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) - Global Forecast to 2031

Galvanized Steel Market Size & Forecast

The Galvanized Steel Market is expected to reach $216.2 billion by 2031, at a CAGR of 9.9% from 2024–2031, while in terms of volume, the market is expected to reach 240.8 million tons by 2031, at a CAGR of 9.2% from 2024–2031. The growth of the galvanized steel market is driven by increasing infrastructure investments and rising demand in the construction industry. Furthermore, the technological advancements in the galvanized steel manufacturing process are expected to create market growth opportunities.

Galvanized Steel Market Growth Drivers

Increasing Infrastructure Investments

Rapid urbanization and population growth in many regions necessitate the development of new infrastructure to accommodate the increasing demand for housing, transportation, utilities, and public services. Infrastructure projects such as roads, bridges, railways, airports, and utilities require a substantial amount of construction materials, including galvanized steel. This creates a continuous need for galvanized steel for various construction projects in urban areas. Also, galvanized steel is preferred in these applications due to its corrosion resistance, durability, and strength, making it ideal for structural components, reinforcements, and support systems.

Moreover, investments in utility infrastructure, such as water supply systems, sewage treatment plants, power generation facilities, and transmission networks, drive demand for galvanized steel pipes, poles, and structures. Galvanized steel is preferred for these applications due to its resistance to corrosion and longevity. The growing focus on renewable energy sources, such as wind and solar power, leads to investments in infrastructure for energy generation and distribution. Galvanized steel is used in the construction of support structures, frames, and mounting systems for solar panels and wind turbines. Such factors help to drive the growth of the market during the forecast period.

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Rising Demand in the Construction Industry

Emerging economies and developing countries are experiencing rapid economic growth, which fuels construction activity. Infrastructure development, including roads, bridges, airports, ports, and utilities, is essential to support economic expansion and improve living standards. Galvanized steel is preferred in construction due to its safety and durability features. It protects against fire, corrosion, pests, and structural degradation, ensuring the longevity and reliability of constructed buildings and infrastructure.

Galvanized steel is widely used in the construction industry for structural applications due to its strength, durability, and resistance to corrosion. It is employed in the construction of buildings, bridges, stadiums, warehouses, and other infrastructure projects where structural integrity is crucial. Galvanized steel sheets and panels are commonly used for roofing and cladding in both residential and commercial construction. They offer excellent protection against weathering, corrosion, and environmental damage, making them ideal for exterior applications. Also, galvanized steel is preferred for framing and support systems in construction due to its high strength-to-weight ratio and ease of fabrication. It is used for framing walls, ceilings, floors, and partitions, as well as for beams, columns, and trusses in structural frameworks. Such factors help to drive the growth of the market during the forecast period.

Galvanized Steel Market Opportunity

Technological Advancements in Galvanized Steel Manufacturing Process

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.

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. 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 market's development.

Galvanized Steel Market Challenges

High Manufacturing Cost

The high manufacturing cost of galvanized steel can be attributed to several factors. The primary raw materials for galvanized steel production include steel coils and zinc. Fluctuations in the prices of these raw materials can significantly impact manufacturing costs. These prices are influenced by various factors, such as supply and demand dynamics, energy prices, and geopolitical factors.

Galvanized steel manufacturing processes require substantial energy inputs for heating, galvanizing, and cooling operations. Energy-intensive processes such as annealing and zinc coating contribute to overall manufacturing costs. Fluctuations in energy prices, as well as regulatory requirements for energy efficiency and emissions reduction, can affect manufacturing costs. Moreover, in the development of galvanized steel, skilled labor is required to operate and maintain the machinery and equipment. Labor costs vary depending on factors such as location, labor market conditions, and wage rates. Such factors create challenges in the development of the market.

Galvanized Steel Market Analysis: Key Findings

By Product Type: in 2024, the Hot-dipped Galvanized Steel Segment to Dominate the Galvanized Steel Market

Based on product type, the 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 75.0% of the 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, hot-dipped galvanized steel 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.

By Application: in 2024, the Building and Construction Segment to Dominate the Galvanized Steel Market

Based on application, the 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 45.0% of the 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’s used as a crucial ingredient in buildings and construction purposes. Not only does it protect the building’s unique structural components from corrosion due to moisture, the elements, and other environmental factors, but it is also an affordable, low-maintenance option that’s suitable and durable for metal buildings.

Additionally, galvanized steel can be much more cost-effective than other coatings for steel. It has low maintenance costs and saves labor hours after your construction project is in service. There is no need to treat a galvanized steel surface with harsh chemicals to prevent corrosion. Wiping it down a few times a year is enough to make the surface corrosion-free.

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.

Geographical Analysis

In 2024, Asia-Pacific to Dominate the Galvanized Steel Market

In 2024, Asia-Pacific is expected to account for the largest share of above 47.0% of the galvanized steel market. The high growth of this market is driven by factors as various countries in the Asia-Pacific region continue to industrialize and urbanize rapidly, and there's a growing demand for construction materials like galvanized steel for infrastructure projects, residential buildings, and commercial structures. The construction industry in countries like China, India, and Southeast Asian nations is booming, driving the demand for galvanized steel in applications such as roofing, fencing, beams, and structural components.

The automotive sector is a significant consumer of galvanized steel for manufacturing vehicle bodies and components. The Asia-Pacific region is a hub for automotive production, with countries like China, Japan, South Korea, and India leading the way. Additionally, advances in galvanizing technology have led to improved quality, efficiency, and cost-effectiveness, making galvanized steel more attractive to industries across the Asia-Pacific region.

Furthermore, various key players are launching various galvanized steel. For instance:

• In June 2022, Nippon Steel Corporation (Japan) announced a joint venture between and ArcelorMittal S.A. (Luxembourg) and 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.
• In January 2022, POSCO (South Korea), the world's fifth-largest steelmaker by output, announced that it had started the construction of a plant in China that will produce galvanized steel sheets for cars. The plant, which will be located in Tangshan in northern China's Hebei Province, will have a production capacity of 900,000 tons.

Moreover, the Asia-Pacific market is also projected to register the highest CAGR of 11.5% during the forecast period.

Galvanized Steel Market: Key Companies

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 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).

Galvanized Steel Industry Overview: Latest Developments from Key Industry Players

• In March 2024, Tatcelik (Turkish), a manufacturing company that offers hot-rolled pickled, cold-rolled, galvanized sheet, and oiled steel products, will increase its galvanized steel capacity with the commissioning of a new 650,000 mt line.
• 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 December 2022, California Steel Industries, Inc. (U.S.) built a continuous galvanizing line at its mill in Fontana, California. The new galvanizing line will serve construction end markets in the western United States, and it has an annual capacity of 400,000 tons. With the addition of this new line, CSI will have a total hot dip galvanizing capacity of 1.2 million tons per year.

Galvanized Steel Market Research Summary:

Key questions answered in the galvanized steel market report: