June 16, 2024
Structural Steel Market

Structural Steel Market Poised For Growth Amid Advancements In Automation Systems

Structural steel is a versatile construction material that is resistant to corrosion and highly durable. Frame structures made of structural steel are stronger, more stable and require less material as compared to other materials like concrete. The rising demand for sustainable and energy-efficient buildings along with rapid urbanization is propelling the growth of the structural steel market.

Key players operating in the structural steel market include 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, and CeraVe. Advancements in automation and robotic technologies have enabled precision and speed in the production and assembly of structural steel components. This has significantly improved the efficiency of construction processes.

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

Key Takeaways

Key players: Advancements in automation systems by leading market players such as Johnson & Johnson, Bayer AG, GlaxoSmithKline Plc are facilitating mass production of structural steel components.

Key opportunities: Growing infrastructure development activities in emerging economies present lucrative growth opportunities for manufacturers in the Structural Steel Market Demand.

Technological advancements: Adoption of technologies like 5G, robotics, and Internet of Things (IoT) enable real-time monitoring of structural health and automated Quality Assurance processes.

Market drivers

Government initiatives to develop sustainable infrastructure: Favorable policies aimed at promoting the use of recyclable and energy-efficient materials in construction are major market drivers. Investments in green building projects will augment the demand for structural steel.

Rapid urbanization: Burgeoning urban population and the need for urban infrastructure development are fueling the structural steel market growth.
Current challenges in Structural Steel Market
The structural steel market is facing challenges of high volatility in raw material prices and unpredictable supply due to Covid-19 pandemic effect across globe. The steel prices have grown significantly in last one year impacting the construction activities. Labor shortage and high freight charges are also posing challenges for participants in this industry.

SWOT Analysis

Strength: High tensile strength and ductility of structural steel enables construction of tall and large infrastructure projects. It provides durability and longevity compared to other construction materials.
Weakness: Structural steel requires specialized skills and equipment for fabrication and erection activities on site. Its transportation also involves high costs.
Opportunity: Growing investments in commercial real estate, transportation infrastructure will drive demand for structural steel in regions like Asia pacific and Europe. New steel alloy developments allow design of sustainable and earthquake resistant structures.
Threats: Fluctuations in raw material prices can impact project costs. Trade policies and barriers affect steel imports/exports between nations. Substitute materials like concrete and composites pose competition.

Geographical regions with high market value

North America accounts for around 30% value share currently led by heavy investments in transportation and utility infrastructure projects in US and Canada. Europe is second largest regional market led by Germany, UK, France focusing on railway, bridges construction. Asia Pacific is fastest growing market with China dominating demand followed by India where ongoing urbanization is driving various building and industrial construction.

Fastest growing geographical region
Asia Pacific region is forecast to be the fastest growing market for structural steel at a CAGR of over 11% during the forecast period. This is attributed to rapid urbanization, industrialization and infrastructure development programs underway in major countries like China and India. Mega projects for rail, road and buildings willpropel steel consumption in structural applications.Government initiativesareexpected to boost construction sector providing opportunities for structural steel in Asia Pacific.