Global Carbon Steel Market Size (2023-2030)

The Global Carbon Steel Market was valued at USD 935.18 billion and is projected to reach a market size of USD 1315.89 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 5%. 

Carbon steel consists of iron and carbon and is widely used in various industries for its strength, durability, and affordability. The carbon content in steel is between 0.05% to 2.0%. Further, higher carbon showcases increased hardness and strength, and low carbon content shows the toughness and ductility of carbon. Further, carbon steel is classified into three categories – low-carbon steel, medium-carbon steel, and high-carbon steel. Low-carbon steel has 0.30% carbon, which makes it malleable and easy to work with. It is used in sheet metal, pipes, and others. Medium carbon steel has 0.30% to 0.60% carbon content and is mainly used in the automobile sector. High carbon steel has 0.60% to 2.0% carbon content and is mainly used for sharp-edged tools, wires, and other hard components. Furthermore, carbon steel can be transformed as per the need through heat processes such as quenching, tempering, and others that enhance its properties. In addition to that, carbon can be combined with other alloying elements such as manganese, chromium, and nickel to increase its strength and withstand corrosion resistance, and heat resistance. Furthermore, increasing demand from the industrial and manufacturing sector for construction purposes has boosted the demand for carbon steel in the market.

Global Carbon Steel Market Drivers:

Rapid urbanization and industrialization drive the market for carbon steel.

The growing population has resulted in increased demand for more residential spaces. As cities expand, there is a need to construct new buildings, roads, bridges, and public utilities, and hence carbon steel serves as a vital material in the construction industry. It helps in building robust reliable, and long-lasting structures. Moreover, due to its strength and cost-effectiveness, carbon steel is used as a prime material in building beams, columns, trusses, bridges, and other infrastructure projects. Additionally, since carbon steel is malleable it can be transformed and fabricated into various sizes, shapes, and structures to make pipes or complex building structures. Moreover, due to the cost-effectiveness of carbon steel, it has become a prime choice of architects and civil engineers for construction purposes.

Environment-friendly properties of carbon have boosted the demand for carbon steel in the market.

Carbon is recyclable and hence can be reused in the production and construction of new projects. Hence, it is considered a sustainable source for building and construction purposes. Further, due to its robustness and eco-friendliness, it is used in manufacturing and installing solar panels and other renewable energy structures that contribute towards energy efficiency and sustainability. Additionally, as carbon steel is affordable and durable it is widely used in HVAC systems, high-power appliances, and other energy-efficient systems. As opposed to conventional steel which requires more energy and releases more emissions during the production process. As per World Economic Forum, steel manufacturing contributes to more than 8% of global emissions and produces more CO2 than any other heavy industry. Therefore, carbon steel is much preferred in all industries as it consumes less energy and reduces the dependency on raw materials that contribute towards a reduction in greenhouse gas emissions as a whole. Moreover, this has increased the demand for recycled carbon steel in the market and thereby leveraging sustainability production practices.

Global Carbon Steel Market Challenges:

Exposure to a moist environment and reduced maintenance can hamper the market growth of carbon steel. Carbon steel is prone to rusting and corrosion when it is exposed to extreme climatic conditions such as moist or damp weather. Further, rusting and corrosion can weaken the integrity of carbon steel over some time and can reduce the life span of carbon-steel products. This further affects the appearance of carbon steel products such as the architecture of buildings, designs of certain infrastructures, and consumer goods. Therefore, to prevent the rust and corrosion of carbon steel it is essential to undertake regular maintenance of carbon steel such as painting, coating with corrosion-induced materials, galvanizing, and others. However, this increases the maintenance costs of carbon-steel products and shifts market demand towards its alternatives.

Global Carbon Steel Market Opportunities:

The Global Carbon Steel Market is anticipated to deliver lucrative opportunities for businesses, which include acquisitions, partnerships, collaborations, product launches, and agreements during the forecasted period. Furthermore, owing to the increase in demand from the construction industry and increased adoption of sustainable production practices, the market for carbon steel is predicted to witness significant growth during the forecast period.

COVID-19 Impact on Global Carbon Steel Market:

The pandemic hurt the carbon steel market. Due to the lockdown, most of the industries witnessed a slowdown such as the construction industry. As there was a restriction on physical movement across geographical boundaries, there was a decrease in labor supply, which affected the production process and resulted in supply chain disruptions. Moreover, construction and manufacturing activities witnessed a slowdown, which declined the demand for carbon steel in the market. Furthermore, due to travel restrictions, there was a decline in the usage of automobiles that resulted in a decline in demand for automobiles and even distress sales by automobile owners, which further led to a decline in demand for carbon steel in the automotive industry.

Global Carbon Steel Market Recent Developments:

• In September 2022, Nippon Steel Corporation launched its low-carbon steel product – NSCarbolexTM Neutral that aimed to reduce carbon emissions during the steel production process.
• In October 2021, Nucor launched a line of carbon-neutral steel products called Econiq and General Motors. The company aimed to lower its carbon footprint and produce efficient carbon-neutral steel.

CARBON STEEL MARKET REPORT COVERAGE:

Based on market segmentation by type, low-carbon steel occupies the highest share in the market. Low-carbon steel contains 0.05% to 0.30% of carbon content and is known for its flexibility and softness. It is the most commonly used carbon steel in all industries and is used in the production of pipes, sheet metal, automotive components, and other structural components that do not require high strength.

The medium carbon steel segment occupies a sizeable share of the market. It contains 0.30% to 0.60% carbon content and is known for its hardness and improved strength compared to low-carbon steel.  It is used in machine parts, gears, axles, crankshafts, and others.

High carbon content occupies a significant share of the market and contains carbon content above 0.60%. It is known for its hardness, excellent strength, and durability, and therefore is used in components that require high strength. It is used in the manufacturing of drills, saw blades, knives, high-strength wire, and others.

Global Carbon Steel Market Segmentation: By Type

• Low Carbon Steel

• Medium Carbon Steel

• High Carbon Steel

Global Carbon Steel Market Segmentation: By Application

• Construction

• Oil & Gas

• Automotive

• Others

Based on market segmentation by application, construction occupies the highest share of the market. Due to the excellent strength and durability properties of carbon steel, it is used in constructing heavy components such as beams, columns, frames, pillars, and others. Furthermore, due to its versatile nature, it can be easily transformed into metal sheets and pipes through the welding process.

The oil and gas segment occupies a significant market share. Carbon steel possesses excellent mechanical and resistance properties that make it suitable to withstand high pressures, temperatures, corrosive atmospheres, and others, which are common to oil and gas operations. The oil and gas industry increasingly demands steel pipes and fittings for transportation, drilling, and refining process, which is possible through carbon steel as it is highly versatile and malleable in nature.

The automotive segment is the fastest growing during the forecast period. Carbon steel’s malleability and strength make it possible for automobile engineers and designers to manufacture intricate and complex vehicle components such as in constructing the car’s body and frame, engine components such as camshafts, crankshafts, rods, and others easily. Moreover, due to the cost-effectiveness of carbon steel, it has become a reliable source for car manufacturers to build cars with increased performance and robustness.

Global Carbon Steel Market Segmentation: By Region

• North America

• Europe

• Asia Pacific

• Middle East and Africa

• South America

Based on market segmentation by region, North America and Europe occupies the highest share of the market. With the increased presence of some of the big automobile manufacturers, there is an increase in demand for carbon steel in the market. Further, advanced engineering technologies and the adoption of sustainable production practices, have boosted the demand for carbon steel in the automotive industry of the regions. Carbon steel is increasingly used in the regions to manufacture chassis, frames, body panels, axles, and others. This has further boosted the demand for robust cars in the regions.

Asia-Pacific is the fastest-growing region during the forecast period. Due to the increase in population and rapid demand for safe and strong residential spaces, there is an increase in demand for carbon steel for the construction of buildings in the region. Further, rising government expenditure for infrastructural projects such as building bridges, transportation, utilities, and others has increased the usage of carbon steel in the region.

Global Carbon Steel Market Key Players:

1. Nippon Steel Corporation

2. JFE Steel Corporation

3. Tata Steel

4. Silbo Industries Inc

5. Kelly Pipe

6. Texas Pipe Family Of Companies

7. Siderval USA

8. Fisher Cast Steel