High Strength Steel Market

Industry Overview

The high strength steel market size is projected to grow from USD 33.16 billion in 2023 to USD 47.80 billion by 2030, registering a CAGR of 7.59% during the forecast period ranging from 2025 to 2030.

High strength steel is typically made from specialized materials of high tensile strength and hardness that make them highly resistant to wear and chipping. It may or may not contain a small number of microalloying elements apart from the traditional iron ore and manganese used as its primary raw materials for manufacturing. However, tempered steel is combined to add to the strength and toughness. This specific type of steel is also called structural steel since it is extensively used in structural applications. There is a wide variety of applications of high strength steel across different industries, including construction, automotive, aviation and marine, wind energy, mining equipment, electrical equipment, and pipes.

The global high strength steel market is experiencing significant growth due to several reasons. However, the primary growth factor happens to be the beneficial properties of the material itself, which includes but is not limited to high strength, versatility, durability, and formability. The outstanding metallurgical characteristic of the product promotes higher usage and adoption of this product in the automotive industry as a substitute to traditional materials, thereby fueling its market growth further.

The growth prospect of the market is, however, hindered by the challenges the automotive industry faces in meeting the strict governmental regulations regarding automotive safety, weight, fuel economy, and emission standards. Still, the market has significant growth opportunities due to the efficient solution provided by the product to meet these compliance requirements since it allows manufacturers and automobile engineers to design fuel-efficient and safe vehicles with lower weight.

Market Segmentation

Insight by Type

The global high strength steel market is divided on the basis of type into high strength low alloy, dual phase, and other segments. During the study period, the high strength, low alloy type category is expected to hold the largest share of the market. It will continue its dominance due to the growing demand for it in the automotive industry. It is also attributed to its superior properties such as high formability, corrosion strength, weldability, and yield strength ranging from 43 to 100KSI.

Insight by End-User

The global high strength steel market is categorized according to the end users into automotive, construction, aviation and marine, mining, and others. Among all these categories, the automotive industry is expected to hold the larger market share during the study period owing to the growing demand in the automotive industry to make automotive body structures to maximize their high durability feature. It is extensively used in making rocker panels, reinforcements, pillar inners, cross-car beams, and others.

Insight by Grade

The global high strength steel market is divided by grade into Ultra High Strength Steel (UHSS) and Advanced High Strength Steel (AHSS) segments. Out of these segments, the AHSS category is expected to grow at a significant rate during the forecast period due to the higher ability to balance strength and formability for automotive applications.

Insight by Manufacturing Process

The global high strength steel market is divided by manufacturing process into hot-rolled and cold-rolled categories. Out of these segments, the cold-rolled category is expected to grow at a significant rate during the forecast period due to the higher quality and precision that is needed for automotive and appliance manufacturing.

Insight by Form

The global high strength steel market is divided by its form into sheet & coil, plates, and bars & rods categories. Out of these segments, the Sheet & Coil category is expected to grow at a significant rate during the forecast period due to higher versatility and adoption in automotive and other industries.

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Industry Dynamics

Industry Trends

The rising trend among industry players across the world to reduce their carbon emissions due to the growing concerns over the rising level of air pollution and environmental impact is worth noting. It motivates them to enhance their environmental sustainability by lowering CO2 emissions, energy consumption, and liquid waste generation, as well as waste residues. In addition, the latest developments in research programs have also resulted in the production of advanced and superior-grade products by using hot stamping technology, and equipment has resulted in the improvement of structural properties. Furthermore, several CAE and CAD software, as well as non-destructive testing instruments, are now being developed for use in the production process.

Growth Drivers

One of the major growth factors of the global high strength steel market is the significant expansion of the automobile industry and the increase in automobile production that is pushing the demand for this specific type of steel. The cost-effectiveness and better performance features are also contributing significantly to the growth of this market. The growing investments and rapid developments in the automobile industry, especially in developing countries like India, are also expected to push the demand for high-strength steel further, creating a positive impact on the high strength steel market in the APAC region. Furthermore, the rise in demand for transport vehicles is also driving the market forward. In addition, growing government initiatives emphasizing modernizing infrastructure, including dams, bridges and others, results in an increase in demand for high strength steel and thereby pushes the market further.

Challenges

The main factor that is hindering the growth of the global high strength steel market is the high cost of production. In addition, the continual development in the grades of ultra-high strength steel and advanced high strength steel, as well as advancements in steel processing technology facilitating the production of steel with new and improved properties, are hindering the market growth.

Opportunities

The rapid expansion of the automotive industry in developing countries and the growing European market provide lucrative growth opportunities to the industry players in the high strength steel market. Rapid urbanization and industrialization in these regions are increasing the demand for products in the construction sector, creating novel growth opportunities.

Geographic Overview

The Asia-Pacific region holds the largest share of the high strength steel market, being the biggest producer and consumer of steel in the world. Developing countries like India, China, and Taiwan dominate the market. They are pushing the demand for such steel significantly, which is especially attributed to the rapid expansion of the automobile industry. Rapid industrialization is also a factor contributing to the growth of this market in this region. A few other factors of market growth in this region include an increase in population and household formation, strong economic conditions, lower mortgage rates, a low level of unemployment, and rising incomes that will push residential construction activities. In addition, growing demand for single-family houses and apartments will also boost product demand and the market as a result.

The North American market, on the other hand, is expected to account for the second-largest market share in terms of global revenue, which is primarily attributed to the expanding construction sector as well as the growth of the automotive industry that will push the product demand in the forecast period and the market.

Competitive Insight

Tata Steel Limited is an Indian multinational steel-making company that is based in Jamshedpur, Jharkhand and headquartered in Mumbai, Maharashtra. It is a part of the Tata Group. Tata Steel's range of versatile hot-rolled advanced and ultra high-strength steels offer increased strength or reduced weight for application engineers.

United States Steel Corporation (commonly known as U.S. Steel) is an American integrated steel producer headquartered in Pittsburgh, Pennsylvania. U. S. Steel's Martensitic ultra-high strength steels meet roll-forming applications needs that require extreme flatness with excellent bendability.

Wuhan Iron and Steel Corporation, Tata Steels Limited, United States Steel Corporation, China Steel Corporation, SSAB, Novolipetsk Steel, Shandong Iron and Steel Group, JFE Steel Corporation, Hebei Puyong Steel Group, Baosteel Group Cororation, JSW Steel, and Metinvest Holding LLC are some of the major players operating in the high strength steel market.

Recent Developments By Key Players

U. S. Steel and CarbonFreehas collaborated to capture carbon emissions generated from U. S. Steel’s Gary Works Blast Furnaces in a first-of-its-kind project. The project will use CarbonFree’s SkyCycle technology to capture and mineralize up to 50,000 metric tons of carbon dioxide per year

SSAB has launched the world’s first emission-free steel powder for commercial deliveries, made of recycled SSAB Zero steel. The product shall create opportunities for customers to 3D-print their unique designs in steel produced without fossil carbon dioxide emissions.