The
high strength steel market is expected to grow by USD
14.51 million during 2020-2024, according to the latest market research report
by Technavio.
In the automobile industry, high strength steel is used to
manufacture lightweight and fuel-efficient vehicles. These steels are
extensively used in manufacturing frame structures, bumpers, chassis, fuel tank
guards, and other parts of automobiles. These help in improving the
crashworthiness and fuel-efficiency of vehicles. Nowadays, different grades of
high strength steel are used for producing energy-efficient vehicles. In 2018,
more than 50% of the vehicles were made using high strength steel as compared
to the previous years. New grades of high strength steel enabled automotive
manufacturers to reduce the weight of vehicles by 25%-40% as compared to
conventional steel. Lightweight vehicles require less fuel. Therefore, high
strength steel also contributes to the reduction of greenhouse gases. As a
result, the demand for high strength steel is increasing in the automobile
industry, which will drive the growth of the market during the forecast period.
As per Technavio, the increasing use of electric arc furnace
will have a positive impact on the market and contribute to its growth
significantly over the forecast period. This research report also analyzes
other significant trends and market drivers that will influence market growth
over 2020-2024.
High Strength Steel Market: Increasing Use of Electric Arc
Furnace
Steel is primarily produced by heating iron at high temperatures
in a blast furnace. However, this process requires a large amount of energy. Metallurgical
or coking coal is the major source of ignition in blast furnaces, and the use
of blast furnaces increases the consumption of coal, which subsequently
increases CO2 emissions. Owing to the rising environmental concerns,
governments across the globe have implemented stringent regulations on steel
production. Therefore, steel producing companies are gradually adopting
electric arc furnaces. The energy source used in electric arc furnaces is clean
electricity, which addresses the problems of CO2 emissions. These furnaces use
100% scrap metal feedstock, which increases the cost-efficiency of the
production operations. These furnaces provide the flexibility of producing
desired volumes of steel as per the demand in the market. Therefore, the
electric arc furnace is drawing the focus of many steelmakers globally. The
growing adoption of electric arc furnaces in the steel industry will increase
the production of steel products, such as high strength steel sheets and bars
during the forecast period.
High
Strength Steel Market: Segmentation Analysis
This market research report segments the high strength steel market by
application (fashion, technical, household, and others) and geography (APAC,
North America, Europe, South America, and MEA).
The APAC region led the high strength steel market in 2019,
followed by North America, Europe, South America, and MEA respectively. During
the forecast period, the APAC region is expected to register the highest
incremental growth due to factors such as the rising industrialization and the
increasing infrastructural developments.
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