Coated Steel Market Analysis

Coated Steel Market Analysis

The metallic coated segment is expected to generate over USD 50 billion by 2027 owing to increasing adoption of electrogalvanized coated steel. It produces a lower width of zinc or zinc alloy coatings as compared to the continuous batch hot-dip galvanizing process. It is also a lucrative process for applying zinc coatings on complicated and small shapes such as automotive components.
 

Electrogalvanized coated steel is suitable for manufacturing home appliances such as washing machines, outdoor units of ACs, and precision machines. Moreover, by combing with paints and primers, electrogalvanized steel offers excellent resistance and enhanced corrosion protection against paint blistering and peeling, which is expected to further drive the coated steel market growth.
 

The building & construction segment is projected to generate a demand for around 60 million tons by 2027 owing to the increasing use of coated steel in building & construction as it is strong, lightweight, and extremely durable. These properties of coated steel lead to lower construction times and easy handling on the construction site. The coated steel material is the perfect choice for renovations and extensions.
 

Furthermore, buildings made from coated steel solutions also provide safe and sustainable climate protection and have lower maintenance costs. The coated steel is 100% recyclable without any loss of quality. Both from an economical and an environmental perspective, coated steel is the sustainable solution.
 

The automotive application sector contributed significantly to the coated steel market and acquired over 20% revenue share in 2020. Coated steel is a feasible material for manufacturing large and high-quality automotive components such as automotive floors and roofs. Since coated steel provides corrosion protection and long-lasting appearance, it is a preferred over other steel material. The increasing capacity additions in the automotive industry will lead to robust demand for coated steel from the automotive application sector. However, the COVID-19 pandemic significantly affected the global automotive production in 2020 due to strict lockdowns imposed by various governments worldwide.
 

Many countries, such as the U.S., India, and China, are witnessing a staggering increase in the construction of non-residential buildings such as lodgings, offices, and commercial, health care, public safety, and educational institutes. According to the U.S. Census Bureau, the U.S. non-residential remodeling market reached USD 814 billion in 2019, after projecting an approximate 10% growth since 2016. Lodging construction witnessed a significant growth in 2019 owing to the persistent economic expansion that resulted in enhancing corporate earnings.
 

Moreover, large developments planned by Google, Apple, and Amazon, among other big corporate companies, along with investments in convention centers and amusement parks are likely to drive the coated steel market growth. Moreover, data center investments also witnessed strong growth in 2019, particularly in the downtown metro areas. The growing trends of hoteling and remote work flexibility are likely to further drive the datacenter demand, positively impacting the valuation of coated steel market.
 

Asia Pacific will witness around 5% CAGR in coated steel market through 2027 owing to the strong presence of manufacturers across the region due to the growing end-use industries. The region is experiencing growth in office spaces, retail stores, and public safety construction activities. Additionally, a large-scale rural to urban shift in the population is anticipated to increase the demand for the products.

Moreover, the new construction projects are peaking, with approximately half of the new offices and residential supplies concentrated in the non-core or decentralized areas, particularly in Bangalore, Delhi, and Shanghai. The retailers are continuing to invest in physical stores across Asia Pacific, which is likely to drive the demand for coated steel.