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Global Automotive High Strength Steel Market - Forecast(2023 - 2028)
Overview
High Strength Steel Market size is forecast to reach around $47 billion by 2025, after growing at a CAGR of 8% during 2020-2025. High strength steel is a type of steel that provide better mechanical properties and greater resistance to corrosion than other carbon steels. The ability to undergo plastic deformation without being damaged and ease in weld ability are the major factors driving the growth of high strength steel market. Surging demand of high strength low alloy steel (HSLA) from automotive industry for manufacturing vehicle body frame is boosting the growth of market. The growth in building and construction sector in emerging nation is also driving the market growth. As high strength steel uses in building and construction activities offer varies benefits like ability to withstand shock and vibrations and has high impact strength. However, increasing environmental concerns due to the release of carbon dioxide during the production of high strength steel is restraining the growth of market.
Report Coverage
The report: “High Strength Steel Market – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the High Strength Steel Industry.
By Process: Hot Rolling, Cold Rolling, and Others
By Grade: 300 MPa, 460 MPa, 590MPa, 690MPa, and Others
By Type: Carbon-Manganese Steel, Bake-Hardenable Steel, High-Strength low Alloy Steels, Dual Phase, Transformation-Induced Plasticity, Complex Phase, Martensitic Steels, and Others
By End Use: Building & Construction (Residential Construction, Commercial Construction, Dams, Highways, Bridges, and Others), Automotive (Body Structure, Drive Train, Door and Panels, and Others), Aviation & Marine (Transmissions, Gear Components, Surface Hinges, and Others), Heavy Machinery, Energy & Power, and Others.
By Geography: North America, South America, Europe, APAC, and RoW
Key Takeaways
- The U.S. Commerce Department has imposed duties of up to 141% on Chinese structural steel and up to 31% on Mexican structural steel. Thus, trade war between the U.S and China has impacted the growth of high strength steel market.
- Government policies such as National Steel Policy 2017 (NSP 2017) is likely to aid the growth of high strength steel market.
- China has shown significant growth in the high strength steel market. According to International Trade Association (ITA), China exported 62.0 million metric tons of high strength steel which was about 15 percent of all steel exported globally in 2019.
Process- Segment Analysis
The hot rolling process holds the largest share of more than 50% in the high strength steel market in 2019. The hot rolling process is preferred over cold working as they require less energy and are cheaper. This rolling process takes place above the recrystallization temperature thus making the steel easier to bend and shape. Because hot rolled steel is allowed to cool at room temperature, it’s free from internal stresses that may arise from quenching or work-hardening processes. Besides, hot rolled steel is less suitable for precision applications owing to the need for the cold working process. In addition, precipitation hardening is used to increase the yield strength of high strength steel.
Grade- Segment Analysis
Based on the grade, 690 MPa is the fastest-growing segment with a CAGR of around 9.5% in the high strength steel market during the forecast period. High strength steel with the minimum yield strength of 690 MPa enables to save weight in the final structure. Furthermore, due to very low sulphur and phosphorus contents, 690 MPa grade has easy forming and weldability properties making is suitable for use in the automotive industry for the construction of machine frames, LPG vessel, penstocks, and offshore cranes, etc.
Type – Segment Analysis
High strength low alloy (HSLA) steel segment holds the largest share of more than 25% in the high strength steel market in 2019 owing to surging demand of high strength low alloy steel from automotive sector. High strength low alloy steel reduces the overall weight of vehicles which in turn increases the engine efficiency and reduces the greenhouse gas (GHG) emissions. Growing demand of electric and hybrid vehicles is escalating the use of high strength low alloy steel. According to International Energy Agency (IEA), global stock of electric passenger car increased by 63% and reached 5 million in 2018, which in turn boosted the growth of high strength steel market. Furthermore, department of heavy industries had launched Faster Adoption and Manufacturing of (Hybrid &) Electric vehicle (FAME India) scheme which further aids the growth of high strength steel market.
End-Use - Segment Analysis
Based on the end use, the building and construction segment holds the largest share of more than 30% in the high strength steel in 2019. High strength steels have greater strength to weight ratio and are resistant to corrosion and abrasion. Because of its ability to withstand extreme load without being deformed, they are extensively used in beams and columns to provide structural support to the buildings. Increasing construction activities around the world is augmenting the growth of market. Institution of Civil Engineers (ICE) forecasted that construction output will grow by 85% to $15.5 trillion worldwide by 2030, and three countries China, US and India will lead the way and account for 57% of all global growth.
COVID-19 proved to be a nightmare for the high strength steel market. The outbreak of coronavirus has disrupted the supply chain and postponed the deliveries of steel and other raw materials from yards, due to lockdown and shortages of staff. Industries are shuttered all around the world. Decrease in purchasing capital of people has a direct impact on the automotive, construction and aviation industries, which in turn lowered the demand of high strength steel and hampered the growth of market. According to the Society of India Automobile Manufacturers (SIAM), passenger vehicle sales declined by 51% to 143,014 units in March 2020 whereas the sales of commercial vehicles crashed 88% to 13,027 units.
Also International Air Transport Association (IATA) has estimated that global airline passenger revenue will drop by $314 billion in 2020, a 55% decline compared to 2019.
Geography - Segment Analysis
Asia Pacific dominated the high strength steel market with a share of more than 35% in 2019 followed by North America and Europe. The rapid industrial expansion and exponentially growing population is driving the growth of high steel market in APAC region. Additionally, surging construction activities in emerging country like China and India further boosts the growth of high strength steel market in APAC region. According to Indian Brand Equity Foundation (IBEF), India’s steel production capacity rose to 138 million tones in FY19 from 106.5 MT in 2018. The gross value added (GVA) by the construction sector increased from $183.5 billion in 2018-19 to $192 billion in 2019-20 in India. Additionally, rise in demand of electric vehicles has also fueled the growth of high strength steel market. According to the International Energy Agency, China’s electric vehicle demand rose by 6% in 2018 with approximately 45% of global electric cars accounting for 2.3 million.
Drivers – High Strength Steel Market
- Government policies and investments on infrastructures
Government’s focus on reforming and construction of infrastructures such as dams, highways and bridges are driving the growth of high strength steel market. For instance, the New Steel Policy 2017, which is an effort of Indian government to steer the steel industry to achieve 300MT of steel-making capacity by 2030 is likely to aid the growth of market. Moreover, the Smart City Mission and Indira Awaas Yojana which aims to bring the most innovative construction technologies to India through a competitive platform also boosts the high strength steel market. The budget allocated for the Smart Cities Mission in the Union Budget 2018-19 was US$ 29.2 Bn. In addition, British government’s ENABLE Build Programme launched in 2019, provide financial support to the smaller house builders so that they can contribute to the infrastructure development of the nation. Furthermore, the projects such as California High Speed Rail and Boston Harbor Dredging Project also contributes to the growth of high strength steel market.
- Growing demand from Aviation sector
High strength steels not only provide strength and durability to aircrafts but also reduces its overall weight which in turn increases the performance of engine. High strength steels are widely used for critical parts such as landing gear components, control surface hinges, and helicopter transmissions. According to National Investment Promotion & Facilitation Agency, India is the fastest-growing aviation market and is expected to cater to 520 million passengers by 2037. Expansion of aviation industries boosts the demand of high strength steel for component manufacturing. In 2019, Air Bus anticipated that air traffic will grow at 4.3% annually, requiring some 39,200 new passenger and dedicated freighter aircraft over the next 20 years, which may augment the growth of high strength steel market. Construction of Beijing Daxing International Airport which is the largest airport in China also augments the growth of high strength steel market.
Challenges – High Strength Steel Market
- High Carbon Dioxide Emissions and Volatility in prices of raw material
High amount of carbon dioxide is emitted during the production of high strength steel. The steel industry generates between 7% and 9% of direct emissions from the use of fossil fuel globally. Increasing global concerns due the harmful effect of carbon dioxide on ecosystem is restraining the growth of high strength steel market. According to World Steel Association, on an average 1.85 tons of CO2 were emitted for every ton of steel produced in 2018. Additionally, strong demand from China have driven iron ore prices which in turn hampered the growth of the market. For instance, in 2017, in China, the iron ore price for 62% Fe CFR grew at the beginning of the year and reached around $90/MT by mid-March. Besides, in March 2018, Supreme Court banned all the mining activities in Goa (India), involving iron ore extraction. Thus, ban of mining operations also affects the growth of high strength steel market.
Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the high strength steel market report. In 2019, the market of high strength steel has been consolidated by the top 10 companies accounting for xx% of the share. Major players in the high strength steel market industry outlook are, Voestalpine AG, POSCO Group, ArcelorMittal S.A., Nippon Steel Corporation (Japan), Tata Steel Ltd., Steel Authority of India Limited, United States Steel Corporation, Baosteel Group Corporation, Severstal JSC, ThyssenKrupp AG, JFE Steel Corporation, Nucor Corporation, and JSW Steel Ltd., among others.
Acquisitions/Technology Launches
- In November 2018, Tata Steel expanded Kalinganagar's crude steel capacity to 8mn tones/year from 3mn tones/year in late-2018. This addition in the capacity of the plant enhanced the steel production of the company.
- In August 2016, AK Steel Corporation has launched Nexmet 440EX high-strength steel, which provides improved ductility, strength, and formability for automotive application. Nexmet 440EX is engineered for automotive light-weighting in all types of structural and exterior parts.
1. High Strength Steel Market- Market Overview
1.1 Definitions and Scope
2. High Strength Steel Market- Executive Summary
2.1 Market Revenue, Market Size and Key Trends by Company
2.2 Key Trends by Process
2.3 Key Trends by Grade
2.4 Key Trends by Type
2.5 Key Trends by End Use
2.6 Key Trends by Geography
3. High Strength Steel Market- Landscape
3.1 Comparative analysis
3.1.1 Market Share Analysis- Top Companies
3.1.2 Product Benchmarking- Top Companies
3.1.3 Top 5 Financials Analysis
3.1.4 Patent Analysis- Top Companies
3.1.5 Pricing Analysis
4. High Strength Steel Market - Startup companies Scenario Premium Premium
4.1 Top startup company Analysis by
4.1.1 Investment
4.1.2 Revenue
4.1.3 Market Shares
4.1.4 Market Size and Application Analysis
4.1.5 Venture Capital and Funding Scenario
5. High Strength Steel Market– Industry Market Entry Scenario Premium Premium
5.1 Regulatory Framework Overview
5.2 New Business and Ease of Doing business index
5.3 Case studies of successful ventures
5.4 Customer Analysis - Top companies
6. High Strength Steel Market- Market Forces
6.1 Market Drivers
6.2 Market Constraints
6.3 Market Opportunities
6.4 Porters five force model
6.4.1 Bargaining power of suppliers
6.4.2 Bargaining powers of customers
6.4.3 Threat of new entrants
6.4.4 Rivalry among existing players
6.4.5 Threat of substitutes
7. High Strength Steel Market -Strategic analysis
7.1 Value chain analysis
7.2 Opportunities analysis
7.3 Market life cycle
7.4 Suppliers and distributors Analysis
8. High Strength Steel Market– By Process (Market Size -$Million)
8.1 Hot Rolling
8.2 Cold Rolling
8.3 Others
9. High Strength Steel Market– By Grade (Market Size -$Million)
9.1 300 MPa
9.2 460 MPa
9.3 590 MPa
9.4 690 MPa
9.5 Others
10. High Strength Steel Market– By Type (Market Size -$Million)
10.1 Carbon-Manganese Steel,
10.2 Bake-Hardenable Steel
10.3 High-Strength low Alloy Steels
10.4 Dual Phase
10.5 Transformation-Induced Plasticity
10.6 Complex Phase
10.7 Martensitic Steels
10.8 Others
11. High Strength Steel Market– By End Use (Market Size -$Million)
11.1 Building & Construction
11.1.1 Residential Construction
11.1.2 Commercial Construction
11.1.3 Dams
11.1.4 Highways
11.1.5 Bridges
11.1.6 Others
11.2 Automotive
11.2.1 Body Structure
11.2.2 Drive Train
11.2.3 Door and Panels
11.2.4 Others
11.3 Aviation & Marine
11.3.1 Transmissions
11.3.2 Gear Components
11.3.3 Surface Hinges
11.3.4 Others
11.4 Heavy Machinery
11.5 Energy & Power
11.6 Others.
12. High Strength Steel Market - By Geography (Market Size -$Million)
12.1 North America
12.1.1 U.S.
12.1.2 Canada
12.1.3 Mexico
12.2 South America
12.2.1 Brazil
12.2.2 Argentina
12.2.3 Colombia
12.2.4 Chile
12.2.5 Rest of South America
12.3 Europe
12.3.1 U.K
12.3.2 Germany
12.3.3 Italy
12.3.4 France
12.3.5 Russia
12.3.6 Netherland
12.3.7 Belgium
12.3.8 Spain
12.3.9 Rest of Europe
12.4 Asia Pacific
12.4.1 China
12.4.2 India
12.4.3 Japan
12.4.4 South Korea
12.4.5 Australia & New Zealand
12.4.6 Rest of Asia Pacific
12.5 RoW
12.5.1 Middle East
12.5.1.1 Saudi Arabia
12.5.1.2 UAE
12.5.1.3 Israel
12.5.1.4 Rest of Middle East
12.5.2 Africa
12.5.2.1 South Africa
12.5.2.2 Nigeria
12.5.2.3 Rest of Africa
13. High Strength Steel Market- Entropy
13.1 New Product Launches
13.2 M&A’s, Collaborations, JVs and Partnerships
14. High Strength Steel Market Share Analysis Premium
14.1 Market Share by Country- Top companies
14.2 Market Share by Region- Top companies
14.3 Market Share by type of Product / Product category- Top companies
14.4 Market Share at global level- Top companies
14.5 Best Practices for companies
15. High Strength Steel Market- List of Key Companies by Country Premium
16. High Strength Steel Market Company Analysis
16.1 Market Share, Company Revenue, Products, M&A, Developments
16.2 Company 1
16.3 Company 2
16.4 Company 3
16.5 Company 4
16.6 Company 5
16.7 Company 6
16.8 Company 7
16.9 Company 8
16.10 Company 9
16.11 Company 10 and more
"*Financials would be provided on a best efforts basis for private companies"
LIST OF TABLES
1.Global Market Segmentation by Type Market 2019-2024 ($M)1.1 Conventional HSS Market, Market 2019-2024 ($M) - Global Industry Research
1.2 AHSS Market, Market 2019-2024 ($M) - Global Industry Research
2.Global Major Vendors Market 2019-2024 ($M)
2.1 Arcelor Mittal Market 2019-2024 ($M) - Global Industry Research
2.2 SSAB Market 2019-2024 ($M) - Global Industry Research
2.3 POSCO Market 2019-2024 ($M) - Global Industry Research
2.4 Steel Corporation Market 2019-2024 ($M) - Global Industry Research
2.5 Voestalpine Market 2019-2024 ($M) - Global Industry Research
2.6 ThyssenKrupp Market 2019-2024 ($M) - Global Industry Research
2.7 Baowu Group Market 2019-2024 ($M) - Global Industry Research
2.8 Ansteel Market 2019-2024 ($M) - Global Industry Research
3.Global Market Segmentation by Type Market 2019-2024 (Volume/Units)
3.1 Conventional HSS Market, Market 2019-2024 (Volume/Units) - Global Industry Research
3.2 AHSS Market, Market 2019-2024 (Volume/Units) - Global Industry Research
4.Global Major Vendors Market 2019-2024 (Volume/Units)
4.1 Arcelor Mittal Market 2019-2024 (Volume/Units) - Global Industry Research
4.2 SSAB Market 2019-2024 (Volume/Units) - Global Industry Research
4.3 POSCO Market 2019-2024 (Volume/Units) - Global Industry Research
4.4 Steel Corporation Market 2019-2024 (Volume/Units) - Global Industry Research
4.5 Voestalpine Market 2019-2024 (Volume/Units) - Global Industry Research
4.6 ThyssenKrupp Market 2019-2024 (Volume/Units) - Global Industry Research
4.7 Baowu Group Market 2019-2024 (Volume/Units) - Global Industry Research
4.8 Ansteel Market 2019-2024 (Volume/Units) - Global Industry Research
5.North America Market Segmentation by Type Market 2019-2024 ($M)
5.1 Conventional HSS Market, Market 2019-2024 ($M) - Regional Industry Research
5.2 AHSS Market, Market 2019-2024 ($M) - Regional Industry Research
6.North America Major Vendors Market 2019-2024 ($M)
6.1 Arcelor Mittal Market 2019-2024 ($M) - Regional Industry Research
6.2 SSAB Market 2019-2024 ($M) - Regional Industry Research
6.3 POSCO Market 2019-2024 ($M) - Regional Industry Research
6.4 Steel Corporation Market 2019-2024 ($M) - Regional Industry Research
6.5 Voestalpine Market 2019-2024 ($M) - Regional Industry Research
6.6 ThyssenKrupp Market 2019-2024 ($M) - Regional Industry Research
6.7 Baowu Group Market 2019-2024 ($M) - Regional Industry Research
6.8 Ansteel Market 2019-2024 ($M) - Regional Industry Research
7.South America Market Segmentation by Type Market 2019-2024 ($M)
7.1 Conventional HSS Market, Market 2019-2024 ($M) - Regional Industry Research
7.2 AHSS Market, Market 2019-2024 ($M) - Regional Industry Research
8.South America Major Vendors Market 2019-2024 ($M)
8.1 Arcelor Mittal Market 2019-2024 ($M) - Regional Industry Research
8.2 SSAB Market 2019-2024 ($M) - Regional Industry Research
8.3 POSCO Market 2019-2024 ($M) - Regional Industry Research
8.4 Steel Corporation Market 2019-2024 ($M) - Regional Industry Research
8.5 Voestalpine Market 2019-2024 ($M) - Regional Industry Research
8.6 ThyssenKrupp Market 2019-2024 ($M) - Regional Industry Research
8.7 Baowu Group Market 2019-2024 ($M) - Regional Industry Research
8.8 Ansteel Market 2019-2024 ($M) - Regional Industry Research
9.Europe Market Segmentation by Type Market 2019-2024 ($M)
9.1 Conventional HSS Market, Market 2019-2024 ($M) - Regional Industry Research
9.2 AHSS Market, Market 2019-2024 ($M) - Regional Industry Research
10.Europe Major Vendors Market 2019-2024 ($M)
10.1 Arcelor Mittal Market 2019-2024 ($M) - Regional Industry Research
10.2 SSAB Market 2019-2024 ($M) - Regional Industry Research
10.3 POSCO Market 2019-2024 ($M) - Regional Industry Research
10.4 Steel Corporation Market 2019-2024 ($M) - Regional Industry Research
10.5 Voestalpine Market 2019-2024 ($M) - Regional Industry Research
10.6 ThyssenKrupp Market 2019-2024 ($M) - Regional Industry Research
10.7 Baowu Group Market 2019-2024 ($M) - Regional Industry Research
10.8 Ansteel Market 2019-2024 ($M) - Regional Industry Research
11.APAC Market Segmentation by Type Market 2019-2024 ($M)
11.1 Conventional HSS Market, Market 2019-2024 ($M) - Regional Industry Research
11.2 AHSS Market, Market 2019-2024 ($M) - Regional Industry Research
12.APAC Major Vendors Market 2019-2024 ($M)
12.1 Arcelor Mittal Market 2019-2024 ($M) - Regional Industry Research
12.2 SSAB Market 2019-2024 ($M) - Regional Industry Research
12.3 POSCO Market 2019-2024 ($M) - Regional Industry Research
12.4 Steel Corporation Market 2019-2024 ($M) - Regional Industry Research
12.5 Voestalpine Market 2019-2024 ($M) - Regional Industry Research
12.6 ThyssenKrupp Market 2019-2024 ($M) - Regional Industry Research
12.7 Baowu Group Market 2019-2024 ($M) - Regional Industry Research
12.8 Ansteel Market 2019-2024 ($M) - Regional Industry Research
13.MENA Market Segmentation by Type Market 2019-2024 ($M)
13.1 Conventional HSS Market, Market 2019-2024 ($M) - Regional Industry Research
13.2 AHSS Market, Market 2019-2024 ($M) - Regional Industry Research
14.MENA Major Vendors Market 2019-2024 ($M)
14.1 Arcelor Mittal Market 2019-2024 ($M) - Regional Industry Research
14.2 SSAB Market 2019-2024 ($M) - Regional Industry Research
14.3 POSCO Market 2019-2024 ($M) - Regional Industry Research
14.4 Steel Corporation Market 2019-2024 ($M) - Regional Industry Research
14.5 Voestalpine Market 2019-2024 ($M) - Regional Industry Research
14.6 ThyssenKrupp Market 2019-2024 ($M) - Regional Industry Research
14.7 Baowu Group Market 2019-2024 ($M) - Regional Industry Research
14.8 Ansteel Market 2019-2024 ($M) - Regional Industry Research
LIST OF FIGURES
1.US Global Automotive High Strength Steel Market Revenue, 2019-2024 ($M)2.Canada Global Automotive High Strength Steel Market Revenue, 2019-2024 ($M)
3.Mexico Global Automotive High Strength Steel Market Revenue, 2019-2024 ($M)
4.Brazil Global Automotive High Strength Steel Market Revenue, 2019-2024 ($M)
5.Argentina Global Automotive High Strength Steel Market Revenue, 2019-2024 ($M)
6.Peru Global Automotive High Strength Steel Market Revenue, 2019-2024 ($M)
7.Colombia Global Automotive High Strength Steel Market Revenue, 2019-2024 ($M)
8.Chile Global Automotive High Strength Steel Market Revenue, 2019-2024 ($M)
9.Rest of South America Global Automotive High Strength Steel Market Revenue, 2019-2024 ($M)
10.UK Global Automotive High Strength Steel Market Revenue, 2019-2024 ($M)
11.Germany Global Automotive High Strength Steel Market Revenue, 2019-2024 ($M)
12.France Global Automotive High Strength Steel Market Revenue, 2019-2024 ($M)
13.Italy Global Automotive High Strength Steel Market Revenue, 2019-2024 ($M)
14.Spain Global Automotive High Strength Steel Market Revenue, 2019-2024 ($M)
15.Rest of Europe Global Automotive High Strength Steel Market Revenue, 2019-2024 ($M)
16.China Global Automotive High Strength Steel Market Revenue, 2019-2024 ($M)
17.India Global Automotive High Strength Steel Market Revenue, 2019-2024 ($M)
18.Japan Global Automotive High Strength Steel Market Revenue, 2019-2024 ($M)
19.South Korea Global Automotive High Strength Steel Market Revenue, 2019-2024 ($M)
20.South Africa Global Automotive High Strength Steel Market Revenue, 2019-2024 ($M)
21.North America Global Automotive High Strength Steel By Application
22.South America Global Automotive High Strength Steel By Application
23.Europe Global Automotive High Strength Steel By Application
24.APAC Global Automotive High Strength Steel By Application
25.MENA Global Automotive High Strength Steel By Application