The high strength steel market is expected to grow by USD 14.51 million during 2020-2024, according to the latest market research report by Technavio. Request a free sample report
In the automobile industry, high strength steel is used to manufacture lightweight and fuel-efficient vehicles. These steels are extensively used in manufacturing frame structures, bumpers, chassis, fuel tank guards, and other parts of automobiles. These help in improving the crashworthiness and fuel-efficiency of vehicles. Nowadays, different grades of high strength steel are used for producing energy-efficient vehicles. In 2018, more than 50% of the vehicles were made using high strength steel as compared to the previous years. New grades of high strength steel enabled automotive manufacturers to reduce the weight of vehicles by 25%-40% as compared to conventional steel. Lightweight vehicles require less fuel. Therefore, high strength steel also contributes to the reduction of greenhouse gases. As a result, the demand for high strength steel is increasing in the automobile industry, which will drive the growth of the market during the forecast period.
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As per Technavio, the increasing use of electric arc furnace will have a positive impact on the market and contribute to its growth significantly over the forecast period. This research report also analyzes other significant trends and market drivers that will influence market growth over 2020-2024.
High Strength Steel Market: Increasing Use of Electric Arc Furnace
Steel is primarily produced by heating iron at high temperatures in a blast furnace. However, this process requires a large amount of energy. Metallurgical or coking coal is the major source of ignition in blast furnaces, and the use of blast furnaces increases the consumption of coal, which subsequently increases CO2 emissions. Owing to the rising environmental concerns, governments across the globe have implemented stringent regulations on steel production. Therefore, steel producing companies are gradually adopting electric arc furnaces. The energy source used in electric arc furnaces is clean electricity, which addresses the problems of CO2 emissions. These furnaces use 100% scrap metal feedstock, which increases the cost-efficiency of the production operations. These furnaces provide the flexibility of producing desired volumes of steel as per the demand in the market. Therefore, the electric arc furnace is drawing the focus of many steelmakers globally. The growing adoption of electric arc furnaces in the steel industry will increase the production of steel products, such as high strength steel sheets and bars during the forecast period.
The increasing use of secondary steel and the rising demand in the wind energy sector will have a positive impact on the growth of the high strength steel market value during the forecast period, says a senior analyst at Technavio.
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High Strength Steel Market: Segmentation Analysis
This market research report segments the high strength steel market by application (fashion, technical, household, and others) and geography (APAC, North America, Europe, South America, and MEA).
The APAC region led the high strength steel market in 2019, followed by North America, Europe, South America, and MEA respectively. During the forecast period, the APAC region is expected to register the highest incremental growth due to factors such as the rising industrialization and the increasing infrastructural developments.
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Some of the key topics covered in the report include:
- Vendors covered
- Vendor classification
- Market positioning of vendors
- Competitive scenario
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