Alloy steel is the backbone of hundreds, if not thousands, of industrial processes and is essential across industries, from manufacturing to aerospace and defense. As with many materials, the steel alloy sector has faced ebbs and flows in popularity throughout its lifetime. But where does it stand in 2025?
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Alloy Steel
Stripped back to its fundamentals, steel is an alloy composed of iron and carbon. Alloy steel, however, is distinguished by the addition of other materials like chromium, nickel, and tungsten, which alter the physicochemical properties. These minor alterations impart useful characteristics suited for the alloy steel’s intended application. The percentage of these additions can range from one to almost 50 % in some circumstances, with elemental composition depending on the desired material outcome of the alloy.1
Types of Alloy Steel
There are many different grades and types of steel alloys available worldwide. However, depending on the composition, alloy steel groups can be easily classified. A major type is known as the low-alloy steel, which comprises carbon and alloying elements whose concentration is limited to a maximum of 5.0 wt.%. These low-alloy steels are much harder than structural carbon steels and outperform conventional steel when it comes to strength and toughness.2
A special and extensively used subgroup is micro-alloyed high-strength, low-alloy (HSLA) steel, which is used excessively as structural members in various industries. These materials contain the alloying elements in very minute concentrations, usually up to 0.1 %, with yield strength significantly higher than that of conventional mild steels, often reaching 350-700 MPa depending on the grade.3
With an alloying element concentration generally exceeding 5 % by weight, high-alloy steels are generally developed by applying appropriate heat treatment techniques, which imparts them high strength, durability, and resistance against harsh conditions. When high alloy steel is prepared by the addition of chromium in excess of 10.5 %, a special type of alloy steel called stainless steel is formed, which is extensively used for a variety of industrial and domestic applications.4
A Brief Look at the Vast Applications of Alloy Steel
Alloy steel is at the forefront of many industrial processes. Its various types and grades are used to manufacture mechanical components, industrial machinery, and structural elements.
HSLA and stainless steels are often found in castings, steam turbines, oil and gas pipelines, offshore structures, and automotive and rail components. Standards like ASTM A217/A217M guide their use in high-temperature applications.5
High alloy steels are also used for fasteners, machining tools, and wear-resistant equipment such as rock crushers and power shovels, particularly when alloyed with manganese. In aerospace, advanced high-strength alloy steels are essential for propulsion systems and structural parts like wing spars and ribs.7
An Overview of Alloy Steel Global Market
Since COVID-19, supply chain and logistics issues have been a constant threat to every industry, including the alloy steel industry. Despite the issues, The Business Research Company estimated the alloy steel market size at around 148.14 billion USD in 2024, with forecasts suggesting it could reach approximately 166.6 billion USD by 2029, growing at a compound annual growth rate of 2.6 %.10
This steady growth is projected for various reasons, such as its extensive use in aerospace and automobile components, as well as high-temperature sensitive parts. While Asia-Pacific remains the largest market, North America is currently the fastest-growing region.10
In Latin America and the Caribbean, it is reported that approximately 396 K tons of stainless alloy steel were consumed by industries, with a valuation of around 876 million USD. Chile was the largest exporter, while Mexico imported the highest concentration of alloy steel by volume. Market analysis projects the market will reach 1.3 billion U.S. Dollars by 2035, with low alloy steel products dominating imports.11
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Scientific Developments in the Field
As the alloy steel sector grows, so too do R&D advances. The examples below are just two of the ways steel alloys are being developed to further the field:
Novel High-Alloy Nitrogen-Based Stainless Steel by Replacing Expensive Nickel
Traditionally, stainless alloy steel is prepared using nickel, which is highly expensive. Published in The Journal of Constructional Steel Research, a study aimed to counter this high cost by developing a new stainless steel, S35657. Instead of nickel, the researchers used nitrogen to produce the sought-after material.
Tensile testing revealed that the novel grade S35657 exhibited higher strength than traditional stainless steel S30408, making it a good choice for structural parts.
Post-fire behavior of the S35657 was tested at up to 1200 °C with the material strengthened with cold-forming treatment. The thermomechanical attributes of the S35657 were vastly improved, with no significant deterioration until the temperature was raised beyond 850 °C.
The research team analyzed 1269 test data samples to determine the partial resistance factor of the stainless steel to be around 1.15. They found that the novel nitrogen-based stainless steel S35657 is much superior to the traditional steel alloy, with much lower production and manufacturing costs.8
AI for Improving the Prediction of Wear Resistance of Alloy Steel
It is very difficult to analyze the microstructure of chromium and vanadium-based wear-resistant alloy steels and their corresponding physical properties. To circumvent the typical complexities in microstructure analysis, researchers have developed a data-driven Machine Learning (ML) approach.
Published in Materials Communications Today, the study evaluated several data-driven AI-based approaches to find the best method for microstructural analysis. Models assessed included Support Vector Regression, Random Forest, and Kernal Ridge Regression.
They found the Support Vector Regression (SVR) model outperformed the Random Forest (RF) and Kernal Ridge Regression (KRR) by a Root Mean Squared Value of 0.866. Tests of the SVR model returned accurate predictions of wear resistance, which were subsequently confirmed in the lab. This correlation suggests such a model could accelerate steel production by refining evaluation processes.9
Challenges and Opportunities in the U.S. Market
With the new wave of tariffs being implemented by the U.S. government, market analysts are concerned about the future impact on the alloy steel industry.
In 2018, about a 25 % additional tariff was implemented on steel imports under Section 232 of the Trade Expansion Act, and experts expect a new round of tariffs to further damage the alloy steel market. In addition, uncertainties around the future of U.S. steel, including merger and acquisition activity since 2023, have shaken investor confidence in the U.S. steel sector.
When it comes to green and sustainable steel production, the United States is lagging behind as Asian and European governments are giving healthy benefits, subsidies, and premiums to companies investing in low-carbon and low-emission alloy steels. In this regard, experts suggest governments should provide benefits to companies investing in steel production with lower environmental footprints.12
The alloy steel market is projected to grow steadily through 2030 in spite of such limitations, driven by demand in aerospace, automotives, and infrastructure. With its resistance to temperature and wear, and its adaptability, the alloy steel sector won't go out of fashion any time soon.
Further Reading
- Material Properties. (2023). What is Alloy Steel – Definition. [Online]. Available at: https://material-properties.org/what-is-alloy-steel-definition/ [Accessed on: October 01, 2025].
- Hanza, S. et. al. (2021). Artificial Neural Networks-Based Prediction of Hardness of Low-Alloy Steels Using Specific Jominy Distance. Metals. 11(5). 714. Available at: https://doi.org/10.3390/met11050714
- Skobir, D. (2011). High-Strength Low-Alloy (HSLA) Steels. Materiali in tehnologije. 45(4). 295-301. ISSN 1580-2949. Available at: https://www.academia.edu/download/51713561/skobir.pdf
- Bahadori, A. et. al. (2017). Chapter 15 - Corrosion in Pipelines and Piping Systems, In Oil and Gas Pipelines and Piping Systems Design, Construction, Management, and Inspection. 395 - 481. Available at: https://doi.org/10.1016/B978-0-12-803777-5.00015-0
- Advancing Standards Transforming Markets, ASTM International (2021). ASTM A356/A356M-21 Standard Specification for Steel Castings, Carbon, Low Alloy, and Stainless Steel, Heavy-Walled for Steam Turbines. [Online]. Available at: https://store.astm.org/a0356_a0356m-21.html [Accessed on: October 03, 2025].
- Nutting, J. Wondris, E. et. al. & The Editors of Encyclopedia Britannica (2025). Steel: Metallurgy. [Online]. Available at: https://www.britannica.com/technology/steel/Shape-and-surface [Accessed on: October 03, 2025].
- McClements, D. (2025). Alloy Steel: Types, Components, and Uses. Metal & Metal Products. [Online]. Available at: https://www.thomasnet.com/articles/metals-metal-products/alloy-steel/ [Accessed on: October 03, 2025].
- Yu, X. et. al. (2025). Post-fire and cold-formed properties of a novel high nitrogen stainless steel S35657. Journal of Constructional Steel Research. 227. 109305. Available at: https://doi.org/10.1016/j.jcsr.2024.109305
- Tong, S. et. al. (2024). Predicting wear resistance of high-carbon Cr-V alloy steel based on machine learning. Materials Today Communication. 40. 110231. Available at: https://doi.org/10.1016/j.mtcomm.2024.110231
- The Business Research Company. (2025). Alloy Steel Global Market Report 2025. [Online]. Available at: https://www.thebusinessresearchcompany.com/report/alloy-steel-global-market-report [Accessed on: October 04, 2025].
- IndexBox (2025). Latin America and the Caribbean - Angles, Shapes and Sections of Stainless Steel or Other Alloy Steel - Market Analysis, Forecast, Size, Trends, and Insights. [Online]. Available at: https://www.indexbox.io/blog/stainless-steel-angle-latin-america-and-the-caribbean-market-overview-2024-3/ [Accessed on: October 05, 2025].
- Bolotova, J. et. al. (2025). 10 key themes for steel and ferro-alloys in 2025: challenges and opportunities | 2025 preview. FastMarkets. [Online]. Available at: https://www.fastmarkets.com/insights/10-key-themes-steel-ferro-alloys-in-2025/ [Accessed on: October 04, 2025].
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