logo

India Iron and Steel Market Outlook to 2028

Region:Asia

Author(s):Khushi Khatreja

Product Code:KROD1176

Download Sample Report
Published On

January 2025

Total pages

86

About the Report

India Iron and Steel Market Overview

  • The India Iron and Steel market is valued at 135.56Mn tons, based on a five-year historical analysis. The increasing demand for infrastructure development and robust manufacturing activity primarily drives this market. Initiatives like 'Make in India' have further pushed the growth of domestic production capacities.

India Iron and Steel Market Size

  • Northern and Western India dominate the iron and steel market, primarily due to their well-established industrial hubs and proximity to critical ports for raw material imports and steel exports. Cities such as Mumbai, Pune, and Delhi are central due to their infrastructural growth and high steel consumption in construction and automotive sectors.
  • The NSP sets an ambitious target to achieve a crude steel production capacity of300 million tonnes (MT)by2030. As of FY24, India's crude steel production reached143 MT, reflecting a12.6% increasefrom127 MTin FY23, and a substantial rise of around42%since the policy's inception when production was at101 MTin 2017.

India Iron and Steel Market Segmentation

Indias Iron and Steel Market is segmented into the following segments:

  • By Product Type: The India Iron and Steel market is segmented by product type into flat steel products, long steel products, tubular steel products and others. Flat steel products, including hot-rolled and cold-rolled sheets, dominate the market share. This dominance is attributed to their extensive application in the automotive and construction industries, such as in vehicle bodies, roofing, and industrial equipment.

India Iron and Steel Market Segmentation by Product Type

  • By End-User Industry: The India Iron and Steel market is further segmented by end-user industries, including building and construction, automotive and transportation, tools and machinery, consumer goods, and others. The building and construction segment holds the dominant market share. This is driven by ongoing infrastructure projects such as highways, urban housing schemes, and industrial corridors, requiring high quantities of structural steel and reinforced bars.

India Iron and Steel Market Segmentation by End User Industry

India Iron and Steel Market Competitive Landscape

The India Iron and Steel market is dominated by several major players, showcasing a mix of domestic and international companies. This consolidation highlights their significant influence on production, innovation, and market trends.

India Iron and Steel Market Competitive Landscape

India Iron and Steel Industry Analysis

Market Growth Drivers

  • Infrastructure Development: India's infrastructure sector has been a significant driver of steel demand. Crude steel production grew from 109.137 million tonnes (MT) in 2019-20 to 144.299 MT in 2023-24, registering a growth of 13.4% over the previous year (127.197 MT in 2022-23). This growth can be attributed to strategic policies and industry-led initiatives focused on capacity expansion and the development of high-quality steel products.
  • Automotive Industry Expansion: India's automotive industry is expanding significantly, contributing to increased steel demand. The production of vehicles requires substantial amounts of steel, and as the automotive sector grows, so does its consumption of steel. The expanding automotive industry directly impacts the steel market positively, as increased vehicle production leads to higher steel consumption.
  • Renewable Energy Projects: In addition to infrastructure and automotive sectors, government initiatives aimed at housing development have also significantly impacted steel demand. The government set an ambitious target to complete a total of 2.95 crore (29.5 million) houses under the Pradhan Mantri Awas Yojana (PMAY) by 2023-24. This initiative reflects the government's commitment to addressing housing needs across the nation.

Market Challenges

  • RawMaterial Price Volatility: The Indian steel industry faces challenges due to fluctuations in raw material prices, particularly iron ore and coking coal. Such volatility can impact production costs and profit margins, making it difficult for producers to maintain stable pricing and profitability. This unpredictability poses a significant challenge to the industry's financial health.
  • Environmental Regulations: Stringent environmental regulations have been implemented to reduce carbon emissions and promote sustainable practices in the steel industry. Compliance with these regulations requires significant investment in cleaner technologies and processes, which can be financially burdensome for steel manufacturers. These regulations aim to mitigate the environmental impact of steel production but also add to operational costs.

India Iron and Steel Market Future Outlook

Over the next five years, the India Iron and Steel market will exhibit substantial growth driven by increasing infrastructure projects, technological advancements in steel production, and rising domestic consumption.

Market Opportunities

  • Export Potential of Indian Steel: Despite facing challenges such as geopolitical uncertainties and fluctuating demand, India has substantial potential to expand its steel exports. By diversifying its export markets and enhancing product quality through advanced manufacturing techniques like EAFs, Indian steel producers can better tap into global demand.
  • Electric Arc Furnace (EAF) Technology: The Electric Arc Furnace (EAF) represents a significant advancement in steelmaking, offering advantages over traditional blast furnaces. EAFs utilize recycled scrap steel as their primary feedstock, which not only reduces the need for iron ore but also significantly lowers CO2 emissions compared to conventional methods that rely on fossil fuels like coke. This technology allows for greater flexibility in production, enabling manufacturers to adjust output based on market demand, thus enhancing operational efficiency and sustainability.

Scope of the Report

Product Type

Flat Steel Products
Long Steel Products
Tubular Steel Products

Others

Production Technology

Blast Furnace-Basic Oxygen Furnace (BF-BOF)
Electric Arc Furnace (EAF)
Other Technologies

End-User Industry

Building and Construction
Automotive and Transportation
Tools and Machinery
Consumer Goods
Others

Form

Liquid Steel
Crude Steel
Finished Steel

Region

North 
South 
East 
West 

Products

Key Target Audience:

  • Government and Regulatory Bodies (e.g., Ministry of Steel, Bureau of Indian Standards)
  • Investor and Venture Capitalist Firms
  • Steel Manufacturers
  • Raw Material Suppliers
  • Infrastructure Developers
  • Automotive and Transportation Companies
  • Renewable Energy Companies
  • Exporters and Trade Associations

Companies

Players mentioned in the report:

  • Steel Authority of India Limited (SAIL)
  • Tata Steel Limited
  • JSW Steel Limited
  • Jindal Steel & Power Limited
  • ArcelorMittal Nippon Steel India

Table of Contents

1. India Iron and Steel Market Overview

1.1. Definition and Scope

1.2. Market Taxonomy

1.3. Market Growth Rate

1.4. Market Segmentation Overview

2. India Iron and Steel Market Size (In Mn Tons)

2.1. Historical Market Size

2.2. Year-On-Year Growth Analysis

2.3. Key Market Developments and Milestones

3. India Iron and Steel Market Analysis

3.1. Growth Drivers

3.1.1. Infrastructure Development

3.1.2. Urbanization

3.1.3. Government Initiatives (e.g., 'Make in India')

3.1.4. Automotive Industry Expansion

3.2. Market Challenges

3.2.1. Raw Material Price Volatility

3.2.2. Environmental Regulations

3.2.3. Competition from Imports

3.3. Opportunities

3.3.1. Technological Advancements in Production

3.3.2. Export Potential

3.3.3. Demand in Renewable Energy Sector

3.4. Trends

3.4.1. Adoption of Electric Arc Furnace (EAF) Technology

3.4.2. Increased Use of Scrap Steel

3.4.3. Development of High-Strength Steel Grades

3.5. Government Regulation

3.5.1. National Steel Policy

3.5.2. Environmental Compliance Standards

3.5.3. Import and Export Duties

3.6. SWOT Analysis

3.7. Stakeholder Ecosystem

3.8. Porters Five Forces Analysis

3.9. Competitive Landscape

4. India Iron and Steel Market Segmentation

4.1. By Product Type (In Value %)

4.1.1. Flat Steel Products

4.1.2. Long Steel Products

4.1.3. Tubular Steel Products

4.1.4. Others

4.2. By Production Technology (In Value %)

4.2.1. Blast Furnace-Basic Oxygen Furnace (BF-BOF)

4.2.2. Electric Arc Furnace (EAF)

4.2.3. Other Technologies

4.3. By End-User Industry (In Value %)

4.3.1. Building and Construction

4.3.2. Automotive and Transportation

4.3.3. Tools and Machinery

4.3.4. Consumer Goods

4.3.5. Others

4.4. By Form (In Value %)

4.4.1. Liquid Steel

4.4.2. Crude Steel

4.4.3. Finished Steel

4.5. By Region (In Value %)

4.5.1. North

4.5.2. South

4.5.3. East

4.5.4. West

5. India Iron and Steel Market Competitive Analysis

5.1. Detailed Profiles of Major Companies

5.1.1. Steel Authority of India Limited (SAIL)

5.1.2. Tata Steel Limited

5.1.3. JSW Steel Limited

5.1.4. Jindal Steel & Power Limited

5.1.5. ArcelorMittal Nippon Steel India

5.2. Cross Comparison Parameters (Production Capacity, Revenue, Market Share, Product Portfolio, Technological Capabilities, Geographic Presence, Strategic Initiatives, Sustainability Practices)

5.3. Market Share Analysis

5.4. Strategic Initiatives

5.5. Mergers and Acquisitions

5.6. Investment Analysis

5.7. Venture Capital Funding

5.8. Government Grants

5.9. Private Equity Investments

6. India Iron and Steel Market Regulatory Framework

6.1. Environmental Standards

6.2. Compliance Requirements

6.3. Certification Processes

7. India Iron and Steel Future Market Size (In Mn Tons)

7.1. Future Market Size Projections

7.2. Key Factors Driving Future Market Growth

8. India Iron and Steel Future Market Segmentation

8.1. By Product Type (In Value %)

8.2. By Production Technology (In Value %)

8.3. By End-User Industry (In Value %)

8.4. By Form (In Value %)

8.5. By Region (In Value %)

9. India Iron and Steel Market Analysts Recommendations

9.1. TAM/SAM/SOM Analysis

9.2. Customer Cohort Analysis

9.3. Marketing Initiatives

9.4. White Space Opportunity Analysis

Disclaimer

Contact Us

Research Methodology

Step 1: Identification of Key Variables

The initial phase involves constructing a comprehensive market ecosystem map that includes producers, distributors, and end-users. Secondary research from credible sources like the World Steel Association, government reports, and company filings forms the base for data collection.

Step 2: Market Analysis and Construction

Historical data for market size, production capacity, and consumption patterns is analyzed to estimate current trends. A bottom-up approach is employed to ensure accuracy, complemented by data validation from proprietary tools and models.

Step 3: Hypothesis Validation and Expert Consultation

Hypotheses are validated through direct interviews with stakeholders, including steel producers and distributors. Insights on demand patterns, innovations, and regulatory challenges are gathered.

Step 4: Research Synthesis and Final Output

Data from previous steps is synthesized into a structured report, including market segmentation, competitive landscape, and growth projections. The final output is verified through peer reviews to ensure reliability and accuracy.

 

Frequently Asked Questions

01. How big is the India Iron and Steel Market?

The India Iron and Steel market is valued at 135.56 Mn tons, driven by increasing demand in infrastructure, automotive, and construction industries.

02. What are the challenges in the India Iron and Steel Market?

Challenges in the India Iron and Steel market include fluctuating raw material prices, environmental regulations, and competition from global imports, impacting profitability.

03. Who are the major players in the India Iron and Steel Market?

Key players in the India Iron and Steel market include Tata Steel, SAIL, JSW Steel, and Jindal Steel & Power, dominating due to their production capacity, technological advancements, and export capabilities.

04. What are the growth drivers of the India Iron and Steel Market?

The India Iron and Steel market growth is propelled by infrastructure development, government initiatives like 'Make in India,' and rising demand for lightweight and high-strength steel in automotive industries.

Why Buy From Us?

RRR
Refine Robust Result (RRR) Framework

What makes us stand out is that our consultants follows Robust, Refine and Result (RRR) methodology. i.e. Robust for clear definitions, approaches and sanity checking, Refine for differentiating respondents facts and opinions and Result for presenting data with story

reach
Our Reach Is Unmatched

We have set a benchmark in the industry by offering our clients with syndicated and customized market research reports featuring coverage of entire market as well as meticulous research and analyst insights.

Research
Shifting the Research Paradigm

While we don't replace traditional research, we flip the method upside down. Our dual approach of Top Bottom & Bottom Top ensures quality deliverable by not just verifying company fundamentals but also looking at the sector and macroeconomic factors.

Insite
More Insights-Better Decisions

With one step in the future, our research team constantly tries to show you the bigger picture. We help with some of the tough questions you may encounter along the way: How is the industry positioned? Best marketing channel? KPI's of competitors? By aligning every element, we help maximize success.

Trust
Transparency and Trust

Our report gives you instant access to the answers and sources that other companies might choose to hide. We elaborate each steps of research methodology we have used and showcase you the sample size to earn your trust.

support
Round the Clock Support

If you need any support, we are here! We pride ourselves on universe strength, data quality, and quick, friendly, and professional service.

Why Client Choose Us?

400000+ Reports in repository
150+ Consulting project a year
100+ Analysts
8000+ Client Queries in 2022