July 16, 2024
Structural Steel Market

The Global Structural Steel Market Is Driven By Increasing Construction Activities

Structural steel is one of the most commonly used materials in building construction applications due to its high strength, durability and aesthetic appeal. It provides strength and support to large construction projects such as bridges, stadiums, commercial buildings and high-rise buildings. The global demand for structural steel has increased significantly with the growth in urbanization and infrastructure development activities around the world. Countries are investing heavily in rail, road and commercial real estate projects which requires large quantities of structural steel. Additionally, repair and renovation of aging infrastructure is another major driving factor for the structural steel industry.

The global Structural Steel Market is estimated to be valued at US$ 82.4 Mn in 2023 and is expected to exhibit a CAGR of 5.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the structural steel market is the growing popularity of pre-engineered metal buildings (PEBs). PEBs are highly versatile structures that are manufactured off-site using structural steel components including trusses, girts, purlins etc. and then assembled on-site. They offer advantages such as speed of construction, flexibility in design, lower costs, durability and ease of reconfiguration. Industries such as warehousing, manufacturing and agriculture are increasingly adopting PEBs for their construction needs. This is expected to drive significant demand for structural steel over the forecast period. Another trend is the rising preference for high strength steel grades for construction applications. Advanced high strength steels offer benefits such as reduced weight, improved seismic performance, lower steel requirements and cost savings. This trend is being encouraged by new building codes focusing on sustainability and efficiency.

Porter’s Analysis

Threat of new entrants: The structural steel industry requires significant capital investments for manufacturing facilities and equipment. High capital requirements pose high entry barriers for new players.

Bargaining power of buyers: The structural steel industry serves major end-use industries like construction, engineering, automotive, and others. Buyers have moderate bargaining power due to the availability of substitutes and presence of many established suppliers.

Bargaining power of suppliers: Major raw materials required are iron ore and scrap metal. The suppliers of raw materials have low to moderate bargaining power as raw materials are available from numerous global suppliers.

Threat of new substitutes: Alternatives like concrete and wood are used for construction. However, structural steel has better mechanical properties and is recyclable. The threat from substitutes is moderate.

Competitive rivalry: The global structural steel market is moderately competitive due to the presence of numerous established players. Players compete based on product quality, pricing, delivery timelines, and technical support.

Key Takeaways

The Global Structural Steel Market Size is expected to witness high growth over the forecast period Supported by growing construction activities and engineering applications across major economies.

Asia Pacific is expected to dominate the market backed by rapid urbanization and infrastructure development projects underway in major countries like China and India. China alone accounts for over 50% of the global steel production.

Key players operating in the structural steel market are Arcelormittal, Nippon Steel Corporation, Shougang, Tata Steel, Hyundai Steel, Anyang Iron & Steel Group Co., Ltd., British Steel, China Ansteel Group Corporation Limited, Emirates Steel, Evraz Plc, and Gerdau S/A. Major players are focusing on capacity expansion and mergers & acquisitions for geographic and product portfolio expansion to strengthen their market position.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it