India Steel Market Size
| Study Period | 2024-2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 135.81 Million tons |
| Market Volume (2029) | 209.93 Million tons |
| CAGR (2024 - 2029) | 9.18 % |
| Market Concentration | Medium |
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 Market Trends
Blast Furnace-Basic Oxygen Furnace (BF-BOF) Technology to Dominate the Market
- The BF-BOF route is a two-stage process: Ironmaking: Iron ore, coke, and limestone are charged into a blast furnace. The iron ore is smelted to produce molten pig iron. Second, it is Steelmaking: Molten pig iron is charged into a basic oxygen furnace (BOF). Coal is used as the primary carbon-bearing material for steelmaking. It generates high temperatures necessary to smelt the iron ore and convert it into liquid iron. This liquid iron enters the converter, where oxygen is blown through the molten iron to remove carbon and other impurities.
- The resulting steel is cast into ingots or slabs and processed into long products like bars, wire, or flat steel strips in several rolling operations. To enhance the characteristics and functions of steel, tempering or coating applications are also done when required.
- Blast furnaces can produce up to 10,000 tons of molten pig iron daily. Then, BOFs can produce up to 300 tons of steel per heat.
- A basic oxygen furnace (BOF) was the most preferred process route for the production of crude steel in India. It accounts for over 90% of the country's steel output. At the end of 2022, BOF technology accounted for 46% of the production.
- In India, 68% of steel is made through the Blast Furnace route in which coking coal is the primary reductant. At the same time, Pulverised Coal Injection (PCI) or Natural Gas can be used as an auxiliary reductant. Green Hydrogen to replace PCI in the BF-BOF route is under development.
- According to the Ministry of Steel of India, BOF was the most preferred process route to produce crude steel in India at the end of 2022, with around 57.43 million tons (46% of total crude steel) produced, which was 8.35% higher than in 2021.
- Most BOF plant installations will occur in India in the forecast period. For instance, Tata Steel BSL Ltd. plans to add 6.07 MMT of BOF capacity at the Meramandali works and 3.0 MMT of BOF capacity at the Kalinganagar works in Odisha state by FY 2024. Moreover, India holds an additional 50.0 MMT potential gross capacity.
- Therefore, considering the growth trends of blast furnace-basic oxygen furnace (BF-BOF) technology in India, the BF-BOF technology is likely to dominate the market. It, in turn, is expected to enhance the demand for steel during the forecast period.
Building and Construction Industry to Dominate the Market
- Steel is a man-made alloy that falls within the ferrous metal classification. It contains iron (a naturally occurring metal element on earth), carbon, and other components. Construction is a sector where steel is widely used since structures are created using it due to its high durability and strength. Steel structures can also withstand natural calamities and be tailored to the needs of a specific project.
- Products, such as roofing, purlins, internal walls, ceilings, cladding, and insulating panels for exterior walls, are made of steel. Steel is also found in many non-structural applications in buildings, such as heating and cooling equipment and interior ducting.
- Buildings from houses to car parks, schools, and skyscrapers all rely on steel for strength. Steel is also used on roofs and as cladding for exterior walls. Internal fixtures and fittings, such as rails, shelving, and stairs, are also made of steel. It provides a robust and stiff frame to the building.
- According to the National Investment Promotion and Facilitation Agency, the building and construction industry accounted for nearly 9% of the GDP in FY 2022-23. Nearly 51 million people are employed in the industry. Moreover, The industry is expected to reach USD 1.4 trillion by 2025 owing to rising residential and non-residential sectors in the country.
- According to the Confederation of Indian Industry (CII), housing construction in the country witnessed strong demand in 2022, with the top seven cities (Delhi NCR, Bangalore, Hyderabad, Mumbai, Pune, Chennai, and Kolkata). It added around 402 thousand units of new home construction, which was 44% higher than in 2021. In the first quarter (Q1) of 2023, housing sales in the top seven cities stood at 1.14 lakh units, an increase of over 99,500 units compared to 2022.
- Government social sector programs such as the Pradhan Mantri Awas Yojna, which promotes housing for all, the Sardar Patel Urban Housing Project, the 100 Smart Cities Mission, and the construction of infrastructure in medium and small towns are promoting the growth of the Indian steel industry.
- The Government of India strongly focuses on infrastructure development to boost economic growth. In 2022-23, the government allocated around INR 64,573 crore (USD 7,773.56 Million) for developing new roads and bridge infrastructure. The ministry issued INR 2,600 crore (USD 313 Million) to construct non-residential office buildings under the Central Vista Project. Moreover, under the National Infrastructure Pipeline (NIP), infrastructure projects worth INR 108 trillion (USD 1.3 trillion) are at different stages of implementation.
- Therefore, considering the growth trends of building and construction in India, the building and construction industry is likely to dominate the market. It, in turn, is expected to enhance the demand for steel during the forecast period.
India Steel Industry Overview
The Indian steel market is partially fragmented in nature. The major players (not in any particular order) include JSW STEEL LIMITED, TATA STEEL, Steel Authority of India Limited (SAIL), AM/NS INDIA, and JINDAL STEEL & POWER LIMITED, among others.
India Steel Market Leaders
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Steel Authority of India Limited (SAIL)
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JSW STEEL LIMITED
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TATA STEEL
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AM/NS INDIA
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JINDAL STEEL & POWER LIMITED
*Disclaimer: Major Players sorted in no particular order
India Steel Market News
- April 2023: AM/NS India received approval from India’s regulatory body (NCLT) to buy Indian Steel Corporation to enhance its downstream capabilities and broaden its product portfolio.
- November 2022: JSW Group announced that the company intends to invest INR 1 trillion (USD 12.08 billion) in all of its Karnataka-based businesses over the next five years. JSW operates a steel mill in Vijayanagar, Karnataka, near the Ballari-Hospete iron ore region. The production complex in Vijayanagar is India's largest single-location integrated steel-making facility, with an annual capacity of 12 million tons.
India Steel Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 Strong Policy Support by the Indian Government
4.1.2 Strong Influx of Investments in the Steel Sector
4.1.3 Increasing Urbanization and Increased Spending on Construction and Infrastructure Projects
4.2 Restraints
4.2.1 Low Percapita Steel Consumption
4.2.2 High Production Costs
4.3 Industry Value-Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
5.1 Basic Form
5.1.1 Crude Steel
5.2 Final Form
5.2.1 Finished Steel
5.3 Technology
5.3.1 Blast Furnace-basic Oxygen Furnace (BF-BOF)
5.3.2 Electric Arc Furnace (EAF)
5.3.3 Other Technologies
5.4 End User Industry
5.4.1 Automotive and Transportation
5.4.2 Building and Construction
5.4.3 Tools and Machinery
5.4.4 Energy
5.4.5 Consumer Goods
5.4.6 Other End-user Industries (Oil and Gas Extraction Equipment, Furniture, Pipes, Barrels, Drums, Packaging, Semiconductors)
6. COMPETITIVE LANDSCAPE
6.1 Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 AM/NS India
6.4.2 Jindal Stainless LIMITED
6.4.3 JINDAL STEEL & POWER LIMITED
6.4.4 JSW STEEL LIMITED
6.4.5 NMDC Steel Limited
6.4.6 RASHTRIYA ISPAT NIGAM LIMITED
6.4.7 Steel Authority of India Limited (SAIL)
6.4.8 TATA STEEL
6.4.9 Vedanta Limited
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Growing Trend of Circular Economy
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) |
India Steel Market Research FAQs
How big is the India Steel Market?
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.
What is the current India Steel Market size?
In 2024, the India Steel Market size is expected to reach 135.81 million tons.
Who are the key players in India Steel Market?
Steel Authority of India Limited (SAIL), JSW STEEL LIMITED, TATA STEEL, AM/NS INDIA and JINDAL STEEL & POWER LIMITED are the major companies operating in the India Steel Market.
What years does this India Steel Market cover, and what was the market size in 2023?
In 2023, the India Steel Market size was estimated at 123.34 million tons. The report covers the India Steel Market historical market size for years: . The report also forecasts the India Steel Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the challenges facing the India Steel Market?
The challenges facing the India Steel Market are a) Instability in raw material prices and high production costs b) Increasing environmental regulations raise compliance costs for steelmakers
India Steel Industry Report
The Indian steel industry, a significant player in the global steel market, has demonstrated resilience by recovering from demonetization and the goods and services tax reform. The growth of the steel industry market size in India, as reported by Mordor Intelligence™ Industry Reports, is driven by the domestic availability of raw materials and the government's focus on accelerating infrastructural projects. The Indian steel market, which holds a substantial steel market share in India, is projected to experience significant growth in the next decade. This growth is anticipated due to the modernization of older plants, the development of new production strategies, and factors such as expanding population, urbanization, increased spending on construction and infrastructure projects, and increased steel demand. The market can be segmented based on type, production method, and region, with the electric arc furnace method being preferred due to its efficiency. The construction sector, a major consumer of steel, values the material for its durability and strength. Government initiatives such as housing for all and infrastructural development of towns are driving growth in the steel market share in India. Mordor Intelligence™ provides a comprehensive analysis of the India Steel market, including a market forecast outlook, historical overview, and statistics for the market share, size, and revenue growth rate. A sample of this industry analysis is available as a free report PDF download.
