High Strength Steel Market Size, Explosive Growth and Regional Demand Forecast 2032
The global high strength steel market size is projected to reach USD 54.07 billion by 2027, exhibiting a CAGR of 7.4% during the forecast period. Increasing demand for electric vehicles (EVs) worldwide is expected to emerge as a crucial growth determinant for this market, states Fortune Business Insights™ in its report, titled “High Strength Steel Market Size, Share & Industry Analysis, By Type (High Strength Low Alloy (HSLA), Dual Phase (DP), Transformation Induced Plasticity (TRIP), Martensitic (MS), and Others), By Application (Automotive; Building & Construction; Mechanical & Heavy Equipment; Rail, Aviation & Marine; and Others), and Regional Forecast, 2020–2027”. According to the International Energy Agency (IEA), in 2019, global EV sales reached 2.1 million, surpassing 2018 levels and boosting the world EV stock to 7.2 million. EV car sales registered 40% year-on-year increase, accounting for 2.6% of the total global car sales in 2019. High strength steel (HSS) has emerged as a promising technology for EVs as this steel lowers the weight of the car, while providing superior strength and enhanced protection. Moreover, HSS also serves as an excellent battery protector for EVs owing to its high strength and low weight. Furthermore, advanced HSS such as SSAB’s cold formable Docol® improve vehicle performance, making them more fuel-efficient and lower emissions.
The global high strength steel (HSS) market is experiencing robust growth, driven by the increasing demand for stronger, more durable materials across various industries. High strength steel refers to steel that offers better mechanical properties and greater resistance to deformation, making it a preferred material in automotive, construction, and aerospace industries, among others. With a rising emphasis on lightweight structures, fuel efficiency, and environmental sustainability, high strength steel has become essential in modern manufacturing and engineering.
List of Key Companies Profiled in the High Strength Steel Market Report:
- Shandong Iron and Steel Group (China)
- PAO Severstal (Russia)
- Thyssenkrupp Ag (Germany)
- Voestalpine AG (Austria)
- CITIC Pacific Special Steel Holdings (China)
- SSAB AB (Sweden)
- Hebei Puyong Iron and Steel Group Co., Ltd. (China)
- Tata Steel (India)
- China Steel Corporation (China)
- JFE Steel Corporation (Japan)
- HBIS Group (China)
- Baosteel Group Corporation (China)
- Gerdau S.A. (Brazil)
- Metinvest Holding, LLC (Ukraine)
- Nucor Corporation (U.S.)
As per the report, the global market value stood at USD 31.03 billion in 2019. The other highlights include:
- Comprehensive assessment of the various drivers and trends shaping market growth;
- Actionable insights into the challenges confronting the market;
- Detailed evaluation of all possible market segments; and
- In-depth analysis of the regional developments and competitive dynamics influencing the market.
Market Driver
Multiple Benefits of HSS in Construction to Stoke Adoption
High strength steel offers a wide array of advantages to the construction industry. According to the Australian Steel Institute (ASI), the high-yield stress and tensile strength of HSS can be leveraged to increase design stresses, which can potentially reduce the required plate thickness and lower deadweight. The ASI estimates that savings ranging between 28% and 38% are possible if high strength steel is deployed for primary building columns in large structures. This advanced steel variant also provides superior durability and strength to withstand tectonic activities. For example, in New Zealand, where seismic activities are common, purlins, beams, and rafters made from ultra-high strength tensile steel are extensively used to counter the devastating effects of earthquakes in the regions. Thus, expanding utilization of HSS in the construction industry is likely to fuel the high strength steel market growth in the near future.
Regional Insights
Dynamic Growth in Automotive Manufacturing to Augment the Asia Pacific Market
Asia Pacific led the high strength steel market share in 2019 and is expected to retain its dominant position during the forecast period owing to the dynamic expansion of the automotive industry, especially in China. Heavy equipment manufacturing and construction activities in India will further propel the regional market, while advancements in e-mobility in Japan and South Korea are anticipated to boost adoption of HSS.
In Europe, the demand for high strength steel is slated to rise on account of rapid uptake of electric and hybrid vehicles, stoked by the stringent emission norms in the region. The market in North America will be mainly driven by the high consumption advanced steel products in automotive and equipment manufacturing industries in the United States.
Information Source: https://www.fortunebusinessinsights.com/industry-reports/high-strength-steel-market-101854
Competitive Landscape
Investments in Innovation & Strategic Expansion to be the Core Focus for Key Players
The rising demand for high strength steel across diverse industries is compelling key market players to innovate and introduce novel steel products. Additionally, rapidly growing economies such as India are attracting investments from major global players as these countries are creating massive, lucrative opportunities for companies to expand and diversify.
Challenges in the High Strength Steel Market
While the high strength steel market is poised for growth, it also faces several challenges:
- High Production Costs
The manufacturing process of high strength steel involves advanced techniques and specialized equipment, leading to higher production costs compared to traditional steel. This can be a barrier for smaller manufacturers or industries with tight budgets. - Technological Barriers
Producing high strength steel requires precise control over composition and temperature during production, which can pose technical challenges. The need for continued innovation and research to develop more cost-effective production methods is essential for the market’s sustained growth. - Fluctuating Raw Material Prices
The volatility of raw material prices, particularly iron ore and coal, can impact the production costs and profitability of high strength steel manufacturers. Fluctuations in the global supply chain, trade policies, and geopolitical tensions can also influence market dynamics.
Future Outlook
The high strength steel market is expected to witness steady growth over the coming decade, driven by its increasing adoption in automotive lightweighting, infrastructure projects, and aerospace applications. The development of new, advanced steel grades with enhanced properties, along with innovations in sustainable steel production, will further propel the market.
In conclusion, high strength steel is set to play a crucial role in shaping the future of multiple industries, from automotive to construction. With continued technological advancements and a growing focus on sustainability, the high strength steel market is poised for a promising future.