"Innovative Market Solutions to Help Businesses Make Informed Decisions"

High Strength Steel Market Size, Share & COVID-19 Impact 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

Region : Global | Format: PDF | Report ID: FBI101854

 

KEY MARKET INSIGHTS

Play Audio Listen to Audio Version

The global high strength steel market size was USD 31.03 billion in 2019 and is projected to reach USD 54.07 billion by 2027, exhibiting a CAGR of 7.4% during the forecast period.

COVID-19 Cover

This report covers COVID-19 impact analysis on High Strength Steel Market

Request Sample

The demand for materials with a high strength-to-weight ratio is observed from various end-use industries such as automotive and construction. High strength steel (HSS), being an advanced type of steel, has superior properties than conventional steel such as light in weight and high ductility, malleability & weldability. The addition of additives has further improved the anti-corrosion properties of this grade of steel, which makes it attractive for mining, aerospace, and marine applications. On the other hand, the evolving requirements for automotive construction materials, which can improve the fuel efficiency and vehicle strength, have provided a push to the demand for HSS.


The players operating in the market have been seeking solutions to reduce their carbon footprint. As HSS production presents a lower load on the power generation industry, it helps power companies to meet their sustainability goals, which further favors its adoption.  


Disruptions in Global Supply Chain Network to Hamper the Market Growth


The emergence of COVID-19 Impact has mildly affected the performance of the market with key challenges being supply chain disruptions and reduced demand from the automotive and construction industries due to a reduction in production and building activities. Since the last quarter of 2019, many countries including China, India, the U.S., and Brazil, which were the major consumers of steel, have been under various periods of lockdown, affecting the transportation of both men and material alike. The mining industry has also faced tremendous downtime since the occurrence of the coronavirus pandemic and has significantly affected the availability of raw materials required for the formation of steel alloys. Furthermore, the restrictions on production and transportation of HSS during the past few months have negatively influenced the growth potential of the market.


Moreover, many automotive and construction projects have been postponed or shelved owing to the coronavirus pandemic, which has effectively reduced the uptake of high strength steel from these industries. However, the construction of medical facilities such as hospitals and quarantine centers provides a novel opportunity for the market players to gain the upper hand during this period of crisis.


LATEST TRENDS


Request a Free sample to learn more about this report.


Utilization of High Strength Steel in Production of Automotive, Aviation, and Marine Equipment to Boost the Market


In the current global scenario, HSS is gaining traction for application in aerospace and marine equipment. Owing to its high strength-to-weight ratio, high durability, and heat management properties, it has found the substantial impetus for application in aerospace products such as airplanes and satellites. On the other hand, its anti-corrosive properties can help it sustain the taxing conditions faced during its application in the marine field. The demand for lightweight products with substantial strength is increasing the manufacture of boats, submarines, and their components, which is presenting an excellent growth opportunity for the market. Furthermore, the development of electric vehicles and hybrid automotive has presented a demand for high strength materials such as HSS to reinforce the vehicle while supporting demand for fuel-efficiency. Owing to these factors, the demand for HSS is expected to grow at a considerable rate as the effect of COVID-19 subsides.


DRIVING FACTORS


Growing Demand for High Strength Steel from Automotive Industry to Aid Market Growth


HSS is mainly used for the excellent strength that it offers, which reduces the amount of steel required to manufacture a vehicle and various auto parts, hence making the vehicle lightweight. This will further help reduce the amount of CO2 emissions from vehicles through improved fuel economy and cause less damage to road surfaces. Rising consumption of lightweight materials from the automotive industry will effectively influence the growth of this market.


Besides, this steel is resistant to corrosion and offers excellent crash-resistance. Therefore, it increases the safety and durability of vehicles and passengers travelling in these vehicles. Rising demand for electric and hybrid vehicles is expected to boost the demand for such steel during the forecast period.


HSS is an important material used in the design of bridges and other infrastructures as its use increases the distance between the center spans and requires fewer supporting beams. Rising infrastructure development activities in various regions will increase the consumption of this steel. Similarly, growth in the aerospace, marine, equipment & machinery, and electronics industries is expected to drive the demand for this steel to newer heights.


RESTRAINING FACTORS


High Cost of Production is the Key Factor Restraining Growth


Iron ore is the principal material required for the production of HSS, along with other minor elements such as copper, chromium, and nickel. As both iron ore and these minor elements are costly commodities, the overall cost of the product is higher than conventional steel. Furthermore, the cost of these materials is highly fluctuating, which affects the margin potential of the manufacturers. Additionally, the transportation and logistics of high strength steel further adds to the cost of the product. Owing to all these factors, the entire cost of the product becomes substantially higher than traditional steel, which is the key reason behind the restricted adoption of HSS in the global market.


SEGMENTATION


By Type Analysis


High Strength Low Alloy Segment to Exhibit Rapid Growth


Based on type, the market is segmented into High Strength Low Alloy (HSLA), Dual Phase (DP), Transformation Induced Plasticity (TRIP), martensitic (MS), and others.  Amongst these, HSLA accounts for the largest market share owing to its characteristics including ductility, highly formable, higher toughness than ordinary carbon steels, weldability, and high resistance to corrosion. Increasing demand for HSLA from applications such as automotive and building & construction will drive the global market.


Dual Phase is a baked hardenable steel that is mainly used to manufacture crumple zones in the body structure of a vehicle such as hood, doors, front & rear rails, fasteners, and wheels. This is because its yield strength and ductility can be controlled by monitoring hot coiling and baking hardening temperature. The use of this product type is increasing in the manufacturing of automotive parts, which is expected to increase its demand. Moreover, other types of high strength steel include TRIP steel, martensitic steel, complex phase steel (CP), ferritic-bainitic steel, and hot-formed steel (HF). Increasing demand for all these from various applications will drive the high strength steel market growth substantially.


By Application Analysis


To know how our report can help streamline your business, Speak to Analyst


The Automotive Segment to Generate Highest Revenue


The market is segmented into automotive, building & construction, mechanical & heavy equipment, rail, aviation & marine, and others, based on application. Amongst these, the automotive segment is expected to dominate throughout the forecast period. HSS is used in automotive bodies due to its ability to offer high strength and lower weight than conventional steel. Reduced weight of a vehicle means low carbon emission, high fuel efficiency, and better performance, which are the most important aspects in the automotive industry.


Rising urbanization and infrastructural activities have led to an increased demand for HSLA and DP steels. Growth in the Middle East & Africa (MEA) owing to the need for residential as well as commercial buildings, has led to the rise in the consumption of these types of steels.


This steel is also being used for the manufacture of heavy equipment, rail & aviation parts, and electronics and energy applications. Growing demand for high strength steel from these applications is expected to propel the market in the coming years. 


REGIONAL INSIGHTS


Asia Pacific High Strength Steel Market Size, 2019 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample


The market size in the Asia Pacific stood at USD 19.74 billion in 2019, dominating the high strength steel market share. The region is expected to continue its dominance throughout the forecast period owing to increased demand from automotive, building & construction, and mechanical & heavy equipment applications. China, India, and Japan are key countries contributing to the market growth in the region owing to the rising demand from automotive and construction industries in these countries. China is the major producer and consumer of this steel type across the globe because of large automobile production in the country.


Europe is projected to witness substantial growth in this market. The increasing demand for lightweight material for the manufacturing of electric and hybrid vehicles would contribute to the growth of the market in this region. Moreover, the use of HSS in building & infrastructural development is another factor driving the market in Europe.


The market in North America is anticipated to grow at a significant CAGR. The U.S. is one of the major consumers of this steel for automotive and mechanical & equipment applications globally, which will aid in market growth.


Increasing demand for high strength steel from building & infrastructural development is one of the major factors influencing the growth of the market in Latin America and the Middle East & Africa. Additionally, it is extensively used in mining and automotive applications in these regions. Rising demand for steel with higher strength and lower weight will provide a boost to   revenue in these regions.


KEY INDUSTRY PLAYERS


Key Players to Strengthen their Position by Providing Advanced Solutions to the Construction Industry


Major producers of high strength steel have a widespread production around the globe, leading to a diversified market. Majority of these producers are located in Asia Pacific. The producers located in North America and Europe are aiming to increase their presence in China and other countries in Asia Pacific to strengthen their market position and drive business growth.


The key players in the market have developed a strong regional presence, distribution channels, and varied product offerings. ArcelorMittal S.A., Baosteel Group Corporation, and Nippon Steel & Sumitomo Metal Corporation are the leading players in this market. They have adopted strategies such as acquisition and joint ventures to increase their regional footprint and market share.


LIST OF KEY COMPANIES PROFILED:



  • ArcelorMittal S.A. (Luxembourg)

  • Baosteel Group Corporation (China)

  • Nippon Steel & Sumitomo Metal Corporation (Japan)

  • HBIS Group (China)

  • Posco Group (South Korea)

  • JFE Steel Corporation (Japan)

  • United States Steel Corporation (U.S.)

  • China Steel Corporation (China)

  • Steel Authority of India Limited (SAIL) (India)

  • Tata Steel (India)

  • Angang Steel Company Limited (China)

  • Hebei Puyang Iron and Steel Group Co., Ltd. (China)

  • JSW Steel (India)

  • SSAB AB (Sweden)

  • Novolipetsk Steel (NLMK) (Russia)

  • CITIC Pacific Special Steel Holdings (China)

  • Hyundai Steel Company (South Korea)

  • Voestalpine AG (Austria)

  • Nucor Corporation (U.S.)

  • Thyssenkrupp Ag (Germany)

  • Metinvest Holding, LLC (Ukraine)

  • PAO Severstal (Russia)

  • Gerdau S.A. (Brazil)

  • Shandong Iron and Steel Group (China)

  • Other Key Players


Key Industry Developments



  • December 2019: ArcelorMittal and Nippon Steel & Sumitomo Metal Corporation jointly acquired 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 hold 60% share in this joint venture and Nippon Steel will hold the remaining 40% share. This acquisition and joint venture will help the companies to serve the steel demand in India.

  • December 2019: HBIS Group and POSCO Group have signed a memorandum of understanding (MoU) to form a joint venture for the development, production, and sale of high-end steel products in China for the automobile industry. With this joint venture, the companies aim to grab the opportunities in the automotive industry in China.

  • June 2018: Nippon Steel & Sumitomo Metal Corporation acquired Ovako AB, a specialty steel producer in Sweden, which has developed a global top-level technology about high-cleanliness steel for bearing steel and other related products. With this acquisition, the company expects to strengthen its special steel businesses and develop a global business promotion system to meet the rising steel demand.


REPORT COVERAGE


An Infographic Representation of High Strength Steel Market

To get information on various segments, share your queries with us



The market research report provides qualitative and quantitative insights on this market and a detailed analysis of market size & growth rate for all possible segments in the market. The HSS market is segmented by type, application, and geography.


Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are the price trend analysis, recent industry developments in the global market, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key industry trends, competitive landscape, and company profiles.


 Report Scope & Segmentation














































 ATTRIBUTE



  DETAILS



Study Period



  2016-2027



Base Year



  2019



Forecast Period



  2020-2027



Historical Period



  2016-2018



Unit



  Value (USD Billion) Volume (Million ton)



Segmentation



  Type; Application; and Geography



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

  • Others



By Geography


 




  • North America

    • By Type

    • By Application

    • By Country

      • U.S.

      • Canada





  • Europe

    • By Type

    • By Application

    • By Country

      • Germany

      • France

      • Italy

      • Spain

      • UK

      • Poland

      • Russia

      • Rest of Europe





  • Asia Pacific

    • By Type

    • By Application

    • By Country

      • China

      • India

      • Japan

      • South Korea

      • Southeast Asia

      • Rest of Asia Pacific





  • Latin America

    • By Type

    • By Application

    • By Country

      • Brazil

      • Mexico

      • Argentina

      • Rest of Latin America





  • The Middle East & Africa

    • By Type

    • By Application

    • By Country

      • Saudi Arabia

      • Egypt

      • Turkey

      • Iran

      • Rest of the Middle East & Africa







Frequently Asked Questions

Fortune Business Insights says that the global market value stood at USD 31.03 billion in 2019 and is projected to reach USD 54.07 billion by 2027.

Growing at a CAGR of 7.4%, the market will exhibit rapid growth in the forecast period (2020-2027).

The automotive segment is expected to be the leading application segment in the market during the forecast period.

Growing demand for lightweight, high strength and durable steel from the automotive industry will drive the growth of this market.

Asia Pacific is expected to hold the highest market share.

Automotive and building & construction are the key applications that would drive the adoption of this type of steel.

Rising demand for HSS for electric and hybrid vehicle production is a key market trend.

High Strength Steel Market Size, Share and Global Industry Trend Forecast till 2026
  • Sep, 2020
  • 2019
  • 2016-2018
  • 210

    CHOOSE LICENSE TYPE

  • 4850
    6850
    8850

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization

Client Testimonials

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . More info.
X