India is witnessing a dynamic shift in various sectors, driving a surge in demand for stainless steel. Let’s look at the emerging markets that will prove instrumental for the growth of stainless steel in India.
Stainless steel, a versatile material, known for its durability and resistance to corrosion, is increasingly becoming indispensable across several emerging markets in the country.
Growth in renewable energy projects
The renewable energy sector in India is experiencing rapid expansion, with significant investments pouring into solar and wind energy projects. Stainless steel plays a critical role in these developments due to its ability to withstand harsh environmental conditions. Solar panels, wind turbine components and supporting infrastructure all benefit from the corrosion resistance and strength of stainless steel. As India aims to achieve its ambitious renewable energy targets, the demand for stainless steel in this sector is poised for substantial growth.
As per a report by Mordor Intelligence, the Indian renewable energy market is expected to register a CAGR of more than 10 per cent during the forecast period.
In the long run, the market is expected to be driven by things like government policies that help, growing concern about the environment, incentives, and tax breaks for installing solar panels.
On the other hand, the lack of grid infrastructure in rural areas is likely to hinder market growth during the forecast period.
Nevertheless, the Ministry of New and Renewable Energy (MNRE) set a target to achieve 500 GW of installed renewable energy capacity by 2030, which is expected to create a growth opportunity for the market in the future.
Expanding healthcare sector
India’s healthcare sector is undergoing a transformation, marked by the establishment of new hospitals, clinics and advanced medical facilities. Stainless steel is essential in this industry, used extensively in medical equipment, surgical instruments and hospital infrastructure due to its hygienic properties and resistance to rust. The expansion of healthcare facilities and the adoption of cutting-edge medical technology are driving increased demand for stainless steel, reinforcing its role as a key material in promoting health and well-being.
According to a report by India Brand Equity Foundation (IBEF), “The Indian Healthcare industry continued its healthy growth in 2023 and reached a value of US$ 372 billion driven by both the private sector and the government. Between April 2000-March 2024, the FDI inflow for the drugs and pharmaceuticals sector stood at US$ 22.57 billion. The hospital industry in India is forecast to increase to Rs. 8.6 lakh crore (US$ 132.84 billion) by FY22 from Rs. 4 lakh crore (US$ 61.79 billion) in FY17 at a CAGR of 16–17 per cent.”
Boom in urban infrastructure
Urban infrastructure in India is booming, driven by government initiatives and increased investment in smart cities and infrastructure projects. Stainless steel is pivotal in construction, used in architectural elements, bridges and high-rise buildings due to its aesthetic appeal and durability. The ongoing urbanisation and infrastructure development are creating a robust demand for stainless steel, supporting the creation of modern, sustainable cities.
“The India Infrastructure Sector Market size is estimated at USD 204.06 billion in 2024, and is expected to reach USD 322.27 billion by 2029, growing at a CAGR of 9.57 per cent during the forecast period (2024-2029),” as per a study by Markets and Research.
Advancements in food processing industry
The food processing industry in India is evolving, with advancements in technology and increasing consumer demand for processed foods. Stainless steel is critical in this sector, used in machinery, storage tanks and food-grade equipment due to its non-reactive and easy-to-clean properties. As the industry grows and modernises, the need for stainless steel in food processing applications continues to rise, ensuring the safe and efficient production of high-quality food products.
A Markets and Research report states that the India food processing market size reached INR 28,027.5 billion in 2023 and is projected to reach INR 61,327.5 billion by 2032, exhibiting a growth rate (CAGR) of 9.1 per cent during 2023-2032.
Rising demand in water treatment plants
Water treatment is a crucial focus area for India, given the need to address water scarcity and improve water quality. Stainless steel is widely used in water treatment plants for pipes, tanks, and filtration systems due to its resistance to corrosion and ability to handle high-pressure conditions. With increasing investments in water infrastructure and the push for cleaner water solutions, the demand for stainless steel in water treatment applications is expected to grow substantially.
In a report, Data Bridge Market Research has analysed that the water treatment market which was US$ 2,789.10 million in 2022, would rocket up to US$ 5,598.38 million by 2030, and is expected to undergo a CAGR of 9.10 per cent during the forecast period of 2023 to 2030.
In conclusion, India’s emerging markets—ranging from renewable energy and healthcare to urban infrastructure, food processing, and water treatment—are driving a significant increase in the demand for stainless steel. As these sectors continue to expand and evolve, stainless steel will remain a crucial material, supporting India’s progress and development across various fronts.
