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South East Asia Galvanized Steel Market Size, Share, Forecast, & Trends Analysis by Product Type (Hot-dipped Galvanized Steel, Electro-galvanized Steel) and Application (Building and Construction, Automotive, White Goods, Shipbuilding, Other Applications) - Forecast to 2031
Report ID: MRCHM - 104317 Pages: 150 Jun-2024 Formats*: PDF Category: Chemicals and Materials Delivery: 24 to 48 Hours Download Free Sample ReportThe South East Asia Galvanized Steel Market is expected to reach $25.9 billion by 2031, at a CAGR of 14.6% during the forecast period of 2023-2031. By volume, this market is expected to reach 27.6 million tons by 2031, at a CAGR of 13.8% during the forecast period 2023-2031.The growth of the South East Asia galvanized steel market is driven by increasing infrastructure investments, rising demand in the construction industry, and rising GDPs in the region. However, the volatility in raw material prices, regulatory compliance and standards, and decline in the purchase of Chinese steel among south East ASIAN countries due to changing international trade dynamics may restrain market growth.
Furthermore, technological advancements in the galvanized steel manufacturing process and the establishment of the ASEAN economic community are expected to create market growth opportunities. However, high manufacturing costs pose a significant challenge to the market’s growth.
The swift urbanization and burgeoning population in various regions underscore the urgency of erecting new infrastructure to meet the escalating need for housing, transportation, utilities, and public amenities. Crucial infrastructure endeavors like roads, bridges, railways, airports, and utilities hinge on a substantial supply of construction materials, prominently galvanized steel. This perpetuates a constant demand for galvanized steel across urban development projects, owing to its unmatched corrosion resistance, durability, and robustness, rendering it indispensable for structural frameworks, reinforcements, and support mechanisms.
South East Asia stands as a focal point of rapid infrastructural expansion, largely propelled by the relocation of manufacturing enterprises to the region. Such development initiatives not only invigorate economic vitality but also foster employment opportunities within South East Asian nations. Anticipated upsurges in expenditure on transport infrastructure, notably high-speed and urban rail networks, are poised to catalyze seamless movement of goods, materials, and populace throughout the ASEAN region. Singapore's ambitious plan to double its Mass Rapid Transit (MTR) system by 2030 exemplifies the commitment to enhancing commuter convenience.
Vietnam emerged as a leader in infrastructure investments within the region, with an estimated allocation of 5.7% of its GDP. This heightened focus on infrastructure development is projected to propel the demand for galvanized steel across South East Asia as nations intensify efforts to bolster their foundational frameworks for sustained growth and prosperity.
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Galvanized steel holds a prominent position in the construction sector owing to its robustness, longevity, and resistance to corrosion. Its widespread use stems from the assurance of safety and durability it offers, guarding against fire hazards, corrosion, pests, and structural deterioration. This ensures the steadfastness and dependability of constructed towers and infrastructure.
Galvanized steel finds application in diverse structural undertakings such as buildings, bridges, stadiums, warehouses, and other vital projects where structural resilience is paramount. Particularly, galvanized steel sheets and panels are prevalent choices for roofing and cladding in both residential and commercial construction endeavors. They boast exceptional resilience against harsh weather conditions, corrosion, and environmental wear, rendering them well-suited for outdoor applications. These attributes fuel the market's growth trajectory over the forecast period.
Key players in this sector continually initiate endeavors to augment market development. For instance, in March 2024, The Building and Construction Authority (Singapore) unveiled new initiatives aimed at bolstering transformation within Singapore's built environment sector. These initiatives are geared towards enhancing productivity, digitalization, and sustainability, thereby fostering progress and innovation in the industry.
Significant advancements have been made in the manufacturing process of galvanized steel, enhancing its quality, efficiency, and sustainability. Technological advancements are necessary in the galvanized steel manufacturing process for several reasons, as advanced technologies allow for faster processing speeds, higher throughput, and reduced cycle times, leading to improved overall efficiency in production. This helps manufacturers meet growing demand and optimize resource utilization.
High-speed galvanizing processes enable faster coating of steel substrates, reducing processing time and energy consumption. These technologies use innovative methods such as inline annealing and accelerated cooling to achieve rapid galvanizing without compromising on coating quality. Also, the integration of digital technologies and automation systems optimizes process control, reduces human error, and enhances overall efficiency in galvanized steel manufacturing. Real-time monitoring, data analytics, and predictive maintenance improve quality control and productivity. Technological advancements help control process parameters, resulting in higher product quality and consistency. This includes better control over coating thickness, surface finish, and mechanical properties, leading to superior performance and durability of galvanized steel products.
Moreover, technological advancements help manufacturers lower production costs by increasing efficiency, optimizing resource utilization, and reducing waste. Efforts to minimize the environmental impact of galvanized steel production have led to the development of eco-friendly processes and technologies. These include recycling of zinc-rich residues, wastewater treatment, and energy-efficient galvanizing furnaces equipped with emission control systems. This can make galvanized steel more competitive in the market and improve profit margins for galvanized steel manufacturing companies. Such factors provide lucrative growth opportunities in the South East Asia galvanized steel market development.
Several factors contribute to the high manufacturing cost of galvanized steel. The primary raw materials, steel coils, and zinc, are subject to price fluctuations influenced by factors like supply-demand dynamics, energy prices, and geopolitical conditions. These fluctuations directly impact production costs.
Galvanized steel manufacturing processes demand substantial energy inputs for heating, galvanizing, and cooling. Energy-intensive operations such as annealing and zinc coating significantly contribute to overall costs. Fluctuations in energy prices and regulatory requirements for energy efficiency and emissions add to manufacturing expenses.
Skilled labor is essential for operating and maintaining the machinery involved in galvanized steel production. Labor costs vary due to factors like location, labor market conditions, and wage rates, further adding to manufacturing challenges in the South East Asian market. These factors collectively contribute to the complexities surrounding galvanized steel production in the region.
Based on product type, the South East Asia galvanized steel market is segmented into hot-dipped galvanized steel and electro-galvanized steel. In 2024, the hot-dipped galvanized steel segment is expected to account for the larger share of above 76.9% of the South East Asia galvanized steel market. This segment's large market share can be attributed to the various factors as hot-dipped galvanized steel provides numerous environmental and economic benefits to achieve sustainable designs. Also, it can prevent costly and damaging corrosion protection inspections and maintenance. Hot-dip galvanized steel can withstand the effects of corrosion for decades is maintenance-free, and ensures these structures will stand strong long into the future.
Hot-dipped galvanizing facilitates tight bonding of zinc coating with the steel, and it has a low peeling tendency due to its low-friction surface. Due to such factors, hot-dipped galvanized coatings are considered highly ductile since they can maintain their full corrosion protection even after being heavily formed. Moreover, hot-dipped galvanized steel can be welded using a variety of welding methods, including resistance, laser, and arc welding.
Moreover, the hot-dipped galvanized steel segment is projected to register the highest CAGR during the forecast period.
Based on application, the South East Asia galvanized steel market is segmented into building and construction, shipbuilding, automotive, white goods, and other appliances. In 2024, the building and construction segment is expected to account for the largest share of above 70.4% of the South East Asia galvanized steel market. This segment's large market share can be attributed to the various factors of galvanized steel having numerous measurable benefits when it is used as a crucial ingredient in buildings and construction purposes. Steel frames for buildings, whether residential or commercial, are often galvanized to shield against rust and corrosion, making them particularly advantageous in humid or coastal areas. This protection extends to the building’s structural components, safeguarding them from moisture, environmental elements, and other corrosive factors. Galvanized steel is an affordable, low-maintenance option, ideal for metal buildings due to its durability.
Galvanized steel beams and columns offer robust structural support, ensuring the stability and safety of buildings over the long term. Additionally, galvanized steel can be more cost-effective compared to other steel coatings. Its low maintenance requirements and reduced labor costs after construction make it an economical choice. Unlike other coatings, galvanized steel surfaces do not need harsh chemical treatments to prevent corrosion. Simple periodic wiping a few times a year is sufficient to keep the surface corrosion-free. The necessity for durable and low-maintenance building materials fuels the demand for galvanized steel in construction. As infrastructure development accelerates, particularly in emerging markets, the use of galvanized steel is anticipated to increase significantly. Additionally, advancements in galvanizing technologies and a growing emphasis on sustainable construction practices are further enhancing its adoption.
However, the white goods segment is projected to register the highest CAGR during the forecast period. This segment's high growth is attributed to the large portion of steel used for its manufacture. An electro-galvanized steel sheet with a coating weight of 20 g/m2 is normally used for white goods. This is to restrain red rust on steel by taking advantage of the preferential corrosion of zinc under general conditions.
In 2024, Vietnam is expected to account for the largest share of above 37.7% of the South East Asia galvanized steel market. Several key factors drive Vietnam’s significant market share in galvanized steel. Rapid industrialization and extensive infrastructure development are major contributors to the rising demand for galvanized steel. As various industries expand, there is an increased need for durable and corrosion-resistant materials, particularly in construction, automotive, electronics, and other sectors. The construction industry, in particular, is a major consumer of galvanized steel, utilizing it for roofing, fencing, structural components, and other applications. Vietnam's booming construction sector, propelled by urbanization, real estate development, and large-scale infrastructure projects, significantly boosts the demand for galvanized steel. This trend is expected to continue as the country progresses in its industrial and urban growth.
However, Indonesia is projected to register the highest CAGR of 16.7% during the forecast period. The growth of this regional market can be attributed to various factors, as the automotive sector in Indonesia is one of the largest in South East Asia. Galvanized steel is extensively used in vehicle manufacturing for body panels, chassis, and other components due to its strength and corrosion resistance. The growth in the automotive industry significantly boosts the demand for galvanized steel. Additionally, Indonesia's role as a manufacturing hub for various industries creates numerous export opportunities, further driving the demand for galvanized steel. Export-oriented industries depend on high-quality materials like galvanized steel to meet international standards and remain competitive in South East Asian markets. These factors collectively contribute to the market's growth during the forecast period.
The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios and geographic presence and the key growth strategies adopted by them over the past 3 to 4 years. Some of the key players operating in the South East Asia galvanized steel market are ABB Ltd. (Switzerland), Schneider Electric SE (France), Siemens AG (Germany), Rockwell Automation Inc. (U.S.), Allied Motion Technologies, Inc. (U.S.), AMETEK Inc. (U.S.), Johnson Electric Holdings Limited (Hong Kong), Nidec Motor Corporation (Japan), Franklin Electric Co., Inc. (U.S.), Regal Rexnord Corporation (U.S.), Arc Systems Inc. (U.S.), Denso Corporation (Japan), Emerson Electric Co. (U.S.), Nidec Corporation (Japan), and Oriental Motor USA Corp (Germany).
In March 2023, the Government of India signed agreements with 27 companies, kick-starting the USD 63,220 million (INR 6,322 crore) production-linked incentive (PLI) scheme for specialty steel. This scheme is expected to attract investments of up to USD 300,000 million (INR 30,000 crore) over the next five years.
In June 2022, Nippon Steel Corporation (Japan) announced a joint venture between and ArcelorMittal S.A. (Luxembourg). It announced a spending of roughly USD 1.1 billion (YEN 140 billion) to build advanced steel processing lines in India, with the potential for expanding capacity further to tap the country's growing demand for steel. The new lines will be installed at AM/NS India's Hazira plant, an integrated steelworks in the western state of Gujarat. They include a cold-rolling mill and a hot-dip galvanizing line, with a combined annual processing capacity of 2 million tons.
Particulars |
Details |
Number of Pages |
150 |
Format |
|
Forecast Period |
2024–2031 |
Base Year |
2023 |
CAGR (Value) |
14.6% |
CAGR (Volume) |
13.8% |
Market Size (Value) |
USD 25.9 billion by 2031 |
Market Size (Volume) |
27.6 Million Tons by 2031 |
Segments Covered |
By Product Type
By Application
|
Countries Covered |
Europe (Germany, U.K., France, Italy, Spain, Netherlands, Switzerland, Sweden, Denmark, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia & New Zealand, Indonesia, Thailand, Vietnam, Malaysia, Singapore, and Rest of Asia- Pacific), North America (U.S., Canada), Latin America (Brazil, Mexico, and Rest of Latin America), and the Middle East & Africa (UAE, Israel, and Rest of Middle East & Africa) |
Key Companies |
Essar Steel India Limited (India), Nippon Steel Corporation (Japan), POSCO (South Korea), JFE Holdings, Inc. (Japan), JTL Infra Limited (India), NS BlueScope Steel Limited (Australia), Hoa Sen Group (Vietnam), Hoa Phat Group (Vietnam), Dongkuk Steel Group (South Korea), Chinh Dai Industrial Co. Ltd (Vietnam), FiW Steel Sdn. Bhd. (Malaysia), Galvaco Industries Sdn. Bhd. (Malaysia), Nam Kim Steel Joint Stock Company (Vietnam), Tata Steel Limited (India), and Hyundai Steel Co., Ltd. (South Korea) |
The South East Asia galvanized steel market is expected to reach $25.9 billion by 2031, at a CAGR of 14.6% during the forecast period 2023-2031.
This study focuses on market assessment and opportunity analysis by analyzing the sales of galvanized steel across various regions and countries. This study also offers a competitive analysis of the South East Asia galvanized steel market based on an extensive assessment of the leading players' product portfolios, South East Asia presence, and key growth strategies.
In 2024, the hot-dipped galvanized steel segment is expected to account for the larger share of above 76.9% of the Southeast Asia galvanized steel market. This segment's large market share can be attributed to the various factors as hot-dipped galvanized steel provides numerous environmental and economic benefits to achieve sustainable designs. Also, it can prevent costly and damaging corrosion protection inspections and maintenance. Hot-dip galvanized steel can withstand the effects of corrosion for decades is maintenance-free, and ensures these structures will stand strong long into the future. Hot-dipped galvanizing facilitates tight bonding of zinc coating with the steel, and it has a low peeling tendency due to its low-friction surface. Due to such factors, hot-dipped galvanized coatings are considered highly ductile since they can maintain their full corrosion protection even after being heavily formed. Moreover, hot-dipped galvanized steel can be welded using a variety of welding methods, including resistance, laser, and arc welding.
The growth of the South East Asia galvanized steel market is driven by increasing infrastructure investments, rising demand in the construction industry, and rising GDPs in the region. However, the volatility in raw material prices, regulatory compliance and standards, and decline in the purchase of Chinese steel among southeast ASIAN countries due to changing international trade dynamics may restrain market growth.
The key players operating in the South East Asia galvanized steel market include Essar Steel India Limited (India), Nippon Steel Corporation (Japan), POSCO (South Korea), JFE Holdings, Inc. (Japan), JTL Infra Limited (India), NS BlueScope steel limited (Australia), Hoa Sen Group (Vietnam), Hoa Phat Group (Vietnam), Dongkuk Steel Group (South Korea), Chinh Dai Industrial Co. Ltd (Vietnam), FiW Steel Sdn. Bhd. (Malaysia), Galvaco Industries Sdn. Bhd. (Malaysia), Nam Kim Steel Joint Stock Company (Vietnam), Tata Steel Limited (India), and Hyundai Steel Co., Ltd. (South Korea).
The Indonesian market is projected to register the highest CAGR of 16.7% during the forecast period and offer significant opportunities for vendors operating in this market.
Published Date: May-2024
Published Date: Sep-2024
Published Date: May-2024
Published Date: May-2024
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