Carbon Steel Market Size, Share & Trends Analysis Report, By Type (Low Carbon Steel, Medium Carbon Steel, High Carbon Steel), By Application (Shipbuilding, Automotive, Construction), By Region, And Segment Forecasts, 2023 - 2030

Carbon Steel Market Size, Share & Trends Analysis Report, By Type (Low Carbon Steel, Medium Carbon Steel, High Carbon Steel), By Application (Shipbuilding, Automotive, Construction), By Region, And Segment Forecasts, 2023 - 2030

Carbon Steel Market Growth & Trends

The global carbon steel market size is expected to reach USD 1,301.53 billion by 2030, expanding at a CAGR of 4.0%, according to a new report by Grand View Research, Inc. Increasing investment in the construction sector on account of factors such as rising housing needs, boosting tourism, and increasing commercial space is likely to augment the demand for carbon steel over the forecast period.

For instance, in August 2022, Nakheel PJSC announced a master plan vision for the Dubai islands. The plan involves the construction of five islands of 17 square kilometers by 2040. These islands are expected to have 80 resorts & hotels, cultural hubs, boutiques, dedicated public parks, and residential spaces. Such kinds of investments are expected to fuel the product demand over the coming years.

Carbon steel is one of the key materials used in the construction sector on account of its strength and hardness. It is used in rectangular tubing, highway construction plates, structural framework beams, and bridges. It is also a popularly used material in the manufacturing of hollow structural sections and rebars. Plain carbon steel exhibits various properties such as plasticity, ductility, flexibility, and bending ability. During natural calamities, such as earthquakes, it is a very useful material owing to its crack resistance. Thus, growth in the construction industry, especially after the pandemic aided the product demand.

Further, the automotive industry is another vital end-use for the market. For instance, high carbon steel finds use in various automotive applications such as door panels, vehicle chassis, and bushings, among others. A rise in vehicle production is thus anticipated to boost product consumption over the forecast period. According to OICA, world automotive production rose by 6% from 2021 to 2022.

Further, the growing emphasis toward sustainable production is aiding the market growth. For instance, in 2022, BMW, to further support its goal of reducing carbon dioxide emissions signed an agreement with Salzgitter AG to deliver low carbon steel. The product will be used in car production at the company’s European plants, from 2026 onwards. The company aims at fulfilling 40% of its demand by making use of low carbon steel at its plants in Europe, by 2030, thereby reducing carbon dioxide emissions by 400 kilotons per annum.

Availability of substitutes such as aluminum alloys and other lightweight alloys is anticipated to hinder market growth over the coming years. Aluminum alloys are the major substitutes for carbon steel in applications like shipbuilding. They are expected to gain a higher preference owing to properties like lightweight, which helps reduce the weight of the ship, enhance fuel efficiency, provide higher corrosion resistance, non-magnetic properties, and offer low cost maintenance.

Despite the various advantages of aluminum alloys, there is one drawback associated with them. Their high cost when compared to carbon steel restricts their consumption. However, this drawback can be compensated for with higher earnings.

Carbon Steel Market Report Highlights

• Based on type, the low carbon steel segment accounted for the highest revenue share of nearly 90.0% in 2022. Availability of the product at an economical cost is likely to remain a key factor driving the segment growth.
• Based on application, shipbuilding accounted for a revenue share of nearly 12.0% in 2022. The spike in shipping transportation in 2021 after the pandemic, aided market growth.
• The construction segment is projected to witness a CAGR of 4.4%, in terms of revenue, over the forecast period. A positive outlook for the construction sector especially in emerging economies is projected to drive the segment growth.
• Based on region, Asia Pacific dominated the global market with a revenue share of over 66.0% in 2022. This trend is anticipated to continue over the forecast period. Availability of labor at an economical cost and increasing industrial outputs are the primary driving factors for the product demand to propel in the region.
• Middle East & Africa is anticipated to register a CAGR of 2.7%, in terms of revenue, over the forecast period. The increasing focus of the Gulf countries on non-oil & gas sectors is the primary factor driving segment growth.

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