Steel Fabrication Market - Forecast(2021 - 2026)

As per an International Trade Administration report, the crude steel production continues to show significant growth with production increased by 47% between 2005 and 2017, which translates to 8 million metric tons in 2005 to 1.69 billion metric tons in 2017 respectively.  High global demand with higher levels of production and global capacity utilization rate are some of the major factors responsible for relative growth in the steel industry. Almost all the sectors from industrial to residential utilize steel, which is creating a myriad of opportunities in the steel fabrication market. As of 2018, the global steel fabrication market size hovered around $138 billion. Furthermore, the demand for steel fabrication will observe a notable CAGR of around 4.1% during the forecast period of 2019 to 2025.

APAC dominates the steel fabrication market due to rapid industrialization and several development projects and plans such as smart cities. Demand for steel fabrication is high in countries such as China, Japan, and India due to increasing in industrial activities. According to the US Geological survey, half of the world’s steel production is attributed to manufacturing units in China that exports nearly 100 million tons worldwide. This is strongly influencing the steel fabrication market in APAC.  Owing to the fact that steel fabrication demand is more in APAC countries, the region held the maximum demand share that was assessed around 60% in 2018. 

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Steel fabrication Market Outlook:

Steel fabrication refers to the process in which stainless fabricators turn basic raw material and steel selections into desired shapes that can be used in the construction, automotive, mining, and civil infrastructure sector. Steel fabrication can be performed in two ways. First, raw material approach or integrated route process where different materials are heated, melted, and mixed. The other way is known as electric arc furnace method of steel fabrication in which recycled steel is melted to bring steel as the end product. Stainless steel fabrication is used to produce a wide variety of components, products, and projects such as architectural metal fabrication projects.

Steel properties such as corrosion resistance, high oxidation temperature, and integrity to maintain the mechanical properties over a wide temperature range make it as a suitable material to be used in aerospace, automotive, and marine application. In April 2017, the Federal Government initiated an investigation showed that the global demand for press-hardened steel sheet that can be used for complex stamped parts and other applications will increase by 36% by 2020.  This press-hardened steel sheet is used in the aerospace, automotive, and marine industry in which the application CAGR would be around 8% during the forecast period of 2019 to 2025.

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Steel fabrication Market Growth Drivers:

• Growing Construction Industry

Steel fabrication is the process of converting steel components into the desired shape. Construction sector is highly prominent segment as steel is the most prevalently used material in the sector for various purposes like piping, structure, and others. Increasing number of construction activities such as high rise buildings, bridges, and parking garages across developing nations along with other lucrative upcoming projects will support the growth prospects in the steel fabrication market during the forecast period of 2019 to 2025.

• Evolution of 3D Printing

3D printing is also known as indirect metal printing. 3D printing technology is a process to improve the efficiency and output with minimum wastage of steel. Advancement in 3D printing is gaining enormous opportunities for customization that is fueling the demand for fabricated steel products in the market.

• Introduction of Steel Fabrication in Energy Sector

Steel fabrication is important for the energy sector that also compromises of oil and gas, wind energy, and nuclear energy. The demand of custom steel and customized end products such as pipelines and electric power turbine components from different energy sectors will fuel the opportunities in the steel fabrication market. 

• Steel Demand in Mining Sector

Steel is consider as the byproduct of the mining industry.  All the equipment used in mining process are produced using fabricated steel selections. Some common examples of steel selections products such as rods, beams, rails, and fitting that are integral part of the mining processes are creating massive opportunities in the steel fabrication market

Steel fabrication Market Trends:

• In 2018, Tata Steel and Thyssenkrupp signed an agreement to combine their European steel business in a joint venture. This merger will create a strong and robust European steel company with emergence of rising opportunities for stakeholders. 
• Latest Trends- Laser technology is introduced that provides several benefits over traditional fabrication processes. Latest laser technology helps to increase fabrication speed and capacity to produce more intricate cuts that assist to save the downstream with improved quality and reduced cost. This factor indicates that production rate will increase that will help to meet the demand for required steel products that are demanded from the steel fabrication market. 

Steel fabrication Market Challenges: 

Over-production of steel has directed to a reduction of high grade raw materials. The availability of high-quality raw materials is essential due to increasing demand for steel from various industries. Furthermore, the usage of low-quality raw materials have detrimental effects on environment such as greenhouse gases. The major challenges for manufactures is either to use low-quality raw material or discovering different ways to be less dependable on raw materials in general. Different research in production technology led the innovations of using recycled steel products which will alleviate the problems faced by the vendors in the steel fabrication market.  

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