A
ccording to Zion Market Research, the
global high strength steel market was
valued at $27.10 billion in 2018 and is
expected to reach $47.97 billion by 2025, at a
CAGR of 8.5% between 2019 and 2025.
High strength steel is used in several end-use
industries to produce lightweight parts and
components. High strength steel enhances the
mechanical property of a material. Due to its
high strength, versatility, and formability, it is
widely used in the construction of rails, roads,
and vehicles.
The global high strength steel market is
expected to grow considerably in the next few
years, owing to the rising demand for high
strength steel across various industries, such
as construction and automotive. Moreover,
the rapidly growing demand for infrastructure
and the fl ourishing manufacturing industries
are projected to further propel the global high
strength steel market in the future. However,
the high cost for production of high strength
steel may hinder the market in the years ahead.
Alternatively, the increasing investments and
government support are anticipated to off er
lucrative opportunities in the high strength
steel market in the future.
The global high strength steel market is
classifi ed based on the type and end-user
industry. The type segment includes carbon
manganese, high strength low alloy, bake-
hardenable, and dual phase steel. The high
strength low alloy segment held a signifi cant
share, i.e., around 37%, of the global high
strength steel market in 2018, owing to its
wide application across myriad sectors, such
as structural engineering due to its excellent
corrosion resistance properties. Additionally,
the increasing application of high strength
low alloy steel by the automotive industry has
further propelled the demand for high strength
low alloy.
Based on end-use industry, the global high
strength steel market includes automotive,
construction, aviation and marine, yellow
goods and mining equipment, and others. In
2018, the automotive segment dominated the
global market and is anticipated to continue its
dominance in the upcoming years as well. The
surging application of high strength steel in the
automotive industry is expected to boost the
high strength steel market.
By region, Asia Pacifi c contributed the largest
share in the global high strength steel market
in 2018 and is projected to lead in the future
as well. The rapidly rising regional population
will boost the construction industry, which, in
turn, is likely to propel the high strength steel
market. The surging construction activities
in emerging economies, such as China and
India, are likely to further boost the application
of high strength steel. The rapid growth of
the automotive sector of Japan, China, South
Korea, and India is expected to increase the use
of high strength steel in various applications.
North America is the second largest regional
market for high strength steel, due to the
rising demand for high strength steels in
various end-use industries. Moreover, in 2017,
the U.S. contributed the largest share to the
global high strength steel market, due to its
fl ourishing aerospace and marine sectors, as
high strength steel is widely used to produce
lightweight components. Additionally, thegrowing application of high strength steel in
the automotive industry is further projected to
propel high strength steel market in the future.
The European high strength steel market
is anticipated to witness signifi cant growth
over the forecast time period, subject to the
emerging automotive industry along with
the increased product use for producing
automotive parts and components. Moreover,
the implementation of limiting vehicular
emissions in Europe, such as Euro 5 and
Euro 6, is projected to further fuel the high
strength steel market in the years ahead,
as high strength steels help in reducing the
automobiles’ weight and minimizing vehicular
emissions.
Latin America is estimated to grow
gradually in the global high strength steel
market, owing to the region’s emerging
automotive industry and the increasing
demand for mining equipment. Furthermore,
the Middle Eastern and African market is
predicted to grow substantially over the
forecast time period, due to the region’s
thriving construction industry.GLOBAL HIGH STRENGTH STEEL
MARKET TO REACH $47.97 BILLION
BY 2025
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PLANT / MACHINERY / VEHICLES AUGUST 2019 http://www.pmvmiddleeast.com
MARKET OVERVIEW