Coated Steel Market - Forecast(2022 - 2027)

 

Various coating techniques such as hot-dip galvanization (HDG), which has advantages such as low-cost implementation, tough coating, reliability and ease of application, is further increasing the demand for the coated steel market. Many types of steel coating can be done on various forms of steels such as pipe and tubular, which can be electrogalvanized. There are certain types of steel products such as pre-painted galvanized iron, which is already coated, and thus makes it easier to use. This is majorly driving the coated steel market.

COVID-19 impact

Amid the Covid-19 pandemic, the coated steel market faced a lot of challenges in terms of production, operation, distribution, supply chain management and marketing of their products. The operation of the coated steel industry was hugely affected owing to the various legal restrictions laid down by many countries across the globe. The covid-19 restrictions led to the abrupt halting of inter-country and inter-state trade, imports, and exports which further impacted the coated steel industry. The coated steel market is however estimated to improve in terms of production and sales by the end of the year 2021.

Report Coverage

The report: “Coated Steel Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the Coated Steel Industry.

By Type:

 

Metallic Coated (Hot-Dipped, Electro Galvanized, Aluminized, Galvannealed and Others), Organic Coated and Tin Plated.

By Application:

 

Consumer Appliances, Automobile Components, Pipe and Tubular, Furniture, Fabrication and Others.

By End-Use Industry:

 

 Building and Construction (Residential construction, commercial construction and industrial construction), Electrical and Electronics, Industrial Machinery, Automotive Industry, Packaging Industry and Others.

By Geography: 

 

North America (USA, Canada, Mexico), Europe (Germany, UK, France, Italy, France, Netherlands, Belgium Spain, Russia and Rest of Europe), APAC (China, Japan India, South Korea, Australia, New Zealand, Indonesia, Taiwan, Malaysia), South America (Brazil, Argentina, Colombia, Chile and Rest of South America) and RoW (Middle East and Africa).

Key Takeaways

Asia-Pacific market held the largest share in the coated steel market owing to the increasing population coupled with the growing demand for infrastructure in countries like China, India, Japan and South Korea.

The growing demand from the building and construction industry for use of pre-painted galvanised steel is one of the major factors driving the demand for coated steel market.

The increase in demand for tinplate sheets from the packaging industry is one of the major factors driving the coated steel market.

Amid the Covid-19 pandemic, the coated steel market faced a lot of challenges owing to the various legal restrictions imposed across the globe. The coated steel market is however estimated to improve by the end of the year 2021.

FIGURE: Coated Steel Market share, By End-Use Industry (%)

Coated Steel Market Segment Analysis – By Type

Metallic Coated segment held the largest share in the coated steel market in the year 2020. The metals are coated through various processes such as hot-dip galvanization and annealing of steel sheets. Metallic steel coat provides superior protection for metal surfaces against various obsolesce such as rust, corrosion and oxidation.

 

 It also provides the advantage of easy assembly and disassembly which is also one of the major factors why metallic coating is preferred over other types of coating such as organic coating and tin coating. This is majorly driving the demand for metallic coated segment in the coated steel market.

 
Coated Steel Market Segment Analysis – By Application

Pipe and Tubular held the largest share in the coated steel market in the year 2020. Pipe and tubular are products that are a long hollow cylinder, which are commonly used in industrial uses, engineering purposes, piping systems and other reasons. For the construction of pipe and tubular, coated steel is majorly used, as it is readily available and provides protection against corrosion.

 

 These pipe and tubular products are also made of pre-painted galvanised iron. Pipe and tubular are mainly used in transferring fluids in various industries. The increase in manufacturing activities in various fields across the globe and the rapid increase in the growth of the building and construction sector are some of the significant factors driving the pipe and tubular segment in the coated steel market.

Coated Steel Market Segment Analysis – By End-Use Industry

Building and construction industry held the largest share in the coated steel market in the year 2020 with a growing CAGR of 3.5% during the forecast period 2021-2026. The increase in construction activities across the globe is majorly driving the demand for coated steel products such as pipe and tubulars.

 

 According to the World Bank, the expenditure cost of the construction industry is estimated to reach US$11.9 trillion by 2023, which is an increase of 4.2% as compared to the previous year expenditure. This is widely driving the demand for coated steel in the building and construction sector.

Coated Steel Market Segment Analysis – By Geography

Asia-Pacific region held the largest share of 39% in the coated steel market in the year 2020. The increase in the growth of various end use industries such as building & construction, electrical and electronics and other industries is driving the demand for products such as pipe and tubulars, as it is majorly used in the architecture of buildings and plumbing. According to Asian Development Bank, developing countries in Asia will invest US$26 trillion in infrastructure from 2016 to 2030, or US$1.7 trillion per year.

 

 The revenue of the building & construction industry in China reached US $2.5 trillion in the year 2020. According to the Japan Refrigeration and Air Conditioning Industry Association, the demand for AC in Japan increased by 7.97%, in Malaysia increased by 3.29% and in Pakistan increased by 6.45% during the year 2018. This will increase the demand for coated steel, as it is mainly used in air conditioners, electrical boxes and electric laundry appliances. This will further drive the demand for coated steel market in the region.

Coated Steel Market Drivers

Increasing demand from the packaging industry is increasing the demand for coated steel

The increase in demand for tinplate sheets comes from the need for aesthetic appearance, especially for canned products in the packaging industry, which is driving the coated steel market. These tinplate sheets are electrogalvanized which makes it strong, long lasting and aroma/flavour retention. 

 

According to the data from World Packaging Organisation (WPO), a global organization and regulatory body of the packaging industry, the annual turnover of the global packaging industry crossed the value of US$500 billion during the year 2019, which served as an important factor driving the demand for tinplate sheets and coated steel lids, which in turn increased the growth of the coated steel market. This is driving the growth and demand for coated steel market in the packaging industry across the globe.

Growing demand from the electrical vehicles is majorly driving the coated steel market

The growing demand from the electrical vehicles across the globe is one of the important factors driving the growth of the coated steel market. Pre-painted galvanised steel is widely used in the exteriors of electrical cars.

 

 Furthermore, electric cars registered a 40% year-on-year increase in the year 2020 at 2.94 million units according to IEA (International Energy Association. Coated steel is used in the body of electric cars which makes the whole structure of the car. It is economical to use ready made coated steel on the body of the electric car. This is majorly driving the demand for coated steel market from the electric cars industry.

Coated Steel Market Challenges

Availability of cheap substitute is hindering the growth of the coated steel market

The availability of cheap substitutes such as aluminium and galvanised aluminium is a major challenge to the growth of the coated steel market. There are various advantages in using galvanised aluminium products such as being light-weight, more easily available and more affordable as compared to coated steel products. According to U.S. Geological Survey, the production of aluminium in December 2020, increased by 16% to 77,000 metric tons from November 2020.

Coated Steel Market Industry Outlook

Facility expansion, production expansion, collaborations, partnerships, investments, acquisitions and mergers are some of the key strategies adopted by players in the Coated Steel Market. Major players in the Coated Steel Market include:

1.SSAB AB

2.Jindal Steel & Power Ltd.
3.Voestalpine AG
4.OJSC Novolipetsk Steel
5.ArcelorMittal S.A.
6.United States Steel
7.OJSC Magnitogorsk Iron & Steel Works
8.China Steel Corporation
9.NIPPON Steel Corporation
10.Tata Steel

Acquisitions/Technology Launches

In March 2021, ArcelorMittal and Nippon Steel Corporation got into a joint venture to release their new product ‘KALASH’ and ‘KALASH GOLD’, their premium colour coated steel range.
In June 2020, Tata Steel launched two new Coated Product Brands, named GalvaRoS and Colornova, along with ECAs (Emerging Corporate Accounts) in a joint collaboration. These products were launched to cater to the increasing demand from ECAs (Emerging Corporate Accounts).

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