It wasn’t long ago we shared some insights about a shortage of stainless steel that came from the ramifications of COVID-19. However, despite that shortage, we’re now seeing growth of the stainless steel market as a whole. But, why?
As technological advancements are made, the ability to innovate sustainable stainless steel flourishes. COVID-19 and governmental restrictions impacted the construction industry and trickled over to minimal supply for the growing demand of stainless steel. The pandemic froze consumption activities and disrupted the supply chain due to a lack of labor, material shortages, and the closure of factories. But the world is recovering, and things are looking up for the stainless steel industry.
Key metal manufacturers involved in production, capacity expansion and product development are allowing for this forecasted growth. Fortune Business Insights states “The global stainless steel market is projected to grow from $204.17 billion in 2022 to $298.85 billion in 2029, a Compounded Annual Growth Rate (CAGR) of 5.6%.” Although the automotive industry is the key factor for market expansion, many other industries that depend on stainless steel and other metals will benefit greatly.
The anticipated growth of the industry is fueled by a few global megatrends, including:
- Population and economic development
- Advancements in transportation and mobility
- Growth of cities
- Climate change
Benefits of Stainless Steel
Stainless steel is made up of several components that fuse and form a powerful alloy. It contains chromium, nitrogen and molybdenum, which make stainless steel:
- Strong & long-lasting
- Neutral alloy
- Infinitely recyclable
Stainless steel’s ability to resist corrosion combined with rising manufacturing for recyclable material helps drive the market growth. The stainless steel industry as a whole is helping to reduce carbon dioxide emissions by creating innovative, environmentally friendly ways to recycle and reuse steel scraps.