Iron and steel market projected to reach $1.928 trillion by 2027

A bar of steel makes its way through the 80" hot strip mill at the Indiana Harbor steel mill on its way to becoming a coil of steel. 

The global iron and steel market is expected to soar to $1.928 trillion worldwide by 2027.

MarketsandMarkets, a business-to-business consulting firm, is projecting the industry will grow at a compounded annual growth rate of 3.8% over the next four years.

"The global iron and steel market is an ever-growing and dynamic industry, with demand increasing in various regions throughout the world. Due to the variety of factors that contribute to its success, such as the amount of raw materials available, access to capital, innovation, and infrastructure, different regions tend to be more prosperous than others," MarketsandMarkets said in a news release. "The iron and steel market behaves in proportion to the overall automotive and construction industry; the latter is cyclical in nature and subjected to sharp fluctuations in demand. When construction activities pick up, the demand for iron and steel increases as it is an integral element in construction and building."

The study found that basic oxygen furnaces account for the most production, and Asia Pacific has the largest share of the output due to China's immense production capabilities. It found demand for steel was growing, particularly in construction as it's used to make buildings, bridges, roads and other infrastructure.

MarketsandMarkets found North America accounted for the third-largest steel market worldwide and was likely to grow as electric guitars gain in popularity, driving up demand for steel.

The report concluded that electric arc furnace production was expected to grow at the fastest rate over the next four years.

"The EAF technology is widely used for producing steel from recycled scrap steel, and it has several advantages over traditional blast furnace technology. EAF can produce high-quality steel with lower emissions of greenhouse gases, and it is more flexible in terms of the types of steel scrap materials that can be used in the process," MarketsandMarkets said in the report. "With the increasing demand for sustainable and eco-friendly manufacturing processes, the EAF technology is expected to gain more popularity in the steel industry in the coming years, leading to higher growth rates."