STRUCTURAL STEEL MARKET ANALYSIS

Market Challenges And Opportunities

Global Structural Steel Market Drivers:

Increasing industrialization across developing countries to augment market growth

According to a report from International Monetary Fund (IMF), in 2021, around 37 emerging countries accounted for 80% of the global population, and approximately 70% of the global gross domestic product (GDP) growth was generated through emerging economies. Agriculture, oil & gas, automotive, textile and apparel, construction, manufacturing, and pharmaceutical industries are major industries that are witnessing strong demand. Thus, rapid industrialization will favor the market growth of structural steel.

Eco-friendly nature of structural steel to foster market growth

A major advantage of using structural steel in construction is that 90% of all steel that's used in a structure can be recycled and reused. This means that no new material will be needed to build the structure, making it a very environmentally friendly way to create buildings. Unlike wood and other materials, steel does not decompose when left in the ground for a long period of time. This makes it ideal for use in large outdoor structures, such as bridges and towers. It is a great material to work with as it is relatively easy to fabricate, and it can be shaped into just about any desired shape. This allows architects to design structures that they can't with other materials.

Global Structural Steel Market Opportunities:

Increasing use of structural steel over other construction materials is expected to provide significant growth opportunities. Often architects and contractors are using structural steel over other building materials, such as brick or wood because of the many benefits it offers. The flexibility of steel allows architects to design structures that are not restricted by a traditional rectangular shape. It can be rolled, curved or integrated into irregular shapes and it is also relatively fast to fabricate, making it an excellent choice for projects that need to be completed quickly.

Growing number of partnership and acquisition in the market is expected to serve additional market opportunities for key players. For instance, in February 2022, Trimble announced that Zamil Steel, a global marketer in Engineering and manufacturing of various high-quality steel products and the Middle East’s premier supplier of Pre-Engineered steel buildings and structural steel products, has chosen its software, including Tekla PowerFab, to transform steel fabrication in its factories in India, Saudi Arabia, Egypt, and Vietnam.

Global Structural Steel Market Restraints:

High costs of the material is hampering market growth

Due to its high strength and durability, steel structures are usually more expensive than other materials like engineered wood or concrete. This is because steel can be a costly material to transport and requires specialized knowledge for fabrication. Hence, high cost is a major factor restricting market growth.

Insufficient Resistance to Natural Environments

Another major issue with structural steel is its inability to withstand the rigor of nature. Depending on where the steel structure is located, this can pose a problem if it is exposed to extreme weather conditions or even the presence of animals or insects. However, increasing industrialization and urbanization will open new avenue for the market growth.