Middle East & Africa Steel Processing Market Outlook, 2029

Middle East & Africa Steel Processing Market Outlook, 2029

The steel processing market in the Middle East and Africa region is expanding rapidly, owing to factors such as rising urbanization, industrialization, infrastructural development, and strategic government initiatives. The steel processing business in the Middle East & Africa region is critical to supporting diverse industries such as construction, automotive, manufacturing, and energy, hence contributing to regional economic diversification. The Middle East & Africa region is enjoying strong economic growth, owing to increased expenditures on infrastructural projects, urban development, and industrial expansion. Countries like Saudi Arabia, the United Arab Emirates (UAE), and South Africa are at the forefront of infrastructure development, with megaprojects such as smart cities, transit networks, and industrial zones driving demand for steel goods. Rapid urbanization in the region is also fueling development activities, creating a sustained demand for steel for residential, commercial, and industrial purposes. The Middle East & Africa region's strategic geographic location makes it an important player in the global steel trade. Countries like the UAE, Qatar, and Turkey are crucial transit and re-export hubs for steel products, facilitating trade between Asia, Europe, and Africa. Furthermore, the region's closeness to key shipping routes and access to raw materials like iron ore and coal help it compete in the global steel market. Governments across the Middle East & Africa area are prioritizing infrastructure development as a driver of economic growth and diversification. Large-scale projects, such as transportation networks, ports, airports, and energy infrastructure, use significant amounts of steel throughout construction and development. For instance, Saudi Arabia's Vision 2030 aims to transform the country's economy through infrastructure investments, creating significant opportunities for the steel processing market.

According to the research report ""Middle East & Africa Steel Processing Market Outlook, 2029,"" published by Bonafide Research, the Middle East & Africa Steel Processing market is expected to reach market size of more than USD 30 Billion by 2029. The Middle East & Africa region's automobile manufacturing sector is rapidly expanding, fueled by rising domestic demand, favorable government regulations, and increased investments by international automakers. Countries such as South Africa, Morocco, and Egypt have emerged as automotive manufacturing hubs, producing vehicles both domestically and for export. The expansion of the automobile industry increases demand for high-quality steel components, which drives growth in the steel processing market. The steel processing business in the Middle East & Africa region is embracing technological innovations to improve productivity, efficiency, and quality. Automation, robotics, and digitalization are rapidly being used to improve manufacturing processes, save costs, and meet the growing demand for bespoke steel products. Collaboration with technology providers, as well as investments in R&D, contributes to innovation and competitiveness in the Middle East & Africa steel processing market. The Middle East & Africa region has a wealth of natural resources, including iron ore, coal, and natural gas, all of which are needed for steel production. South Africa, Iran, and Saudi Arabia all have huge iron ore reserves, which provide a competitive advantage for their steel processing industries. Governments in the Middle East and Africa are making significant investments in infrastructure projects such as transportation networks, ports, airports, and urban planning. These measures drive up demand for steel products, resulting in higher growth in the steel processing industry. Governments in the Middle East and Africa are launching strategic programs to promote industrial growth and diversification. Saudi Arabia's Vision 2030, for example, aims to transform the country's economy through investments in infrastructure, manufacturing, and technology, producing considerable prospects for the steel processing industry.

Major Drivers

Automotive industry expansion: The automotive sector in the Middle East and Africa is quickly expanding, with South Africa, Morocco, and Egypt emerging as key production hubs. As automotive production expands to satisfy expanding local and foreign demand, so does demand for steel components such as sheet metal, chassis, and engine parts. This rise in the automotive industry is a key driver for the steel processing market, encouraging investment in steel processing facilities and technologies to match the automotive sector's rigorous quality criteria.

Oil and gas infrastructure projects: The Middle East & Africa as some of the world's greatest oil and gas deposits, resulting in significant expenditures on upstream, middle, and downstream infrastructure developments. Steel is essential in the construction of pipelines, refineries, storage tanks, and offshore platforms, among other infrastructure elements. As the oil and gas industry expands and modernizes, there is an ongoing need for specialty steel products that can endure extreme working conditions. The demand for high-quality steel propels expansion in the steel processing market, particularly in nations with large oil and gas reserves, such as Saudi Arabia, the UAE, and Qatar.

Major Challenges

Infrastructure constraints: Despite continuous infrastructure development attempts, the Middle East and Africa area continues to experience issues due to inadequate infrastructure, particularly in transport and logistics. Insufficient transportation networks, ports, and storage facilities can cause delays in the flow of raw materials and finished steel products, disrupting production schedules and raising expenses for steel processors. Addressing infrastructure restrictions is critical for realizing the full potential of the region's steel processing business.

Based on type segment alloy steel and carbon steel. Carbon steel type is expected to grow at fastest rate in Middle East & Africa steel processing market.

The Middle East and Africa region has vast supplies of iron ore and coal, which are the key raw resources for carbon steel manufacture. Access to these resources enables a dependable and cost-effective supply chain for carbon steel makers, hence driving regional carbon steel processing growth. Carbon steel is known for being more cost-effective and affordable than other varieties of steel, such as alloy steel or stainless steel. Carbon steel's affordability makes it a preferred choice for a wide range of applications across sectors in the Middle East and Africa, where cost concerns frequently play an important part in procurement decisions. The Middle East and Africa are seeing rapid expansion in building and infrastructure development, owing to population growth, urbanization, and government infrastructure investments. Carbon steel, with its versatility, strength, and durability, is the material of choice for structural components, reinforcing bars, and construction materials, contributing to the increased demand for carbon steel processing services. Governments in the Middle East and Africa are heavily investing in infrastructure development efforts such as transportation networks, utilities, and urban development projects. Carbon steel, a crucial material for infrastructure construction and development, will profit from these expenditures, increasing demand for carbon steel processing services. Many sectors in the Middle East and Africa choose classic steel grades, such as carbon steel, because of their proven performance, familiarity, and established supply channels. This desire, combined with carbon steel's low cost, contributes to its predicted rapid expansion in the region's steel processing sector.

Based on shape segment market is bifurcated into flat steel, long steel and tubular steel. Long steel shape segment is expected to grow at fastest rate in Middle East & Africa steel processing market. Based on end user segment market includes construction, shipping, energy, packaging, consumer appliances industry, housing, automotive and others. Energy industry is projected to play major role in Middle East & Africa steel processing market.

The Middle East and Africa region is experiencing rapid infrastructure development, including the construction of roads, bridges, trains, airports, and utilities. Long steel shapes, such as bars, rods, beams, and channels, are critical structural components for infrastructure projects. The region's robust infrastructure development projects fuel demand for long steel shapes, which contribute to the quickest growth rate in the steel processing industry. The construction industry is a key user of long steel forms in the Middle East and Africa, accounting for a sizable share of demand. Long steel items are utilized in residential, commercial, industrial, and institutional construction for structural framing, reinforcement, and support. With the growing population, urbanization, and demand for housing and commercial spaces, the construction sector's expansion fuels the demand for long steel shapes. The Middle East and Africa region has huge deposits of oil and natural gas, making it a global leader in energy production and export. Hydrocarbon extraction, processing, and transportation need considerable infrastructure, much of which is based on steel goods. Steel is utilized in drilling equipment, pipelines, refineries, storage tanks, and offshore platforms, making it an essential component of the region's energy economy. Governments and energy corporations in the Middle East and Africa are heavily investing in energy infrastructure projects to fulfill rising local demand and boost export capacity. These investments include the construction of oil refineries, petrochemical plants, LNG terminals, and power production plants. Steel processing is necessary for creating the structural components, equipment, and pipelines needed for these infrastructure projects.

Based on report market includes three major countries including United Arab Emirates, Saudi Arabia and South Africa. Among them Saudi Arabia is expected to play major role in Middle East & Africa steel processing market.

Saudi Arabia's Vision 2030 is a transformative blueprint that aims to diversify the economy away from oil dependence and stimulate growth in non-oil areas. As part of this strategy, the Saudi government has promoted industrialization, infrastructural development, and the localization of industries, including the steel industry. This strategic goal establishes Saudi Arabia as a major player in the MEA steel processing industry. Saudi Arabia has abundant natural resources, particularly energy resources such as oil and natural gas. Access to abundant and affordable energy sources gives the steel production industry a competitive advantage, as it is very energy intensive. It enables cost-effective steel manufacturing and processing, attracting investments and driving sector growth. Saudi Arabia is carrying out major infrastructure development projects as part of Vision 2030 and its National Transformation Program. Mega-projects such as NEOM, the Red Sea Project, and the Riyadh Metro require substantial quantities of steel for construction, creating significant demand for steel processing services. The government's investments in infrastructure modernization present lucrative opportunities for steel processors in Saudi Arabia. The Saudi government provides a variety of incentives and programs to encourage foreign investment and industrial expansion, including tax breaks, land giveaways, and simplified regulatory procedures. These investment-friendly laws, together with the government's commitment to economic diversification, make it easier for steel processing businesses to set up and develop operations in Saudi Arabia. Saudi Arabia has advanced industrial infrastructure, which includes industrial cities, specialized zones, and contemporary manufacturing facilities. Steel processors benefit from well-developed industrial clusters, which provide access to key utilities, logistics services, and a qualified workforce, allowing for more efficient and cost-effective manufacturing processes.


Recent Developments

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Steel Processing market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Alloy steel
• Carbon steel

By Shape
• Flat steel
• Long steel
• Tubular steel

By End User
• Building and Infrastructure
• Automotive
• Metal Products
• Mechanical Equipment
• Transport
• Electrical Equipment
• Domestic Appliances

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Steel Processing industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.***Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation.