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High Strength Steel Market Overview
The High Strength Steel Market
size is estimated to reach US$54.1 billion by 2027 after growing at a CAGR of 7.3%
during the forecast period 2022-2027. High-strength steel is a new generation
of steel that has exceptional ductility and strength. High-strength steels are
frequently alloyed with substances like chromium, titanium, vanadium,
martensitic and copper in order to increase strength. High-strength steel is
widely utilized in automobile applications due to a wide range of qualities,
including lightweight and other mechanical properties such as superior
weldability, high toughness and great formability. The key factor propelling
the expansion of the market for high-strength steel is the rise in demand from the
global construction and automotive industries. The widespread usage of high-strength steel for structural applications accelerates market expansion. The
covid-19 pandemic majorly impacted the high-strength steel market due to
restricted production, supply chain disruption, logistics restrictions and a
fall in demand. However, with robust growth and flourishing applications across
major industries such as transportation, building & construction and
others, the High Strength Steel Market size is anticipated to grow rapidly
during the forecast period.
High Strength Steel Market Report Coverage
The “High Strength Steel Market
Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis
of the following segments in the High Strength Steel Industry.
Key Takeaways
- Asia-Pacific dominates the High Strength Steel Market size, owing to growing demand from end-use industries such as automobiles, building & construction and others, thereby boosting the demand for magnetic polymers in APAC during the forecast period.
- High Strength Steels frequently alloyed with substances like chromium, titanium, vanadium, martensitic and copper have a wide range of applications in many end-use industries, including construction, mining and aerospace due to their mechanical strength and flexibility, which propels the market expansion for High Strength Steel industry.
- Growing demand from the construction and automotive industries, combined with High Strength Steel's environmental sustainability, is expected to drive High Strength Steel industry demand throughout the forecast period.
- However, advancements in steel grades will hamper the market growth of the High Strength Steel Market.
Figure: Asia-Pacific High Strength Steel Market Revenue, 2021-2027 (US$ Billion)
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High Strength Steel Market Segment Analysis – by Type
The High Strength Low Alloy Steel held
a significant share in the High Strength Steel Market share in 2021 and is
forecasted to grow at a CAGR of 7.5% during the forecast period 2022-2027,
owing to the extensive characteristics provided by high strength low alloy
steel when compared to other material types such as dual-phase steel, carbon
manganese Steel, bake hardenable Steel and others. High-strength-low-alloy
elements improve steel hardenability by generating stable carbonitrides,
carbides or nitrides and offer superior mechanical features like strong corrosion resistance, enhanced formability and outstanding weldability. High
strength low alloy steel is widely used in the automotive industry owing to the
rising usage of high-strength-low-alloy in car body panels, which boosts
automotive fuel efficiency by lowering their weight by around 60%. These
extensive properties compiled with increasing application in the construction
and automotive industry are majorly driving its segmental growth. Thus, the use of high-strength-low-alloy
in construction and
automotive will propel the High Strength Steel Market share.
High Strength Steel Market Segment Analysis – by End-use Industry
Automotive held a significant
share in the High Strength Steel Market share in 2021 and is forecasted to grow
at a CAGR of 7.8% during the forecast period 2022-2027, owing to the
increasing usage of high-strength steel in the automotive components. High-strength steel offers numerous benefits like carbon-manganese, vanadium and
martensitic, which will serve as a growth pillar for the automobile industry.
High-strength steel is utilized in automotive bodies as it has a higher
strength-to-weight ratio than conventional steel. The increased need for better
and more efficient automobiles that are lower in weight and have sturdy parts
has prompted manufacturers to utilize high-strength steel for automobiles, which
is fueling the market expansion of high-strength steel in the automotive
industry. According to the Energy Information Administration (EIA), by 2035,
there will be 1.7 million automobiles worldwide. According to the International
Organization of Motor Vehicle Manufacturers (OICA), automobile output increased
by 10% in the first nine months of 2021, to 57.26 million vehicles, up from
52.15 million units in the same period last year. With the increasing
automotive production, the demand for high steel strength will also likely
increase, as a result of which the High Strength Steel industry will be
flourished over the forecast period.
High Strength Steel Market Segment Analysis – by Geography
The Asia-Pacific held the largest share in the High Strength Steel Market share in 2021 up to 45%. The flourishing growth of high-strength steel is influenced by its major applications across major industries, along with growing development in automotive production and developed the base for high-strength steel in APAC. The automotive sector in Asia-Pacific is rapidly growing due to a flourishing base for automotive manufacturers, demand for automotive compounds and production rise. For instance, according to the Organisation Internationale des Constructeurs d'Automobiles (OICA), automotive production and Vietnam grew by 1.2 percent and 5.5 percent from the previous year to 5,71,632 and 2,50,000 units, respectively, in 2019. According to India Brand Equity Foundation (IBEF), India’s domestic automobile production increased at a 2.36 percent CAGR from FY16 to FY20, with 26.36 million vehicles produced in FY20. Between FY16 and FY20, domestic automobile sales increased at a 1.29 percent compound annual growth rate (CAGR), with 21.55 million vehicles sold in FY20. According to the Japan Automobile Manufacturers Association (JAMA), automobile production in Japan increased in November from 6,67,462 units in October to 6,90,311 units. Thus, the growth of the High Strength Steel Market in the region is being aided by the increasing automotive sector in APAC, thereby dominating the market in the Asia-Pacific region.
High Strength Steel Market Drivers
Bolstering Growth of the Automotive Industry:
The rise in worldwide automobile production
is a major factor driving the expansion of the High Strength Steel Market. The use of high-strength steel for making body panels of automobiles
boosts their fuel efficiency by reducing the weight of automobile products. As
a result, the automobile industry's demand for high-strength steel is
increasing, which drives the market growth of high-strength steel.
Additionally, the rising global demand for electric and hybrid vehicles is also
likely to fuel the expansion of the high-strength steel market during the
forecast period. According to the report from India Energy Storage Alliance, the
EV market in India is expected to increase at a CAGR of 36% until 2026.
Furthermore, the National Automobile Dealers Association (NADA) anticipates
that the new light-vehicle sales in 2022 will show an increase of 3.4% compared
to 2020. According to the International Organization of Motor Vehicle
Manufacturers (OICA), the global production of passenger cars rose from 5,58,34,456
units in 2020 to 5,70,54,295 units in 2021. With the increase in automotive
vehicle production and growth prospects, the demand for high-strength steel is
rising in the automotive industry. Thus, with flourishing demand in automotive,
the high strength of steel is driving and growing rapidly.
Rising Demand from the Building & Construction Industry
High Strength
Steel is wildly used in the
building & construction industry. This increases the demand for high-strength steels in the construction
industry as high-strength steels allow for reduced product thickness, enhanced
toughness at low temperatures and high yield strengths. Due to their easy weldability and
machinability, high-strength steel is employed in the design of bridges,
pillars and the construction of massive architectural structures, which drives
the market growth of high-strength steel in the building & construction
industry. According to the International Trade Administration, the
construction sector in China is projected to grow at an average of 8.6% from
the year 2022 to 2030. According to Oxford Economics, the global construction
output in 2020 was US$10.7 trillion 2020 and is expected to grow by 42% or
US$4.5 trillion between 2020 and 2030 to reach US$15.2 trillion. With the rise in building and construction projects
across the globe, the demand for high-strength steel is anticipated to rise for
various applications, which is projected to boost the market growth in the
building and construction industry during the forecast period.
High Strength Steel Market Challenges
Advancements in the Grades:
There have been
ongoing improvements in steel or steel grades over the years. Steels that are
durable, secure and have a significant impact are always in demand. Because of
this, new steel grades with advanced properties have been developed, including
conventional steels, high-strength steels, advanced high-strength steels, ultra-high-strength
steels and Giga steels, among others. Automobile manufacturers are continually
on the search for lightweight materials with high strength and aluminum
appears to be the frontrunner among them. Aluminum-based structures have
attracted widespread attention from manufacturers due to their high efficiency,
functionality, formability and performance enhancement, which is expected to
limit high-strength steel market growth. Hence, it is anticipated that ongoing
developments in various steel grades and alternative products will limit the
global market for High Strength Steel from expanding.
High Strength Steel Market Industry Outlook
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the High Strength Steel Market. The top 10 companies in the High Strength Steel Market are:
- AK Steek Holding Corporation
- ArcelorMittal South Africa Limited
- Baoshan Iron & Steel Company Limited
- Kobe Steel Ltd.
- WEC Group Ltd. (MTL Advanced Ltd.)
- The NanoSteel Company
- Nucor Corporation
- SSAB AB
- Tata Steel Limited
- United States Steel Corporation
Recent Developments
- In April 2022, JFE Steel and ThyssenKrupp Steel Europe Introduced Cold Formable High - strength steel Sheets for Use in Automobile Frames.
- In December 2020, British Steel introduced a new high-strength structural steel grade, S460M. S460M sections are intended for use in multi-story and high-rise buildings, as well as a variety of other commercial and industrial applications.
- In September 2020, Hyundai Steel introduced ULTREX, a line of high-strength rolled steel products that are both robust and bendable.
Relevant Reports
Report Code: CMR 38498
Report Code: CMR 82149
Report Code: AM 60712
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