Alloy Steel Market Report 2026

The alloy steel market size has grown steadily in recent years. It will grow from $156.64 billion in 2025 to $160.7 billion in 2026 at a compound annual growth rate (CAGR) of 2.6%. The growth in the historic period can be attributed to growth in construction and infrastructure development, rising automotive manufacturing volumes, increased demand from mining and heavy industries, long-standing use of alloy steel in machinery and tools, availability of alloying elements and steelmaking capacity.

The alloy steel market size is expected to see steady growth in the next few years. It will grow to $180.62 billion in 2030 at a compound annual growth rate (CAGR) of 3%. The growth in the forecast period can be attributed to rising demand for energy and power infrastructure, increasing adoption of electric and hybrid vehicles, growth in aerospace and defense manufacturing, expansion of renewable energy projects, advancements in steel processing and alloying technologies. Major trends in the forecast period include increasing demand for high-strength and durable steel grades, growing use of customized alloy compositions for specific applications, rising adoption of alloy steel in heavy-duty industrial equipment, expansion of alloy steel usage in automotive lightweighting, increasing focus on wear resistance and extended service life.

The increasing demand for electric vehicles is projected to drive the growth of the alloy steel market in the coming years. This rising demand is primarily attributed to the environmental benefits of electric vehicles, their role in sustainable transportation, lower fuel costs, reduced noise pollution, and the availability of smart charging solutions. Alloy steel plays a vital role in electric vehicles by offering superior strength, durability, and lightweight characteristics, which enhance overall performance, efficiency, and safety, catering to the advanced requirements of modern EV designs. For example, a report from the U.S. Energy Information Administration (EIA) published in January 2024 indicated that combined sales of hybrid vehicles, plug-in hybrids, and battery electric vehicles (BEVs) represented 16.3% of total new light-duty vehicle (LDV) sales in the United States in 2023, a rise from 12.9% in 2022. Consequently, the growing demand for electric vehicles is stimulating the alloy steel market.

Key companies in the alloy steel market are concentrating on developing innovative products, such as high-strength alloy steel grades, to enhance durability, improve performance under extreme conditions, and meet the escalating industry demand. These high-strength alloy steel grades are specifically engineered to deliver exceptional tensile strength and toughness, making them suitable for the aerospace industry’s rigorous requirements. For instance, in August 2023, Jindal Stainless Ltd., an Indian company, created a specialized high-strength alloy steel grade. This grade, developed over three years using advanced refining processes, was supplied to the Indian Space Research Organization (ISRO) and typically sourced from various countries. The heat-resistant material provides protection for motors against shocks and high temperatures, showcasing the alloy steel grade’s reliability and suitability for critical space missions, even under extreme thermal conditions.

In October 2023, Shyam Metalics and Energy Ltd., an India-based steel company, acquired Mittal Corp. Limited for ₹351 crore ($4.3 million). This acquisition will allow Shyam Metalics to expand its product portfolio to include stainless steel and specialized products, thereby strengthening its presence in the industry. This move aligns with Shyam Metalics' growth strategy and its commitment to becoming a leading player in the Indian steel market. Mittal Corp. Limited is an Indian manufacturer of stainless steel products, including alloy steel.

Major companies operating in the alloy steel market report are ArcelorMittal SA, Pohang Iron and Steel Company, Nippon Steel Corporation, Thyssenkrupp AG, JFE Holdings Inc., Tata Steel Ltd, Hyundai Steel Co. Ltd, Voestalpine AG, SSAB AB, Sandvik AB, Steel Authority of India Limited, Allegheny Technologies Incorporated, Mukand Ltd, Kalyani Steels Ltd, Jindal Steel and Power Limited, Shyam Metalics & Energy Ltd, TimkenSteel Corporation, Carpenter Technology Corporation, Gerdau S.A., Baoshan Iron & Steel Co. Ltd, POSCO International Steel, NLMK Group.

Asia-Pacific was the largest region in the alloy steel market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the alloy steel market are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the alloy steel market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The alloy steel market consists of sales of spring steel, chromoly steel, maraging steel, and weathering steel. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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