The market for coated steel is expected to register a CAGR of more than 5% globally during the forecast period. Major factor driving the coated steel market are growing demand from electrical and domestic appliance industry. On the flip side, slowdown in the global automotive production and unfavorable conditions arising due to the COVID-19 outbreak are hindering the growth of the market.
- The construction and building components application is expected to dominate the global coated steel market over the forecast period.
- Asia-Pacific represents the largest market and is also expected to be the fastest-growing market over the forecast period, owing to the increasing consumption from countries, such as China, India, and Japan.
Key Market Trends
Growing Demand from the Construction and Building Components Application
- Coated steel finds various uses in the construction industry to create attractive and functional buildings that meet high environmental and quality requirements.
- The coated steel offers immense strength that makes it suitable for constructing buildings. In addition to this, coated steel possesses other characteristics, such as tensile, ductile, flexible, and cost-effective.
- According to a study by the Institution of Civil Engineers (ICE), the global construction industry is expected to reach USD 8 trillion by 2030, primarily driven by China, India, and the United States.
- The construction industry in the United States continued to expand in 2019, owing to a strong economy and positive market fundamentals for commercial real estate, along with an increase in federal and state funding for public works and institutional buildings. Additionally, other factors, such as the Tax Cuts and Jobs Act of 2017 as well as the hurricane rebuilding in the southeastern region of the United States, contributed to the growing activities in the construction sector of the country.
- Additionally, the construction sector in the Middle East and Africa region is expected to grow at the fastest pace in the upcoming years, as regional governments are investing in infrastructure projects. The construction industry in the region is expected to grow at an average rate of 7.5%.
- Such growth in the construction industry is expected to drive the market for coated steel during the forecast period.
The Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region represents the largest market and is also expected to be the fastest-growing market over the forecast period, owing to the increasing consumption from countries, such as China, India, and Japan.
- In India, the government has initiated projects such as 100 smart cities and ‘Housing for All by 2022’, which are expected to immensely drive the residential construction market in India over the forecast period. The country has even experienced significant interest from foreign investors in its infrastructural sector.
- The companies in the region provide manufacturing and assembling services to companies in Germany, France, and the United States. Moreover, these companies are rapidly digitizing their business to achieve end-to-end integration of their operation. This is further encouraging the OEMs from Europe and North America to outsource their production to Asia-Pacific.
- The Asia-Pacific automotive sector is currently undergoing a dull phase with decreasing production among major producers, such as China, India, and Japan. This is expected to hinder the coated steel market.
- The aforementioned factors, coupled with government support, are contributing to the increasing demand for coated steel during the forecast period.
The global coated steel market is partially fragmented in nature with the presence of many players in the market. Some of the major companies in the coated steel market include ArcelorMittal, China Steel, NIPPON STEEL CORPORATION, Tata Steel, and Thyssenkrupp AG, among others.
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