The global special steel market is witnessing substantial growth, driven by increased construction and building activities, the replacement of outdated railway gauges with modern systems, and expanding infrastructure developments. According to Allied Market Research’s recently published report titled, “Special Steel Market by Type (Stainless Steel, Structural Steel, Tool and Die Steel), by Application (Automotive, Machinery and Manufacturing, Petrochemicals and Energy, Railways, Aerospace and Defense, Building and Construction, Others): Global Opportunity Analysis and Industry Forecast, 2021-2031,” the market was valued at $195.4 billion in 2021 and is projected to reach $276.8 billion by 2031, growing at a notable CAGR of 3.5% from 2022 to 2031.

Key Factors Driving Market Growth

Numerous factors are driving the market growth of special steel at the moment, chief among them being its wide array of applications in expanding, enhancing, and innovating in the continued construction around the globe.

Construction and Infrastructure Expansion

There has been a surge in building and construction activities globally. From 2020 to 2022, many construction plans that had been mapped out before were put indefinitely on hold due to COVID-19-related complications. This pause coincided with increased infrastructure investments and developments in key industries, including real estate and energy. As a result of these combined factors, there was a bottleneck in construction projects, and now, global demand for construction has reached unprecedented levels.

Simultaneously, inventory and evaluations are being conducted on older infrastructure, with special steel being utilized to replace existing railway gauges with advanced systems.

Automotive Industry Boost

Beyond construction and railway replacement, the proliferation of electric vehicles (EVs) has also heightened the demand for special steel. The development, refinement, and manufacturing of EVs, as well as their charging infrastructures, require significant quantities of special steel. As the global economy shifts towards environmentally conscious practices and focuses more on alternative fuels, special steel has become an incredibly viable and valuable tool for production.

Government Incentives

Investments and incentives directed toward infrastructure projects in sectors like railways and petrochemicals also contribute to special steel’s growing demand. In tandem with this, government support for automotive industry growth through subsidies and policy initiatives has only increased over the past year, further aiding production.

By Type

  • Structural Steel
    This type of steel dominated the market in 2021, accounting for more than 40% of the overall revenue. The growth is attributed to demand from the machinery, building and construction, and automotive sectors in emerging markets like India and China.
  • Tool and Die Steel
    Expected to exhibit the fastest CAGR of 3.8% during the forecast period. Further growth is driven by increased demand for industrial tools such as bits, reamers, and cutters.

By Application

  • Automotive
    Automotive production accounted for nearly 40% of total market revenue in 2021. It is projected to maintain its dominance and achieve the highest CAGR of 3.9% through 2031. Rising global demand for passenger and commercial vehicles and the growth of the EV sector have further fueled the market’s expansion.
  • Other Applications
    Other applications of special steel include building and construction, aerospace and defense, railways, petrochemicals, and machinery manufacturing. The wide-ranging use cases of special steel highlight why demand has risen so substantially.

Regional Insights

  • Asia-Pacific
    This region held over 50% of the global market share in 2021. It is expected to continue leading through 2031 due to a large consumer base, rapid urbanization, and demand from multiple industries.
  • Europe
    Anticipated to grow at the fastest CAGR of 3.7% during the forecast period. This growth is driven by increased investments in automotive manufacturing, infrastructure projects, and aerospace advancements.

Leading Market Players

Prominent companies driving the special steel market include:

  • ArcelorMittal
  • Jiangsu Shagang Group
  • Baosteel Group
  • JSW Steel
  • Cleveland Cliffs, Inc.
  • Aichi Steel Corporation
  • Nippon Steel Corporation
  • Hyundai Steel Co., Ltd.
  • Daido Steel Co. Ltd.
  • Dongbei Special Steel Group

Final Thoughts

The special steel market is poised for steady growth, underpinned by advancements in infrastructure, automotive innovation, and increasing urbanization. Asia-Pacific’s dominance, coupled with Europe’s rapid growth, highlights the global demand for special steel across diverse industries. Major players continue to innovate and expand to meet evolving consumer and industrial demands, shaping the market’s competitive landscape.