Sheet Metal Market To Hit Value 1.8 Billion By 2025 |Grand View Research, Inc
Posted by Mrudula Karmarkar on December 28th, 2021
The global sheet metal market size is expected to reach USD 371.8 billion by 2025, progressing at a over the forecast period, according to a new report by Grand View Research, Inc. Increasing demand CAGR of 5.0% for sheet metal from automotive sector is likely to contribute to the industry growth.
Increasing production of vehicles is likely to trigger the demand for various auto parts. Hydroforming is used in manufacturing complex shapes using steel sheets and extrusion parts. It helps achieve reduction in weight and process complexity in addition to decreasing the investment in tooling. Automotive parts, such as radiator supports, roof headers, cross-car beam headers, roll bars, frames, and engine cradles, can be manufactured using this process.
Sheet metal is one of the most versatile and eco-friendly materials. In the recent years, sheet metal manufacturing has witnessed technological advancements, thereby leading to less consumption of energy. The products manufactured using sheet metal require less maintenance, which is another factor contributing to the sheet metal market growth. Roofs and sidings in construction sector made from sheet metal require less maintenance and can last for 40 to 60 years without any need for replacement.
Aluminum is likely to remain a key material in sheet metal industry. Aluminum is lighter in weight as compared to steel and helps improve the fuel efficiency of vehicles. Various governments around the world have established stringent regulations for automakers to reduce the impact on the environment owing to greenhouse gas emissions. Regulations regarding emission reduction and improvement in fuel efficiency are likely to contribute to the rising demand for aluminum sheets over the forecast period. Volatility in primary raw material prices, especially in the case of aluminum and steel, is expected to continue over the forecast period. In addition, protectionist trade policy adopted by the U.S. is likely to further affect the price dynamics over the predicted timeline.
Variation in prices of primary steel and aluminum is largely owing to changes in China’s environmental policy. Since China is the largest producer and consumer of steel and aluminum products, any deviation in the consumption trends of China affects the global industry. The Chinese Ministry of Ecology and Environment, in June 2018, launched a three year action plan (2020 action plan) to curb pollution in the country. Other materials, such as tin, copper, and titanium, are also projected to remain key materials in sheet metal industry. Tin sheets, which are manufactured using tin and other alloying materials such as copper, nickel, lead, and zinc, are also projected to witness a rise in demand. Expansion of construction, aerospace, electronics, telecommunications, and manufacturing industries is projected to favorably impact the demand for tin sheets.
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The expansion of the construction industry in the U.S. is anticipated to contribute to the growth of the market. As per the U.S. Census Bureau, construction spending in the U.S. increased by 3.7% in 2018 reaching USD 1,293.9 billion. In the construction industry, sheet metal is used in numerous applications including roofing, ductwork, rain gutters, and industrial shades.
Further key findings from the report suggest:
The use of lightweight materials and alloys with titanium and aluminum is likely to contribute to the growth of the sector. Titanium is a stronger and lighter metal than steel. It is alloyed with iron, aluminum, manganese, and other metals to improve physical and chemical properties. The demand for titanium metal is anticipated to grow on account of its extensive use in the aerospace industry for applications including aircraft skin, structural parts, engine components, hydraulic systems, missiles, and rockets.
Companies in the market with huge regional presence and higher turnovers have achieved economies of scale through continuous improvement over the last years. Some of the leading companies in the steel sheet industry are Nippon Steel Corporation, POSCO, JFE, and Baosteel. For aluminum sheets, top players are Norsk Hydro, Arconic, Alcoa, and Hindalco.
These market players are also highly integrated across the value chain. For instance, the business of Hindalco includes bauxite mining, coal mining, alumina refining, aluminum smelting, power plants, and production of downstream products such as extrusions, sheets, and foils. Similarly, producers in the steel industry are also engaged in operations from mining to downstream products manufacturing.
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare
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About the AuthorMrudula Karmarkar
Joined: March 30th, 2020
Articles Posted: 329
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