India Steel Market Size (2024 - 2029)

The India steel market is experiencing significant expansion, driven by robust policy support, increased investments, and rising urbanization and infrastructure spending. Despite challenges such as low per capita consumption and high production costs affecting profit margins, the market has rebounded from pandemic-related setbacks. The adoption of innovative manufacturing processes, like using hydrogen instead of carbon, along with enhanced trade and investment opportunities, is expected to further propel the market's growth trajectory during the forecast period.

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Market Size of India Steel Industry

India Steel Market Summary
Study Period 2024-2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period
CAGR (2024 - 2029) 9.18 %
Market Concentration Medium

Major Players

India Steel Market Major Players

*Disclaimer: Major Players sorted in no particular order

India Steel Market Analysis

The India Steel Market size is estimated at 135.81 Million tons in 2024, and is expected to reach 209.93 Million tons by 2029, growing at a CAGR of 9.18% during the forecast period (2024-2029).

  • Steel consumption across industries in India, including automotive and transportation, building and construction, and others, was restricted owing to the COVID-19 pandemic. However, the Indian steel market witnessed a strong recovery with the smooth functioning of the end-user industries in curbing the spread of the virus. Currently, the steel market recovered from the pandemic and is expanding significantly.
  • Over the short term, strong policy support by the Indian Government, the strong influx of investments in the steel sector, increasing urbanization, and increased spending on construction and infrastructure projects are projected to drive the market during the forecast period.
  • However, due to low per capita steel consumption and high production costs, the profit margin significantly decreased for steel manufacturers in India. The price fluctuation caused huge losses to importers, which hampered the growth of the Indian steel market.
  • Nevertheless, using hydrogen instead of carbon in steel manufacturing and increasing trade and investment opportunities in the future for the market studied are likely to create lucrative growth over the forecast period.

India Steel Industry Segmentation

Steel is an iron alloy with additional carbon to increase its strength and fracture resistance. It is utilized in structures, infrastructure, tools, ships, trains, cars, machinery, electrical appliances, weaponry, and rockets.

India Steel Market is segmented by form (basic form (crude steel), and final form (finished steel)), technology (Blast Furnace-Basic Oxygen Furnace (BF-BOF), electric arc furnace, and other technologies), and end-user industry (automotive and transportation, building and construction, tools and machinery, energy, consumer goods, and other end-user industry (oil and gas extraction equipment, furniture, pipes, barrels, drums, packaging, semiconductors)). The report also includes market sizes and forecasts for the volume market in India. For each segment, market size and forecasts are based on volume.

Basic Form
Crude Steel
Final Form
Finished Steel
Technology
Blast Furnace-basic Oxygen Furnace (BF-BOF)
Electric Arc Furnace (EAF)
Other Technologies
End User Industry
Automotive and Transportation
Building and Construction
Tools and Machinery
Energy
Consumer Goods
Other End-user Industries (Oil and Gas Extraction Equipment, Furniture, Pipes, Barrels, Drums, Packaging, Semiconductors)
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India Steel Market Size Summary

The Indian steel market is poised for significant growth, driven by robust policy support, increased urbanization, and heightened investment in infrastructure projects. The market has rebounded strongly from the disruptions caused by the COVID-19 pandemic, with the automotive, transportation, and construction sectors leading the recovery. Despite challenges such as low per capita steel consumption and high production costs affecting profit margins, the market is expected to expand considerably over the forecast period. Innovations in steel manufacturing, such as the use of hydrogen instead of carbon, and the development of new trade and investment opportunities are anticipated to further bolster market growth.

The building and construction industry plays a pivotal role in the demand for steel in India, supported by government initiatives like the Pradhan Mantri Awas Yojna and the Smart Cities Mission. These programs, along with substantial government investment in infrastructure, are expected to drive the consumption of steel. The blast furnace-basic oxygen furnace (BF-BOF) technology dominates steel production in India, with significant capacity expansions planned by major players like Tata Steel. The market remains partially fragmented, with key players including JSW Steel, Tata Steel, and Steel Authority of India Limited, who are actively investing in enhancing their production capabilities and expanding their product portfolios.

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India Steel Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Drivers

      1. 1.1.1 Strong Policy Support by the Indian Government

      2. 1.1.2 Strong Influx of Investments in the Steel Sector

      3. 1.1.3 Increasing Urbanization and Increased Spending on Construction and Infrastructure Projects

    2. 1.2 Restraints

      1. 1.2.1 Low Percapita Steel Consumption

      2. 1.2.2 High Production Costs

    3. 1.3 Industry Value-Chain Analysis

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Buyers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products and Services

      5. 1.4.5 Degree of Competition

  2. 2. MARKET SEGMENTATION (Market Size in Volume)

    1. 2.1 Basic Form

      1. 2.1.1 Crude Steel

    2. 2.2 Final Form

      1. 2.2.1 Finished Steel

    3. 2.3 Technology

      1. 2.3.1 Blast Furnace-basic Oxygen Furnace (BF-BOF)

      2. 2.3.2 Electric Arc Furnace (EAF)

      3. 2.3.3 Other Technologies

    4. 2.4 End User Industry

      1. 2.4.1 Automotive and Transportation

      2. 2.4.2 Building and Construction

      3. 2.4.3 Tools and Machinery

      4. 2.4.4 Energy

      5. 2.4.5 Consumer Goods

      6. 2.4.6 Other End-user Industries (Oil and Gas Extraction Equipment, Furniture, Pipes, Barrels, Drums, Packaging, Semiconductors)

India Steel Market Size FAQs

The India Steel Market size is expected to reach 135.81 million tons in 2024 and grow at a CAGR of 9.18% to reach 209.93 million tons by 2029.

In 2024, the India Steel Market size is expected to reach 135.81 million tons.

India Steel Market Report Snapshots

India Steel Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)