Steel Fabrication Market - Forecast(2021 - 2026)
Steel fabrication Market Overview:
As per an International Trade Administration report, the crude steel production continues to show significant growth with production increased by 47% between 2005 and 2017, which translates to 8 million metric tons in 2005 to 1.69 billion metric tons in 2017 respectively[1]. High global demand with higher levels of production and global capacity utilization rate are some of the major factors responsible for relative growth in the steel industry. Almost all the sectors from industrial to residential utilize steel, which is creating a myriad of opportunities in the steel fabrication market. As of 2018, the global steel fabrication market size hovered around $138 billion. Furthermore, the demand for steel fabrication will observe a notable CAGR of around 4.1% during the forecast period of 2019 to 2025.
APAC dominates the steel fabrication market due to rapid industrialization and several development projects and plans such as smart cities. Demand for steel fabrication is high in countries such as China, Japan, and India due to increasing in industrial activities. According to the US Geological survey, half of the world’s steel production is attributed to manufacturing units in China that exports nearly 100 million tons worldwide. This is strongly influencing the steel fabrication market in APAC[2]. Owing to the fact that steel fabrication demand is more in APAC countries, the region held the maximum demand share that was assessed around 60% in 2018.
Steel fabrication Market Outlook:
Steel fabrication refers to the process in which stainless fabricators turn basic raw material and steel selections into desired shapes that can be used in the construction, automotive, mining, and civil infrastructure sector. Steel fabrication can be performed in two ways. First, raw material approach or integrated route process where different materials are heated, melted, and mixed. The other way is known as electric arc furnace method of steel fabrication in which recycled steel is melted to bring steel as the end product. Stainless steel fabrication is used to produce a wide variety of components, products, and projects such as architectural metal fabrication projects.
Steel properties such as corrosion resistance, high oxidation temperature, and integrity to maintain the mechanical properties over a wide temperature range make it as a suitable material to be used in aerospace, automotive, and marine application. In April 2017, the Federal Government initiated an investigation showed that the global demand for press-hardened steel sheet that can be used for complex stamped parts and other applications will increase by 36% by 2020[3]. This press-hardened steel sheet is used in the aerospace, automotive, and marine industry in which the application CAGR would be around 8% during the forecast period of 2019 to 2025.
Steel fabrication Market Growth Drivers:
- Growing Construction Industry
Steel fabrication is the process of converting steel components into the desired shape. Construction sector is highly prominent segment as steel is the most prevalently used material in the sector for various purposes like piping, structure, and others. Increasing number of construction activities such as high rise buildings, bridges, and parking garages across developing nations along with other lucrative upcoming projects will support the growth prospects in the steel fabrication market during the forecast period of 2019 to 2025.
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