The Global Weathering Steel Market is primarily driven by increasing demand from the construction industry worldwide. Weathering steel, also known as atmospheric corrosion resistant steel, has superior corrosion resistance properties when exposed to weathering. It forms a protective oxide skin that seals the base metal and prevents further corrosion underneath. It requires less maintenance than galvanized or painted steel as the patina acts as a barrier against corrosion. Weathering steel finds wide usage in building exteriors, bridge structures, poles, outdoor signage and more as it provides robust durability and lower lifecycle costs.
The Global Weathering Steel Market is estimated to be valued at US$ 1.83 BN in 2024 and is expected to exhibit a CAGR of 7.5% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the Global Weathering Steel Market are Schlumberger, Halliburton, Baker Hughes (a GE company), Weatherford, Siemens, Rockwell Automation, Honeywell, Kongsberg Gruppen, Emerson, Pason Systems. Schlumberger and Halliburton dominate the market owing to their wide product and service portfolio for the oil & gas industry.
The growing demand for weathering steel from the construction industry is one of the major drivers of market growth. Rapid urbanization and increasing infrastructural investments in developing regions are augmenting the construction of buildings, bridges and other structures which spurs the demand for weathering steel.
The Weathering Steel Market Size is expected to witness significant expansion in the Asia Pacific region over the forecast period. Countries like China, India and Southeast Asian nations are investing heavily in development of roadways, rail networks and other infrastructure which will boost the regional market for weathering steel during the forecast period.
Market drivers
Increasing investments in infrastructure development projects especially in developing countries is a key driver for the Global Weathering Steel Market. various regions are focusing on modernizing their infrastructure to accelerate economic growth. This involves large scale projects in transportation, energy and buildings which will propel the demand for weathering steel. Moreover, weathering steel requires lower maintenance costs over the lifespan of structures, encouraging its increased preference over traditional steel materials. Government initiatives around the world for sustainable construction is another factor augmenting the adoption of weathering steel in the construction industry.
Impact of geopolitical situation on the global weathering steel market growth:
The global weathering steel market is witnessing several challenges in terms of growth due to the ongoing geopolitical conflicts among major countries. The ongoing Russia-Ukraine war has massively disrupted the supply chains of raw materials required for production of weathering steel. Both Russia and Ukraine are among the leading exporters of raw materials like iron ore and coking coal which are primary ingredients used in manufacturing of weathering steel. Since the beginning of the war in 2022, exports of these commodities from the conflict region have seen a sharp decline. At the same time, sanctions on Russia by other countries have further limited the availability of raw materials globally. Rising tensions between China and US along with COVID19 related lockdowns in China have also negatively impacted the trade environment and global availability of raw materials. All these geopolitical factors have increased input costs and created supply chain uncertainties for weathering steel producers. For future growth, companies must look for alternative sourcing options from regions outside the regions of ongoing conflicts and diversify suppliers across multiple countries/regions to minimize overdependence on single/conflict regions. Developing domestic sourcing and local manufacturing capacities would help counter risks arising from geopolitical turbulences on the international front.
Geographical regions of market concentration:
The global weathering steel market in terms of value is currently highly concentrated in the Asia Pacific and European regions. Within Asia Pacific, China dominates and accounts for over 35% of the total global weathering steel demand led by its giant construction and infrastructure industries. Countries like India, Japan and South Korea are other major regional markets. In Europe, demand is driven by construction activities across countries like Germany, UK, Italy and France. North America is another large base, primarily driven by the US construction sector. However, Middle East & Africa is emerging as the fastest growing regional market for weathering steel given the ongoing infrastructure development boom in the Gulf countries and across the African region.
Fastest growing region:
The Middle East and Africa region is expected to witness the fastest growth in demand for weathering steel globally over the forecast period till 2031. This is primarily attributed to ongoing megaprojects as well as plans for numerous new construction and infrastructure developments across many African and Gulf countries. Major capital investment plans like Vision 2030 in Saudi Arabia, UAE Vision 2021, 2063 Development Plan of African Union and various country-level infrastructure projects are expected to drive the huge demand for weathering steel in this region. Average construction spending is rising in double digits annually in Africa as well countries like Saudi Arabia, UAE, Qatar etc leading to accelerated consumption. Given this fast pace of infrastructure growth in the region, MEA holds huge market potential and will likely emerge as one of the top weathering steel markets globally over the coming years.
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