High Corrosion Resistance Steel Market size is forecast to reach $76,837.2 Million by 2025, after growing at a CAGR of 5.5% during 2020-2025. Major factors driving high corrosion resistance steel demand includes growth in construction project, expansion of oil and gas activities in Asia pacific and North America, and growth in automotive production. According to OICA in 2018, global light commercial vehicle production increased from 19,482,394 to 20, 635,799 i.e., 5.9% higher from 2017. Asia Pacific road projects such as the Bharathmala project, in India, and the ongoing Belt and Road project, in China, are also increasing the consumption of high corrosion resistance steel. However, fluctuation in raw materials prices is expected to hinder market growth.

The report: “High Corrosion Resistance Steel Market– Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the High Corrosion Resistance Steel Industry.

By Type: Electrogalvanized Steel, Galvanized Steel, Aluminized Steel, Duplex Stainless Steel, and others.

By Application: Pipes and Tubing, Food Processing Equipment, Storage Tanks, Digester and Bleaching Equipment, Bridges, Offshore/Onshore Turbines, Biofuels and others.

By End Use Industry: Automotive, Oil and Gas, Aerospace and Defense, Power and Energy, Building and Construction, Chemical, Paper and Pulp, Food and Beverages, Marine, Water/Wastewater Treatment and others.

By Geography: North America, South America, Europe, APAC, and RoW.

Galvanized Steel segment held the largest share in the High Corrosion Resistance Steel Market in 2019 up to 3.9%. The tightly-bonded, impervious nature of zinc makes galvanizing a very good barrier coating. Furthermore, zinc corrodes approximately 1/10 to 1/40 the rate of steel depending on the environment, making the corrosion rate of a thin zinc coating equivalent to a much thicker steel piece. Galvanized steel has the power and formability of steel plus the corrosion protection of the zinc-iron coating owing to its increased longevity. The zinc protects the base metal by acting as a shield against corrosive elements and the sacrificial existence of the coating results in a long-lasting and high-quality steel product. Galvanized steel is widely used for a variety of projects and industries such as agriculture, solar, automotive, construction, and more, due to its advanced properties such as versatility, low initial cost, longer life, the sacrificial anode, rust resistance, and more. 

Pipes and Tubing application held a significant share in the High Corrosion Resistance Steel Market in 2019, owning to wide usage of high corrosion resistance steel pipes in the chemical, oil & gas and petrochemical, energy & power, automotive, and many other industries. High corrosion resistance steel pipes and tubes have high strength, high durability, and excellent chemical resistance, formability, and weldability due to which it has a high consumption rate. According to BP Statistics, the Middle East countries, the US, and Russia are expected to account for 69% of the oil production in 2040, a significant increase from 60% in 2016. This will further drive the consumption of high corrosion resistance steel pipes and tubes in the oil & gas and chemical industries.

Oil & Gas is the dominant application for High Corrosion Resistance Steel Market and is anticipated to grow at a CAGR of 3.1% through the forecast period. In oil & gas industry, corrosion in the pipelines or storage system due to reactive chemicals or organic salt in the oil can eventually cause a loss of containment of process fluids or can lead to serious accidents affecting workers, the environment, and the economy. Therefore, to reduce the risk of corrosion and safeguard the equipment containing crude oil and protect the whole refinery process, high corrosion resistance steel is widely used in this industry. However, the oil & gas industry is facing huge crisis due to the COVID-19 outbreak, as most of the countries have issued “stay at home guidance” i.e., lockdown, which is impacting oil & gas industry operations. Thus, limiting High Corrosion Resistance Steel Market growth. 

Asia Pacific held the largest share in the High Corrosion Resistance Steel Market in 2019, owning to growth in construction projects and rising automotive production in countries such as India, Malaysia, and others. In 2019, China government invested 1.9 billion on 13 public housing projects. In addition, in February 2020, the Asian Development Bank approved a loan of $631 million to develop the Vishakhapatnam-Chennai industrial corridor. Furthermore, construction projects such as ‘100 smart cities’ and ‘Housing for All by 2022’ in India are influencing High Corrosion Resistance Steel Market growth. In addition, according to OICA, automotive production in countries such as India, Indonesia, and Malaysia have increased by 8%, 10.3% and 12.2% up to 5,174,645, 1,343,714 and 402,085 from 2017. Therefore, the growth in construction projects and automotive production are influencing High Corrosion Resistance Steel Market growth in the region. 

According to the International Trade Administration (ITA), China is the world’s largest vehicle market. The Chinese government is expecting that the automobile output will reach 35 million by 2025. According to the China Association of Automobile Manufacturers, over 27 million vehicles were sold in 2018. In 2017, according to the International Trade Administration (ITA), 1.2 million new passenger cars, SUVs, and commercial vehicles were sold in the Australian market, an increase of 0.9% from 2016. According to OICA, in 2018 the production of light commercial vehicles and heavy trucks increased by 5.9% and 3.5% up to 20,635,799 and 4,227,815 from 2017. Due to the increasing expectations of consumers, the automotive manufacturing industries are required to extend vehicle warranties. Thus improvements in corrosion protection are becoming increasingly important, which is driving high corrosion resistance steel usage. Therefore, the growth in automotive production is supporting High Corrosion Resistance Steel Market growth. In addition, according to Boeing, 44,000 new jetliners are required over the next two decades owning to a rise in passenger traffic, which is expected to grow at an average annual rate of 4.6% over the next 20 years. Between 2012 and 2018, the world added a net 176 airports. Most of these (165) were in the Asia-Pacific region. According to Boeing, in the Asia Pacific region the construction of 17 new airports and 17 additional runways are planned by 2030. This will further drive the demand for high corrosion resistance steel.

High amount of carbon dioxide is emitted during the production of high corrosion resistance steel. The steel industry generates between 7% and 9% of direct emissions from the use of fossil fuel globally. Increasing global concerns due to the harmful effect of carbon dioxide on the ecosystem are restraining the growth of the High Corrosion Resistance Steel Market. According to the World Steel Association, on average 1.85 tons of CO2 were emitted for every ton of steel produced in 2018. Additionally, strong demand from China has driven iron ore prices which in turn hampered the growth of the market. For instance, in 2017, in China, the iron ore price for 62% Fe CFR grew at the beginning of the year and reached around $90/MT by mid-March. Besides, in March 2018, the Supreme Court banned all the mining activities in Goa (India), involving iron ore extraction. Thus, the ban of mining operations also affects the growth of High Corrosion Resistance Steel Market.

The outbreak of coronavirus has disrupted the supply chain and postponed the deliveries of steel and other raw materials from yards, due to lockdown and shortages of staff. Industries are shuttered all around the world. Decrease in purchasing capital of people has a direct impact on the automotive, construction and aviation industries, which in turn lowered the demand of high corrosion resistance steel and hampered the growth of market. According to the Society of India Automobile Manufacturers (SIAM), passenger vehicle sales declined by 51% to 143,014 units in March 2020 whereas the sales of commercial vehicles crashed 88% to 13,027 units. Also International Air Transport Association (IATA) has estimated that global airline passenger revenue will drop by $314 billion in 2020, a 55% decline compared to 2019. 

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the High Corrosion Resistance Steel Market. The key players in the High Corrosion Resistance Steel Market includes Nippon Steel Corporation, Acerinox S.A, ArcelorMittal, Baosteel Group, Jindal Stainless, Outokumpu, POSCO, and Yieh United Steel Corp, among others.