Steel sections: Key market research findings
- APAC dominates the market geographically
- Infrastructure and construction to account for a majority of the market’s revenue
- Key vendors –ArcelorMittal, EVRAZ, Gerdau, NSSMC, and Nucor
Technavio’s market research analysts predict the global steel sections market to grow at a CAGR of more than 5% between 2016 and 2020. The growth of the market is augmented by the upgradation of existing transmission and distribution networks. Global investments in transmission and distribution are expected to amount to more than $8 trillion by 2040. The US is planning to invest approximately $50 billion by 2016 in replacements, upgrading, and expansion activities. In India, initiatives like Smart Cities will result in a major renovation in infrastructure and other sectors. During 2015, the global steel sections market was dominated by APAC with a market share of around 76%. Investments in grid improvement in countries such as Indonesia, Myanmar, and Vietnam will contribute to the growth of the steel sections market in APAC during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the steel sections segments based on the end-user.
“The market is currently witnessing a shift towards steel scrap as a raw material. Countries such as India and China are increasing the use of scrap iron to reduce the carbon footprint. Recycling of scrap improves the industry’s economic viability and also reduces the environmental impact by eliminating the need for iron ore extraction for steel production. This reduces carbon dioxide emissions significantly, saves energy and water consumption, and also reduces air pollution,” says Chandrakumar Badala Jaganathan, Lead Analyst, Chemicals & Materials, Technavio Research.
By 2020, the infrastructure and construction sector will continue its dominance over the global market by accounting for around 46% of the overall market revenue. Steel structural sections account for approximately 25% of the total steel used in buildings. They provide a stiff and strong frame to support the building structure. The common types of sections used in the infrastructure and construction industry include I, L, T, Z, and U. These are used in applications including wind bracing, roof panels, structures for waterways, excavations, wall panels, pedestrian door, roof light, and canopy.
The key vendors in the market include ArcelorMittal, EVRAZ, Gerdau, NSSMC, and Nucor. Globally, the steel sections market is moderately fragmented with a handful of global players. APAC accounts for 76.15% of the global consumption of long products and is closely followed by Europe and the Americas. The large share of APAC is primarily attributed to the presence of steel sections manufacturers that cater to the regional demand.
A more detailed analysis is available in the Technavio report, Global Steel Sections Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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