Our in-depth analysis of the weathering steel market includes the following segments:
On the basis of regional analysis, the weathering steel market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
The market for weathering steel in North America is anticipated to hold the largest share in the market on account of presence of leading market players in the region which manufacture and market weathering steel. Moreover, the growing requirements of steel components by end-user applications such as railway bridges, structural network and bypasses, aerospace, dental, automotive and electronics as well as favorable government policies and initiatives to promote weathering steel production are met in this region which further increases the product demand. The market in Asia Pacific region is predicted to grow at the highest rate during the forecast period as a result of extensive investments in building cost-efficient and sustainable infrastructure in the region. The increasing construction activities such as road, rail networks and bridges along with growing opportunities in infrastructure and real estate investments in the region, especially in countries such as China, India and Japan further raise the demand for weathering steel.
The weathering steel market is further classified on the basis of region as follows:
Increasing wide-scale applications of weathering steel in construction, architectural and transportation industries owing to its excellent mechanical properties are the significant factors boosting the market growth. The weathering steel market is anticipated to record a significant CAGR over the forecast period, i.e., 2020-2028. The market is segmented by application into building and construction, transportation, industrial, architecture and others. Among these segments, the segment for building and construction is anticipated to hold the leading share in the market on account of increasing investments in infrastructural development and growing construction activities all across the world. Moreover, high strength and load-bearing properties along with the ability of weathering steel to exhibit good aesthetic appeal over a period of time makes it a cost-effective choice in housing units and buildings. CLICK TO DOWNLOAD SAMPLE REPORT
Rapidly Growing Construction and Transportation Industry to Drive the Market Growth
The construction and transportation sector have potential growth and investment opportunities across all the world’s infrastructure activities. According to the American Road and Transportation Builders Association (ARTBA), the U.S. transportation infrastructure market is expected to grow at least 5 percent in 2020. Weathering steel is a widely used and crucial component in bridge construction, railway wagons, heavy-duty transportation and shipping containers. On the back of these, the market is predicted to grow over the forecast period.
Increased Demand in Architectural Applications and Excellent Material Properties to Boost the Market Growth
There is a significant rise in demand for weathering steel as a raw material in highway structures and art and architectural sculptures owing to its key features such as enhanced corrosion resistant, longer shelf life and extraordinary aesthetic appeal. Moreover, excellent properties such as superior strength, low maintenance, high toughness and tensile strength, load-bearing properties and high temperature resistance makes weathering steel a best material used in industrial purposes like heat-exchanger units and chimneys. This is anticipated to significantly expand the weathering steel market.
Harsh Environmental Conditions to Hamper the Market Growth
Despite of its favorable material properties, there is a severe impact of extreme environment on weathering steel such as rust, corrosion, reduction in fatigue life owing to its usage in regions of high concentrations of corrosive chemicals and industrial fumes. This is estimated to hinder the growth of weathering steel market in the future.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.