High Strength Steel Market Driven by Growing Demand from Automotive Industry

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High Strength Steel Market Driven by Growing Demand from Automotive Industry

Global High Strength Steel Market - Overview

High Strength Steel Market is projected to be worth USD 75.86 Billion by 2030, registering a CAGR of 8.8% during the forecast period (2022 - 2030), The market was valued at USD 35.51 billion in 2021. Market Research Future (MRFR) has released a new research report on the global high strength steel market. The report talks about the potential for growth of the global high strength steel market over the forecast period from 2022 to 2030 based on the growth trajectory displayed by the market over the historical study period and the major market drivers and restraints affecting the market’s trajectory.

High strength steel is steel that has been manufactured to provide a higher resistance to environmental contaminants than regular steel and fulfill higher physical performance criteria. High strength steel contains elements such as manganese, copper, niobium, and nickel on top of the carbon content required to turn the iron into steel. High strength steel is used in applications that require a high strength to weight ratio. Increased fatigue, enhanced corrosion resistance, and higher impact resistance are the key characteristics of high strength steel. The growing demand for new construction of infrastructure and other construction projects, as well as the rapid growth of the automotive industry, has been key to the global high strength steel market’s growth over the last few years. The growing expenditure on defense vehicles has also driven the demand from the global high strength steel industry and is likely to remain a vital driver over the forecast period.

Arcelor Mittal (Luxembourg), United States Steel Corporation (US), Voestalpine AG (Austria), SSAB (Sweden), Shandong Steel Group (China), AK Steel Corporation (US), SAIL (India), Nippon Steel and Sumitomo Metal Corporation (Japan), POSCO (South Korea), Wuhan Iron and Steel Corporation (China), Hyundai Steel Company(South Korea), and China Antsteel Group Corporation Limited (China) are some of the key players in the global high strength steel market.

These companies are spending huge amounts on exhaustive R&D/research and development activities to introduce a variety of advanced high strength steels with more impressive features with higher efficiency. These players are focused on catering to the mounting demand for excellence among the leading end-use sectors. Expansion of manufacturing capacity via acquisition, partnership and agreements is a key strategy employed by several firms to enhance their market positions.

Major Drivers and Main Challenges

High strength steel, deemed to be a new generation metal, offers remarkable ductility and strength. It exhibits higher resistance to wear and tear as well as corrosion, unlike the traditional carbon steel. For higher strength, these types of steels are alloyed with other elements like vanadium, titanium, and copper. The most extensive applications of what is high strength steel are in automobiles as these are lightweight and have an array of mechanical properties including high toughness, excellent formability, and better weldability.

High strength steel is also used in end-use sectors like construction, aviation and hoisting and mining equipment, given their mechanical flexibility and strength. Some common use-cases of high strength low alloy steels include designing of pillars and bridges, along with fabricating huge building structures in view of their easy machinability and weldability characteristics.

The rising infrastructure construction in emerging regions is likely to be a major driver for the global high strength steel market over the forecast period, as high strength steel is used in the buildings themselves as well as in construction equipment such as cranes in order to obtain a greater performance from the machines. The automotive sector is also likely to remain a key consumer for the global high strength steel market over the forecast period, as the demand for stronger and lighter cars has grown in recent years. Significant opportunities could arise in the next few years, in the form of escalating demand for high strength steel in the manufacturing of welding equipment and technical innovations to render a higher number of appealing properties in ultra-high-strength steel.

High Strength Steel Market    - Segments:

The high strength steel industry has been carefully studied and to present an exhaustive understanding, the MRFR report has outlined a few key segments, including product type and end-use industry.

The product types discussed in the market study are dual-phase steel, high strength low alloy steel, carbon manganese steel, hardenable bake steel, and more.

Major end-use industries considered in the report are aviation, construction, automotive, marine, hoisting and mining equipment, and others. High strength steel is extensively deployed in the construction sector, and the rising number of residential construction activities, particularly in developing countries will boost the segmental growth in the years ahead. In the automotive industry, the demand for high strength steel is also witnessing a huge demand as it helps reduce the overall weight, and subsequent brings down the emission levels. Emergence of strict regulations with respect to greenhouse emissions also elevates the product demand in the automotive industry.

Global High Strength Steel Market -Regional Analysis

North America, APAC/Asia Pacific, coupled with Europe and MEA are the key regions where the high strength steel industry is projected to expand at varying rates between 2020 and 2027.

APAC is the currently the reigning market for high strength steel and the growth is bolstered by the skyrocketing demand in construction along with infrastructural development. The surge in automotive production also benefits the APAC market. The Chinese market is largely supported by the thriving electrical appliances industry in the country. The escalating consumption of high strength steel in the region can also be accredited to the growing influx of large-scale direct foreign investments along with the soaring demand in automotive and shipbuilding sectors.

The North American market is highly lucrative and will continue to soar rapidly in the next couple of years, thanks to the mounting demand for high strength steel in the construction sector. Extensive applications of high strength steel in commercial and residential construction activities across the United States is a major growth booster. Meanwhile, manufacturers’ high focus on using advanced and sophisticated technologies to produce high performance high strength steel products could foster the applications in the automotive industry, ultimately benefitting the regional market.

Europe commands a substantial portion of the global industry, with Germany identified as the top performer in the region. The German market growth will remain unparalleled throughout the review timeframe, given the surging expenditure for upgradation of the existing infrastructure. Mechanical engineering as well as automotive manufacturing are major consumers of high strength steel and therefore, are responsible for the strong market growth in the region.

Industry/ Innovations/ Related News 

September 09, 2019 ---- The US Department of Energy (DOE), announced its partnership with PPG Industries, Inc. (the US), a global supplier of specialty materials to accelerate the development and testing of adhesives made explicitly for vehicles built from lightweight materials. Collaborating with DOE’s Lawrence Livermore National Laboratory (LLNL) and Pacific Northwest National Laboratory (PNNL), PPG would develop computer-based models of a variety of next-generation adhesives designed to join lightweight materials.

Automakers are exploring the use of high-strength steel, magnesium, aluminum, and carbon-fiber composites alongside, other lightweight materials to reduce total vehicle mass and improve fuel economy. This approach requires new adhesive chemistries that will mitigate corrosion and thermal expansion issues associated with joining dissimilar materials.

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