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The advanced high strength steel market size is forecast to increase by USD 16.18 billion at a CAGR of 12.09% between 2024 and 2028. The market's expansion hinges on various factors, notably the surging demand for Advanced High-Strength Steel (AHSS) within the automotive sector, driven by its lightweight properties and enhanced safety features. Furthermore, the thriving global construction industry presents lucrative opportunities for AHSS applications due to its structural integrity and durability. AHSS offers distinct advantages over conventional steel, including superior strength and formability, further propelling its adoption across diverse industries. With AHSS emerging as a preferred material, manufacturers are poised to capitalize on its potential to revolutionize structural design and meet evolving industry standards.
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Environmental effects are driving a shift towards more sustainable practices in various industries, including rail coach building and manufacturing. Utilizing third-generation steel and advanced high-strength steels in automotive parts and roofing systems contributes to reducing GHG and CO2 emission levels while ensuring tensile strength and durability. These materials also find applications in solar heating systems and solar panel, promoting the adoption of renewable energy solutions. In the steel industry, regulations focus on promoting high-strength low alloy steels and AHSS grades, which enable the production of lightweight components for electric and hybrid vehicles, thereby supporting the transition towards greener transportation options. Additionally, aerospace industry advancements and collaborations with vessel manufacturers drive innovation in active structures and environmentally friendly manufacturing processes, contributing to a more sustainable future.
Market Driver
The growing demand in the automobile industry is the key factor driving the global advanced high-strength (AHSS) market growth. The market refers to the production and sale of Type AHSS, which exhibits high yield strengths ranging from 700 to 2,000 N/mm2. These steels are primarily used in various end-use industries, including automotive, aviation, construction, and energy, due to their superior mechanical properties and enhanced corrosion resistance. The global AHSS market is projected to grow significantly during the forecast period, driven by the automotive industry's demand for lightweight and fuel-efficient vehicles. AHSS are used extensively in automobile manufacturing for body panels, chassis, fuel tank guards, and other components, contributing to weight reduction and improved consumer safety.
Moreover, in emerging economies, domestic requirements and economic growth fuel the demand for AHSS in the construction industry, commercial sector, and residential sector, creating employment opportunities and boosting the steel industry. Despite production costs and raw materials' price fluctuations, including iron ore, the market is expected to be restrained by governments' investments, support, and rules and regulations, as well as safety norms and carbon emissions concerns. Advancements in steel grade’s minimum yield strength and their weldability continue to drive market growth. Growing innovations and the rising demand for fuel-efficient and lightweight vehicles are expected to drive the demand in the automobile industry during the forecast period.
Market Trends
The increasing use of secondary AHSS is the main trend driving the growth of the market. Secondary are high-strength steels, which have strength and durability similar to that of AHSS. The market is experiencing significant growth due to increasing environmental concerns and the rise in renewable energy sources, particularly in the power generation sector. The share of renewables in global electricity generation with wind energy being a major contributor. In the context of AHSS, this market is driven by its type, end-use industry, and region. The automotive industry is a major end-user, with AHSS being used for body panels due to its superior mechanical properties, including high-yield strengths, formability, weldability, and corrosion resistance. The construction industry, commercial sector, and residential sector also utilize AHSS due to its weight reduction capabilities, toughness, and safety norms compliance.
Moreover, the markets for AHSS are spread across regions, with emerging economies such as China, India, and Brazil showing significant growth due to domestic requirements, economic growth, and consumer demand for a luxurious lifestyle. The forecast period for the AHSS market is expected to be influenced by production costs, raw materials, and iron ore prices, as well as government investments, rules and regulations, and safety norms in the steel industry. However, governments' support through investments and rules and regulations are expected to drive the market forward. The steel industry is also making advancements in steel grades to meet the evolving needs of various end-use industries. Therefore, with the growing shift to reduce carbon emissions, the demand for secondary steel is expected to rise during the forecast period.
Market Challenge
The volatile prices of raw materials are a major challenge to the market growth. Crude is produced from iron ore using blast furnaces or electric arc furnaces. Every year, around 1.5-1.8 billion tons are produced from 2-3 billion tons of iron ore globally. In the past few years, the prices of iron ore have witnessed major fluctuations, which has affected the prices of crude steel and finished steel products. Although the demand for steel is increasing in the automotive, construction, marine, aviation, and other industries, the fluctuating prices of raw materials are hampering the growth of the steel market.
However, the fluctuating prices of iron ore are attributed to the mining disruptions in Australia and Brazil. Such disruptions reduce iron ore production, and subsequently, the prices increase. The disruptions have also reduced the import rate in China as the shipments from both Australia and Brazil have decreased significantly. Governments, investments, and support through rules and regulations in the steel industry aim to ensure safety norms, reduce carbon emissions, and foster advancements in steel grades. In addition, owing to revised environmental policies, China is expected to restrict its production, which will increase the prices of iron ore and steel. Therefore, the increase in prices is expected to limit the growth of the global market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Arcelor Mittal - The company offers advanced high-strength steel such as SIRIUS 310S, UR 317LMN, VIRGO 39, UREA 310 MoLN.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the dual-phase segment will be significant during the forecast period. It is a class of materials that includes dual-phase (DP steels). Low- to medium-carbon having between 5% and 50% volume fractional martensitic islands that are scattered across a soft ferrite matrix is known as ferrite-martensite dual-phase . There may also be bainite and retained austenite components in addition to martensite; these are typically formed when greater edge stretch formability is sought. Dual-phase have a wide range of strength and ductility due to these changes in microstructure. It is well known have a high energy absorption capacity. These features make it extremely desirable for automotive applications, especially when combined with a cheap production cost.
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The dual-phase segment was valued at USD 6.38 billion in 2018. It has a high-strain redistribution capacity due to their high-strain hardenability. This translates to better drivability and mechanical qualities (yield strengths) of the completed item that are higher than the blank. In addition, offer a key advantage over traditional HSLA-type materials in the form of bake hardening. The bake hardening effect is an increase in yield strength brought on by the curing temperature of the paint bake cycle, which results in enhanced temperature aging. Such wide benefits are expected to drive the growth of the segment in the global AHSS market during the forecast period.
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APAC is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC is the leading construction market, owing to the rapid industrialization and infrastructural developments in the region. Government investments are increasing in the region, specifically in China, India, Malaysia, and Vietnam, in the development of new infrastructures such as roads, residential buildings, bridges, and railways. The growing construction activities are fueling the demand for building sustainable structures.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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Third-generation steel is becoming increasingly prominent in industries such as automotive production, attracting interest from prominent automakers and tech companies in Silicon Valley. With a focus on sustainability, materials like aluminum and H2 Green Steel are gaining traction, supported by initiatives from the International Trade Administration and green field investments. Within the manufacturing sector, there's a growing demand for high strength low alloy steels and advanced high-strength steels, including ultra-high-strength steels and giga steels, to meet the rigorous standards set by AHSS specifications. These materials offer enhanced ductility properties and provide crucial support in crash zones for improved safety. As discussions progress regarding metallurgical type and minimum tensile strength, informal discussions are underway to determine the most suitable nomenclature consideration and AHSS designation for these advanced materials, highlighting the importance of collaboration and standardization in this evolving field.
Moreover, in the third generation steel represents the latest advancement in steel technology, offering superior performance compared to traditional alloys. Within the steel industry, there's a particular focus on the high strength low alloy segment, as well as the development of advanced high-strength steels and ultra-high strength steels. These materials are attracting investment pockets from companies like Continental Automotive, driving innovation in automotive manufacturing. Dual phase steel, known for its enhanced strength and ductility, is gaining popularity due to its ability to meet rigorous performance requirements. As companies strive to improve their products' performance, they rely on precise strength numbers to ensure quality and safety standards are met. This emphasis on advanced materials underscores the ongoing evolution of steel technology and its vital role in various industries.
Industry Scope |
|
Report Coverage |
Details |
Page number |
189 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.09% |
Market growth 2024-2028 |
USD 16.18 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.91 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 47% |
Key countries |
China, US, India, Germany, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ArcelorMittal SA, Baosteel Group Corp., Big River Steel LLC, China Steel Corp., Cleveland Cliffs Inc., HBIS Group Co. Ltd., Hyundai Motor Group, JFE Holdings Inc., JSW Group, MSP Steel and Power Ltd., Nippon Steel Corp., Nucor Corp., POSCO holdings Inc., Rashtriya Ispat Nigam Ltd., SSAB AB, Steel Technologies LLC, Tata Steel, thyssenkrupp AG, United States Steel Corp., and voestalpine AG |
Market dynamics |
Parent market analysis, Market Forecasting Growth, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Grade Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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