India is one of the largest steel producers in the world and the steel fabrication market is an important component of the country’s infrastructure and manufacturing sector.
Steel fabrication involves the process of cutting, bending, and shaping steel to create finished products such as pipes, beams, plates, and girders. These products are used in a variety of industries such as construction, automotive, aerospace, and defense.
Growth Area
In recent years, the Indian steel fabrication market has seen significant growth due to increasing infrastructure and construction projects, urbanization, and industrialization. According to Ben and Gaws Legal, the Indian steel fabrication market is anticipated to grow at a compound annual growth rate (CAGR) of 6.12% between 2018 and 2023, with a market size of US$ 13.24 billion in 2023.
The growth of the Indian steel fabrication market could be attributed to various factors, including:
According to Ben and Gaws Legal, India is undergoing rapid urbanization and industrialization, leading to the construction of new infrastructure projects such as airports, highways, and bridges. The demand for steel fabrication products such as structural steel, pipes, and girders is increasing due to their high strength and durability, making them ideal for these projects.
Automotive and Aerospace Industry:
India is becoming a hub for the automotive and aerospace industries. Steel fabrication products are extensively used in the manufacturing of automobile and aerospace parts due to their high strength-to-weight ratio and resistance to corrosion. The growing demand for these industries, in turn, drives the demand for steel fabrication products.
Government Initiatives:
The Indian government is taking diverse initiatives to boost the manufacturing and infrastructure sectors, such as the Make in India initiative, which aims to promote the manufacturing sector in India. The government is also investing in infrastructure projects such as the National Highways Development Project and the Sagarmala project, which is anticipated to boost the demand for steel fabrication products.
Increasing Investments:
India is attracting significant investments in various sectors, including infrastructure, manufacturing, and automotive. The growing investments are leading to the expansion of the existing industries and the establishment of new ones, driving the demand for steel fabrication products.
North India is the largest market for steel fabrication products in India owing to the presence of major infrastructure and construction projects in the region, such as the Delhi-Mumbai Industrial Corridor (DMIC) and the Eastern Dedicated Freight Corridor (EDFC). The demand for steel fabrication products in North India is also driven by the presence of major automobile and aerospace industries in the region.
South India is another significant market for steel fabrication products in India, chiefly due to the presence of major manufacturing industries in the region. The region has a significant presence of automobile and aerospace industries, which is driving the demand for steel fabrication products.
East India is a growing market for steel fabrication products in India, principally due to the increasing investments in infrastructure and manufacturing sectors in the region. The government’s focus on developing the eastern states of India under the Act East Policy is driving the demand for steel fabrication products in the region.
West India is another significant market for steel fabrication products in India, principally due to the presence of major manufacturing and infrastructure projects in the region. The region has a significant presence of the oil and gas industry, which is driving the demand for steel fabrication products such as pipelines and pressure vessels.
According to Ben & Gaws Legal says, the Indian steel fabrication market is highly fragmented, with several small and medium-sized players operating in the market. The market is dominated by local players due to the high transportation costs and the need for customization of steel fabrication products based on customer requirements. But, large international players such as Tata Steel, JSW Steel, and ArcelorMittal have a significant presence in the market.
The Indian steel fabrication market is highly competitive, and players in the market are focusing on product innovation and customization to differentiate themselves from competitors. The adoption of advanced technologies such as automation, robotics, and artificial intelligence is also becoming widespread in the market, leading to increased efficiency and productivity.
