Market Challenges And Opportunities
Global Weathering Steel Market Drivers
- Superior properties driving adoption in the construction and infrastructure sectors: Weathering steel, also known as corten steel, has gained increasing popularity as a construction material due to its superior properties and sustainability benefits. The high tensile strength, durability, corrosion resistance, and aesthetics of weathering steel makes it well suited for bridges, buildings, marine environments, outdoor sculptures, and other structural applications. For instance, according to the US Department of Transportation, the maintenance cost for a weathering steel bridge over its 75-year design life is estimated to be around 30-40% lower compared to painted bridges needing regular repainting.
- Cost efficiency fuelling uptake in the manufacturing and energy sectors: Weathering steel offers significant cost savings compared to other materials like stainless steel owing to its relatively lower alloying element content. The elimination of expenses related to corrosion-prevention treatments such as paints and coatings offers long-term economic benefits. For instance, as per a report by the International Renewable Energy Agency, investments in renewable power generation capacity will need to double by 2030 from current 2021 levels to limit global warming to 1.5°C.
- Recovery in end-use industries expanding market prospects: Key end-use industries like construction, infrastructure, automotive, and manufacturing were adversely impacted during the COVID-19 pandemic, affecting the demand for weathering steel. However, increased infrastructure spending and a rebound in industrial activity globally have reopened opportunities.
- Product development and process innovations: Leading weathering steel manufacturers are investing in R&D initiatives to enhance the properties of existing grades. Advancements like improvements in weathering behavior, weldability, formability, strength, etc. are expected to widen application scope across industries. For instance, according to data published by the United Nations Environment Programme in 2020, renewable energy and green building sectors are expected to grow exponentially in the coming decade to meet sustainability goals of many countries.
Global Weathering Steel Market Opportunities
- Rising sustainable construction driving the product demand: With increasing environmental consciousness, the building and construction industry is gradually shifting towards sustainable materials and designs. Weathering steel meets green building criteria owing to its recyclability, durability, and low maintenance needs. For instance, the European Union's 'Green New Deal' aims to renovate millions of buildings and upgrade energy efficiency standards by 2030, generating huge demand for sustainable building materials optimal for green buildings.
- Growth across emerging economies: Developing nations in Asia Pacific, Latin America, the Middle East and Africa are undertaking large-scale infrastructure development projects to address rapid urbanization and rising energy needs. This is creating substantial demand for construction materials including weathering steel. For instance, data from the United Nations Conference on Trade and Development (UNCTAD), infrastructure investment as a percentage of GDP increased across all developing regions between 2015 and 2019. The share was highest in Africa at 3.5% in 2019.
- Rising demand in art and architecture: Weathering steel is increasingly becoming the material of choice for contemporary artists and architects owing to its rustic and rugged aesthetic. Landmark outdoor sculptures and architectural projects globally showcase the creative potential offered by the patina finish and texture of weathering steel. For instance, according to the records maintained by the United Nations Educational, Scientific and Cultural Organization (UNESCO), the number of innovative public art projects and structures featuring Corten steel increased steadily between 2020 and 2022 globally.
- Development of advanced weathering steel grades: Product innovation through proprietary alloy development provides significant opportunities for manufacturers to differentiate their offerings, cater to challenging applications and command premium pricing. For instance, as per the 2021 report by the United Nations Environment Program, the construction, infrastructure and manufacturing sectors contribute over 30% of global carbon emissions primarily due to extensive use of paints and coatings on steel structures.
Global Weathering Steel Market Restraints
- High initial costs limiting adoption: While weathering steel offers lifecycle cost benefits from reduced maintenance, the high initial purchasing costs pose an affordability challenge. Weathering steel is approximately 1.5 - 2 times more expensive than conventional structural carbon steel. This is hampering uptake especially for cost-sensitive customers and projects. For instance, data from the American Society of Civil Engineers showed nearly 41% of projects in the U.S. reported abandoning weathering steel due to initial cost constraints in 2020-21.
- Counter balance: Create a strong brand presence with a consistent message focused on the innovative and sustainable aspects of weathering steel.
- Limitations in wet, cold and marine environments: A key limitation of weathering steel is its slow weathering and potential corrosion in wet, humid, cold, and marine environments. Without adequate exposure to atmospheric conditions that enable drying, the protective patina may not form properly leading to maintenance issues.
- For instance, according to statistics from the United Nations, approximately 10% of the world’s population lives in coastal areas vulnerable to marine corrosion. Similarly, over 25% of land area faces monthly mean temperatures below 10 degrees Celsius.
- Counter balance: Develop and patent new alloys or treatment processes that extend the life of weathering steel in different environments
- Lack of experience and expertise among stakeholders: Although weathering steel has been in use for decades, lack of technical expertise in specifying, procuring, fabricating and installing weathering steel remains a challenge. Engineers, architects and contractors used to working with conventional steel have limited exposure to effectively leverage weathering steel. For instance, according to a 2020 United Nations Industrial Development Organization report, only 11% of the construction workforce in developing nations had received any form of formal vocational training.
- Counter balance: Launch educational campaigns targeting architects, builders, and engineers to increase awareness about the benefits and applications of weathering steel.
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