Carbon Steel Market Size, Share, Forecast, & Trends Analysis by Type (Low-Carbon Steel, High-Carbon Steel), Process (BOP, EAF Process), Product (Flat Carbon Steel, Long Carbon Steel), Application (Building & Construction, Manufacturing), and Geography – Global Forecast to 2031

Carbon Steel Market Size & Forecast

The Carbon Steel Market is expected to reach $1,331.2 billion by 2031, at a CAGR of 3.9% from 2024 to 2031. The market for carbon steel is expanding because of the increased use of this high-wear-resistant and stable material and the rising use of carbon steel-based building and construction materials. Furthermore, the surging demand for carbon steel in the oil and gas industry for pipelines and storage tanks is expected to generate growth opportunities for the players operating in this market.

Carbon Steel Market Growth Drivers

Increasing use of Carbon Steel Materials in Building & Construction

Carbon steel has grown in popularity in the building & construction industry due to its physical and mechanical features, which provide several advantages to modern construction, such as strength, durability, and cost-effectiveness. Carbon steel is widely used for the structural framework of bridges, high-rise buildings, and major industrial complexes. Carbon steel can effectively support buildings and ensure structural safety, through precise engineering and processing.

Additionally, carbon steel is durable and resistant to corrosion & oxidation. There is an increase in the utilization of carbon steel to maintain the integrity of the structure and its performance. Due to its resilience, carbon steel is ideal for outdoor construction and infrastructure projects such as highways, railroads, and oil pipelines. As a result, numerous businesses are releasing carbon steel goods due to the growing use of carbon steel materials in the building & construction industry. For instance, in March 2024, Clarkwestern Dietrich Building Systems LLC (U.S.) launched a new line of low embodied carbon steel framing products, allowing architects and engineers greater freedom in designing sustainable buildings. The LEC portfolio includes ProSTUD metal drywall framing systems, structural steel, clips and connectors, floor framing, and more.

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Carbon Steel Market Opportunity

Surging Demand for Carbon Steel in the Oil & Gas Industry for Pipelines and Storage Tanks

In the oil & gas industry, carbon steel pipelines and storage tanks play a vital role as they provide exceptionally durable transportation solutions for liquids, slurries, and gases. The carbon steel pipelines and storage tanks keep this industry operating safely and efficiently throughout every stage by providing premium quality conversion components between supply points during the production of various materials such as petrochemicals, chemicals, and fuel oils. Additionally, carbon steel pipelines have high strength and are resistant to deformation under pressure and temperature fluctuations. This strength makes them ideal for use in high-pressure systems, such as the oil and gas industry.

Moreover, these pipes are recyclable, which helps to reduce waste and the industry’s environmental impact. Using sustainable materials is becoming increasingly important, and carbon steel pipes are an excellent choice for achieving this goal. Carbon steel pipelines and storage tanks are increasingly utilized as they offer excellent corrosion resistance, high strength, cost-effectiveness, versatility, and sustainability.

Carbon Steel Market Trends

Growing Adoption of Robotic & Automation in Carbon Steel Processing

The growing use of robotic and automation technologies in carbon steel processing represents a significant evolution in the manufacturing industry. Automated systems and robots assist in carrying out activities with a consistency and accuracy that exceeds human capabilities. The increasing utilization of robotics lowers operational costs through process optimization, waste reduction, and human error minimization. Thus, the use of robotics and automation allows manufacturers to respond quickly to market changes without extensive retooling or hiring additional labor.

Furthermore, automation and robotics help lower the environmental impact of carbon steel processing by optimizing energy use and eliminating waste, making manufacturing more sustainable. Several companies are progressively offering automation and robotics to assist in lowering the carbon footprint of steel manufacturing. For instance, in September 2023, Tata Steel Limited (India) announced an agreement with ABB Ltd. (Switzerland) to develop models and technologies to assist reduction of the carbon footprint of steel production. ABB will contribute its global expertise in automation, electrification, and digitalization to the mining and metals industries. The two firms will collaborate to conduct system-level assessments of Tata Steel’s manufacturing plants and production facilities to evaluate and co-develop short and long-term energy efficiency, decarbonization, and circularity solutions. Such advancements will help to boost demand for automation and robotics in carbon steel processing during the forecast period.

Carbon Steel Market Analysis: Key Findings

By Type: In 2024, the Low-Carbon Steel (>0.30%) Segment to Dominate the Carbon Steel Market

Based on type, the global carbon steel market is segmented into low-carbon steel (>0.30%), medium-carbon steel (0.30%- 0.60%), and high-carbon steel (<0.60%). In 2024, the low-high carbon steel (>0.30%) segment is expected to account for the largest share of 81% of the global carbon steel market. This segment's large market share is attributed to the rising use of low-carbon steel for applications that require shaping, bending, and welding; low-carbon steel has good ductility, which allows it to be formed into diverse shapes without sacrificing strength. Additionally, the increasing usage of low-carbon steel minimizes the likelihood of cracking or breaking.

However, the high-carbon steel (<0.60%) segment is expected to register the highest CAGR during the forecast period. This segment’s growth is attributed to the increasing adoption of high-carbon steel in mining, construction, and manufacturing due to its strength, hardness, and wear resistance, as well as the increasing utilization of high-carbon steels for heat treatment, which allows manufacturers to tailor their mechanical properties to specific application needs.

By Process: In 2024, the Basic Oxygen Process (BOP) Segment to Dominate the Carbon Steel Market

Based on process, the global carbon steel market is segmented into the basic oxygen process (BOP) and electric arc furnace process (EAF). In 2024, the basic oxygen process (BOP) segment is expected to account for the largest share of over 62% of the global carbon steel market. This segment's large market share is attributed to the increased use of BOP to generate large quantities of carbon steel in less time than other processes; the BOP is increasingly being utilized to produce a wide range of carbon steels, from low to high-carbon content. Additionally, the BOP facilities are highly automated, lowering the chance of accidents and boosting overall worker safety.

However, the electric arc furnace process (EAF) segment is expected to register a higher CAGR during the forecast period. This segment's growth is attributed to the growing need for lower emissions of greenhouse gases and other pollutants during the carbon steel process, as well as the increasing adoption of the EAF process, which requires less initial capital investment than establishing a traditional integrated steel plant. Furthermore, the EAF process requires less energy per ton of carbon steel produced.

By Product: In 2024, the Flat Carbon Steel Segment to Dominate the Carbon Steel Market

Based on product, the global carbon steel market is segmented into flat carbon steel, long carbon steel, and tubular carbon steel. In 2024, the flat carbon steel segment is expected to account for the largest share of 48% of the global carbon steel market. This segment's large market share is attributed to the growing adoption of flat carbon steel due to its high strength & durability and the increasing use of flat carbon steel to fabricate, weld, and mold into various shapes and sizes. The growing demand for flat carbon steel in construction and manufacturing for structural applications such as support beams, braces, and framing.

However, the tubular carbon steel segment is expected to register the highest CAGR during the forecast period. This segment’s growth is attributed to the increasing use of tubular carbon for conveying fluids, gases, and solids in industries such as oil & gas, construction, automotive, and manufacturing. The growing use of tubular carbon steel is due to its high resistance to rust, corrosion, and extreme temperatures.

By Application: In 2024, the Building & Construction Segment to Dominate the Carbon Steel Market

Based on application, the global carbon steel market is segmented into building & construction, automotive, oil & gas, shipbuilding, locomotive & transportation, manufacturing, consumer electronics, aerospace & defense, agriculture, and other applications. In 2024, the building & construction segment is expected to account for the largest share of 43% of the global carbon steel market. This segment's large market share is attributed to the increasing usage of carbon steel for structural components and load-bearing elements in construction as well as the expanding use of carbon steel components due to its low weight and ease of handling & installation than concrete or other materials. Carbon steel is also sturdy and fatigue-resistant, making it ideal for long-term use in construction projects.

However, the manufacturing segment is expected to register the highest CAGR during the forecast period. This segment's growth is attributed to the increasing use of carbon steel in manufacturing due to its strength and resistance to mechanical loads and the expanding adoption of carbon steel for ease of cutting, machining, welding, and forming.

Geographical Analysis

In 2024, Asia-Pacific Region to Dominate the Carbon Steel Market

In 2024, Asia-Pacific is expected to account for the largest share of 64% of the global carbon steel market. Asia-Pacific’s significant market share can be attributed to the increasing growth of the automotive and shipbuilding industries and the growing adoption of carbon steel products due to rising environmental concerns & regulations for sustainable alternatives. The rapid urbanization in countries like China, India, and Southeast Asia for carbon steel for buildings, bridges, and urban infrastructure.

Moreover, the Asia-Pacific is expected to register the highest CAGR of 5% during the forecast period.

Carbon Steel Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the carbon steel market are Tata Steel Limited (India), JFE Steel Corporation (A Subsidiary of JFE Holdings, Inc.) (Japan), JSW STEEL LIMITED (India), POSCO HOLDINGS INC. (South Korea), United States Steel Corporation (U.S.), Jiangsu Shagang Group Company Limited (China), Ansteel Group Corporation Limited (China), Nippon Steel Corporation (Japan), HBIS Group Co., Ltd. (China), Kobe Steel, Ltd. (Japan), NACHI-FUJIKOSHI CORP (Japan), Hudson Tool Steel Corporation (U.S.), AK Steel International B.V. (A Subsidiary of Cleveland-Cliffs Inc.) (Netherlands), Sandvik AB (Sweden), and Daido Steel Co., Ltd. (Japan).

Carbon Steel Industry Overview: Latest Developments from Key Industry Players

• In June 2024, Rio Tinto Group (U.K.) announced an investment of USD 143 million (AUD 215 million) in a research and development facility in Western Australia to evaluate the effectiveness of BioIron, a low-carbon ironmaking process that supports decarbonization of the global steel value chain.

• In November 2023, ArcelorMittal S.A. (Luxembourg) partnered with Schneider Electric SE (France) to supply Schneider Electric with XCarb recycled and renewable steel for its electrical cabinets and enclosures. XCarbrecycled and renewably generated steel is manufactured at ArcelorMittal’s site in Sestao, Spain, employing a high amount of recycled steel in an electric arc furnace driven entirely by renewable electricity. This results in CO emissions that are 70% lower than the same product made without XCarb recycled and sustainably produced steel.

Carbon Steel Market Research Summary

Key questions answered in the carbon steel market report: