June 17, 2024

The Rapidly Expanding Construction Industry Is Driving The Structural Steel Market

Structural steel is a key material used in the construction of buildings, bridges, ships, and other structures. It consists of rolled steel beams and shapes that are joined together to form frames or structures. Structural steel products offer high strength, flexibility in design, lightness in weight, and lower cost compared to reinforced concrete. Structural steel frames can be rapidly assembled and erected, making them ideal for large buildings and projects with tight deadlines. With increasing urbanization and infrastructure projects worldwide, the demand for taller and larger commercial and residential buildings is rising significantly. Structural steel supports cutting-edge architecture by allowing column-free, open floor plans and wider spans.

The global Structural Steel Market is estimated to be valued at Us$ 82.4 Mn in 2023 and is expected to exhibit a CAGR Of 9.6% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the structural steel market is the use of advanced steel alloys with improved strength and corrosion resistance. Manufacturers are developing new high-strength low-alloy (HSLA) steels and weathering steels that can withstand harsh environmental conditions without additional coatings. These advanced alloys help reduce steel tonnage and thickness requirements in structural designs. Another trend is the integration of Building Information Modeling (BIM) software in structural engineering and fabrication. BIM allows collaborative 3D modeling of steel structures and helps detect clashes and errors early in the design phase. It streamlines fabrication, construction planning, project management and operations & maintenance. Rising preferences for green buildings is also fueling demand for recycled steel made from 80-100% post-consumer or post-industrial scrap. Recycled steel consumes significantly less energy during manufacturing and aids in sustainable construction goals.

 

Porter’s Analysis

Threat of new entrants: The structural steel market requires significant capital investment and long production lead times. Erectors also require trained labor. These factors acts as entry barriers for new players.

Bargaining power of buyers: Buyers have high bargaining power in the structural steel market as the product is a commodity and substitutable. Buyers can negotiate on price and demand value-added services.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to consolidated nature of the market. Major players source raw materials like iron ore, steel scrap and ferroalloys from a small group of global suppliers.

Threat of new substitutes: Substitutes like glass, aluminum and timber are used for non-load bearing applications. Steel remains the dominant material for structural applications due to high strength-to-weight ratio and durability.

Competitive rivalry: The market is dominated by large players and regional manufacturers. Margin pressure exists due to overcapacity. Players differentiation strategies through quality, reliability and service.

Key Takeaways

The Global Structural Steel Market Demand is expected to witness high growth supported by rising non-residential construction spending.

Regional analysis:

 

Asia Pacific dominates the market owing to rapid urbanization and infrastructure development in China and India. North America is a major market driven by recovering construction sector in the US. Europe is anticipated to grow at a steady pace during the forecast period.

 

Key players:

 

Key players operating in the structural steel market are 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€TMs, Bath & Body Works, The Body Shop, Nivea, O’keeffe’s, L’Occitane, La Roche-Posay, CeraVe, Eucerin. These players focus on new product launches and expansion in emerging markets to gain market share.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it