Structural Steel Market Driven By Rising Construction Activities...

Structural Steel Market Driven By Rising Construction Activities Globally

Posted 2024-02-23 04:45:57

Structural steel refers to steel which is fabricated and rolled into various shapes and sizes to be used as a construction material in numerous industrial and civil engineering projects. It offers numerous advantages like high strength, durability, ease of erection, minimal maintenance and superior load bearing ability. Structural steel finds widespread applications in construction of buildings, bridges, railways, containers, cranes and various manufacturing equipment. The global structural steel market is primarily driven by rapid urbanization and strong growth in residential and commercial building construction activities across both developed and emerging economies.

The global structural steel market is estimated to be valued at US$ 94.93 Bn in 2024 and is expected to exhibit a CAGR of 9.6% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the structural steel market are Johnson & Johnson, Bayer AG, GlaxoSmithKline Plc, Baby Foot, Sanofi S.A., Grace & Stella Co., PediFix Inc., Alba Botanica, Tony Moly Co. Ltd., Aveeno, Bio-Oil, Dr Teal’s, Bath & Body Works, The Body Shop, Nivea, O'keeffe's, L'Occitane, La Roche-Posay, CeraVe, Eucerin. Key players like Johnson & Johnson, Bayer AG and GlaxoSmithKline Plc account for a major share of over 50% in the global structural steel market.

The demand for structural steel is growing significantly driven by increasing construction activities globally. Rapid urbanization along with growing investments in infrastructure development projects across both developed and emerging economies are augmenting the market growth. Countries like China, India, US, Japan and countries across Middle East and Africa are witnessing large number of megaprojects which requires substantial steel tonnage.

Global expansion of major steel producers to cater to increasing overseas demand is further fueling the structural steel market growth. Key players are investing in mergers and acquisitions to acquire steel plants located in high growth regions. Companies are also focusing on expanding their production capacities to meet rising global steel demand more effectively.

Market drivers

Strong growth in construction industry globally especially in Asia Pacific region driven by China and India is a major factor propelling the Structural Steel Market Demand. Rapid infrastructure development accompanied with increasing spending on commercial buildings, residential complexes and manufacturing facilities will drive higher steel consumption. Government initiatives and investments towards development of smart cities and transportation infrastructure across developing nations are further augmenting the demand. Stringent regulatory standards regarding infrastructure safety is also catalyzing the replacement demand for structural steel. Sustainability measures towards reducing carbon footprint through usage of high strength steel will promote its adoption over the forecast period.

Impact of geopolitical situation on the growth of Structural Steel Market:

The global structural steel market is facing geopolitical challenges that are hampering its growth prospects. The ongoing conflict between Russia and Ukraine is massively disrupting the supplies of raw materials. Both Russia and Ukraine are major exporters of steel and iron, accounting for over 10% of global exports. With trade restrictions and sanctions on Russia, the prices of steel have increased dramatically in recent months. Many construction projects are facing delays or revisions in their timelines and budgets due to inflated input costs. The pandemic disruptions and new virus strains continuing to emerge is also creating uncertainties in the market. Travel restrictions and lockdowns are slowing down construction activity in various regions intermittently. Economic downturns in major countries pose new risks. However, governments and companies are initiating strategies like developing alternative sourcing routes, investing in R&D, and focusing on resilient infrastructure projects to counter adverse impacts of the volatile geopolitical environment on this critical industry over the coming years.

Geographical regions concentrating value in the Structural Steel Market:

Two regions that are concentrating major market value in the global structural steel industry are Asia Pacific and North America. Asia Pacific accounts for over 45% of the worldwide demand for structural steel primarily driven by China, India, and other developing nations aggressively investing in infrastructure, buildings, transport, and energy projects. The ongoing urbanization is propelling the use of structural steel in this region. North America is the second largest regional market with a share of over 20% led by the US, where demand comes from non-residential construction, bridges, and mechanical structures. High disposable incomes and advanced building techniques support structural steel usage in developed countries of these regions.

Fastest growing region in the Structural Steel Market:

The fastest growing regional market for structural steel globally is expected to be Africa over the forecast period till 2030. With rising foreign investments and government initiatives to develop road, rail, and building infrastructure, the consumption of structural steel in Africa is projected to increase at a CAGR of over 12%. Countries like Egypt, Nigeria, Kenya, Ethiopia, and Morocco offer immense growth opportunities. Large infrastructure projects and construction of new industrial facilities are expected to drive the African structural steel demand manifolds. Meanwhile, other developing regions like Central and South America are also emerging rapidly with growing penetration of steel constructions.