing of aircraft structures and parts such as fuel tanks, high-temperature engine parts, exhaust components, structural parts, cabin components, landing gears and others. This is anticipated to upsurge the growth of the special steel industry during the forecast period. The global economic downturn caused by the COVID-19 pandemic resulted in a huge drop in building & construction, electronic devices, automotive and other end-use industries all across the world. It had a significant impact on the growth of the Special Steel market size.

Special Steel Market Report Coverage

The “Special Steel Market Report – Forecast (2022 - 2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Special Steel industry.

By Type: Carbon Steel, Carbon Tool Steel, Ordinary Low-Alloy Steel, Alloy Steel for Engineering Structure, Stainless Steel and Others.
By End-use Industry: Automotive (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicle), Building & Construction (Residential, Commercial, Industrial, Infrastructure), Chemical & Petrochemical, Aerospace & Defence, Energy & Power, Electrical & Electronics and Others.
By Geography: North America (the USA, Canada and Mexico), Europe (the UK, Germany, France, Italy, the Netherlands, Spain, Belgium and the Rest of Europe), Asia-pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and the Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America) and the Rest of the World (the Middle East and Africa).

Key Takeaways

  • The Asia-pacific region dominates the Special Steel market owing to the rising growth in the electrical and electronics industry. According to the Indian Brand Equity Foundation (IBEF), the Indian electronics manufacturing industry is projected to reach US$520 billion by 2025.
  • Rapidly rising demand for Special Steel in the aerospace and defence sector, due to its usage in aircraft components or parts that require high strength, temperature resistance and toughness such as fuel tanks, high-temperature engine parts and others, has driven the growth of the Special Steel market.
  • The increasing demand for Special Steel in the automotive sector, due to its usage in the manufacturing of various vehicle components such as door panels, chassis, support beams and others, has been a critical factor driving the growth of the Special Steel market in the upcoming years.
  • However, the high manufacturing cost of Special Steel can hinder the growth of the Special Steel market.

Figure: Special Steel Market Revenue Share, by Geography, 2021 (%)

Special Steel Market

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Special Steel Market Segment Analysis – by Type

The ordinary low-alloy steel segment held the largest Special Steel market share in 2021 and is estimated to grow at a CAGR of 3.9% during the forecast period 2022-2027. Ordinary low-alloy steel comprises a small amount of alloying elements and the strength of the steel is high. It exhibits good corrosion resistance, wear resistance and low-temperature resistance. The overall performance is relatively good and it offers good cutting and welding performance in comparison to other special steel types such as carbon steel, carbon tool steel and others. Ordinary low-alloy steel has a good service life and its use range is more than carbon steel. Ordinary low-alloy steel is smelted in open furnaces by general smelting methods and the price is also low. Thus, all these exhibit characteristics of ordinary low-alloy steel make it a preferred choice over the other Special Steel types which is driving its segmental growth.

Special Steel Market Segment Analysis – by End-use Industry

The building & construction industry held a significant Special Steel market share in 2021 and is projected to grow at a CAGR of 4.5% during the forecast period 2022-2027. In the building & construction industry, special steel such as carbon steel, carbon tool steel, ordinary low-alloy steel, alloy steel for engineering structure, stainless steel and others is utilized to build high-rise buildings, industrial sheds, residential buildings, bridges, parking garages and more. According to the US Department of Commerce, the privately-owned housing units authorized by building permits in March 2022 were around 1,873,000 which is 0.4% above February 2022 of 1,865,000 units and 6.7% above March 2021 of around 1,755,000 units. Moreover, according to Statistics of Japan, the number of construction contract orders went from 60,046,960 units in 2020 to 63,610,223 in 2021 and witnessed a growth in 2021 (Jan-July) compared to 2020(Jan-July). Thus, the growing building & construction industry would require more special steel due to their exhibit characteristics, which would drive the demand for the Special Steel market growth during the forecast period.

Special Steel Market Segment Analysis – by Geography

The Asia-pacific region held the largest Special Steel market share of up to 42% in 2021. It was due to the increasing requirement for special steel in developing countries such as China, Japan, India and South Korea. China is expected to continue its dominance in the special steel market during the forecast period. This is due to the growth of the building & construction industry in the country. According to International Trade Administration (ITA), China is the world’s largest construction market and is forecasted to grow at a CAGR of 8.6% between 2022 and 2030. Also, according to the Australian Government, the building and construction sector remains healthy in Singapore, with strong government spending on public infrastructure. About S$2 billion (US$1.43 billion) in contracts is awarded each month. Moreover, according to Invest India, by 2025, the building and construction industry is estimated to reach US$1.4 Trillion. Such increasing building & construction activities in the APAC countries are anticipated to increase the demand for special steel structures in the forecasted period. These factors are proving to be a market booster for the Special Steel market size in this region.

Special Steel Market Drivers

Increasing Aerospace & Defence Sector:

In the aerospace & defence industry, Special Steel provides good corrosion resistance, super toughness and high strength. It is utilized in manufacturing aerospace and defence components or parts that require high strength, temperature resistance and toughness. It is used in the manufacturing of different aircraft parts such as fuel tanks, high-temperature engine parts, exhaust components, structural parts, cabin components, landing gears and others. In 2021, the Government of Quebec and the Government of Canada, funded US$2 billion in the aerospace industry to drive the recovery of the sector. Moreover, in 2021, according to the International Trade Administration (ITA), the Dutch Government increased its investments in the aerospace & defence industry, investing €1.5 billion (US$1.57 billion) over the next five years, with a one-time increase of €1.2 billion (US$1.26 billion) in 2019 and an annual increase of €162 million (US$170 million) in the following years. Thus, increasing investments in the aerospace & defence sector would require more special steel for manufacturing aircraft parts, which would drive the demand for the Special Steel market during the forecast period.

Growing Automotive Industry:

In the automotive industry, Special Steel such as carbon steel, carbon tool steel, ordinary low-alloy steel, alloy steel for engineering structure, stainless steel and others is needed for the manufacturing of various vehicle and engine components such as door panels, chassis and support beams. It is also used in mufflers and exhaust pipes in the automotive. Moreover, it is generally applied to the frame of the vehicle because of its high strength. According to the European Automobile Manufacturers' Association (ACEA), in 2021, 79.1 million motor vehicles were produced around the world, an increase of 1.3% compared to 2020. Also, according to the Organisation Internationale des Constructeurs d'Automobiles (OICA), in the USA, the production of motor vehicles increased from 6,239,401 units in 2020 to 6,857,182 units in the year 2021. Moreover, in Austria, motor vehicle production increased from 86,300 units in 2020 to 92,000 units in the year 2021. With the increasing production of automobiles, it is estimated that in the upcoming years the requirement for special steel in the automotive industry would rise. This would boost the growth of the Special Steel industry.

Special Steel Market Challenge

High Manufacturing Cost of Special Steel:

Special Steels are expensive in comparison to ordinary steel in the market. Special steel mills require adequate infrastructure and technological capability to manufacture higher-quality steel. The high cost of infrastructure eventually makes special steel processing and manufacturing significantly expensive. In regions such as Asia-pacific and the Middle East, there is a struggle in acceptance. Due to the high manufacturing cost, the use of special steel is slightly less even after their multiple advantages over materials such as aluminum and plastic. Thus, the high manufacturing cost of Special Steel would create hurdles to the growth of the Special Steel market.

Special Steel Market Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies players adopt in the Special Steel market. The top 10 companies in the Special Steel market are:

  1. Dongbei Special Steel Group
  2. Daido Steel Co. Ltd.
  3. Hyundai Steel Co., Ltd.
  4. Nippon Steel Corporation
  5. Aichi Steel Corporation
  6. Cleveland Cliffs, Inc.
  7. JSW Steel
  8. Baosteel Group
  9. Jiangsu Shagang Group
  10. ArcelorMittal

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1. Special Steel Market - Market Overview
    1.1 Definitions and Scope
2. Special Steel Market - Executive Summary
    2.1 Key Trends by Type
    2.2 Key Trends by End-use Industry
    2.3 Key Trends by Geography
3. Special Steel Market – Comparative analysis
    3.1 Market Share Analysis - Major Companies
    3.2 Product Benchmarking - Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis - Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Special Steel Market - Startup Companies Scenario Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Special Steel Market – Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Special Steel Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porter's Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Special Steel Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Special Steel Market – by Type (Market Size - US$ Million/Billion)
    8.1 Carbon Steel
    8.2 Carbon Tool Steel
    8.3 Ordinary Low Alloy Steel
    8.4 Alloy Steel for Engineering Structure
    8.5 Stainless Steel
    8.6 Others
9. Special Steel Market - by End-use Industry (Market Size - US$ Million/Billion)
    9.1 Automotive
        9.1.1 Passenger Cars
        9.1.2 Light Commercial Vehicles
        9.1.3 Heavy Commercial Vehicle
    9.2 Building & Construction
        9.2.1 Residential
            9.2.1.1 Independent homes
            9.2.1.2 Row homes
            9.2.1.3 Large apartment buildings
        9.2.2 Commercial
            9.2.2.1 Healthcare Facilities
            9.2.2.2 Educational Institutes
            9.2.2.3 Hotels and Restaurants
            9.2.2.4 Airports
            9.2.2.5 Shopping Malls
            9.2.2.6 Others
        9.2.3 Industrial
        9.2.4 Infrastructure
    9.3 Chemical & Petrochemical
    9.4 Aerospace & Defence
    9.5 Energy & Power
    9.6 Electrical & Electronics
    9.7 Others
10. Special Steel Market - by Geography (Market Size - US$ Million/Billion)
    10.1 North America
        10.1.1 The USA
        10.1.2 Canada
        10.1.3 Mexico
    10.2 Europe
        10.2.1 The UK
        10.2.2 Germany
        10.2.3 France
        10.2.4 Italy
        10.2.5 The Netherlands
        10.2.6 Spain
        10.2.7 Belgium
        10.2.8 The Rest of Europe
    10.3 Asia-pacific
        10.3.1 China
        10.3.2 Japan
        10.3.3 India
        10.3.4 South Korea
        10.3.5 Australia and New Zeeland
        10.3.6 Indonesia
        10.3.7 Taiwan
        10.3.8 Malaysia
        10.3.9 The Rest of APAC
    10.4 South America
        10.4.1 Brazil
        10.4.2 Argentina
        10.4.3 Colombia
        10.4.4 Chile
        10.4.5 The Rest of South America
    10.5 The Rest of the World
        10.5.1 The Middle East
            10.5.1.1 Saudi Arabia
            10.5.1.2 The UAE
            10.5.1.3 Israel
            10.5.1.4 The Rest of the Middle East
        10.5.2 Africa
            10.5.2.1 South Africa
            10.5.2.2 Nigeria
            10.5.2.3 The Rest of Africa
11. Special Steel Market – Entropy
    11.1 New Product Launches
    11.2 M&As, Collaborations, JVs and Partnerships
12. Special Steel Market – Industry/Segment Competition Landscape Premium
    12.1 Company Benchmarking Matrix – Major Companies
    12.2 Market Share at Global Level - Major companies
    12.3 Market Share at Country Level - Major companies
    12.4 Market Share by Key Geography - Major companies
    12.5 Market Share by Key Application - Major companies
    12.6 Market Share by Key Product - Major companies
13. Special Steel Market – Key Company List by Country Premium Premium
14. Special Steel Market Company Analysis - Business Overview, Product Portfolio, Financials and Developments
    14.1 Company 1
    14.2 Company 2
    14.3 Company 3
    14.4 Company 4
    14.5 Company 5
    14.6 Company 6
    14.7 Company 7
    14.8 Company 8
    14.9 Company 9
    14.10 Company 10 and more
* "Financials would be provided to private companies on best-efforts basis."
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