Chemicals & Materials

Global High Strength Steel Market

March 24, 2022
ID: SR/CH-62
Format:Pdf
Pages:220

Global High Strength Steel Market 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 and Rail, Aviation & Marine), By Region (North America, Europe, Asia-Pacific, South America and The Middle East & Africa)-Global Forecast to 2028.

Description

High Strength Steel Market Overview

The High Strength Steel Market size was estimated at USD 29.5 Billion in 2021 and is projected to achieve USD 51.12 Billion by 2028, growing at a CAGR of 7.17% from 2022 to 2028. Growing consumption of high-strength steel in the automotive and construction industries to enhance the fuel efficiency of automobiles and provide high strength and improved safety components of buildings is pushing the growth of the high-strength steel market across the world.

What is High Strength Steel?

Steel with a product strength varying between 210-550 MPa and tensile strength of 270 to 700MPa is regarded as high strength steel. High strength steel is typically considered a low to medium alloy content and shows high strength and hardness. The raw material utilized in the manufacturing are iron ore, manganese, and microalloying components and has a low carbon content, normally between 0.05 and 0.25% of the steel mass. High-strength steel is normally used in different industries, including construction, automotive, aviation & marine, mining equipment, electrical equipment, and pipes.

Growth Drivers

Growing consumption of high strength steels in automotive and construction industries

The growth in global automobile production is a significant aspect leading to the high-strength steel market worldwide. High-strength steels for manufacturing body panels of automobiles improve their fuel efficiency by decreasing their weight by around 60%. It, in turn, contributes to the growing market for high-strength steel from the automotive industry. The increasing need for electric and hybrid vehicles across the globe is also anticipated to contribute to the growth of the high-strength steel market during the forecast period. The construction industry across the globe is also noticing growth in the commercial and residential sectors. Elements such as enhanced employment prospects increased per capita income of groups, and adoption of luxury lifestyle by the middle-class population is anticipated to propel the growth of the construction industry across the globe. It guides to the improved demand for high-strength steels from the construction industry as high-strength steels provide smaller product thickness, allows improved toughness of effects at low temperatures, and provide their high-yield strengths. Moreover, these steels also have excellent weldability.

Opportunities

Raised investments and required help from governments of various countries

Increasing investments by governments of different countries deliver flexibility and aid to the manufacturers of high-strength steels across the globe. For example, in 2015, the Government of China launched an initiative to boost key steel producers of the country by helping them to enhance their steel production procedures to provide improved quality products. The laws and restrictions connected to the steel industry in India, China, and Brazil are not as strict as those in the US and Western European countries. Different new steel plants are predicted to be installed in these countries in the future, which, in turn, are expected to boost the growth of the high-strength steel market in these countries.

Restraints

Increased production expenses of high strength steels due to High prices of raw materials

Rising iron ore prices across the world extremely impact the prices of steel. Iron ore prices increased by 20% to 22% in the 4th quarter of 2017, thereby showing increased steel production costs. The cost of manufacturing high-strength steels is higher than other steels made from conventional materials. It is a major restriction for the manufacturers of high-strength steel. Now, high-strength steels are utilized in the automotive industry for manufacturing luxury, premium, and execution vehicles, while the use percentage of high-strength steels is only approximately 10% to 13% in the overall automotive production across the world.

Pre Covid-19 Impact on Global High Strength Steel Market

Before the covid-19 period, an upsurge in penetration of lightweight components, particularly in automobiles, development in consciousness toward reducing the GHG and CO2 emission levels, and the fast growth in the automotive industry pushed the global advanced high-strength steel market. In addition, the fast-growing aerospace industry and accelerating urbanization and industrialization in developing economies are projected to make lucrative prospects for vessel manufacturers to combine AHSS grades into the industry.

Covid-19 Impact on Global High Strength Steel Market

During the covid-19 period, the emergence of pandemic impact has mildly impacted the implementation of the market, with key challenges being supply chain troubles and decreased demand from the automotive and construction industries due to a decline in production and building activities. Since the last quarter of 2019, many countries, including China, India, the US, and Brazil, which were the main consumers of steel, have been under different lockdown periods, impacting the transportation of both men and material alike.

Post Covid-19 Impact on Global High Strength Steel Market

With constant advancements, manufacturers have reached up with 3rd generation High Strength Steel being cost-efficient connected with high extension and high tensile strength. 3rd generation High Strength Steel offers the opportunity for superior strength-to-weight ratios and lower cost and is to replace more costly solutions such as hot-stamped boron steels or aluminum profiles. These elements help increase the high-strength steel market after the covid-19 period.

By Type Segmental Analysis

Based on type segmental analysis, the market is segmented into High Strength Low Alloy (HSLA), Dual Phase (DP), Transformation Induced Plasticity (TRIP), Martensitic (MS) and others. High Strength Low Alloy accounts for the largest market share due to its characteristics: flexibility, high formability, and higher toughness than ordinary carbon steels, weldability, and high corrosion resistance. Increasing demand for High Strength Low Alloy from automotive and building & construction applications will drive the global market.

By Application Segmental Analysis

The market is segmented into Automotive, Building & Construction, Mechanical & Heavy Equipment and Rail, Aviation & Marine based on application segmental analysis. The automotive segment is anticipated to dominate throughout the forecast period. HSS is operated in automotive bodies due to its increased strength and lower weight than conventional steel. Reduced vehicle weight indicates low carbon emission, high fuel efficiency, and better performance, the most important aspects of the automotive industry.

By Regional Segmental Analysis

Based on the regional segmental analysis, the market is segmented into North America, Europe, Asia-Pacific, South America and The Middle East & Africa. The market size in the Asia Pacific dominating the high-strength steal market share. The Asia-Pacific is anticipated to continue its dominion region throughout the forecast period owing to improved demand from automotive, building & construction, and mechanical & heavy equipment applications. China, India, and Japan are major countries donating to the market growth in the region owing to the rising market from automotive and construction industries in these countries.

Competitors Analysis

The company includes are Baosteel Group Corporation, Nippon Steel & Sumitomo Metal Corporation, HBIS Group, Posco Group, JFE Steel Corporation, Unites States Steel Corporation, China Steel Corporation, Steel Authority of India Limited, Tata Steel, Angang Steel Company Limited and other prominent players in the global high strength steel market.

Key Stakeholders

Recent Developments

In December 2019- ArcelorMittal and Nippon Steel & Sumitomo Metal Corporation received Essar Steel India Limited and formed a joint venture named ArcelorMittal Nippon Steel India Limited. Essar Steel was India’s fourth-largest steelmaker. ArcelorMittal will maintain a 60% share in this joint venture, and Nippon Steel will maintain the remaining 40% share. This acquisition and the joint venture will enable the companies to help the steel demand in India.
In December 2019- HBIS Group and POSCO Group have contracted a memorandum of understanding to form a joint venture to create, produce, and sell high-end steel products in China for the automobile industry. With this joint venture, the companies desire to grab options in the automotive industry in China.
In June 2018: Nippon Steel & Sumitomo Metal Corporation obtained Ovako AB, a specialty steel producer in Sweden, which has created a global top-level technology about high-cleanliness steel for bearing steel and other connected products. With this purchase, the company expects to strengthen its special steel businesses and develop a global business promotion system to meet the rising steel market.

Scope of the Report

Report Attribute	Details
Market Size Value in 2021	USD 29.5 Billion
The revenue forecast in 2028	USD 51.12 Billion
Growth Rate	CAGR of 7.17% from 2022 to 2028.
Historical data	2017 – 2020
Base Year	2021
Forecast period	2022 – 2028
Region covered	North America, Europe, Asia-Pacific, South America, and Middle East & Africa
Key companies Profiled	The Companies include Baosteel Group Corporation, Nippon Steel & Sumitomo Metal Corporation, HBIS Group, Posco Group, JFE Steel Corporation, Unites States Steel Corporation, China Steel Corporation, Steel Authority of India Limited, Tata Steel, Angang Steel Company Limited are the key players.

Market Modelling

By Type

High Strength Low Alloy (HSLA)
Dual-Phase (DP)
Transformation Induced Plasticity (TRIP)
Martensitic (MS)
Others

By Application

Automotive
Building & Construction
Mechanical & Heavy Equipment
Rail, Aviation & Marine

By Region

North America
Europe
Asia-Pacific
South America
The Middle East & Africa

Table Of Contents

Methodology

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Frequently Asked Questions (FAQ):

What is the size of the global high-strength steel market during the forecast year 2022-2028?

The High Strength Steel Market size was estimated at USD 29.5 Billion in 2021 and is projected to achieve USD 51.12 Billion by 2028, growing at a CAGR of 7.17% from 2022 to 2028.

What are the opportunities in the global high-strength steel market?

Increasing investments by governments of different countries deliver flexibility and aid to the manufacturers of high-strength steels across the globe.

Who are the key players in the global high-strength steel market?

The Companies include Baosteel Group Corporation, Nippon Steel & Sumitomo Metal Corporation, HBIS Group, Posco Group, JFE Steel Corporation, Unites States Steel Corporation, China Steel Corporation, Steel Authority of India Limited, Tata Steel, Angang Steel Company Limited are the key players.

What is the restraint in the global high-strength steel market?

The cost of manufacturing high-strength steels is higher than other steels made from conventional materials. It is a major restriction for the manufacturers of high-strength steel. Now, high-strength steels are utilized in the automotive industry for manufacturing luxury, premium, and execution vehicles, while the use percentage of high-strength steels is only approximately 10% to 13% in the overall automotive production across the world.

Which region is expected to hold the highest share in the global high-strength steel market?

The Asia-Pacific region is expected to hold the highest share in the global high-strength steel market.

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