Dublin, Oct. 08, 2020 (GLOBE NEWSWIRE) — The “Ultra-High Strength Steel Market – Growth, Trends, and Forecast (2020 – 2025)” report has been added to ResearchAndMarkets.com’s offering.
The market for the ultra-high strength steel market is expected to grow at a CAGR of more than 6% globally during the forecast period.
Increasing applications in the production of automobiles and growing demand from the construction industry are driving the market growth.
High cost of production and the outbreak of COVID-19 are the reasons expected to hinder the market growth.
Key Market Trends
Growing Demand from Automobile Sector
- Ultra-high Strength Steel (UHSS) is a newer generation of steel grades that provide extremely high-strength and other advantageous properties. UHSS mainly helps to meet safety, efficiency, emissions, manufacturability, and quality at a low cost.
- The demand from the automobile manufacturing industries for the UHSS has been growing because of its properties. Martensitic type steels are majorly being used in the development of safety and structural components of automobiles.
- The properties of UHSS include strength and ductility, high tensile strength, low yield point, high formability in manufacturing, weight reduction process, durability, environmentalism, which majorly support the safety and fuel efficiency needs in the automobile sector.
- Also, vehicle weight reduction processes help to increase the performance and efficiency of the vehicle, primarily in electric vehicles.
- The steel and automotive industries have forged numerous partnerships recently to develop the materials and technologies necessary to make the next generation of vehicles safer and more environmentally-friendly.
- Increasing applications for safety, growing demand for lightweight vehicles, and ongoing technological advancements in automobiles in developing regions are projected to drive the demand for ultra-high strength steel market through the years to come.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific is expected to dominate the global market owing to the highly developed automobile sector in China, Korea, Japan, and India, coupled with the continuous investments done in the region to advance the construction technology sector through the years.
- Ultra-high strength steel is being used in combustion engine vehicles, hybrid vehicles, and electric vehicles to increase safety, fuel efficiency applications. So, the demand for these materials is expected to be constant.
- According to the Organisation Internationale des Constructeurs d’Automobiles (OICA), Asia-Pacific leads global automobile production in recent years. China is the largest producer of automobiles and China alone produced 2,57,20,665 vehicles in 2019.
- Globally, China has more automobile manufacturing plants than any other country and accounts for 28% of automobile production share in 2019.
- In developing countries in Asia-Pacific, the construction industry has been growing constantly. India, Singapore, China have witnessed decent growth in recent years.
- UHSS is being used in the construction sector to increase the strength, and other mechanical properties of buildings. The usage of UHSS in Japan has grown significantly in previous years to resist earthquakes.
- Also, ultra-high strength steel is also being used in the aerospace and defense sectors. The main purpose to use is to decrease the weight of product components and to increase the performance.
- The continuous growth of safety features in automobiles, increasing aerospace sector and construction industries in developing countries are expected to drive the market for ultra-high strength steel through the years to come.
Competitive Landscape
The global ultra-high strength steel is partially consolidated in nature with a few major players occupying a significant portion of the market. Some of the major companies are POSCO, Nippon Steel and Sumitomo Metal Corporation, Tata Steel Limited, ArcelorMittal S.A., and ThyssenKrupp AG, among others.