According to the latest analysis conducted by GlobalData, the market demand for stainless steel in terms of revenue is estimated to reach $195.0 billion in 2024, growing at a compound annual growth rate (CAGR) of 5.5% until 2030. The increasing significance of the commodity in the construction and energy production sectors is likely to drive market growth during the forecast period.

A Variety of Applications

Stainless steel finds a variety of applications in the construction sector, from architectural facades to concrete implementations. The increasing focus of governments worldwide on modernizing or developing existing infrastructure networks is expected to further boost market development for the metal group.

For example, major fiscal stimulus packages such as the Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act (IRA), and the CHIPS and Science Act will be key drivers of construction activity in the US construction industry.

Market Evolution Until 2030 (Billion USD)

Revenue from the stainless steel sector is expected to exhibit consistent performance over the forecast period due to high commodity prices. However, in terms of business volume, the market is expected to remain sluggish due to weak demand from end-use sectors.

Additionally, global volumetric demand in 2024 is expected to remain flat compared to 2023 levels, with marginal growth expected from the Asia Pacific region.

Market Space Growth in 2024 is estimated to increase by 3.4% year-on-year in terms of volume and 4.3% in terms of revenue.

This growth in 2024 is expected to be supported by healthy demand dynamics in the Asia Pacific and North American regions. Among these regions, the top-performing countries will be the USA, India, and China.

Market Segmentation by Grade of Use

The quality segment covers Series 300, Series 200, Series 400, and others. Among these grades, Series 300 is expected to dominate market share in terms of volume as well as revenue in 2023. This category of grades is used in a wide range of sectors, including appliances, transportation, aerospace, energy, and construction.

The Series 300 category is expected to grow by 4.6% year-on-year in terms of revenue in 2024. The growth in 2024 will continue to be supported by price appreciation and steady demand from the construction industry. This quality category is particularly preferred in building construction and component applications in coastal regions due to its exceptional anti-corrosive properties.

The Series 200 grade segment is expected to represent the second-largest volumetric share in 2024 and is expected to grow at a steady pace during the forecast period. This graded series is economically cheaper than its austenitic counterpart in the Series 300 due to its lower ability to provide corrosion protection.

Thus, these Series 200 products are used for indoor environmental applications, including water tanks, cutlery, interior architecture, and washing machines, among others.

The Series 400 grade category recorded the third-largest volumetric share in 2023. This quality category is susceptible to corrosion under specific environmental conditions. However, the key advantage of this quality group is its ability to achieve a hardened product after post-heating treatment. Thus, Series 400-based products are used at high temperatures and in applications where processing is required to produce the desired end product.

Market Segmentation by Product Type

The stainless steel products section comprises flat and long products. Within this product segment, flat products, including sheets, coils, plates, and strips, are expected to dominate the volumetric share in 2024. These flat products are used in a wide range of processing and further treatment sectors.

The flat product category is expected to register year-on-year growth of 3.3% in volume in 2024. According to the International Stainless Steel Forum (ISSF) publication, hot-rolled flat products are forecasted to grow at an annual growth rate of 5.2% in 2024 due to high demand from the global construction and construction end-use sector.

Market Share by Product

The long product category will remain the fastest-growing product segment, indicating a compound annual growth rate (CAGR) of 4.4% in volumetric terms during the forecast period.

This group of products includes wire, bars, sections, and rods that are widely used in structural applications. Additionally, these products find applications in end-use sectors, including construction and construction, transportation, appliances, medical, and energy.

The growth of the long product segment is primarily driven by the widespread use of anchoring bolts, tie rods, anchor heads, and parapet cables. Global growth is expected to exhibit healthy dynamics in 2024, with the launch of new construction projects by both public and private entities.

Market Segmentation by End-Use Industry

The stainless steel market, based on end-use segmentation, covers the appliance industry, the food and beverage industry, breweries, the automotive industry, transportation, construction, and others.

Within this end-use segment, the industrial product category is expected to comprise the largest share in terms of volume and revenue in 2024. This segment is expected to continue its dominance throughout the forecast period.

Market Share by End Use

The appliance end-use segment includes household appliances, kitchenware, catering equipment, and others. Traditionally, this category has been one of the fastest-growing end-use sectors in the stainless steel industry.

However, in the post-COVID-19 period, the slowdown in the hospitality and tourism sectors, coupled with weak global macroeconomics, directly affected growth rates for this segment.

The food industry and breweries segment is expected to exhibit a compound annual growth rate (CAGR) of 4.2% in terms of volume during the forecast period. Growth is likely to be supported by the development of new food processing centers in developing countries. For example, Nestle has announced plans to establish a new food processing unit with an investment of $108.9 million.

The other end-use segment includes automobiles and transportation, construction and construction. The use of the product, especially for the manufacture of railway carriages, is expected to become a major trend during the forecast period, with many developed and developing countries expanding their existing networks. For example, France has undertaken metro construction work for the upcoming 2024 Paris Olympics.

Market Segmentation by Region

The dynamics of the stainless steel market are heavily influenced by consumption dynamics in the Asia Pacific region, due to its largest share in terms of volume and revenue in 2024. The region includes China, Indonesia, South Korea, Japan, and India, which are among the leading producers and consumers of stainless steel products.

Among these, from the end of production, China, Indonesia, and India are expected to make significant contributions in the coming years. In terms of consumption, India is expected to remain the fastest-growing country, with a compound annual growth rate (CAGR) of 6.2% in volumetric terms between 2024 and 2030.

Market Share by Region

The second-largest region is Europe, which accounted for a volumetric share of 14.1% in 2023. Regional growth has suffered from 2022, following Russia's invasion of Ukraine, leading to high energy and commodity prices. Key countries in the region expected to

drive growth during the forecast period are Germany, France, Turkey, Spain, and the United Kingdom.

The North American region is the third-largest market for stainless steel and associated products. Regional dynamics are expected to flourish in the short term, with infrastructure development in the US until 2026. However, for the remainder of the forecast period, the region is expected to show growth slowing due to declining production capacity.

The rest of the world is estimated to grow at a compound annual growth rate (CAGR) of 3.3% from 2023 to 2030. Brazil is expected to become one of the key consumers of stainless steel products during the forecast period due to expansion in its oil and gas industry.

Competitive Landscape

The competitive landscape of stainless steel is primarily dominated by organizations from the Asia Pacific region, due to their superior production capacity. Within the flat product segment, of the top 25 suppliers based on production capacity, 19 are from the Asia Pacific region. Similarly, in the long product segment, of the top 25 suppliers, 13 are from the Asia Pacific region.

Market vendors are making continuous efforts to expand their presence through product launches, mergers, and acquisitions. For example, Italy's Marcegaglia Group acquired Outokumpu's stainless steel long production plant in Sheffield, UK, in January 2023. This acquisition will enable Marcegaglia to achieve partial upstream integration in the value chain, thereby stabilizing the supply chain and raw material inflow.

Top Players in the Stainless Steel Market:

Outokumpu Oyj, Acerinox SA, Cleveland-Cliffs Inc, Aperam SA, POSCO Holdings Inc, ArcelorMittal SA, Jindal Stainless Ltd, Nippon Steel Corp, Tsingshan Holding Group Co Ltd, China Baowu Steel Group Corp Ltd.

Other Stainless Steel Market Providers:

JFE Corporation, Yieh Corp., Jiangsu Delong, LISCO, JISCO, Arvedi, Henan Qingshan Jinhui, Zenshi Group Eastern Special Steel, Guangxi Beibu Gulf New Materials, Liugang Zhongjin Meta l, Shandong Shengyang, Guangxi Wuzhou Jinhai, Viraj Group, Swiss Steel Group. (Photo: Dreamstime)