Global High Strength Steel Market - 2024-2031

Global High Strength Steel Market - 2024-2031

Global High Strength Steel Market reached US$ 32.5 billion in 2023 and is expected to reach US$ 61.1 billion by 2031, growing with a CAGR of 8.2% during the forecast period 2024-2031.

Increasing levels of air pollution due to greenhouse gas emissions have prompted industry participants globally to lessen their environmental impact. Steel manufacturers hope to improve their environmental sustainability by reducing CO2 emissions, energy usage, liquid waste creation and waste residues.

High-strength steel manufacture takes less energy than carbon steel production. The automobile sector is a major user of high-strength steel, particularly in the manufacture of lightweight and fuel-efficient vehicles. Stricter emissions rules and consumer demand for safer and more fuel-efficient vehicles are driving the usage of high strength steel in automobile manufacture.

The increasing demand for transportation vehicles propels the high-strength steel industry. U.S. is the world's second largest car sales and production market. For example, according to OICA, vehicle production in U.S. will reach 1,00,60,339 units in 2022, a 10% increase from 2021. As a result, a growth in automotive production is predicted to create an upside demand in the fuel additives market.

In 2023, North America is expected to be the second-dominant region, holding about 25% of the global high strength steel market. North America has seen a significant penetration of lightweight steel, particularly high strength steel, due to rising demand for lighter and stronger automobiles. For example, the Corporate Average Fuel Economy standards from U.S. are aimed to drive incremental fuel economy gains in U.S. automobile market.

Dynamics

Huge Expansion in Automotive Sector

The increase in global vehicle production is a significant element driving the growth of the high strength steel market. The application of high-strength steel in automotive body panels improves fuel efficiency by reducing product weight. Furthermore, increased global demand for electric and hybrid vehicles is projected to fuel the growth of the high-strength steel market during the forecast period.

According to a report by the India Energy Storage Alliance, the EV market in India is predicted to grow at a 36% CAGR until 2026. Furthermore, the International Organization of Motor Vehicle Manufacturers said that global passenger car production increased from 5,58,34,456 in 2020 to 5,70,54,295 in 2021. With a rise in automotive vehicle production and growth possibilities, the need for high-strength steel is expanding in the automobile sector.

Rising Demand from the Building & Building and Construction Industry

High Strength Steel is extensively utilized in the building and construction industries. It raises the demand for high-strength steels in the construction industry since they allow for reduced product thickness, increased toughness at low temperatures and high yield strength. Owing to its easy weldability and machinability, high-strength steel is used in the design of bridges, pillars and the construction of enormous architectural projects, which promotes the market growth of high-strength steel in the building and construction industry.

In accordance to the International Trade Administration, China's construction sector is expected to increase by an average of 8.6% from 2022 to 2031. As stated by Oxford Economics, globally construction output was US$ 10.7 trillion in 2020 and is predicted to increase by 42% or US$ 4.5 trillion, between 2020 and 2031, reaching US$ 15.2 trillion. With the increase in building and construction projects in the globe, the demand for high-strength steel is expected to rise for various applications, which is estimated to fuel market growth.

Advancements in Grades

Steel or steel grades have continued to improve over time. Steels that are tough, secure and have a big impact are always in demand. It has resulted in the development of new steel grades with advanced qualities, such as conventional steels, high-strength steels, advanced high-strength steels, ultra-high-strength steels and Giga steels. Automobile makers are constantly searching for lightweight materials with excellent strength and aluminum appears to be the frontrunner among them.

Aluminum-based constructions have sparked broad interest among manufacturers due to their high efficiency, functionality, formability and performance enhancement, which is projected to impede high-strength steel market growth. As a result, it is expected that ongoing advances in various steel grades and alternative products will hinder the global market for high strength steel from growing.

Segment Analysis

The global high strength steel market is segmented based on type, application and region.

Rising Demand for High Strength Materials for Automotive Production Drives the Segment Growth

Automotive is expected to be the dominant segment with about 1/3rd of the market during the forecast period 2024-2031. High-strength steels are commonly utilized in the automobile sector to reduce overall vehicle weight while boosting stiffness and energy absorption in certain regions. Mechanical attributes, thickness and width capacities are just a few of the qualities that make high-strength steels so popular in the automobile sector.

Increased investment and developments in India's vehicle industry are likely to drive up demand for high-strength steel. For example, in April 2022, Tata Motors announced intentions to invest US$ 3.08 billion in its passenger vehicle industry over the next five years. It is likely to boost the high-strength steel market.

Geographical Penetration

Rising Automotive Production in Asia-Pacific

Asia-Pacific is the dominant region in the global high strength steel market covering over 35% of the market. The demand for high-strength steel is predicted to rise throughout the forecast period due to increased investment and construction activities in the country. China makes a significant contribution because it has been one of the world's leading infrastructure investors in recent years. According to the National Bureau of Statistics of China, the output value of building works in China in 2022 was US$ 4108.581 billion, a 6.6% increase over 2021.

Furthermore, automotive remains the country's largest sector and shows promising signals for the foreseeable future. For example, OICA forecasts that automotive production in the country would reach 2,70,20,615 units in 2022, up 3% from 2021. As a result, a good scenario in the country's vehicle production is predicted to provide an upward demand for the high strength steel market.

Competitive Landscape

The major global players in the market include U.S. Steel Corporation, Voestalpine, Nippon Steel & Sumitomo Metal Corporation, ArcelorMittal, Tata Steel, SSAB, POSCO, Ansteel Group Corporation, Baosteel Group Corporation and AK Steel.

COVID-19 Impact

The pandemic caused changes in demand for high-strength steel products across multiple industries. While the automobile, construction and infrastructure industries saw slowdowns owing to lockdowns and economic uncertainty, other industries, such as medical equipment, renewable energy and e-commerce, saw increased demand for high strength steel components.

The epidemic had a huge impact on the automobile and manufacturing sectors, both of which rely heavily on high strength steel. Plant closures, production shutdowns and supply chain disruptions reduced demand for high strength steel products, resulting in lower revenue and profitability for steel manufacturers and suppliers. Raw material price volatility, energy prices and currency changes all contributed to cost pressures for high strength steel manufacturers.

Russia-Ukraine War Impact

Russia and Ukraine are major manufacturers of steel and raw materials needed in steelmaking. Any delays in production or transit routes from these nations could result in raw material shortages for high-strength steel manufacturers globally. It might lead to production delays and higher expenses for industries who rely on Russian and Ukrainian steel.

The crisis might impact trade relations between Russia, Ukraine and other countries, potentially affecting steel imports and exports. Tariffs, trade restrictions and sanctions imposed by various governments may interrupt the flow of steel products and alter market dynamics. Uncertainty in energy prices could increase the cost of production for high strength steel manufacturers, affecting their competitiveness in the globally market.

By Type
• High Strength Low Alloys (HSLA)
• Advanced High Strength Steel (AHSS)
Dual Phase (DP)
Transformation Induced Plasticity (TRIP)
• Ultra-High Strength Steel (UHSS)

By Application
• Automotive
• Building and Construction
• Aerospace
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In October 2022, the division of ArcelorMittal, AMNS India, has disclosed that it intends to provide high-strength special steel for the proposed bullet train project in India.
• In March 2022, AFV Beltrame Group has finalized the acquisition of the functional production assets of the Târgoviște Special Steel Plant by finishing the transfer of ownership documents and full payment of the price of EUR 38.3 million.
• In December 2020, British Steel has launched a new high-strength structural steel grade, S460M. It is designed for multi-story, high-rise buildings and for various other commercial and industrial uses.

Why Purchase the Report?
• To visualize the global high strength steel market segmentation based on type, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of high strength steel market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global high strength steel market report would provide approximately 54 tables, 42 figures and 184 pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies