Steel Market Accelerates Across APAC, Europe, USA, and Saudi Arabia—Projected to Reach USD 3,371.7 billion by 2035, Driven by Infrastructure, EVs, and Green Steel Transition

The global Steel Market is set for a transformative decade, advancing from USD 2,073.3 billion in 2025 to USD 3,371.7 billion by 2035, expanding at a compound annual growth rate (CAGR) of 4.4%. The growth is propelled by massive infrastructure investments, the rise of electric vehicles (EVs), and accelerating adoption of low-carbon and hydrogen-based steelmaking technologies across key regions—Asia-Pacific (APAC), Europe, the USA, and Saudi Arabia.

Global Steel Market Overview

Steel remains the backbone of global industrialization, holding 70–75% of the ferrous metals market share and contributing 45–50% to the broader metals market. Its indispensable use in construction, transportation, energy, and machinery makes it a strategic material for modern economies.

The carbon steel segment is forecasted to dominate, accounting for 42.3% of the total market share in 2025, owing to its versatility and cost efficiency in infrastructure and automotive applications. Meanwhile, the building and construction sector will remain the largest end-use segment, commanding 38.5% of global demand, as urbanization, renewable energy projects, and government infrastructure programs drive consumption.

Request the complete report to gain a clear understanding of regional growth patterns, innovation trends, and competitive intelligence! Request Sample Report: https://www.futuremarketinsights.com/reports/sample/rep-gb-18465

Regional Performance Snapshot: APAC, Europe, USA, and Saudi Arabia

Asia-Pacific (APAC): China and India Leading Steel Expansion

Asia-Pacific continues to anchor the global steel landscape, led by China, India, Japan, and South Korea—collectively contributing more than 60% of global output.

• China remains the largest producer and consumer, investing heavily in electric arc furnaces (EAFs) and hydrogen-based steelmaking as part of its carbon neutrality roadmap.
• India, with a projected CAGR above 4.3%, is accelerating capacity through Production-Linked Incentive (PLI) schemes, focusing on construction-grade carbon steel and specialty steel for automotive and EV components.
• Japan, expanding at 4.0% CAGR, remains a global leader in high-quality specialty steels, driven by robotics, aerospace, and hydrogen steel initiatives.

APAC’s dominance is reinforced by rapid urban infrastructure expansion, rising EV manufacturing, and technological upgrades in steel recycling and digitalized production lines.

Europe: Green Steel Revolution and Hydrogen Integration

Europe’s steel market is spearheading the global green steel transition, supported by strict carbon reduction mandates and EU climate policy frameworks such as the Carbon Border Adjustment Mechanism (CBAM).

• Germany, the region’s fastest-growing market at 4.5% CAGR, is leading the hydrogen steelmaking revolution. Investments in electric furnaces, carbon capture systems, and EV-grade high-strength steel are reshaping its production ecosystem.
• France follows closely at 4.2% CAGR, backed by the France 2030 plan, promoting low-emission steel for offshore wind and renewable energy projects.
• The UK, advancing at 3.8% CAGR, is prioritizing electric arc furnace adoption and hydrogen-based pilot projects to enhance competitiveness in stainless and construction steel.

Europe’s transition from traditional blast furnaces to EAFs and AI-driven process automation marks a critical inflection point for sustainable industrial transformation.

United States: Infrastructure Spending and Low-Carbon Steel Growth

The U.S. steel market, forecasted to grow at 4.1% CAGR (2025–2035), is undergoing a strategic renaissance, fueled by reshoring initiatives and federal infrastructure investment programs.

• The Inflation Reduction Act (IRA) is incentivizing green steel production, supporting the shift toward low-GWP (Global Warming Potential) processes and electric furnace integration.
• Rising demand from EV manufacturing, renewable energy installations, and transportation infrastructure is bolstering domestic steel consumption.
• Major U.S. producers such as Nucor Corporation, Cleveland-Cliffs Inc., and U.S. Steel (recently acquired by Nippon Steel for USD 14.9 billion) are scaling their EAF capacity and AI-enabled quality monitoring systems to achieve production efficiency and emissions reduction.

The U.S. is also strengthening its supply chain resilience through regional sourcing and recycling networks, ensuring consistent steel availability amid volatile raw material prices.

Saudi Arabia and the Middle East: Vision 2030 Driving Industrial Steel Demand

In the Middle East, particularly Saudi Arabia, the steel market is on an accelerated growth path driven by Vision 2030 infrastructure megaprojects such as NEOM, The Line, and Red Sea developments.

Saudi Arabia’s strategic investments in green hydrogen steel plants, renewable energy, and industrial logistics are establishing the Kingdom as a key steel manufacturing and export hub in the region.

• Government-backed initiatives are promoting decarbonized steel production through integrated hydrogen plants.
• Demand for construction-grade carbon steel and structural beams is surging with rapid urbanization.
• Regional steel giants are collaborating with global players to build EAF-based steel facilities, reducing reliance on imports.

The Middle East’s steel sector is emerging as a pivotal component of global supply chains, linking Asia’s production strength with Europe’s sustainable demand.

Gain complete access to the report for extensive coverage of market forecasts, competitive benchmarking, and evolving industry trends! Buy Full Report: https://www.futuremarketinsights.com/checkout/18465

Key Market Trends and Drivers

1. Hydrogen-Based Steelmaking:
2. Global steelmakers are investing heavily in green hydrogen to decarbonize production. Germany, Japan, and Saudi Arabia are early adopters of hydrogen direct reduction (H-DRI) technologies.
3. Electric Arc Furnace (EAF) Adoption:
4. EAFs are replacing traditional blast furnaces across Europe and the U.S., reducing emissions by up to 70% and improving energy efficiency.
5. EV and Lightweight Steel Demand:
6. The rise in EV production is driving demand for lightweight, high-strength steel alloys, particularly in Germany, Japan, and the U.S.
7. Digital Transformation:
8. AI-driven predictive maintenance, quality analytics, and robotic automation are becoming industry standards to enhance yield and efficiency.
9. Circular Economy and Recycling:
10. With global scrap steel recycling rates surpassing 85%, the steel sector is leading the industrial circular economy transition.

Competitive Landscape

The market remains moderately consolidated, with global giants like China Baowu Group, ArcelorMittal, POSCO, Nippon Steel, Tata Steel, JSW Steel, and Thyssenkrupp AG dominating capacity expansion and technology investments.

Recent strategic developments include:

• June 2025: Nippon Steel acquired U.S. Steel Corporation for USD 14.9 billion, boosting its North American footprint.
• June 2024: Nucor Corporation acquired Rytec Corporation, reinforcing its position in high-performance manufacturing components.

These developments highlight a global pivot toward consolidation, sustainability, and smart manufacturing.

Exploring Insights Across Emerging Global Markets:

Silica for S-SBR Market: https://www.futuremarketinsights.com/reports/silica-for-s-sbr-market

Di-electric Gases Market: https://www.futuremarketinsights.com/reports/dielectric-gases-market

Car Wash Detergents and Soaps Market: https://www.futuremarketinsights.com/reports/car-wash-detergents-and-soaps-market

Industrial Cleaners Market: https://www.futuremarketinsights.com/reports/industrial-cleaners-market

Have a specific Requirements and Need Assistant on Report Pricing or Limited Budget please contact us - sales@futuremarketinsights.com

About Future Market Insights (FMI)

Future Market Insights, Inc. (FMI) is an ESOMAR-certified, ISO 9001:2015 market research and consulting organization, trusted by Fortune 500 clients and global enterprises. With operations in the U.S., UK, India, and Dubai, FMI provides data-backed insights and strategic intelligence across 30+ industries and 1200 markets worldwide.

Why Choose FMI: Empowering Decisions that Drive Real-World Outcomes: https://www.futuremarketinsights.com/why-fmi