Iron & Steel Manufacturing in Germany - Market Research Report (2014-2029)
Frankfurt, Germany
Last Updated: February 2024
WZ C24.10DERevenue
€50.6bn
Past 5-Year Growth
Profit
€XXX.Xm
Employees
73,880
Businesses
73
Wages
€X.Xbn
Iron & Steel Manufacturing in Germany industry analysis
As a basic sector, the production of pig iron, steel and ferroalloys is of particular importance in the value chains of German industrial companies. Steel is a versatile material that is processed in various stages and used to manufacture products in a wide range of industries. The numerous innovations in this sector and its close links with other industrial sectors contribute to the success of the automotive industry and mechanical engineering, for example. Since 2019, industry turnover has risen by an average of 3.8% per year to €50.6 billion, which is due in particular to the sharp rise in the price of steel over the last five years.
The industry has faced various challenges over the last five years. These included the volatility of the steel price and the negative economic impact of the coronavirus pandemic, as well as the increase in trade tensions, which made export trade more difficult. In addition, the outbreak of the war in Ukraine in February 2022 led to a sharp rise in electricity and gas prices, which had a negative impact on this energy-intensive industry. This prompted steel producers to take cost-cutting measures and pass on cost increases to customers, while some industry players cut back on production. Industry turnover is expected to fall by 5.7% in 2024. This is primarily due to the European Central Bank's high key interest rate, which is dampening demand for steel products in the construction industry. In addition, the price of steel is expected to fall in 2024, which should also have a negative impact on industry turnover.
In the next five years, industry turnover is expected to fall by an average of 2.3% and reach €45.1 billion in 2029. The trend towards lightweight construction in industries such as automotive and aerospace means that metals such as aluminium and other materials are increasingly being used in products instead of steel. This trend is likely to continue in the future and have a negative impact on the development of the industry. In addition, increasingly stringent environmental regulations are forcing industry players to invest heavily in modernising their machinery and equipment in order to reduce their CO2 emissions. Many companies in the sector cannot afford this financially, which is why market exits and consolidations are to be expected in the next five years.
Trends and Insights
- A secure and favourably priced supply of raw materials is of central importance for steel producers. They are therefore completely dependent on imports for almost all raw materials.
- Customers of bar steel include the construction industry, but also mechanical engineering. The turnover generated with bar steel has decreased over the last five years.
- The Süd region has the largest proportion of companies in the sector. This is due to historical reasons, as there are extensive iron ore deposits in the Swabian Ostalb, the Franconian Alb and the Upper Palatinate Forest.
- The intensity of competition in the industry is increasing. Although global demand for steel has increased overall in recent years, German steel producers have hardly been able to benefit from this development due to the market expansion of Asian steel producers.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 3.8 % over the past five years, to reach an estimated €50.6bn in 2024.
Trends and Insights
Demand for steel is suffering from the slowdown in the construction sector
- The order situation for steel producers is significantly influenced by the development of downstream industries. In the course of urbanisation, many people are moving to large cities, which contributed to a construction boom between 2018 and 2020.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
The focus on innovation ensures the international competitiveness of industry players
- The German steel industry is known for its technological expertise and innovative strength. It invests extensively in research and development in order to develop new steel products and processes that meet the increasing demands for sustainability, environmental protection and energy efficiency. For example, research is being carried out into advanced production processes such as the use of hydrogen as a reducing agent in order to reduce CO2 emissions.
Biggest companies in the Iron & Steel Manufacturing in Germany
| Company | Market Share (%)
2024 | Revenue (€m)
2024 |
|---|---|---|
Thyssenkrupp Steel Europe AG | 10,927.0 | |
ArcelorMittal S. A. (Deutschland) | 6,539.0 | |
Salzgitter AG | 5,467.0 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Flat products, Bar steel and Iron and steel blocks. Flat products is the largest segment of the Iron & Steel Manufacturing in Germany.
Trends and Insights
Flat products are widely used in the automotive industry, although the share of sales has declined since 2019
- The flat products segment includes sheet metal, wide flat steel and strip.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Aluminium Production in Germany
- Copper Production in Germany
Complementors
- Steel Tube, Pipe & Related Fitting Manufacturing in Germany
- Basic Steel Processing in Germany
- Metal & Metal Powder Processing in Germany
International industries
- Iron & Steel Manufacturing in the US
- Iron & Steel Manufacturing in Canada
- Iron Smelting and Steel Manufacturing in Australia
- Iron & Steel Manufacturing in the UK
- Iron and Steel Smelting in China
Table of Contents
About this industry
Industry definition
Difficult framework conditions: The expected decline in the price of steel and weak demand from the construction industry are likely to have a negative impact on industry sales in 2024
What's included in this industry?
Flat productsBar steelIron and steel blocksCompanies
Thyssenkrupp Steel Europe AGArcelorMittal S. A. (Deutschland)Salzgitter AGPurchase this report to view all 6 major companies in this industry.
Related Terms
BRAMMEELECTRIC STEELKOKSKOHLECORROSIONALLOYINGLIGHTBOW OVENMIRROR TRAVELIndustry Code
WZ 24.10 - Iron & Steel Manufacturing in Germany
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
A secure and favourably priced supply of raw materials is of central importance for steel producers. They are therefore completely dependent on imports for almost all raw mat...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Customers of bar steel include the construction industry, but also mechanical engineering. The turnover generated with bar steel has decreased over the last five years.
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The Süd region has the largest proportion of companies in the sector. This is due to historical reasons, as there are extensive iron ore deposits in the Swabian Ostalb, the F...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The intensity of competition in the industry is increasing. Although global demand for steel has increased overall in recent years, German steel producers have hardly been ab...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
ThyssenKrupp Steel Europe aims to achieve CO2-neutral production by 2050. To this end, the company is involved in various hydrogen projects and is working closely with partne...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Thyssenkrupp Steel Europe AG's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of ArcelorMittal S. A. (Deutschland)'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Salzgitter AG's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for Thyssenkrupp Steel Europe AG, and factors influencing its performance in the industry
- Description and key data for ArcelorMittal S. A. (Deutschland), and factors influencing its performance in the industry
- Description and key data for Salzgitter AG, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The German government is committed to the interests of the industry at an international level. For example, it supports free trade agreements that facilitate international tr...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The industry's profit margin is heavily influenced by the price development of important raw materials. An increase in these prices has a negative impact on the profit margin...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Germany include:
- German Federal Statistics Office (Destatis)
- European Statistics Office (Eurostat)
- United Nations Comtrade
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Iron & Steel Manufacturing industry in Germany in 2024?
The market size of the Iron & Steel Manufacturing industry in Germany is €50.6bn in 2024.
How many businesses are there in the Iron & Steel Manufacturing in Germany industry in 2024?
There are 73 businesses in the Iron & Steel Manufacturing industry in Germany, which has grown at a CAGR of 1.1 % between 2019 and 2024.
Has the Iron & Steel Manufacturing industry in Germany grown or declined over the past 5 years?
The market size of the Iron & Steel Manufacturing industry in Germany has been growing at a CAGR of 3.8 % between 2019 and 2024.
What is the forecast growth of the Iron & Steel Manufacturing industry in Germany over the next 5 years?
Over the next five years, the Iron & Steel Manufacturing industry in Germany is expected to decline.
What are the biggest companies in the Iron & Steel Manufacturing market in Germany?
The biggest companies operating in the Iron & Steel Manufacturing market in Germany are Thyssenkrupp Steel Europe AG, ArcelorMittal S. A. (Deutschland) and Salzgitter AG
What does the Iron & Steel Manufacturing in Germany include?
Flat products and Bar steel are part of the Iron & Steel Manufacturing industry.
Which companies have the highest market share in the Iron & Steel Manufacturing in Germany?
The company holding the most market share in Germany is Thyssenkrupp Steel Europe AG.
How competitive is the Iron & Steel Manufacturing industry in Germany?
The level of competition is high and increasing in the Iron & Steel Manufacturing industry in Germany.
