High Strength Steel Market Research Report: Information by Product Type (High Strength Low Alloy Steel, Dual-Phase Steel, Hardenable Bake Steel, Carbon Manganese Steel and others), End-Use Industry (Automotive, Construction, Hoisting and Mining Equipment, Marine, Aviation and others) and Region (Asia-Pacific, North America, Europe, Latin America and Middle East & Africa) - Forecast till 2030

High Strength Steel Market Overview:

High Strength Steel Market Size is projected to be worth USD 80.4 billion by 2030, registering a CAGR of 8.8% during the forecast period (2022 - 2030), The market was valued at USD 35.51 billion in 2021.

High strength steel is new generation steel that provides remarkable strength and ductility. This steel has better resistance to corrosion and other chemicals, unlike conventional carbon steel. In order to enhance the strength, high strength steel industry are usually alloyed with elements such as copper, vanadium, and titanium. These are extensively used in automobile applications on the account of wide range of properties, particularly lightweight, and other mechanical properties such as better weldability, high toughness, and excellent formability.

High strength steel also has a variety of applications in several end-use industries such as construction, hoisting and mining equipment, and aviation owing to their mechanical strength and flexibility. For instance, high strength low alloy steels are used in designing bridges, pillars, and fabrication of large building structures on the account of their easy weldability and machinability.

The global market is expected to be driven by augmented demand for high strength steel in end-use industries, such as automotive and construction. This can be attributed to the increase in the utilization of high strength steel in car industry as a replacement to conventional carbon steel in auxiliary applications for manufacturing lightweight vehicles. Moreover, the surging demand for high strength and lightweight materials in the construction industry is likely to fuel the demand for high strength steel in the coming years.

Furthermore, the increasing use of high strength steel in the production of welding materials coupled with innovative advancements to produce ultra-high-strength steel with desirable properties are further creating lucrative opportunities for the key players operating in the global high strength steel market.

However, during the processing of high strength steel usually 25 to 30% more energy is required as compared to carbon steels, thus making it capital-intensive when compared to normal strength steel.

Global High strength Steel Market Share, by Region, 2018 (%)  

Source: MRFR Analysis

Regional Analysis

The global high strength steel market is analyzed for five major regions, namely, North America, Asia-Pacific, Europe, Latin America, and the Middle East & Africa.

The market in Asia-Pacific is expected to dominate the high strength steel market and is projected to register the highest CAGR during the forecast period owing to the swiftly growing industrialization and constructional activities in the region. Additionally, the increasing use of high strength low alloy steel in the automobile sector to produce fuel-efficient vehicles is further propelling the regional market demand. China is the largest consumer in the high strength steel market owing to the increasing population and growing demand from the automotive industry for high strength steel. Furthermore, India, Japan, South Korea, and other Southeast Asian countries are propelling market growth in the region. For instance, in June 2018, POSCO, the fourth largest steel-making company in the world announced an agreement with Tata Steel Europe (TSE), to trade its PVD technology with the high corrosion-resistant MagiZinc products to increase the range of advanced products in automotive and construction industries. Thus, adding considerable value to the global high strength steel market.

The market in North America accounted for a substantial share in 2018. The growing demand for high strength steel fabrics in construction applications coupled with the rising residential and commercial activities in the US is expected to drive the market growth. In addition, the ongoing innovation technology to produce superior quality high strength steel products for automotive applications is fueling the regional market demand. For instance, in August 2016, AK Steel Holding Corporation introduced a new family of high strength steel products under the tradename NEXMET offering excellent strength, greater ductility and better formability for structural and exterior automotive applications.

Europe is also expected to register significant growth during the forecast period due to the extensive use of high strength steel market in manufacturing lightweight automotive body parts. Germany is the major contributor in the regional market on account of the presence of various automobiles components and automobile producers in the region. Additionally, the use of high strength steel products in the manufacturing of aircraft and constituent parts is supplementing the regional market demand.

Latin America and the Middle East & Africa are expected to show substantial growth during the forecast period owing to the increasing construction activities and growing per capita disposable income in the regions.

Segmentation

The global high strength steel market has been segmented based on product type, end-use industry, and region.

Based on product type, the global market is classified into high strength low alloy steel, dual-phase steel, hardenable bake steel, carbon manganese steel, and others.

Based on end-use industry, the global market has been classified into automotive, construction, hoisting and mining equipment, marine, aviation, and others

By region, the high strength steel market growth has been categorized as North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.

Recent Industry Developments:

February, 2023: Swiss Steel : is producing the steel of the future at the Steeltec AG mill in Düsseldorf - Ultra-fine-grained, high strength and tough steel thanks to XTP®

Lucerne. When standard steels need to have specific characteristics, expensive alloying additions and supplementary heat treatment are generally used. Steeltec AG, a company of the Swiss Steel Group, has developed an innovative, alternative technology for this very reason.

The company is progressive and trendsetting with its development of "Extreme Performance Technology (XTP®)" and with high-quality technology has found a way to produce an ultra-fine-grained and tough high-grade steel which makes the need for additional alloys and special treatment obsolete thanks to a controlled thermomechanical processing phase.

December, 2022: Jindal Shadeed Group Plans $3 Billion Green Steel Plant in Oman - Jindal Shadeed Group will invest more than $3 billion to set up a green steel plant in Oman that will produce high-strength automotive products for customers in the Middle East, Europe and Japan.

The company has the necessary approvals in place to secure land for a green hydrogen-ready project that can process 5 million tons of steel a year, said Harssha Shetty, chief executive officer of Jindal Shadeed Iron and Steel LLC. The plant in Duqm, Oman is expected to be completed by 2026, he said.

“The company, in due course, will evaluate the optimum mix of debt and equity to maximize shareholder value and minimize cost of capital,” he said in an interview on Saturday.

As more and more consumers commit to net-zero goals, steelmakers globally are investing heavily in decarbonizing their operations. Green hydrogen, produced using water and renewable electricity, is widely predicted to play a crucial role in the decarbonization of heavy industry, and is forecast to grow rapidly this decade.

High Strength Steel Key Companies:

Arcelor Mittal (Luxembourg), United States Steel Corporation (US), Voestalpine AG (Austria), SSAB (Sweden), Shandong Steel Group (China), AK Steel Corporation (US), SAIL (India), Nippon Steel and Sumitomo Metal Corporation (Japan), POSCO (South Korea), Wuhan Iron and Steel Corporation (China), Hyundai Steel Company(South Korea), and China Antsteel Group Corporation Limited (China) are some of the key players in the global high strength steel market.

Intended Audience

• Traders and distributors of high strength steel


• Potential investors


• Raw material suppliers


• High strength steel manufacturers


• Distributors


• Industry associations