The global stainless steel market size was USD 204.07 billion in 2022 and is projected to grow from USD 205.88 billion in 2023 to USD 305.56 billion by 2030, exhibiting a CAGR of 5.8% during the forecast period.
Stainless steel comprises several components that fuse 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 product's ability to resist corrosion coupled with rising manufacturing for recyclable material will further aid in propelling the market growth during the forecast timeframe.
Slowdown of the Construction Industry Affected Market Growth during Pandemic
Various governments imposed strict restrictions, which affected the construction industry, and, in turn, affected the market. This pandemic caused containment measures, freeze in consumption activities, and disruptions in the supply chain. This resulted in machinery closures, severe scarcity of qualified labor, factory shutdowns, and shortage of raw materials, due to which product production remained closed. Also, emerging countries were highly susceptible to the pandemic due to stricter containment measures, declining raw material costs, and insufficient fiscal assistance.
According to the World Steel Organization, in 2020, the stainless steel melt shop production in various countries would decrease severely. The European Union accounted for the loss of over 480 kilotons, whereas India and the U.S. showed a reduction of 776 kilotons and 80 kilotons, respectively. However, the production in China increased to over 1,600 kilotons. Further, the production recovered 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.
Request a Free sample to learn more about this report.
Rising Technological Developments in Steel Due to increasing Rate of CO2 Emissions is a Prominent Trend
The growing technological advancement to make sustainable stainless steel is thriving the market growth during the forecast timeline. The megatrends such as rising mobility, urbanization, population & economic development, and increasing climate change are some of the major factors driving the market. Additionally, growing CO2 emissions globally led many steel producers to develop a sustainable choice that could be durable and may be reused at the end of their lifecycle. For instance, in December 2021, Aperam acquired ELG, an expert in super alloys and steel recycling. With this acquisition, both the companies aim to support their CO2 reduction targets and improve their environmental footprint. Hence, such factors, coupled with growing consumer preference to buy steel-based products, will create newer heights for the market to grow significantly.
Rapid Growth in Automotive Industry to Boost the Product Adoption in Seatbelt Springs and Hose Clamps
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 the future. Moreover, the increasing technological advancement in the automotive industry and rising innovation in electric vehicles will contribute to product adoption. Hence, rising product demand from automobile manufacturers will fuel the stainless steel market growth.
Rising Product Consumption Due to its Characteristics in the Construction Industry to Drive the Market Growth
Increasing product consumption in the construction industry will offer lucrative opportunities for the market to grow significantly. This type of steel was not commonly utilized for building structural reasons initially, owing to its high cost. However, technological advancements have made this steel more accessible and affordable over the last decade and improved corrosion resistance and longevity. According to the BS Stainless company, the product demand is increasing to fulfill construction purposes, offer buildings enhancements, and make them more attractive. Moreover, the growing number of commercial and residential buildings coupled with the increasing commissioning of infrastructural projects will boom the construction industry. Hence, such factors will increase the product demand during the forecast period.
Availability of Substitute Products Such as Aluminum and Carbon Steel to Affect Market Growth Negatively
Availability of substitute products, such as aluminum, galvanized steel, carbon steel, and engineered plastics, restrains the product adoption. Moreover, it is heavy and not water-resistant when compared with these alternatives. These factors are restricting its consumption where the lightweight property in the products is needed. Such factors restrain the market and reduce product adoption in various applications, including consumer goods, engineering, and electronics.
Cold Rolled Flat Segment to Hold Largest Market Share Due to High Demand from Home Appliances and Furniture Industries
On the basis of product type, the market is segmented into cold rolled flat, hot plate & sheet, cold bars & wire, hot bars & wire rod, and 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 to as structural steel and is 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 their excellent mechanical properties will propel the growth. Hot bars & wire rods are also called annealed bars and normalized bars. The product demand is increasing rapidly in the electrical & electronics industry, owing to its excellent tensile strength.
To know how our report can help streamline your business, Speak to Analyst
Metal Products Segment is the Largest Application Segment Owing to its Corrosion Resistant Property
On the basis of application, the market is divided into metal products, electrical machinery, engineering, construction, automotive parts, and others. The metal products segment held the highest stainless steel market share in 2022. Growing consumer disposable income and rising adoption of metals in utensils and medical accessories resulted in high demand. Hence, this will further fuel the overall market growth during the study period.
Engineering steel products generally include exhaust systems, ship containers, cable trays, and pipelines. Increasing demand for oil & gas and transportation products 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, 2022 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
In 2022, Asia Pacific accounted for the largest share in the global market and was estimated at USD 136.91 billion in 2022. The rapid infrastructure development and increasing technological advancement in steel have fueled the market growth in Asia Pacific. China holds the highest market share in this region and is the fastest-growing country. The increasing production of steel, rising research & development activities, and growing construction industry are some prominent factors 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 advancements. Around 45%-50% of steel is used in automotive exhaust systems. In addition, several firms are employing innovative processes for complex designs, 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.
To know how our report can help streamline your business, Speak to Analyst
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 and Africa will showcase significant market growth in the 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.
Key Players Use Organic and Inorganic Growth Strategies to Maintain Their Position in the Market
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 & acquisitions, and market collaborations. 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 acquisition, R&D activity, and steel innovation to meet consumer demand.
An Infographic Representation of Stainless Steel Market
View Full InfographicView Full Infographic
To get information on various segments, share your queries with us
The research report provides a detailed analysis of the market 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 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 in recent years.
ATTRIBUTE
DETAILS
Study Period
2019-2030
Base Year
2022
Estimated Year
2023
Forecast Period
2023-2030
Historical Period
2019-2021
Growth Rate
CAGR of 5.8% from 2023 to 2030
Unit
Value (USD Billion), Volume (Kiloton)
Segmentation
By Product Type, By Application, and By Geography
By Product Type
By Application
By Geography
The narrative of stainless steel technology's invention and development is one that takes us back to the early 20th century. It is a story punctuated by remarkable discoveries and advancements, each forming a stepping stone toward the highly refined stainless steel industry we are familiar with today. If you want to learn about the development of stainless steel technology and what the future of the industry holds, join us as we take a closer look.
Stainless steel is a type of alloy known for its exceptional corrosion resistance and high durability. It’s made primarily from iron, with the addition of various elements such as chromium, nickel, and molybdenum to enhance its properties. The exact composition and ratio of these elements vary depending on the specific grade or type of stainless steel.
Stainless steel's unique properties make it a versatile material that various industries utilize. Construction, architecture, and infrastructure commonly incorporate stainless steel due to its strength and resistance to rust and corrosion.
The automotive industry chooses stainless steel for its durability and aesthetic appeal in car parts, including exhaust systems, trimmings, and body panels.
The medical field heavily relies on stainless steel's sanitary and corrosion-resistant properties. Surgeons and healthcare professionals use stainless steel for surgical instruments, medical implants, and equipment to ensure safety and hygiene in healthcare facilities.
In the food industry, stainless steel is the preferred material for processing and packaging equipment due to its resistance to chemicals and bacteria. Additionally, stainless steel finds widespread use in household appliances like refrigerators, ovens, and dishwashers, thanks to its durability and sleek appearance.
Now that we have a basic understanding of what stainless steel is and its common uses, let's delve into its fascinating history. Here's a timeline of the key events and developments that have shaped stainless steel technology into what it is today:
At the dawn of the 20th century, the history of stainless steel began to take shape. In 1904, Leon Guillet, a Frenchman, made significant strides in studying iron-chromium alloys. He diligently documented his findings but did not yet understand the relationship between chromium content and corrosion resistance. A breakthrough came in 1911 when Philip Monnartz from Germany published the first comprehensive study on the corrosion resistance of stainless steel. His discovery was groundbreaking; he found that steel with a minimum chromium content of 10.5 percent had significantly higher resistance to rust. This laid the groundwork for the developments to come.
The year 1912 marked a significant milestone in the journey. Eduard Maurer and Benno Strauss, two researchers at Krupp Iron Works in Germany, patented what’s now recognized as the first true stainless steel. Their innovation was an alloy that combined 21 percent chromium and nickel, exhibiting unparalleled resistance to corrosion and acid. With this, the world witnessed the birth of stainless steel as we know it today.
Following the birth of stainless steel, the 1920s saw a substantial expansion in its uses. Owing to its durability and resistance to corrosion, stainless steel began to find applications beyond cutlery manufacturing. Manufacturers used it to produce vehicles, buildings, and infrastructural projects. This decade also marked further advancements in stainless steel production technology, with manufacturers devising new methods to enhance efficiency and reduce costs.
The subsequent two decades, the 1930s and 1940s, ushered in an era of refinement in stainless steel production. Researchers concentrated their efforts on improving methods to decarburize steel effectively while simultaneously preventing oxidation. During this period, stainless steel emerged as an indispensable material for constructing military equipment, marking a significant milestone in its evolution.
The years between 1950 and 1970 heralded the era of mass production of stainless steel. Technological innovations enabled the manufacture of stainless steel on an unprecedented scale. A critical milestone was the introduction of the Argon Oxygen Decarburization (AOD) process, which facilitated the production of low carbon content stainless steel, thereby enhancing its corrosion resistance. Moreover, this period instigated the international standardization of stainless steel, ensuring uniformity in its production and quality worldwide.
The 1970s and 1980s were characterized by a heightened awareness of environmental issues. In response, the stainless steel industry embarked on developing more eco-friendly production processes and emphasized the recyclability of stainless steel. Furthermore, the rise of duplex stainless steels, which amalgamate the beneficial properties of austenitic and ferritic steels, offered greater strength and improved resistance to stress corrosion cracking.
In recent decades, the stainless steel industry has reaped the benefits of advancements in computer technology and automation. These innovations have led to more efficient and precise manufacturing processes. There’s now an increasing focus on sustainability, with manufacturers striving to minimize energy consumption and carbon emissions in their operations. Additionally, the production of new grades and surface finishes has expanded the range of applications for stainless steel, solidifying its position as an essential material in modern industries.
We’ve discussed the development of stainless steel technology throughout the years. But now you might wonder what its future holds.
The prospects for stainless steel technology appear promising. The demand for stainless steel continues to surge, fueled by its versatility and durability. Researchers are tirelessly working on developing new alloys and production methods to further enhance the properties of stainless steel and mitigate its environmental impact. The aim is to create high-performance stainless steels capable of withstanding extreme conditions, such as high temperatures and corrosive environments.
Today, the stainless steel manufacturing industry stands as a testament to its humble beginnings, having evolved and grown in tandem with continuous advancements in technology. CMPI , a leading stainless steel manufacturer, embodies the success and versatility of this remarkable material in the modern day. Offering a broad range of high-quality stainless steel products, including custom fabrication services, CMPI exemplifies the ongoing development of stainless steel technology. The future remains bright for stainless steel technology as it continues to play a pivotal role across various industries and in everyday life. As such, we eagerly await the next breakthroughs in this continually evolving field.