Through the uses of steel for various applications, the demand of the steel has been increasing day by day over the worldwide. Hence of its application and requirement on the large scale at worldwide as well as increasing demand providing the new opportunity for the steel manufacturer and expanding their market size. According to the Technavio’s global steel tubes market analysis of steel industry, by the year 2020 steel market expected to grow by the rate of 6% CAGR at the global level. On the other side, according to the world steel organization by the year 2020 the demand will increase at the rate of 1.7%. This was expected at the rate of 3.9% but due to trade tensions, uncertainty, and geopolitical issues. These are the few reason which slow down the demand steel at the global level.
In addition, the steel industry and its increasing demand have become a ray of hope for the industries because it is taking the market away from the recession. Several factors are contributing such as the strong demand from transportation and construction industries over the forecast time duration is the reason for the rapid growth of the steel industry. Furthermore, we know that the steel is the most important material for industrialization of any nation, at present, industrialization and urbanization is rapidly increasing particularly in the region such as Asia Pacific, Europe, and Central & South America. These above mention area are the one who expected to drive the overall iron & steel market. There few market trends of the steel industry from which given below:
Steel Demand in Construction Industry rapidly growing
After becoming the prime and ideal material for the construction industry and find out the ways of various applications of steel in construction, the demand is rising. Now, construction industry has replaced the traditional material over steel to reduce the construction time. On the other side, pre-engineered and prefabricated building is the new trend in construction industry for which steel is used. They are time and money saving, as well as profitable, safer, and easy to construct. This is the new market trend of the steel industry for which the demand of the steel rapidly increasing.
Automotive industry is the next market trend among the steel industry
Car, Ship, Rail, Bus, Cranes, Heavy Machinery, etc. made with steel because it is durable, high strength, cost efficient, sustainable, easily available, and high strength to weight ratio. In emerging economies such as Brazil, India, China, and Russia, steel demand is increasing rapidly due to factors such as increasing settlement income, urbanization, and population growth in these countries. In the year 2018, the steel demand in the automotive industry was valued USD 104.47 Billion at the global scale. It is increased annually and expected to grow with the CAGR of 3.2% from 2019 to 2025.
These are the two market trends among the steel industries and rapidly growing the market.