Steel, the cornerstone of modern industrial and infrastructure development, provides a wealth of opportunities for entrepreneurs and startups. Steel is an essential material for everything from advanced manufacturing to construction. It drives global innovation and economic growth. This article examines the key steel products and market dynamics as well as the potential for new ventures in this important sector.
Global Steel Industry: Opportunities and Challenges
Market size, growth, and demand trends
Global steel is a massive and rapidly growing market. It is estimated to be USD 1,47 trillion by 2024 and USD 1,92 trillion by 2030. The Compound Annual Growth Rate (CAGR), which starts in 2025, will be 4.6%. According to more optimistic estimates, the market will be worth USD 2.60 trillion in 2034 at a CAGR of 5.32%. By 2034, the iron and steel industry is expected to reach USD 2.7 trillion.
The robust growth in the industry is due to global infrastructure developments, increased demand from the construction and automotive industries, and industrial expansion. The outlook for the future is positive despite recent fluctuations in production and prices. In December 2024, the world crude steel production was 144.5 million tonnes for 71 reporting countries. However, global steel production decreased by 0.9% in 2024. However, the overall demand is expected to recover with a 1.2% projected increase in 2025.
The industry is characterized by a growing demand for specialized products, technological advances, and a focus on sustainable practices. The green steel market is expected to reach USD 19,4 billion by 2020 (21.4% CAGR), highlighting a shift in production towards an environmentally friendly product. This will create new opportunities for investment and innovation.
Steel Products: A Deep Dive for Industrial Ventures
TMT bars with scrap melting: the foundation of modern construction
TMT bars are essential for modern construction because of their superior strength, ductility, and corrosion resistance. They are ideal for reinforcing structures in earthquake-prone regions. Furthermore, they are manufactured using a combination of thermal and mechanical treatment.
Manufacturing Process
Scrap metal is often used in production, which promotes sustainability and offers economic benefits. The process includes:
- Sorted scrap steel: Steel is melted into molten metal in an electric arc (EAF) furnace or basic oxygen (BOF) furnace.
- Refining & Casting: The steel is refined by removing impurities and then cast into billets.
- Hot Rolling and Quenching: Billets can be reheated, rolled, and then quenched with water jets to harden their outer surface. The core is still hot.
- Self-Tempering & Cooling: Heat from the core tempers the outer layer, creating a strong, tough surface. Meanwhile, the core is ductile. The bars are then cooled by air.
Market Demand and Growth
TMT steel bars are growing rapidly due to the increase in construction. Globally, the market is expected to grow by 7.0% per year, reaching USD 284 billion in 2032. Scrap melting is in line with sustainability goals and, therefore, a good area for new ventures.
Hot Rolled Coils: Versatility of Manufacturing
Hot Rolled Coils are a fundamental steel product that is used in a wide range of manufacturing applications. HRCs, which are produced at high temperatures, are highly valued for their ductility and ease of fabrication. They can also be used for pipes and other industrial applications.
Manufacturing Process
Steel slabs are often produced by continuous casting. The following are the key steps:
- Reheating Slabs: The slabs are heated to a temperature above 1,000 °C to make them malleable.
- Rolling: The heated plate is rolled through roughing mills and finishing mills to reduce thickness and achieve final dimensions.
- Coiling and Cooling: The strip must be rapidly cooled to maintain its metallurgical properties.
Additional Value:
- Pickling and Oiling: Removes oxide scale to create a surface that is suitable for coating.
- Slitting and Cut-to-Length (Slitting & Cutting to Length): Customize width and length according to specific manufacturing requirements.
- Cold rolling: Reduces thickness further, improves surface finish and mechanical properties, for precision applications.
- Galvanizing and coating: Increase corrosion resistance in harsh environments.
Market Demand and Growth
Globally, the HRC market is expected to grow at a 5.2% CAGR, from USD 355.22 in 2024 to USD 435.65 by 2030. Construction, automotive and manufacturing sectors are driving demand, with housing and infrastructure construction contributing significantly.
Mild Steel Angles: Strength and Structural Simplicity
Moreover, Mild Steel Angles (MS), or L-shaped Steel, are essential structural components for construction, fabrication, and manufacturing. The L-shaped steel provides excellent structural support as well as versatility when used for bracing and supporting structures.
Manufacturing Process
MS Angles is primarily hot-rolled. The following steps are involved:
- Heating: Steel is heated at high temperatures in order to make it pliable.
- Rolling: The heated billets are rolled through rolling mills, which shape the steel gradually into an L-section. Consequently, this ensures structural integrity and accuracy.
- Cooling and Finishing: Angles are cooled to obtain mechanical properties (air or water quenching), then they are cut and finished (straightening out, deburring and inspection).
Demand for Markets and Their Growth
MS Angles is growing because of increasing infrastructure investment. Global market value was USD 30 billion in 2023 and is forecast to reach USD 45 trillion by 2032 (a 4.5% CAGR). The cost-effectiveness of these products, their ease of fabrication and durability ensure that they are in high demand, particularly for construction.
Mild Steel Channel Manufacturing (C Shape): The Workhorse of Fabrication
Mild Steel (MS), with its distinctive C-shaped section, is a vital structural steel product. Due to their high strength-to-weight ratio and ease of manufacture, they are used widely in construction, machinery, and fabrication.
Manufacturing Process
MS Channels are hot-rolled primarily:
- Heating: raw steel (billets and coils) to high temperatures.
- Hot rolling: The steel is heated and then rolled through a mill with special rollers to form a C-shaped profile. This ensures uniform thicknesses and structural integrity.
- Cooling and Finishing: The channels are cooled, then cut into lengths with surface treatments such as galvanizing.
Demand for Markets and Their Growth
Furthermore, the MS Channel market continues to grow, fueled by the demand for construction, infrastructure, and industrial sectors. Moreover, forecasts predict that the global market will grow from USD 10,5 billion in 2024 to USD 15 billion in 2033 (a 4.5% CAGR). Furthermore, the demand for these products is sustained by their use in industrial and infrastructure applications.
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Pressure Boiler plates: Engineering for extreme conditions
The pressure boiler plates (also known as BQ or Boiler Quality plates) are special steel plates that are designed to withstand high temperatures and pressurized conditions. These plates are essential for boilers and pressure vessels as well as heat exchangers used in the oil and gas, chemical, and power industries.
Manufacturing Process
The production process involves a strict control of chemical composition and mechanical characteristics.
- Steelmaking: A high-quality, low-alloy steel with heat resistance is produced under precise chemical control.
- Hot rolling and casting: The steel is hot rolled and then cast into sheets, improving the grain structure.
- Heat Treatment: Plates are subjected to heat treatment (normalizing, tempering, and quenching), which increases their strength, toughness, and resistance to extreme situations.
- Testing: A rigorous testing program, including ultrasonic, mechanical, and other tests, is necessary to ensure compliance with strict standards.
Related: Tata Steel’s Product Innovation Journey: Industrial Startup Lessons
Market Demand and Growth
These plates are in high demand, driven by the energy, chemical, and manufacturing industries. Meanwhile, the global pressure vessel market is expected to reach USD 78.6 billion by 2033 (4 % CAGR). Similarly, the industrial boilers market is projected to grow at a comparable rate, reaching USD 20.75 billion by 2030 (4 % CAGR).
High Carbon Steel: The Edge in Durability
High Carbon Steel (HCS), which contains between 0.60% and 1.70% of carbon by weight, provides superior strength, hardness, and wear resistance. Consequently, it is ideal for springs, railway tracks, high-strength steel wires, and cutting tools.
Manufacturing Process
The production process involves carbon control and heat treatment.
- Steelmaking: Iron ore or recycled scraps are melted with precision in EAFs or BOFs.
- Casting and Forming: The steel billets are hot-rolled or forged from the molten steel.
- Heat Treatment: The most important processes are annealing, which reduces hardness, hardening (quenching for increased hardness) and tempering (reducing brittleness but retaining hardness).
Market Demand and Growth
Carbon steel, including HCS (carbon steel, high-performance), was valued at USD 901.03 billion in 2024 and is projected to reach USD 1422.79 billion by 2033 (4% annual CAGR). Moreover, the automotive, construction, and manufacturing industries are driving the demand for high-performance materials.
Modern Architectural and Structural Solutions for Rectangular and Hollow Tubing
Additionally, Rectangular Hollow Sections and Hollow Structural Sections are excellent for structural designs, architectural designs, and mechanical components. Furthermore, they offer a high strength-to-weight ratio, and the smooth, clean surfaces and clean lines of these sections also add aesthetic appeal.
Manufacturing Process
HSS can be manufactured by hot-forming, cold-forming, or both processes.
- Cold-forming or hot-forming seamless tubes is used to shape flat steel plates or coils into rectangular or round profiles.
- Welding: The formed edges are usually welded together using electric resistance welding.
- Sizing and Finishing – The tube is sized and finished by passing it through a shaping stand to obtain the final dimensions. This is followed by cooling, cutting, and any surface treatments.
Demand for Markets and Their Growth
Urbanization and infrastructure growth are driving the HSS market. Global market projected to reach USD 27 billion or USD 32 billion by 2033 (5.0% CAGR). HSS is preferred in modern construction, automotive, and aerospace applications for its structural efficiency, ease of fabrication, and aesthetic appeal.
Steel Market Forecasts and Growth
Global steel production is poised for growth due to urbanization, industrialization and infrastructure investment. The outlook for the steel industry is positive despite challenges such as price fluctuations and disruptions in supply chains.
Key growth drivers:
- Infrastructure Development: Government investments worldwide in roads, railways, and utilities, such as bridges and railways, drive steel demand.
- Construction sector: boom in construction projects, such as residential, commercial, and industrial, in emerging economies.
- Automotive Industry: The transition to electric vehicles requires various steel grades, including high-strength steels and lightweight steels.
- Steel demand increases with industrial expansion, especially in the fabrication industry.
- Steel is needed to support the growth of solar and wind energy.
Market Forecasts:
All product categories analyzed show a healthy growth in the forecasts:
| Product Categories | Market Size (2024/2023). | Future Size Projected | CAGR | Key Drivers |
| The Global Steel Market | USD 1,47 Trillion (2024). | USD 1,92 Trillion (2030). | 4.6% | Infrastructure, Construction and Automotive |
| TMT Steel Bars | USD 165.2 Billion (2024) | USD 284 Billion (2032) | 7.0% | Construction and Infrastructure |
| Hot Rolled Coils | USD 355.22 Billion (2024) | USD 435.65 Billion (2030) | 5.2% | Construction, Automotive Manufacturing |
| Mild Steel Angles | USD 30 Billion (2023) | USD 45 Billion (2032) | 4.5% | Construction and Infrastructure |
| Mild Steel Channels | USD 10.5 Billion (2024) | USD 15 Billion (2033) | 4.5% | Construction, Industrial Machinery |
| Pressure Boiler plates | USD 60.24 Billion (2024) | USD 78.6 Billion (2033) | 4.0% | Power Generation and Chemical Processing |
| High Carbon Steel | USD 991.03 Billion (2024) | USD 1422.79 Billion (2033) | 4.0% | Automotive Manufacturing |
| Hollow Sections | USD 22 Billion (2024) | USD 32 Billion (2033) | 5.0% | Construction of Automotive |
Related: Strategic Entry into Galvanized Steel Structures for Solar Projects
Emerging Trends & Opportunities
- Sustainability and Green Steel: Environmental awareness drives the demand for sustainable production, including green steel initiatives.
- Technological Advancements: Automation and AI improve product quality and efficiency.
- Specialized Steel Products: Increasing demand for lightweight, high-strength materials that are also corrosion resistant.
- Digital platforms: simplify supply chains and create technology-driven opportunities.
Entrepreneurs can take advantage of these trends by focusing their efforts on niche markets, adopting environmentally friendly practices, using advanced technologies and creating innovative solutions to meet the changing needs of industries.
Niir Project Consultancy Services (NPCS): Empowering Entrepreneurs
Comprehensive guidance is essential for entrepreneurs who are entering the steel industry or other related industries. Niir Project Consultancy Services is a specialist in preparing Market Surveys and Detailed Techno-Economic Feasibility Reports. These reports include detailed analysis of manufacturing processes, raw materials, plant layout and financial projections. NPCS assists entrepreneurs in accurately assessing the feasibility of establishing new industries or businesses. This helps to mitigate risks and enable informed decisions for successful ventures.
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FAQs (Frequently Asked Questions)
Q1: Why are TMT bars important in construction, and what are they?
A1: Thermo-Mechanically treated (TMT) bars are used as high-strength reinforcing bars in concrete structures. These bars are essential due to their superior strength and ductility. They also resist corrosion, which improves structural integrity and durability, particularly in seismic zones.
Q2: What is the role of scrap melting in steel industry sustainability
A2: Scrap melting lowers greenhouse gas emissions, reduces the reliance on virgin materials and decreases energy consumption. It encourages a circular economic system by recycling existing steel and minimizing waste.
Q3: How are hot-rolled coils used?
Hot Rolled Coils can be used for structural components, pipes and tubes, automotive parts and general fabrication. They are cost-effective, easy to form and weld, and have good formability.
Q4: What’s the difference between mild steel angles and channels?
A4: They both provide structural support, but their cross-sectional shapes determine the applications. Angles are used in general fabrication, bracing and for construction. Channels (C-shaped), on the other hand, offer greater bending strength for heavier construction and frames.
Q5: What makes pressure Boiler Plates a specialized steel product?
A5: They have been designed to withstand extreme temperatures and pressures. The manufacturing process involves precise control of chemical composition and rigorous testing in order to ensure properties such as high tensile, creep resistance, and weldability.
Q6. What are the main characteristics of high-carbon steel?
A6: High Carbon Steel (0.60 to 1.70 % carbon) offers superior strength, hardness and wear resistance. It is suitable for cutting tool, railway tracks and springs. Specific heat treatments are often required to optimize performance.
Q7: Why use hollow tubes instead of rectangular tubes?
A7: They are lightweight, versatile, and easy to fabricate. These are used widely in columns, beams, and trusses as well as other structural applications.
Q8: How do entrepreneurs see the future of the steel industry?
A8: Global infrastructure development, industrial growth, and urbanization are driving the outlook. There are opportunities in niche markets, sustainable production methods and technological advancements.
Q9: What can NPCS do to help new steel entrepreneurs?
A9: NPCS offers a comprehensive Market Survey and Detailed Techno-Economic Feasibility reports covering manufacturing processes, raw materials, plant layouts, and financial projections. This allows entrepreneurs to make informed decisions and assess viability.
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Conclusion
Steel is a cornerstone in global economic growth. It offers tremendous opportunities to entrepreneurs who are willing to understand its complexity and take advantage of its growth potential. The steel industry is a sector that offers a wide range of opportunities across a variety of product categories. With a market projected to exceed USD 1,47 trillion by 2024, and USD 2,60 trillion by 2030, it presents an exciting landscape.
Each steel product category, from TMT bars that form the backbone of modern buildings to pressure boiler plates designed for extreme conditions and engineered specifically for them, offers unique opportunities for market entry and innovation. The industry’s shift towards sustainability, notably through scrap melting initiatives and green steel, aligns itself with global environmental goals, while also presenting new opportunities for technological advancement.
The analysis shows consistent growth patterns across all segments, with CAGRs between 4.0% and 7.8%. The fundamental economic forces that drive this growth include urbanization, infrastructure expansion, and industrial expansion. These trends provide entrepreneurs with predictable and stable market conditions, as well as stable demand patterns.
The market forecasts indicate that demand will continue to grow across all product categories. Emerging economies are driving the majority of this growth. The ability of organizations such as NPCS to provide comprehensive feasibility studies and guidance on technical issues is essential for entrepreneurs who are looking to enter the capital-intensive sector.
Entrepreneurs who are able to adapt to the changing steel industry while maintaining a focus on efficiency, quality, and customer service will be well-positioned to gain significant market share. Technological advancements, environmental awareness, and sustained demand around the world create an environment that allows for innovative approaches to steel distribution and production. This is a great foundation for creating successful, scalable and impactful businesses.