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.
- 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
- 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.
Report Code: CMR 38498
Report Code: CMR 82149
Report Code: AM 60712
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