Hot-dip Galvanized Steel Market Expected to Reach $83.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Hot-dip Galvanized Steel Market," The hot-dip galvanized steel market was valued at $47.0 billion in 2022, and is estimated to reach $83.7 billion by 2032, growing at a CAGR of 6.1% from 2023 to 2032. The Asia Pacific is expected to be the fastest-growing region and continue its dominance over the forecast period.

Introduction

Hot-dip galvanized steel is a process where steel is coated with a layer of zinc by immersing it in a bath of molten zinc. This method provides excellent corrosion protection, as the zinc coating acts as a sacrificial layer, preventing rust and corrosion of the underlying steel. Hot-dip galvanized steel has widespread applications across various industries. It is commonly used in construction for structural components such as beams, columns, and trusses due to its durability and resistance to rust.

In the automotive industry, it is used for vehicle frames, chassis, and body panels. Utility poles, guardrails, fencing, and outdoor furniture also frequently utilize hot-dip galvanized steel due to its weather resistance. Moreover, it finds applications in agricultural equipment, electrical enclosures, and even in the manufacturing of household appliances. The versatility and effectiveness of hot-dip galvanized steel make it a preferred choice for many corrosion-prone applications.

Market Dynamics

The growing renewable energy sector is expected to significantly drive the demand for hot-dip galvanized steel market. As the world shifts towards cleaner and more sustainable sources of energy, there is a heightened focus on expanding renewable energy infrastructure, including solar and wind power generation. According to International Energy Agency, global renewable power capacity is now expected to grow by 2 400 gigawatts (GW) over the 2022-2027 period, an amount equal to the entire power capacity of China. In 2022, around $1,740 billion have been invested in clean energy globally.

Hot-dip galvanized steel plays a crucial role in this expansion, particularly in the construction of solar panel structures, mounting systems, and support frameworks for wind turbines. Its corrosion-resistant properties make it an ideal material for outdoor applications, enduring the rigors of various climates and environmental conditions. In addition, hot-dip galvanized steel's strength and durability ensures the structural integrity of renewable energy installations, contributing to their long-term reliability and performance. The rising demand and investment in renewable energy is expected to boost the hot-dip galvanized steel market over the forecast period.

Furthermore, the lightweight nature of hot-dip galvanized steel facilitates easier transportation and installation of renewable energy components, reducing overall project costs and enhancing efficiency. As governments worldwide implement policies to promote renewable energy adoption and combat climate change, the demand for hot-dip galvanized steel in the renewable energy sector is expected to witness sustained growth. This trend plays a vital role that hot-dip galvanized steel plays in supporting the transition towards a more sustainable energy landscape, meeting the infrastructure needs of a rapidly expanding renewable energy industry.

Environmental regulations pose a significant challenge to the growth of the hot-dip galvanized steel market. This industry is heavily reliant on zinc, a key component in the galvanizing process. However, the extraction, processing, and disposal of zinc can have adverse environmental impacts, particularly in terms of emissions and waste disposal. Stringent regulations aimed at reducing pollution and promoting sustainability often require companies to invest in costly measures to mitigate their environmental footprint. For hot-dip galvanizing plants, this may involve implementing advanced pollution control technologies, such as scrubbers or filtration systems, to reduce emissions of harmful substances such as particulate matter and volatile organic compounds.

The strict regulations regarding wastewater management and hazardous waste disposal can add complexity and expense to the production process. Compliance with these regulations not only increases operational costs but also requires significant administrative effort and ongoing monitoring to ensure adherence. As a result, companies operating in the hot-dip galvanized steel market may face challenges in maintaining profitability and competitiveness while meeting stringent environmental standards. Thus, the environmental regulations hamper the growth of the hot-dip galvanized steel market.

Advancements in galvanization techniques are projected to revolutionize the hot-dip galvanized steel market, offering lucrative opportunities for industry players. Galvanization, a process that involves coating steel with a layer of zinc to protect it from corrosion, has been used widely in various industries for decades.

The demand for galvanizing steel is rising across the globe due to which manufacturers are focusing on increasing the production of galvanized steel. For instance, according to American Galvanizers Association, in North America, around 4.9 million tons of galvanized steel was produced in 2019, which is 10% rise in the production of galvanized steel as compared to 2014. In North America, around 78 galvanizing companies are there, and they have a total of 178 production plants. These companies are planning to increase the production of galvanizing steel due to rising demand from several end-use industries. For production, manufacturers are adopting advanced galvanization methods as they enhance the efficiency, durability, and sustainability of the products. 

Furthermore, advancements in process automation and control systems have streamlined production processes, leading to higher throughput, lower costs, and improved product consistency. Automated monitoring and quality control technologies ensure that galvanized steel products meet stringent industry standards, enhancing customer confidence and satisfaction. Moreover, the integration of digital technologies such as artificial intelligence and big data analytics enables predictive maintenance, optimization of production parameters, and customization of coating properties according to specific application requirements. This level of precision and flexibility opens new opportunities for hot-dip galvanized steel in diverse sectors, including construction, automotive, infrastructure, and renewable energy.

Segment Overview

The hot-dip galvanized steel market is segmented on the basis of product type, end-use industry, and region. By product type, the market is divided into sheet and coil, tubes and pipes, wires, and others. By end-use industry, it is categorized into construction, automotive, home appliances and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of the product type, tube and pipe are projected to be the fastest-growing segment. It benefits from increased infrastructure projects, and construction activities. Additionally, its versatility in various applications contributes to its status as the fastest-growing segment within the market. The sheet and coil segment has garnered the highest share in the hot-dip galvanized steel market. This is attributed to widespread usage in manufacturing, construction, automotive, and appliances due to its versatility and durability.

By end-use industry, home appliance is projected to be the fastest-growing segment due to increasing demand for durable materials, driven by factors such as product longevity and sustainability requirements. The construction has garnered the highest share in the hot-dip galvanized steel market due to extensive use in infrastructure, buildings, and structural applications.

Regional Analysis

Region-wise, Asia-Pacific is projected to register robust growth during the forecast period and expected to continue its dominance over the forecast period. This growth is attributed to factors such as increase in investments in infrastructure, automotive, and manufacturing sectors, coupled with favorable government initiatives promoting the use of galvanized steel in various applications across the region. For instance, according to India brand equity foundation, in June 2022, the Minister of Road Transport and Highways, opened 15 national highway projects worth $1.7 billion in Patna and Hajipur, Bihar.

The major players operating in the global hot-dip galvanized steel market are JMT Steel, Jain Steel Industries, Manaksia Steels Limited, Dana Steel, Sanghvi Metal, YIEH, Steel Tubes India, Tianjin Tianyingtai Steel Pipe Co. Ltd., Hebei Shengtian Group Seamless Steel Pipe Co., Ltd, Thyssenkrupp AG, and Dinesh Metal Industries.

Key Findings of the Study:

• By product type, the tube and pipe segment are projected to be the fastest growing segment in terms of revenue during the forecast period.
• Depending on the end-use industry, the construction segment is expected to be the leading segment during the forecast period.
• Region-wise, Asia Pacific garnered a major share in 2022 in terms of revenue.