Carbon Steel Industry Analysis in North America

North America Carbon Steel Industry Outlook from 2023 to 2033

North America’s carbon steel business revenue totaled US$ 75.0 billion in 2022. Over the forecast period, demand for carbon steel in North America is anticipated to rise at a 4.9% CAGR. The region's total carbon steel business value is predicted to increase from US$ 78.1 billion in 2023 to US$ 125.6 billion by 2033.

Attributes	Key Insights
North America Carbon Steel Business Base Value in 2022	US$ 75.0 billion
Estimated North America Carbon Steel Business Sales Value (2023)	US$ 78.1 billion
Projected North America Carbon Steel Business Revenue (2033)	US$ 125.6 billion
Value-based North America Carbon Steel Business CAGR (2023 to 2033)	4.9%
Collective Value Share: Top 5 Countries (2023E)	55% to 65%

Key Highlights

Revenue in North America to Expand Around 1.6X through 2033

As per the latest analysis, North America's carbon steel revenue is anticipated to expand by 1.6 times through 2033. This growth is spearheaded by the rising demand for resilient and cost-effective steel, which finds utility in several sectors, such as defense, automotive, and shipbuilding.

In the defense and shipbuilding businesses, carbon steel is highly favored for its exceptional durability and strength. Its corrosion-resistant properties make it particularly suitable for marine applications, and it is used in the construction of ships, submarines, and other naval equipment.

Carbon steel’s cost-effectiveness is an advantage in both sectors, where cost is a crucial factor. Hence, the demand for carbon steel in the defense and shipbuilding sectors is expected to increase due to its unique properties, ensuring sales growth in the region.

Carbon steel's properties, such as durability, strength, and cost-effectiveness, make it an ideal fit for diverse businesses across North America. These include automotive, building & construction, and consumer appliances.

Key carbon steel companies will need to be prepared to adapt to changing business conditions. They also need to evolve their business strategies and expand their carbon steel supply chain in North America to take advantage of the growth opportunities presented by this expanding sector.

United States to Remain a Key Revenue-generation Pocket for Companies

As per the latest analysis, the United States is expected to create significant revenue-generation opportunities for carbon steel manufacturers during the assessment period. This is attributed to the following factors:

• Robust Industrial Growth: Sales of carbon steel in the United States are driven by the country's strong industrial sector, infrastructure development, and increasing demand from the construction and automotive businesses.
• Strong Demand from Diverse Sectors: The United States' large and diverse economy creates a strong demand for carbon steel in sectors such as appliances and containers & packaging. This demand, coupled with the country's industrial capabilities, makes it an attractive pocket for carbon steel manufacturers.

North America’s Carbon Steel Business Overview

The growing adoption of carbon steel as a manufacturing material in diverse sectors across North America is expected to boost sales growth. It is widely used in businesses such as automotive, building & construction, and defense due to its weldability, formability, strength, and ability to be heat-treated to modify its mechanical properties.

The applications for carbon steel are wide, with every business, from consumer goods to automotive, making use of carbon steel parts in multiple forms. Rapid industrial growth in the region will continue to act as a catalyst, triggering carbon steel sales. Similarly, the expansion of the steel product sector in North America is set to drive demand for carbon steel.

The North America carbon steel business is fueled by the region's robust industrial base, infrastructure development, and growing construction and automotive demand. However, the business contributes 7% of global carbon emissions, prompting a growing emphasis on decarbonization strategies.

Decarbonization of the carbon steel business is crucial for addressing the climate crisis and achieving economy-wide net-zero emissions by 2050. The business is exploring several low-carbon production technologies, such as replacing coal with green hydrogen and testing biomass as an alternative fuel. However, the transition to green steel is still in its early stages, and United States-based steelmakers are yet to come up with serious proposals for decarbonization.

North America’s carbon steel business is poised for growth, fueled by the robust industrial sector, infrastructure development, and rising demand from the automotive and construction businesses. However, the business faces challenges related to high carbon emissions, requiring companies to explore decarbonization strategies for sustainable growth.

Despite these challenges, the versatility, durability, and cost-effectiveness of carbon steel make it a popular choice for several industrial and infrastructure projects, such as equipment manufacturing, bridges, highways, pipelines, and tunnels. Hence, North America’s carbon steel business presents both challenges and opportunities for future growth and sustainability.

Historical Performance Vs. Carbon Steel Sales Forecast in North America

Sales of carbon steel across North America grew at a CAGR of 4.2% between 2018 and 2022. Total revenue reached about US$ 75.0 billion in 2022. In the forecast period, North America’s demand for carbon steel is set to rise at a CAGR of 4.9%.

Historical CAGR (2018 to 2022)	4.2%
Forecast CAGR (2023 to 2033)	4.9%

North America’s carbon steel business witnessed steady growth between 2018 and 2022. This was mainly due to the increased demand for carbon steel from cutting tools, vehicle frames, and energy and power sectors.

Carbon steel sales growth was affected by the COVID-19 pandemic and experienced a significant drop in demand in 2020. The production activities for almost all the sectors were halted, which resulted in a reduction in manufacturing businesses and, subsequently, demand for carbon steel.

Future Scope of the North America Carbon Steel Business

Over the forecast period, the North America carbon steel business is poised to exhibit healthy growth, totaling a valuation of US$ 125.6 billion by 2033. It is expected to hold a prominent share of the global carbon steel sales value.

The region will play a key role in driving global carbon steel sales during the forecast period. This is due to a combination of several factors. These include the increasing demand for electrical sheets products, gears, axles, railway tracks & train wheels, technological advancements in production processes with a shift toward sustainability, and the robust expansion of end-use industries.

The steel production sector, which includes carbon steel, in North America is anticipated to expand steadily. This is attributable to the growing demand for carbon steel products owing to their multiple benefits. Key companies are expected to strengthen their carbon steel distribution in North America to boost their revenue.

Growth Factors and Trends in the North America Carbon Steel Business

• Increasing Infrastructure Projects Boosting Carbon Steel Business Growth

North America is currently at the forefront of a significant infrastructure development wave, marked by substantial investments in multiple sectors. Notably, transportation, commercial and residential construction, and civil engineering projects are thriving. Carbon steel is pivotal to these initiatives due to its remarkable durability and strength.

In particular, the construction of bridges and roads heavily depends on carbon steel. This is because it can withstand the immense stresses and loads these structures endure over time. This infrastructure boom can be attributed to the region's increasing population and rapid urbanization.

As cities expand and communities grow, the demand for improved infrastructure rises. Whether it is the construction of modern highways to accommodate higher traffic volumes, the development of urban centers to meet housing needs, or the reinforcement of aging bridges, carbon steel plays a foundational role in ensuring these projects are resilient and long-lasting.

The growing demand for carbon steel in infrastructure development reflects its enduring significance in the region's economic growth and urban evolution. Hence, increasing infrastructural projects is expected to elevate carbon steel demand in North America.

• Rapid Expansion of Automotive Business to Fuel Carbon Steel Sales

Another key factor expected to drive demand for carbon steel in Canada, Mexico, and the United States is the growing need for lightweight and fuel-efficient vehicles. Similarly, the rise of the electric vehicles sector will foster the growth of the carbon steel business in North America.

North America holds a significant position in the global automotive business, annually producing millions of vehicles. Carbon steel plays a pivotal role in this sector, particularly in manufacturing essential auto components such as frames and body panels.

The choice of carbon steel is underpinned by its exceptional strength, cost-effectiveness, and recyclability. These advantages would make it an ideal material for ensuring the structural integrity and safety of vehicles.

The region's automotive business continues to expand and innovate, driven by factors such as consumer demand for fuel-efficient and environmentally friendly vehicles. As a result, the demand for high-quality carbon steel remains robust.

In the pursuit of lightweight vehicles to improve fuel efficiency, automakers rely on advanced high-strength carbon steels to reduce weight without compromising structural integrity. The ongoing development of electric vehicles, which also require lightweight yet strong materials, further solidifies the importance of carbon steel in North America's automotive manufacturing sector.

• Booming Energy Sector to Contribute to Carbon Steel Consumption

North America's energy sector is transforming with the adoption of cleaner energy sources such as wind and solar power. This shift has increased the demand for carbon steel, particularly in wind turbines, solar panels, and energy storage facilities. Carbon steel's durability and strength would make it ideal for supporting large structures in the energy sector.

As North America intensifies its commitment to sustainability and reducing carbon emissions, the role of carbon steel becomes increasingly significant. Carbon steel is fundamental to the infrastructure of wind farms, where it supports the towering wind turbines and serves as the framework for solar panels.

Carbon steel is also vital in the construction of energy storage systems such as battery enclosures, ensuring the safe containment of energy storage solutions. This surge in the energy sector aligns with North America's pursuit of a greener and more sustainable future, providing a substantial boost to the carbon steel business in the region.

Key Factors Restraining Growth of the Carbon Steel Business in North America

• Environmental Regulations

North America is renowned for having a handful of the most stringent environmental regulations globally. These regulations exert significant pressure on steel producers to adopt cleaner, more sustainable, and energy-efficient manufacturing processes.

To meet emissions standards and environmental commitments, steel manufacturers are investing in technologies such as electric arc furnaces and carbon capture systems. While this shift toward greener practices aligns with broader sustainability goals, it can be a double-edged sword.

The adoption of cleaner technologies, while commendable, often involves substantial upfront investments, influencing capital expenses. Moreover, the utilization of eco-friendly processes can increase production costs, primarily due to higher energy and operational expenses. As a result, certain manufacturers can encounter financial restraints, potentially hampering their ability to compete in price-sensitive businesses.

Navigating the balance between environmental compliance and cost-effectiveness remains a challenge for steel companies in North America as they adapt to an evolving regulatory landscape. This is limiting business expansion to a certain extent.

• Trade Barriers Hindering North America’s Carbon Steel Business

Import tariffs and trade policies have a significant impact on the North America carbon steel business. Trade tensions and the imposition of tariffs on steel imports can disrupt business stability. Uncertainty surrounding trade policies creates challenges for participants as it affects steel pricing and business fluctuations.

Tariffs can lead to higher import costs, affecting the competitiveness of foreign steel products. Domestic steel producers can benefit from these tariffs by having a more level playing field, but they must also navigate shifting business dynamics and supply chain complexities.

Changes in trade policies can also impact the cost-effectiveness of steel products. Increased tariffs can raise the cost of steel, affecting businesses reliant on affordable steel inputs, such as construction and manufacturing.

Comparative View of Adjacent North America Carbon Steel Businesses

The North America carbon steel business is set to be impacted by the peer or tangential businesses in the industrial automation division. These include other businesses, such as steel pipes and prefabricated building systems. Analysis of these related businesses can provide deeper insights that would be helpful for developing unique differentiating strategies to pursue growth and opportunity in North America.

North America Carbon Steel Demand Outlook:

Attributes	North America Carbon Steel Demand Outlook
CAGR (2023 to 2033)	4.9%
Estimated Value (2023)	US$ 78.1 billion
Growth Factor	Increasing infrastructure projects and a thriving automotive business are expected to boost the growth of the North America carbon steel business.
Key Trend	Sustainability initiatives and the growing popularity of electric vehicles are key trends in the North America carbon steel business.

Steel Pipe Industry Analysis:

Attributes	Steel Pipe Analysis
CAGR (2023 to 2033)	3.9%
Estimated Value (2023)	US$ 97.88 billion
Growth Factor	Expansion of oil & gas, construction, and other businesses is expected to drive demand for steel pipes through 2033.
Key Trend	The growing popularity of coated and lined steel pipes is a key trend impacting sales growth.

Prefabricated Building System Sales Forecast:

Attributes	Prefabricated Building System Sales Forecast
CAGR (2023 to 2033)	6.1%
Estimated Value (2023)	US$ 19.6 billion
Growth Factor	Robust growth of the building and construction business globally is expected to uplift the demand for prefabricated building systems.
Key Trend	The rising trend for green building is anticipated to create new growth opportunities for manufacturers of prefabricated building systems.

Country-wise Insights

The table below highlights key countries’ carbon steel revenue in North America. The United States is expected to remain the leading consumer of carbon steel, with an expected valuation of US$ 91.5 billion in 2033.

Countries	Expected North America Carbon Steel Revenue (2033)
United States	US$ 91.5 billion
Canada	US$ 17.3 billion
Mexico	US$ 16.8 billion

The below table shows the estimated growth rates of the top countries in North America. Mexico is set to record a high CAGR of 6.5% through 2033.

Countries	Projected Carbon Steel CAGR (2023 to 2033)
United States	4.4%
Canada	5.8%
Mexico	6.5%

Booming Building and Construction Business Driving Demand in the United States

The United States carbon steel business size is projected to reach US$ 91.5 billion by 2033. Over the assessment period, demand for carbon steel in the United States is predicted to rise at a CAGR of 4.4%.

Multiple factors are expected to stimulate the growth of the carbon steel business in the United States. These include the rising usage of carbon steel products in the thriving building and construction sector.

In the United States, the building and construction sector is experiencing a remarkable surge in demand due to several factors. These factors include the rapid growth of the population, resulting in the need for increased residential and commercial spaces and infrastructure.

The strong economy in the United States is also boosting construction activities, with businesses flourishing and investments being directed toward new office spaces, retail centers, and manufacturing facilities. This is uplifting the demand for materials such as carbon steel.

New infrastructure projects aimed at enhancing transportation networks, utilities, and public facilities are stoking the demand for construction services and materials. This includes carbon steel products.

Carbon steel, a versatile and durable material, is a prime choice for a number of construction activities and infrastructure projects. It is often used in the construction of bridges, highways, pipelines, and tunnels, which are integral components of infrastructure projects aimed at improving transportation networks.

Carbon steel, especially low-carbon steel, is widely used in rebar manufacturing. It is also utilized in large commercial and industrial buildings as structural steel frames for supporting the building's weight. Hence, rising building and construction activities will likely fuel the demand for low-carbon steel in the United States.

Mexico to Emerge as a Hotbed for Carbon Steel Companies

Sales of carbon steel in Mexico are projected to soar at a CAGR of around 6.5% during the assessment period. It will likely emerge as a highly lucrative pocket for carbon steel companies, with total valuation in the country expected to reach US$ 16.8 billion by 2033.

Several factors are expected to spur growth in Mexico over the forecast period. These include high population growth, a thriving manufacturing sector, favorable trade agreements, and government investments in infrastructure. These drivers are expected to continue to stimulate the demand for carbon steel in Mexico, making it an attractive pocket for global steel producers.

The country's steel business will also benefit from its location, which puts it in a favorable position to serve the United States, one of the leading steel-consuming countries in the world. Mexico has favorable trade agreements with several countries, including the United States, Canada, and the European Union (EU).

The trade agreements make it easier for companies in Mexico to export their steel products to these countries. For example, the United States-Mexico-Canada Agreement (USMCA) removed tariffs on multiple steel products traded between Mexico, the United States, and Canada. This has helped to increase the competitiveness of Mexico’s carbon steel business in the United States.

The government's investments in infrastructure are also expected to drive demand for carbon steel during the assessment period. Mexico has a diversified manufacturing base, including automotive, aerospace, and electronics sectors, which consume significant amounts of carbon steel for production.

Mexico's automotive business is particularly important, as it is the seventh leading in the world in terms of production. Increasing production of vehicles, especially electric ones, will play a key role in fueling sales of carbon steel in the country through 2033.

Category-wise Insights

The below section shows the low carbon content steel segment dominating, based on carbon content. It is predicted to thrive at a 4.9% CAGR between 2023 and 2033. By product type, the flat product type category is set to account for a prominent value share by 2033, exhibiting a CAGR of 4.7%.

Based on end-use, the building & construction segment is anticipated to hold a dominant share through 2033. It will likely exhibit a CAGR of 3.9% during the forecast period.

Multiple Advantages of Low Carbon Steel Fueling its Adoption

Top Segment (Carbon Content)	Low Carbon Content Steel
Predicted CAGR (2023 to 2033)	4.9%

Based on carbon content, the report is segmented into low-carbon steel, medium-carbon steel, and high-carbon steel. Among these, end-users prefer low-carbon steel for product making. This is due to its several advantages, including versatility, weldability, and low cost.

Low-carbon steel, also known as mild steel, is widely used in applications such as construction, automotive, and consumer goods. This is because of its benefits, including machinability, durability, formability, and corrosion resistance.

Low-carbon steel is also sustainable and easy to recycle and reuse, making it an environmentally friendly material. It is relatively affordable to manufacture certain products out of low carbon content steel than other metals.

The rising usage of low-carbon steel for producing different automotive components and construction materials is set to boost the target segment. As per the latest carbon steel industry analysis, the low carbon steel segment is set to thrive at a 4.9% CAGR, reaching US$ 74.2 billion by 2033.

On the other hand, the high-carbon steel segment is expected to witness a higher CAGR of 5.3% during the assessment period. This can be attributed to the rising adoption of high-carbon steel in applications such as machine tools, automotive parts, and bearings due to its high strength, good machinability, and durability.

Demand for medium carbon steel across North America is set to rise at a 4.7% CAGR. It will likely total US$ 36.7 billion by 2033 owing to rising usage in different sectors.

Demand to Remain High for Flat Carbon Steel Products in North America

Top Segment (Product Type)	Flat Product Types
Projected CAGR (2023 to 2033)	4.7%

The flat product type segment will likely retain its dominance across North America during the forecast period. This is attributable to the rising usage of flat carbon steel products such as pipes, tubes, and sheets in automotive, aerospace, and defense businesses that require a considerable amount of carbon steel-based items.

As per the latest report, the flat product types segment is projected to rise at a 4.7% CAGR over the assessment period. It will likely generate a total revenue of US$ 76.4 billion by 2033. However, demand in North America is expected to remain high in carbon steel products.

The robust growth of infrastructure projects, such as bridges, railways, and highways, is expected to uplift the demand for long-carbon steel products such as bars, rods, and steel structures in North America. This is because these projects require a significant quantity of long steel products that are composed of carbon steel.

The rebounding construction business is also expected to drive demand for long products, especially for the construction of residential, commercial, and industrial buildings. This is due to the robust durability, high strength, and cost-effectiveness of carbon steel.

The transportation business, which includes rail tracks, shipbuilding, and automotive manufacturing, depends on steel products, primarily carbon steel. This is because of its strength, toughness, and affordability. These businesses are the leading consumers of flat carbon steel products, and hence, their expansion in North America will boost the target segment.

Competitive Landscape

The North America carbon steel landscape is consolidated, with leading players accounting for about 55% to 60% share. United States Steel Corporation, Steel Dynamics Inc., EVRAZ Plc, Novolipetsk Steel, Cleveland-Cliffs Inc., Nucor Corporation, ArcelorMittal Corporation, North Star BlueScope Steel, Commercial Metals Company, and TimkenSteel Corporation & Gerdau S.A. are the leading manufacturers of carbon steel listed in the report.

Key carbon steel companies are continuously investing in research and development activities for producing new products and increasing their production capacity to meet end-user demand. They are also showing an inclination toward adopting strategies such as acquisitions, partnerships, mergers, and facility expansions to strengthen their footprint.

Recent Developments in the North America Carbon Steel Business-

• In October 2023, United States Steel Corporation officially opened its new electrical steel line at its Big River Steel facility in Osceola, Arkansas. The new product, InduX, positions the company as a crucial supplier for the expanding electric vehicle sector.
• In August 2020, Steel Dynamics acquired Zimmer, S.A. de C.V., to support its new Texas flat-roll steel mill.

Report Scope of North America Carbon Steel Business

Attribute	Details
Estimated Value (2023)	US$ 78.1 billion
Projected Value (2033)	US$ 125.6 billion
Anticipated Growth Rate (2023 to 2033)	4.9%
Historical Data	2018 to 2022
Forecast Period	2023 to 2033
Quantitative Units	Value (US$ billion) and Volume (000’ tons)
Report Coverage	Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis
Key Segments Covered	Carbon Content Product Type End-use Region
Country Covered	United States Canada Mexico
Sub-regions Covered	West (United States) Midwest (United States) Northeast (United States) South (United States) Ontario (United States) Quebec (Canada) Atlantic (Canada) Western (Canada) Rest of Canada Northern (Mexico) Baijo (Mexico) Central (Mexico) Pacific Coast (Mexico) Other Mexico (Mexico)
Key Companies Profiled	United States Steel Corporation Steel Dynamics Inc. EVRAZ Plc Novolipetsk Steel Cleveland-Cliffs Inc Nucor Corporation ArcelorMittal Corporation North Star BlueScope Steel Commercial Metals Company TimkenSteel Corporation Gerdau S.A.

North America Carbon Steel Business Segmentation

By Carbon Content:

• Low Carbon Steel/Mild Steel (up to 0.3% Carbon)
• Medium Carbon Steel (0.3 to 0.6% Carbon)
• High Carbon Steel (More than 0.6% Carbon)

By Product Type:

• Flat Product Types
  • GP/GC Sheets
  • HR Coils
  • CR Sheets/Coils
  • Pipes
  • Electrical Sheets
  • Tin Plates
  • HR Sheets
  • Plates
• Long Product Types
  • Bars & Rods
  • Steel Structural
  • Railway Material

By End-use:

• Building & Construction
• Automotive
• Railways
• Shipbuilding & Marine
• Aerospace
• Oil & Gas and Energy
• Heavy Machinery & Equipment
• Consumer Appliances
• Cutting Tools & Agriculture Equipment

By Region:

• United States
  • West
  • Midwest
  • Northeast
  • South
• Canada
  • Ontario
  • Quebec
  • Atlantic Canada
  • Western Canada
  • Rest of Canada
• Mexico
  • Northern Mexico
  • Baijo Mexico
  • Central Mexico
  • Pacific Coast
  • Other Mexico

Frequently Asked Questions

How big is the carbon steel business in North America?

Total revenue in North America is set to reach US$ 78.1 billion in 2023.

At what rate will North America’s demand rise through 2033?

North America's carbon steel demand is anticipated to rise at a 4.9% CAGR.

What is the forecast for carbon steel in North America?

Carbon steel sales in North America will likely total US$ 125.6 billion by 2033.

Which end-use segment is expected to lead the target business?

Building and construction are expected to lead during the forecast period.

How big is the carbon steel business in the United States?

The United States carbon steel revenue is set to total US$ 91.5 billion in 2033.