Global steel market seen reaching $1.31 trillion by 2034

By AI, Created 4:52 PM UTC, May 18, 2026, /AGP/ – IMARC Group says the global steel market was worth $1,004.9 billion in 2025 and could rise to $1,308.7 billion by 2034. The outlook is being driven by construction, automotive, defense and renewable energy demand, with Asia Pacific accounting for more than 62.7% of the market.

Why it matters: - Steel remains a core input for construction, vehicles, defense equipment and energy infrastructure. - The market’s projected climb to $1,308.7 billion by 2034 signals steady demand across major industrial sectors. - Asia Pacific’s share of more than 62.7% shows where much of the market’s volume and investment activity is concentrated.

What happened: - IMARC Group projected the global steel market at $1,308.7 billion by 2034, up from $1,004.9 billion in 2025. - The report said the market is set to expand at a 2.98% CAGR from 2026 to 2034. - Building and construction held the largest application share at 49.0% in 2025. - Long steel led the type segment with a 49.0% share. - Structural steel topped the product segment with a 45.5% share. - Asia Pacific led regional demand with more than 62.7% of the global market in 2025.

The details: - The report linked growth to construction and infrastructure spending, automotive production, defense spending and the energy transition. - Automotive demand is rising as manufacturers expand electric vehicle production and use high-strength, lightweight steel alloys. - Original equipment manufacturers have committed more than $500 billion to EV production facilities by 2030. - Hyundai announced a $1.5 billion EV factory in Ulsan, South Korea, in November 2023. - Military aircraft and other defense platforms continue to rely on steel for airframes, landing gear, engine components and structural parts. - World military spending rose 3.7% in 2022, and the five largest spenders accounted for 63% of global defense outlays. - Renewable energy growth is supporting demand for steel used in wind turbines and solar structures. - In 2022, electric vehicles made up 14% of all new cars sold, with China accounting for about 60% of global EV sales. - Europe posted a more than 15% increase in EV sales in 2022, while the U.S. saw a 55% surge. - Advanced packaging, recycling and green steel practices are also shaping demand and production decisions. - JSW Group and POSCO signed an October 2024 memorandum of understanding to build an integrated steel plant in India with 5 million tonnes of annual capacity using green technologies. - In the U.S., construction spending rose 10.9% year over year in April 2024, while manufacturing construction increased 17.3%. - Monthly manufacturing construction spending has more than doubled since the CHIPS Act and the Inflation Reduction Act, exceeding $200 billion. - India’s steel demand is projected to reach 240 million to 260 million metric tons by 2035, with the National Steel Policy targeting 300 million tons of domestic production by 2030. - Brazil has about 100 billion reais, or $16.5 billion, in steel investments tied to capacity expansion, modernization and new plants. - Mexico ranked 14th globally among steel producers and is the second-largest supplier to the U.S. - Mexico’s steel market is projected to grow 1.5% to 2% on nearshoring and construction demand. - Europe’s steel sector contributes 1.3% to EU GDP, employs 328,000 people directly and supports more than two million indirect jobs. - The U.S. accounted for more than 89.50% of North America’s steel market in 2025. - The UAE’s “Projects of the 50” initiative is projected to attract about $150 billion in foreign direct investment by 2030.

Between the lines: - The report points to a market that is not growing quickly, but is broadening across more end uses and geographies. - Construction remains the anchor, but EVs, defense and renewable energy are becoming more important growth supports. - Green manufacturing is moving from a theme to a competitive factor as producers face emissions targets and customer pressure. - Regional policy is also shaping demand, especially in the U.S., India, China and the Gulf.

What’s next: - IMARC expects demand to keep rising as infrastructure programs, EV investment, defense modernization and renewable buildouts continue. - The company’s report flags Asia Pacific, North America, Europe, Latin America and the Middle East and Africa as the main regional arenas to watch. - The report also highlights further opportunities in prefabrication, modular construction and low-carbon steelmaking.

The bottom line: - Steel is set for slow but durable growth through 2034, with construction still in charge and electrification, defense and clean energy adding new demand streams.