Growing demand for light weight & high strength steel is anticipated to drive the high strength steel market growth
The Global High Strength Steel Market was valued at USD 32.4 Bn in 2020, and is expected to reach USD 56.1 Bn by 2027, with a growing CAGR of 8.1% during the forecast period.
High strength steel is utilized majorly in the automobile sector for light-weighting, enhancing vehicle safety, boosting fuel efficiency, and as a sustainable alternative to plastics and aluminium. High strength steel is also becoming more popular among automakers as a cost-cutting material since it is less expensive than carbon fibre and aluminium. New steel production advancements, such as electric arc furnaces have also contributed to the growth of the high strength steel market. For instance, car sales in 2019 were, 74.8 million, which fell down to 63.8 million in 2020, and made a gradual sales recovery in 2021 by making 69.8 million sales globally. All these factors are anticipated to drive the demand for high strength steel.
Additionally, during the forecast period, the high strength low alloy segment is expected to lead the high strength steel market by type during the forecast period. High strength low alloy steels are the most often used steels in a variety of end-use industries as they provide better mechanical qualities such as high corrosion resistance, improved formability, and good weldability, among others. High strength steel is also utilized in energy & power sector, railways, shipbuilding, & aviation.
In today’s modern world, the greatest track performance results projects in reference to high-strength rail steel of the quality R400HT (400 UHC HSH), which is becoming increasingly popular as the standard for curves in the European mixed traffic sector and in metro systems across the globe. As, aforementioned rail steel (R400 HT) is covered by the European standard for rail steels, emphasizing their technical and economic appropriateness even further, has rose the demand for high strength steel in the railway industry. High strength rail steels, such as the 400 UHC HSH, also provides high resistance to rail wear, possess RCF (rolling contact fatigue), and prevent corrugation, resulting in highly lucrative product. Therefore, the use of high strength steel in railway applications is poised to drive the market growth.
However, high costs associated with the manufacturing of high strength steels may hinder the market growth. The cost of producing high strength steels is higher than that of producing other steels using traditional sources. Currently, high strength steels are utilized in the automotive industry to manufacture luxury, premium, and performance automobiles, despite the fact that high strength steels account for just around 10% of total automotive output across the globe.
In terms of geography, Asia-Pacific accounted for the largest market share during the forecast period. The rising construction & infrastructural developments are poised to increase the demand for high strength steel through the forecast period. For instance, Indian government plans for housing by 2022, is anticipated to drive the demand for high strength steels. India's real estate and construction business is anticipated to be the third biggest in the world by 2030, accounting for more than 14% of the country's GDP. By 2022, the industry is anticipated to become India's largest employer, employing more than 75 million people. Additionally, steel consumption in Korea fell to 53.2 mmt (million Tonnes) in 2019. Although the construction industry contributed to demand growth by taking advantage of the government's temporary stimulus package for the residential and public sectors, shipbuilding orders fell, and automobile output fell marginally. The Southeast Asia Iron and Steel Institute (SEAISI) reports that apparent steel consumption in the Association of Southeast Asian Nations (ASEAN-6)14 area grew to 81 mmt.
In the U.S, the automotive sales dropped in 2020, but the sales for automobile made a comeback in 2021. The introduction of ultra & advanced high strength steels in the automobile sector are poised to support the market growth. For instance, according to the American Iron and Steel Institute, (AHSS) advanced high strength steel assists automakers in reducing vehicle weight, which enhances fuel efficiency and lowers exhaust emissions. Current AHSS grades may lower a vehicle's structural weight by up to 25% and overall life cycle CO2 emissions by up to 15% when compared to other automotive materials.
The Global High Strength Steel Industry Segmentation:
Global High Strength Steel Market, By Type; (Revenue, USD Million, 2021-2027)
Global High Strength Steel Market, By Application; (Revenue, USD Million, 2021-2027)
Key Findings:
Company Profiles and Competitive Intelligence
The key players operating in the high strength steel market are:
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