The COVID-19 outbreak and the resultant regional and national lockdowns are having a major impact on advanced high strength steel producers. A number of individual production facilities have been shut down. In addition to the restrictions on manufacturing facilities, logistical disruptions are also impacting operations in the industry.
The advanced high strength steel (AHSS) market is anticipated to grow at an impressive 8.5% CAGR through the forecast period (2020-2030). Disruptions in the production of automobiles and a halt on mining operations will hinder the market in short term. However, resumption of industrial activities towards the end of 2020 will help in a steady recovery.
"Mining industries are anticipated to go back to regular operations during the third quarter of 2020. Moreover, AHSS producers are projecting a moderate impact of the COVID-19 virus in operations. Prices have risen amidst the pandemic which may hurt end-use industries. Moreover, market players are banking on product launches to sustain market growth post the pandemic," says the Fact.MR report.
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Advanced High Strength Steel Market- Key Takeaways
- Dual phase advanced high strength steel accounts for major share of revenue driven by vehicle production applications.
- Chassis, and power train production are a major application for AHSS through the projection period.
- AHSS with tensile strength up to 900 MPa will gain major market share, with applications in passenger vehicles.
- North America holds the lead in AHSS consumption driven by demand for light-weight vehicles and high fuel economy.
Advanced High Strength Steel Market- Key Driving Factors
- Strong demand for lightweight vehicle components is the primary factor driving AHSS adoption.
- Urbanization and industrialization trends in developing economies will generate remunerative opportunities.
- Marine and infrastructure development applications will generate new growth opportunities.
- Advancements in material processing facilities and tools will bolster productivity for the foreseeable future.
Advanced High Strength Steel Market- Key Restraints
- The easy availability of cost-effective alternatives is a key obstacle to the AHSS market.
- Lack of awareness about AHSS in other potential end use verticals restricts growth opportunities.
COVID-19 Impact on Advanced High Strength Steel Market
AHSS stocks have fallen sharply during the coronavirus outbreak. Concerns about the impact on Chinese industry are key to market developments. As the epicenter of the pandemic, the impact of the outbreak in the region will influence exports, production, and consumption.
The tariff war between China and the United States in combination with the current pandemic will have a negative impact on the advanced high strength steel market. Recovery in the market is likely to be slow, and will continue well into 2021, even after the pandemic has ended.
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Manufacturers are working on strategic collaborations with automotive and aerospace OEMs to sustain sales and keep up with the competition with long term contracts. For instance, Constellium has entered into a 10-year contract with Airbus for the supply of AHSS for aerospace components.
SSAB AB, Tata Steel Ltd., Kobe Steel Ltd., Arcelor Mittal S.A., Baoshan Iron & Steel Co. Ltd., AK Steel Corporation, United States Steel Corporation, Nucor Corporation, and MTL Advanced Ltd. are some of the leading advanced high strength steel producers in the global market.
About the Report
This study offers the market forecast of the advanced high strength steel market. Global, regional and country-level analysis of the industry trends affecting the advanced high strength steel market is covered in this FACT.MR study. The report offers insights on the basis of type (dual phase, martensitic, transformation-induced plasticity, twinning-induced plasticity, and others), vehicle type (passenger and commercial), tensile strength (up to 600 MPa, 600 -900 MPa, 900-1200 MPa, 1200 - 1500 MPa, and above 1500 MPa) and application (structural details, car seats, bumpers, chassis wheels & power train, side impact beams, and others) across six regions (North America, Latin America, Europe, South Asia & Oceania, East Asia, and MEA).