High Strength Steel Market

High Strength Steel Market Size-(2023-2028)

The High Strength Steel Market was valued at $ 30.3 billion in 2022 and is predicted to reach $ 44.4 billion by 2028, with a compound annual growth rate of 10.3% during the foreseen period of 2023-2028

Several new mills are predicted to be established in these nations in the future, which in turn will drive expansion in the high-strength steel industry in these nations. High-strength steel has improved formability and extremely high strength and is therefore primarily employed in the automotive industry. The call for very high-strength steel is escalating due to its profitability. Very high-strength steel is also energy efficient and is therefore widely employed in the automotive sector. Another reason for the call for ultra-high-strength steel is that it reduces the weight of steel structures. This should also fuel its call from the construction sector.

The automotive industry has faced significant challenges in meeting various government standards for safety, vehicle weight, fuel economy, and emissions. The product provided an efficient solution to meet these compliance requirements, allowing designers to develop safe and fuel-efficient vehicles with reduced weight. The amazing metallurgical features of the product augment its employment in the automotive industry as a substitute to conventional composites.

High-Strength Steel Market Drivers:

The increase in worldwide automobile production is a major factor driving the expansion of the high-strength steel industry worldwide. The use of high-strength steel in the manufacture of automobile body panels increases its fuel efficiency by reducing its weight by approximately 60%. The growing call for electric and hybrid vehicles worldwide is also predicted to contribute to the expansion of the high-strength steel industry during the foreseen period. The construction industry worldwide is also experiencing expansion in the commercial and residential sectors. Factors such as improving employment opportunities, escalating the per capita income of the masses, and the adoption of a luxurious lifestyle by the middle-class population are predicted to fuel the expansion of the food industry. construction worldwide. This leads to an escalated call for high-strength steels by the construction industry since high-strength steels ensure a reduced thickness of the product, allow better toughness of the products at low temperatures and ensure their high elasticity. In addition, these steels also exhibit exceptional weldability.

Restraints in the High-Strength Steel Market

The increase in iron ore prices worldwide strongly affects steel prices. Iron ore prices escalated from 21% to 23% in the fourth quarter of 2020, resulting in higher steel production costs. This is an important limitation for manufacturers of high-strength steel. Currently, high-strength steels are employed in the automotive industry for the manufacture of high-end, high-performance, luxury vehicles, while the use percentage of high-strength steels is only around 11%. 14% in worldwide automotive production worldwide.

Opportunities in the High-Strength Steel Market

Escalating government investments in various nations provide flexibility and support to high-strength steel manufacturers worldwide. The rules and regulations for the steel industry in emerging economies like India, China, and Brazil are not as strict as those of the United States and Western European nations.

Challenges in the High-Strength Steel Market

The growing safety concerns related to car accidents among consumers pose a challenge for automakers and as such must address these concerns before using high-strength steels for car manufacturing. Safety standards have accelerated the use or incorporation of advanced high-strength steel (AHSS) in vehicles, posing a challenge to the expansion of the high-strength steel industry worldwide.

HIGH STRENGTH STEEL MARKET REPORT COVERAGE:

High Strength Steel Market Segmentation as per the research report until 2028.

High Strength Steel Market - By Type

• High Strength Low Alloy

• Dual Phase

• Bake Hardenable

• Carbon Manganese

• Others

The high-strength low-alloy types segment is predicted to dominate the high-strength steel industry. The expansion of this industry segment can be attributed to the escalated call for high-strength low-alloy steels in the industry.

High Strength Steel Market - By Product Type

• Cold Rolled

• Hot Rolled

• Metallic Coated

• Direct Rolled

High Strength Steel Market - By Application

• Body and Closures

• Suspensions

• Bumper and Intrusion Beams

• Others

High Strength Steel Market - By End-use 

• Automotive

• Construction

• Yellow Goods and Mining Equipment

• Aviation and Marine

• Others

Among end-use industries, the automotive segment is predicted to dominate the high-strength steel industry in 2020. The expansion in the automotive end-use industry segment of the high-strength steel industry can be attributed to escalated calls for high-strength steel in the automotive industry.

High Strength Steel Market - By Region

• North America 

• Europe 

• Asia Pacific 

• Latin America 

• Middle East & Africa 

The Asia-Pacific region accounts for the highest usage of these high-strength steels in the world, which is predicted to expand over the conjecture period. The expansion of the high-strength steel industry in Asia Pacific can be credited to the economic expansion of emerging economies such as China, India, and Taiwan, among others. Escalated manufacturing output in the Asia-Pacific region to meet the domestic need for higher quality products and escalated exports from the region are factors leading to escalated call for high-strength steels in the region. The defense and aviation industry in the Asia-Pacific is also predicted to consume a large amount of ultra-high-strength steel in the coming years, which will drive industry expansion in the Asia-Pacific region. The long life of high-strength steel, as well as the minimum maintenance required by this steel, are important factors behind the strong call for this steel in Asia-Pacific.

Europe is also predicted to post significant expansion during the outlook period due to the intensive use of high-strength steel in the manufacture of lightweight body parts. Germany is the main contributor to the regional industry due to the presence of various auto components and auto manufacturers in the region. In addition, the use of high-strength steel products in aircraft and component manufacturing complements the regional industry call.

Recent Developments 

• SSAB introduces Strenx, the latest brand of high-strength steel. SSAB introduces Strenx, the latest brand of high-strength structural steel goods, providing the most amazing portfolio of high-strength steel on the industry.

• Tata Steel releases high-strength steel. Tata Steel introduced an enhanced high-strength steel good here that will let automakers to produce lighter materials and create comparably complicated shapes.

High-Strength Steel Key Players:

Some of the major players working in the industry are Voestalpine AG (Austria), POSCO Group (South Korea), ArcelorMittal S.A. (Luxembourg), SSAB AB (Sweden), Nippon Steel & Sumitomo Metal Corporation (Japan), Tata Steel (India), United States Steel Corporation (US), Steel Authority of India Limited (India), Baosteel Group Corporation (China), Severstal JSC (Russia), ThyssenKrupp AG (Germany), JFE Steel Corporation (Japan), Nucor Corporation (US), and JSW Steel (India), among others.