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

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.

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.

全球供应链网络中断Hamp贷款er 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.

此外,许多汽车和建筑项目s 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

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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 ofelectric vehiclesand 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 ofCO₂emissions 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

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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)

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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.

中方对高强度钢的需求增加lding & 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

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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
斯图dy Period	2016-2027
Base Year	2019
预测期	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