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Galvanizing Market Overview
Galvanizing market
size is forecast to grow at a CAGR of 4.9%
during 2022-2027. Galvanization is the process of providing abrasion
resistance to the metals such as iron or steel by using a zinc coating to
prevent rusting. Rusting reduces the overall lifespan of the metals by reducing
the tensile strength and making the outer appearance unpleasant of the metal.
Galvanization can be done through different processes such as hot-dip galvanization
and electro-galvanization, which are the most common galvanizing methods. The rise
in demand for galvanized metals in the appliances, automotive, and construction
industries is increasing the growth of the galvanizing market. Additionally, the
increase in renovation activities in the construction industry, with the
government's rise in investments in residential and commercial projects, is
estimated to propel the galvanizing industry during the forecast period.
COVID-19 Impact
The
COVID-19 outbreak widely affected the galvanizing market over the year 2020. Owing
to the nationwide lockdown, the production process of various goods in the end-use
industry declined due to the non-functioning of the manufacturing plants. The domestic
sales and export of different raw materials have also witnessed a halt during
the COVID-19 outbreak. Economies of each sector got affected and resulted in
stagnation of activities across the industries that uses galvanizing metals. For
instance, according to Eurostat, In April 2021, construction production
decreased by 1.6% in the E.U. compared with March 2021; in the euro area, the
decrease amounted to 2.2%. Additionally, after an unprecedented decline in March
and April (-25.4%), construction in the E.U. region increased dynamically in
May 2020 (21.6%) but has since stagnated. Thus, once the building, construction, and
transportation activities get back on track and start functioning with total
capacity, the market for galvanizing is
estimated to incline in the upcoming years.
Report Coverage
The report: "Galvanizing Market – Forecast (2022-2027)" by
IndustryARC covers an in-depth analysis of the following segments of the galvanizing market.
By Type: Hot-Dip Galvanizing, Electro Galvanizing, Cold
Galvanizing, Zinc Galvanizing, Centrifugal Galvanizing, Trivalent Galvanizing,
Roto Barrel Galvanizing, Mechanical Galvanizing, Bolts and Nuts Galvanizing,
and Others.
By Combustion Chamber Type: Oil, Gas, Electric, and Others.
By Application: Fencing, Metal Framing, Staircase, Steel Joists,
Rails, Nails, Tubing, Poles, and Others.
By End-Use Industry: Building and Construction (Residential
Construction, Commercial Construction, Industrial, and Infrastructure), Transportation (Aerospace, Marine, Automotive, and
Others), Electrical & Electronics, Wind &
Solar Industries, Energy Industry, Telecommunications Industry, and Others.
By Geography: North
America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy,
Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China,
Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan,
Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile,
and Rest of South America), Rest of the World (Middle East, and Africa).
Key Takeaways
- North America dominates the galvanizing
market owing to the rising growth and increasing investments in the
construction industry. For instance, according to the Department for Promotion
of Industry and Internal Trade (DPIIT), till December 2020, FDI in the
construction industry stood at US$ 23.99 billion.
- The rise in the adoption of galvanizing technology in the transportation industry due to its non-corrosive properties is estimated to surge the market growth.
- The increasing demand for zinc coating in various industries such as the wind and solar energy industry with properties such as anti-rust and tensile strength will drive the growth of the galvanizing market in the forecast period.
- However, rising environmental and
health effects due to the toxicity of zinc can
hinder the growth of the galvanizing market.
Figure: North America Galvanizing Market Revenue, 2021-2027 (US$ Billion)
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Galvanizing Market Segment Analysis – By Type
The Hot-dip
Galvanizing (HDG) segment held the largest share in the galvanizing market in
2021. Hot-dip galvanizing (HDG) is the process of dipping steel bar in a kettle
containing zinc in a molten state for zinc coating on metal. There are several
advantages of HDG metals, such as durability, longevity, sustainability, uniform
protection, abrasion resistance, low initial cost, and easy availability. Due
to such properties, HDG metals are used in a wide range of applications such as
in energy, utility, chemical and petrochemical, and construction projects. Moreover,
the hot-dip galvanization market is expected to benefit from growth in the
construction industry, as hot-dip galvanized goods are utilized as bars, rods,
and sheets in infrastructure development. For instance, according
to Invest India, by 2025, the building and construction industry is expected to
reach US$ 1.4 trillion. Thus, the rising growth of several end-use industries
will expand the market growth for hot-dip galvanizing during the forecast
period.
Galvanizing Market Segment Analysis – By Combustion Chamber Type
The oil segment held
the largest share in the galvanizing market in 2021. Thermal energy is generated
inside the combustion chambers at the onset of the galvanizing furnace process
to keep the molten zinc under the range of optimal temperature. On heating,
oil stays warm for a longer time and is cost-efficient compared to electric
systems. The type of fuel decides the heating intensity within the enclosure. Since kerosene-based
fuels are most efficiently burned, only a fraction of the air takes part in the
combustion process inside the combustion chamber. Thus, increased usage of oil-fired
combustion chambers will drive the growth of the galvanizing market in the
forecast period.
Galvanizing Market Segment Analysis – By Application
The steel joists segment held
the largest share in the galvanizing market in 2021. Galvanizing is majorly
used to provide extreme toughness and abrasion resistance to the surface of
metals. In construction and automotive sectors, galvanizing metals can be used for
fencing, staircase, metal framing, steel joists, nails, rails, tubing, poles,
and others, in manufacturing plants, airplane hangars, hospitals, retail
stores, garages, and others. Galvanized steel is considered to be more flame
resistant in comparison to PVC piping. It is more powerful than aluminum
piping, which can be used under freezing conditions without any damage. Steel
joist for roof and floor construction provides structural strength and results
in substantial savings in construction activities. Larsen & Toubro, in
India, in 2019, won contracts for building hospitals, commercial complexes, and
manufacturing capacity. The orders range between 2,500 crores (US$ 336.6
million) to 5000 crores (US$ 673.2 million), falling under the large category.
Thus, such investments will drive the demand for steel joists type applications
and raise the market's growth over the forecast period.
Galvanizing Market Segment Analysis – By End Use Industry
Building
and construction industry held the largest share in the galvanizing market in
2021 and is estimated to grow at a CAGR of 4.2% during 2022-2027. In the
building and construction industry, galvanizing metals find usage in numerous
applications such as fencing, metal framing, staircase, steel joists,
rails, nails, tubing, poles, and others. In recent years, with the rising
building and construction activities, the demand for galvanizing metals is also
set to rise. The building and construction activities are increasing rapidly in
emerging economies such as India, the United States, China, and other countries. For
instance, according to the International Trade Administration, in China, the
revenue from the construction industry reportedly increased from US$ 968
billion in 2019 to US$ 1.1 trillion in 2021. Thus, with the construction
sector's growth, the galvanizing market will rise further over the forecast
period.
Galvanizing Market Segment Analysis – By Geography
North America dominated the galvanizing market with a share of 45% in 2021, owing to the increasing building and construction activities in the countries such as the USA, Canada, and Mexico. North America region is expected to see significant growth in the market during the forecast period, with the increasing number of automobiles and construction projects and growing demand for appliances. For instance, according to World Bank Organization, the building and construction industry reached US$ 11.9 trillion in 2020, with an increase of about 4.2% from 2019. In the USA, the application of galvanizing is increasing, such as in washing machines, computer parts, air conditioning housings, hairdryers, and others. The zinc coating reduces corrosion and prevents minerals from depositing inside the pipelines, such as in sewer systems and farm irrigation. Also, rising government investment in construction, automotive, electrical & electronics, and other sectors is predicted to uplift the region's galvanizing market growth.
Galvanizing Market Drivers
Increasing demand for galvanizing metals in Transportation Industry
Galvanizing in the transportation industry provides significant advantages in preventing rust and corrosion on automotive body parts. It involves applying a zinc coating to anti-corrosive metal parts through different processes such as hot-dip galvanization and electro-galvanization. Furthermore, with formulations availability, iron and steel marine structures are protected by galvanizing to adhere to wet substrates, such as coating water tanks, outfall structures, fish ladders, and dams. In recent years the rising production of automotive has further raised the demand for galvanizing. For instance, according to Organisation Internationale des Constructeurs d'Automobiles (OICA), in Brazil, motor vehicle production increased from 23,87,967 units in 2018 to 24,48,490 units in the year 2019. Similarly, in Malaysia, the production of motor vehicles increased from 5,20,526 units in 2018 to 5,34,115 units in the year 2019. Additionally, according to the International Trade Administration (ITA), in China, the government anticipates automobile manufacturing to reach 35 million by 2025, making China the world's largest vehicle market. Thus, increasing automation production will require more automotive components, which will drive the galvanizing market during the forecast period.
Rising usage of galvanizing metals in Wind and Solar Energy Sector
Many wind turbine and solar panel manufacturers are now showing an increased interest in galvanizing. Researchers are seeking to improve the galvanizing's performance, such as making it more impact resistant. As a result, zinc coating is frequently employed in the wind and solar energy industry. Any interruption in solar and wind turbine projects work will disrupt continuous services and the addition of undesirable costs. Due to this reason, hot-dip galvanizing has been used as the preferred method for corrosion protection in the wind and solar industry. The rising production of new wind farms will further drive the demand for galvanizing market in the upcoming years. For instance, a joint venture (including Toshiba, Hitachi, Zosen Corp, and JFE Steel) plans to build the world's largest offshore wind farm off the coast of Fukushima, Japan, with up to 143 floating turbines. The wind farm is projected to be operational by 2025. Thus, it is anticipated that with the growth of the wind and solar energy industry, there will be an upsurge in demand for galvanizing, which will subsequently drive the market growth during the forecast period.
Galvanizing Market Challenges
High Installation Cost and Detrimental Nature of Galvanization Will Hamper the Market Growth
Despite galvanizing properties such as longevity and corrosion resistance, galvanized coatings can still be subjected to chipping, cracking, and other damages. In addition, there are environmental hazards by the galvanized pipes and bollards. Their rust might flow into the nearby drains, therefore polluting waterways and impacting animal life. Furthermore, the high cost of galvanization might add up to a lot of money. Since the final installation price of the piping increases, the pipes or bollards are replaced rather than fixed if they are damaged, resulting in more significant expenditures. Thus, the increasing cost, damage, non-eco-friendly nature of galvanization will create hurdles for the market's growth.
Galvanizing Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the galvanizing market. Galvanizing top 10 companies include:
- ArcelorMittal
- AZZ Inc.
- A.K. Steel Corporation
- Nucor
- Baosteel Co. Ltd
- HBIS Group
- Nippon Steel & Sumitomo Metal Corporation
- Valmont Industries Inc
- Gerdau S.A.
- Posco
Acquisitions/Technology Launches
In August 2021, SAIL-Bokaro Steel Plant developed a high-strength galvanized coil with a yield strength greater than 350 MPa and a high coating thickness of 450 GSM. Indigenously forged steel from the Hot-Dip Galvanizing Line (HDGL) at Cold Rolling Mill-3 (CRM-3) of SAIL-Bokaro Steel Plant will strengthen the mission of "Atmanirbhar Bharat" to fulfill the rising demand for this type of particular steel in the country.