Forecast Period | 2026-2030 |
Market Size (2024) | USD 171.11 Billion |
Market Size (2030) | USD 270.49 Billion |
CAGR (2025-2030) | 7.77% |
Fastest Growing Segment | Machinery & Equipment |
Largest Market | South India |
Market Overview
India Hot
Rolled & Cold Rolled Steel Market was valued at USD 171.11 Billion in 2024
and is expected to
reach USD 270.49 Billion by 2030 with a CAGR of 7.77% during the forecast
period.
Hot Rolled Steel is steel that has been processed at
high temperatures, typically above 1,700°F (926°C). This process involves
heating the metal until it becomes malleable and then passing it through
rollers to achieve the desired shape and thickness. Hot rolling is typically
used for larger, thicker steel sections such as beams, plates, and structural
components. As the steel cools down, it solidifies into the final shape, and
the process often results in a rougher surface finish compared to cold rolled
steel. Hot rolled steel is more affordable and quicker to produce, but it can
have less precise dimensions and surface quality.
Cold Rolled Steel, on the other hand, is steel that
undergoes processing at room temperature. The metal is first rolled to the
desired thickness in a hot rolling process, then further processed at ambient
temperature to refine its shape and finish. Cold rolling improves the steel’s
surface quality, providing a smoother, more uniform finish. It also enhances
strength and hardness due to the strain hardening effect, although this can
make the steel less malleable than hot rolled steel. Cold rolled steel is typically
used for applications where a smooth surface and precise dimensions are
required, such as in automotive parts, appliances, and furniture.
For instance, India is the world’s second-largest
producer of crude steel, with an output of 125.32 MT of crude steel and
finished steel production of 121.29 MT in FY23.
India’s domestic steel demand is estimated to grow by
9-10% in FY25 as per ICRA.
India’s steel production is estimated to grow 4-7% to
123-127 MT in FY24.
Key Market Drivers
Growth in the
Automotive Industry
The rapid growth of India's automotive industry is
another major driver for the Hot Rolled and Cold Rolled Steel market. India is
one of the largest automotive markets in the world, and the sector’s expansion
is generating an increasing demand for steel, especially for applications in
vehicle manufacturing.
Cold Rolled Steel plays a key role in this sector due
to its precise dimensions, smooth finish, and high strength, which are
essential for the production of automotive parts like body panels, frames, and
components. The automotive industry requires high-quality, high-strength steel
that ensures safety and durability while reducing vehicle weight for improved
fuel efficiency. Cold Rolled Steel’s superior surface finish makes it ideal for
exterior car panels that demand both aesthetic appeal and structural integrity.
In addition, Hot Rolled Steel is used in manufacturing
automotive parts that require larger sections, such as chassis, axles, and
structural beams. Its cost-effectiveness and ability to be processed into
heavy-duty shapes make it an ideal choice for components that need to bear high
stress and load.
The shift towards electric vehicles (EVs) is also
playing a pivotal role in the demand for steel. Manufacturers are focusing on
creating lightweight and durable vehicle frames to increase battery efficiency
in electric cars. As the automotive industry adopts new manufacturing
technologies and moves toward using lighter materials, the demand for advanced
steel products, including Cold Rolled Steel with specialized properties, is
expected to rise.
The Indian government's push for manufacturing under
the "Make in India" initiative has also contributed to the growth of
the automotive sector. The increasing presence of foreign car manufacturers and
investments in domestic vehicle production has further increased the need for
high-quality steel, including Hot Rolled and Cold Rolled Steel, to meet
industry requirements. With India expected to remain a major hub for automotive
manufacturing, the demand for steel in this sector will continue to drive
market growth. The Indian automobile industry was valued at USD 122 billion in 2024 and is expected to grow at a CAGR of 10-12% to reach USD 230 billion by 2030. India is the fifth-largest automotive market in the world and is projected to become the third-largest by 2030, behind China and the United States.
Expansion of the Construction and Real Estate Sectors
India's construction and real estate sectors are
significant drivers of demand for Hot Rolled and Cold Rolled Steel. With the
country's growing population and rapid urbanization, both residential and
commercial infrastructure are expanding at an unprecedented rate, creating an
insatiable demand for steel products.
Hot Rolled Steel is commonly used in the construction
of large buildings, bridges, and other structural elements that require
heavy-duty materials. It is frequently used in the construction of high-rise
buildings, commercial offices, and large industrial facilities due to its
affordability, strength, and ability to be molded into large beams, columns,
and plates. Furthermore, the development of smart cities and the need for
modern infrastructure such as airports, highways, and metro rail projects has
driven significant demand for Hot Rolled Steel. As India pushes forward with
its "Housing for All" initiative, there has been a notable rise in
the construction of both low-cost and luxury residential developments, all of
which rely heavily on steel.
Cold Rolled Steel finds its application in residential
buildings and commercial projects where aesthetic appeal and precision are
important. The smooth surface finish and high strength of Cold Rolled Steel
make it ideal for architectural and interior applications, including wall
panels, doors, windows, and roofs. Additionally, Cold Rolled Steel is essential
in the manufacturing of steel furniture and decorative products used in
residential and office spaces.
The rise in middle-class income, alongside the
government's push to boost affordable housing and commercial real estate
development, is fueling this demand. In particular, the growth of the luxury
housing market and commercial real estate has led to a growing need for steel
with high-quality finishes, where Cold Rolled Steel plays a crucial role.
Moreover, urban infrastructure projects such as metro systems and smart cities
also require high-quality steel for both construction and interior design,
further driving the need for both Hot Rolled and Cold Rolled Steel.
As both sectors continue to experience rapid
expansion, particularly in urban areas, India’s steel market is expected to
witness sustained demand for both Hot Rolled and Cold Rolled Steel in the years
to come. The Indian construction industry was valued at USD 320 billion in 2024, and it is expected to grow at a CAGR of 7-8% to reach USD 500 billion by 2030.
Government Policies and Initiatives
Government policies and initiatives aimed at
bolstering India's manufacturing capabilities and infrastructure are vital
drivers for the Hot Rolled and Cold Rolled Steel market. The Indian government
has implemented several policies designed to enhance steel production, improve
steel quality, and create a conducive environment for the growth of the steel
industry.
The National Steel Policy (NSP) 2017 is one of the
most prominent policy measures aimed at increasing the competitiveness of
India's steel sector. The policy outlines goals for enhancing production
capacity, improving quality, and boosting domestic demand. It is also focused
on reducing the reliance on imported steel and boosting domestic production to
meet the growing demand across industries such as construction, automotive, and
infrastructure. As a result, the demand for both Hot Rolled and Cold Rolled Steel
has significantly risen in recent years.
Additionally, The Make in India initiative has
fostered a favorable environment for the growth of domestic manufacturing,
particularly in sectors that heavily depend on steel products. This initiative
encourages local steel production by attracting foreign investment and
supporting innovation. The government’s focus on increasing steel exports and
reducing trade barriers further supports the growth of the steel industry in
India.
The government has also introduced infrastructure
development programs such as the National Infrastructure Pipeline (NIP), which
includes large-scale projects related to transportation, housing, and energy.
These programs require substantial amounts of steel for construction and
fabrication, creating a strong demand for Hot Rolled and Cold Rolled Steel.
Moreover, the Atmanirbhar Bharat (Self-Reliant India)
mission encourages domestic steel production by focusing on local supply chains
and minimizing dependence on foreign imports. This initiative is expected to
boost the growth of India's steel manufacturing sector, leading to a sustained
demand for steel products.
With a growing emphasis on sustainability, the
government has also started promoting the use of eco-friendly steel, which has
led to the development of new grades of Cold Rolled Steel with advanced
characteristics. As India’s industrial sector continues to grow, these
government policies will remain instrumental in driving the demand for both Hot
Rolled and Cold Rolled Steel in the country.
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Key Market Challenges
Fluctuating Raw Material Prices and Supply Chain
Disruptions
One of the major challenges
facing the Hot Rolled and Cold Rolled Steel market in India is the volatility
in raw material prices, particularly iron ore and coal, which are the key
ingredients in steel production. India is one of the largest producers of steel
in the world, but it remains heavily reliant on the global market for key raw
materials. Iron ore, a critical raw material, is subject to price fluctuations
due to factors like mining disruptions, export policies, and changes in global
demand. Similarly, coal prices are highly volatile, and India is a net importer
of coal, which leads to price unpredictability, impacting the production cost
of steel.
The fluctuation in raw
material costs directly affects the profitability of steel manufacturers. When
raw material prices increase, steelmakers face the challenge of either
absorbing the higher costs or passing them onto consumers, which can affect
demand, particularly in price-sensitive segments. Smaller producers with
limited financial flexibility are particularly vulnerable to these price
fluctuations. For instance, during periods of price hikes for iron ore and
coal, steel manufacturers may struggle to maintain their margins, especially
when competing with global manufacturers who may have better access to cheaper
raw materials or more efficient production technologies. Additionally, supply
chain disruptions caused by geopolitical tensions, natural disasters, or global
economic crises can exacerbate raw material shortages. The COVID-19 pandemic,
for example, significantly disrupted global supply chains, leading to delayed
deliveries of critical raw materials to India. Similarly, disruptions in the
transportation network, such as strikes or port congestion, can affect the
timely availability of materials, leading to delays in production schedules and
higher operational costs.
To mitigate these
challenges, steel manufacturers in India must invest in improving the
efficiency of their production processes, adopting alternative sources of raw
materials, and developing robust supply chain strategies. Furthermore, industry
stakeholders must work towards increasing the self-sufficiency of raw material
production within the country, as well as exploring long-term strategic
partnerships with global suppliers to reduce exposure to volatile markets.
Environmental Concerns and Regulatory Pressures
Another significant
challenge facing the Hot Rolled and Cold Rolled Steel market in India is the
growing pressure to adhere to stringent environmental regulations. The steel industry
is one of the largest industrial contributors to air pollution, carbon
emissions, and environmental degradation. As India continues its efforts to
balance industrial growth with environmental sustainability, steel
manufacturers are facing increasing scrutiny regarding their environmental
footprint.
Steel production, especially
through the traditional blast furnace method, is energy-intensive and emits
large amounts of carbon dioxide (CO2), a major greenhouse gas contributing to
climate change. The Indian government has set ambitious climate goals under the
Paris Agreement, aiming for net-zero emissions by 2070. This has led to
increased regulatory pressures on industries, including steel, to adopt cleaner
technologies and reduce their carbon footprint. Additionally, the steel
industry in India must comply with various environmental laws, including those
related to air quality, water usage, and waste management. These regulations
require manufacturers to invest in technology upgrades, emissions control
systems, and cleaner production processes. While larger companies with greater
financial resources may have the capacity to absorb the costs of these
environmental compliance measures, smaller players in the steel market face
difficulties in adapting to these new regulations, potentially leading to increased
operational costs or even business shutdowns if they fail to comply. Furthermore,
the growing global emphasis on environmental, social, and governance (ESG)
criteria has created additional pressure for steelmakers in India to align with
international standards. Many international buyers and investors are
increasingly demanding that steel products meet strict environmental standards,
thus pushing Indian manufacturers to adopt sustainable practices. Failure to
meet these requirements could lead to reduced export opportunities and
diminished competitiveness in the global market.
To tackle these challenges,
the Indian steel industry needs to accelerate its adoption of cleaner and more
energy-efficient technologies, such as electric arc furnaces (EAF) or direct
reduction iron (DRI) methods, which have a lower environmental impact compared
to traditional blast furnaces. The government’s role in promoting green
initiatives, providing incentives for sustainable practices, and facilitating
the development of renewable energy sources for steel manufacturing will be
crucial in ensuring the long-term growth and sustainability of the sector.
Additionally, steel producers must collaborate with environmental agencies and
invest in research and development to innovate more sustainable methods of
production while reducing emissions and waste.
Key Market Trends
Increasing Demand for High-Strength and Lightweight
Steel
A key trend in the India Hot Rolled and Cold Rolled
Steel market is the rising demand for high-strength and lightweight steel. As
industries, particularly the automotive and construction sectors, push for more
efficient and durable materials, there is a growing need for steel products
that offer better strength-to-weight ratios. This trend is driven by several
factors, including the need for improved fuel efficiency in vehicles, the focus
on sustainability, and the growing emphasis on minimizing material usage
without compromising structural integrity.
In the automotive industry, the adoption of advanced
high-strength steel (AHSS) and ultra-high-strength steel (UHSS) has become a
crucial component of vehicle design. These materials are significantly lighter
than traditional steels, allowing manufacturers to reduce the overall weight of
vehicles, thereby improving fuel efficiency and meeting stringent emission
standards. Cold Rolled Steel, in particular, plays a pivotal role in this trend
due to its enhanced surface finish, high tensile strength, and ability to be
precisely formed into complex shapes. As electric vehicles (EVs) become more
popular, the need for lightweight materials to increase battery range and
efficiency will continue to drive demand for high-strength steels.
The construction industry is also witnessing a surge
in the need for lightweight steel for the construction of high-rise buildings,
bridges, and infrastructure projects. High-strength steel allows for more
slender structural elements, reducing the overall material requirements and
cost, while maintaining structural integrity. Additionally, the growing trend
of prefabricated and modular construction methods, where steel components are
pre-fabricated off-site and assembled on-site, is further encouraging the use
of lightweight and high-strength steel.
The Indian steel industry is responding to this trend
by developing and producing advanced grades of Hot Rolled and Cold Rolled Steel
that meet these requirements. Manufacturers are investing in R&D to enhance
the mechanical properties of steel, enabling them to produce lighter, stronger,
and more durable materials that can cater to diverse industrial applications.
The continued push for lightweight, high-strength steel across various sectors
in India will significantly shape the future of the market.
Adoption of Automation and Industry 4.0 in Steel
Manufacturing
The increasing integration of automation and Industry
4.0 technologies in steel production is another notable trend in the Indian Hot
Rolled and Cold Rolled Steel market. Automation technologies, including
robotics, artificial intelligence (AI), and the Internet of Things (IoT), are
transforming steel manufacturing processes by improving efficiency, reducing
operational costs, and enhancing product quality. These technologies are
allowing Indian steelmakers to adopt smarter manufacturing practices, enabling
them to better meet the rising demand for high-quality and customized steel
products.
Robotics is being deployed in various stages of
production, including material handling, welding, and quality control. This not
only speeds up the manufacturing process but also reduces the risk of human
error, improving overall precision. Additionally, AI and machine learning
algorithms are being utilized to optimize production schedules, predict
equipment failures, and enhance supply chain management, allowing manufacturers
to lower downtime and improve productivity.
The IoT is playing a crucial role in ensuring better
monitoring of production processes. Sensors installed on production lines
enable real-time data collection, which helps in identifying issues, such as
equipment malfunctions or quality inconsistencies, before they escalate. This
allows for more proactive maintenance and quality assurance, ultimately
resulting in higher-quality Hot Rolled and Cold Rolled Steel products with more
consistent characteristics.
Industry 4.0 also facilitates greater customization of
steel products. Steel manufacturers are now able to meet the specific demands
of customers across various sectors by using digital platforms for product
design, production planning, and even tracking the progress of steel orders in
real-time. This high degree of customization, coupled with improved quality
control, is helping Indian steelmakers maintain competitiveness in both
domestic and international markets.
The shift towards automation and Industry 4.0 is
expected to increase the overall productivity and efficiency of the steel
industry in India, driving down costs and enhancing the consistency and quality
of Hot Rolled and Cold Rolled Steel products. This trend will continue to
influence the Indian steel market, as manufacturers look for ways to remain
competitive in a rapidly evolving global industry.
Segmental Insights
Product Insights
The Hot Rolled Steel held the largest
market share in 2024. Hot Rolled Steel
dominates the India Hot Rolled & Cold Rolled Steel market due to several
key factors that make it more versatile, cost-effective, and suitable for
large-scale industrial applications.
First and foremost, Hot Rolled Steel is typically more
affordable to produce compared to Cold Rolled Steel. The production process
involves heating steel above its recrystallization temperature, making it
easier to shape into large sections and complex shapes, like beams, plates, and
coils. These characteristics make Hot Rolled Steel the preferred choice for a
variety of heavy-duty applications in industries such as construction,
infrastructure, and manufacturing, where the scale and strength of steel are paramount.
In India, infrastructure development plays a
significant role in driving demand for Hot Rolled Steel. Large-scale projects
such as roads, bridges, airports, and railways require materials that can
handle heavy loads and endure harsh environmental conditions, and Hot Rolled
Steel fits these needs perfectly. Additionally, India’s growing urbanization
and government-led initiatives like “Smart Cities” and the National
Infrastructure Pipeline (NIP) further fuel the demand for Hot Rolled Steel. Moreover,
Hot Rolled Steel’s ease of production at a lower cost enables manufacturers to
produce it in large quantities. This mass production contributes to its
widespread availability and adoption across various industries in India.
While Cold Rolled Steel has its advantages, such as
higher surface quality and precise thickness, it is more expensive and suited
for applications that require fine details and higher performance standards,
such as automotive parts and appliances. This makes Cold Rolled Steel a niche
product compared to the broader, more foundational uses of Hot Rolled Steel.
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Regional Insights
South India held the largest market
share in 2024. South India plays a dominant role in the India Hot Rolled and
Cold Rolled Steel market due to several key factors, including the region's
robust industrial infrastructure, proximity to raw materials, and established
steel manufacturing base.
South India is home to some of the
country’s largest steel production hubs, including well-established facilities
in states like Tamil Nadu, Andhra Pradesh, and Karnataka. Major steel companies
like Tata Steel, JSW Steel, and Vizag Steel operate extensive plants in this
region, contributing significantly to the production and supply of both Hot
Rolled and Cold Rolled Steel. These plants benefit from well-developed
industrial ecosystems, including power generation, logistics, and skilled
labor, which make it a prime location for steel manufacturing.
South India’s strategic location
provides easy access to essential raw materials for steel production, such as
iron ore, coal, and limestone. The region also has well-established mining
operations, particularly in Karnataka and Andhra Pradesh, which ensures a
steady supply of raw materials at competitive prices. This reduces logistical
costs and supply chain complexities, making the steel production process more
efficient and cost-effective.
With major ports like Chennai,
Visakhapatnam, and Kochi, South India has easy access to international markets,
allowing steel manufacturers to efficiently export both Hot Rolled and Cold
Rolled Steel to global customers. This export potential has encouraged steel
producers to increase production capacities to meet both domestic and
international demand.
South India has also benefited from
favorable government policies and investments aimed at developing its
manufacturing and industrial sectors. Initiatives like the “Make in India”
program, alongside state-specific incentives for industrial growth, have made
the region an attractive hub for steel production and investment.
Recent Developments
- In February 2024, the JSW Group announced plans to
build a steel plant in Jagatsinghpur, Odisha, with an investment of USD 7.8
billion. The plant was set to have a production capacity of 13.2 million tons
of steel per year and was expected to create 30,000 jobs. In the same month, JSW Steel had planned to establish a joint venture with Japan's JFE Steel Corporation in a 50:50 partnership, investing USD 661.9 million to set up a plant in Karnataka.
- In November 2023, IIndia’s steel capacity had crossed 161 million tonnes
(MT), and the industry was poised for continuous growth.
- In October 2023, the Government e-Marketplace, the
national public procurement platform, had signed a memorandum of understanding
(MOU) with the Indian Steel Association (ISA). This partnership aimed to bring
all ISA members onto the GeM platform as sellers, promoting a more diverse
business environment, regardless of their size.
Key Market Players
- ArcelorMittal
Nippon Steel India Limited
- Tata
Steel Limited
- JSW
Group
- Steel
Authority of India Limited (SAIL)
- Indian
Steel Corporation Limited
- Jindal
Steel & Power Limited
- Rashtriya
Ispat Nigam Limited
|
By Product
|
By Form
|
By Application
|
By Region
|
- Hot Rolled Steel
- Cold Rolled Steel
|
- Steel Plate
- Steel Coil
- Flat
- Others
|
- Automotive
- Construction
- Steel Pipe
- Shipping
- Machinery &
Equipment
- Industrial
- Others
|
- South India
- North India
- West India
- East India
|
Report Scope:
In this report, the India Hot
Rolled & Cold Rolled Steel Market has been segmented into the following categories,
in addition to the industry trends which have also been detailed below:
- India
Hot
Rolled & Cold Rolled Steel Market, By Product:
o Hot Rolled Steel
o Cold Rolled Steel
- India
Hot
Rolled & Cold Rolled Steel Market, By Form:
o Steel Plate
o Steel Coil
o Flat
o Others
- India
Hot Rolled & Cold Rolled Steel Market, By Application:
o Automotive
o Construction
o Steel Pipe
o Shipping
o Machinery & Equipment
o Industrial
o Others
- India
Hot Rolled & Cold Rolled Steel Market, By Region:
o South India
o North India
o West India
o East India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the India Hot Rolled & Cold Rolled Steel Market.
Available Customizations:
India Hot Rolled & Cold Rolled Steel Market report
with the given market data, TechSci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and profiling
of additional market players (up to five).
India Hot Rolled & Cold Rolled Steel Market is an
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