Steel Fabrication Market: Global Opportunity Analysis and Industry Forecast, 2023-2030 Market

Steel Fabrication Market Outlook - 2027

Steel fabrication is a process that includes cutting, shaping, and assembling components that are designed using steel. Industries in the steel fabrication sector convert steel into intermediate or final products. The commonly used steel fabrication processes are stamping, machining, bending, and forming. These processes are used to provide proper shapes to the metal pieces. Whereas, other steel fabrication processes like assembling and welding are used to join individual different components together. Steel fabrication has major applications in industries such as manufacturing, construction, oil and gas, power and energy, and others. Technological advancements in the steel fabrication industry are raising the quality standards of the production by generating computer-aided manufacturing (CAM) or computer-aided design (CAD) models

COVID-19 Scenario analysis:

• COVID-19 pandemic has forced many companies in the global steel fabrication market to halt their business operations to comply with the new government rules and regulations. This halt in operations directly impacts the revenue flow of the market players.
• Production is at a standstill due to lockdowns imposed by governments around the world to reduce the exponential spread of the deadly virus. 
• As per the estimation of the United Nations Conference on Trade and Development (UNCTAD), the COVID-19 outbreak could cause global FDI to shrink by 5 to 15%.
• China is one of the world leaders in manufacturing and accounts for the highest contribution to the global manufacturing services industry. 
• With the COVID-19 crisis limiting mobility, decline in export activity, supply chain freezing, and shutting down of companies, the manufacturing sector faces massive economic loss. 
• The pharmaceutical manufacturing sector is the only area where the demand can be expected to rise during the outbreak. However, the sector is also affected by supply chain and labor shortage problems throughout the globe.

Drivers, restraints, and opportunities

Steel has many applications in the construction industry for the construction of bridges, buildings, parking garages, and more. Growth in the construction activities worldwide is one of the major factors catering to the growth of the steel fabrication market. Besides, technological advancements and growth in automation in the steel industry can potentially boost the growth of the steel fabrication market in the next few years. Moreover, increasing applications in the end-use industries like energy and power, oil and gas, and others can fuel the demand for the steel fabrication industry during the forecast period. However, high dependence on low-quality raw material for steel fabrication process is anticipated to hinder the market growth. On the contrary, new business expansion strategies by key market players are anticipated to provide new growth opportunities for the steel fabrication market in the upcoming years.   

Trends in the steel fabrication market

Huge investments for construction activities in emerging countries

Due to factors like rapid urbanization, industrialization, and growing population in emerging countries like China and India, there has been a surge in construction activities in these countries. Advanced steel fabrication techniques have many uses in the construction industry like exterior applications, flexible design, lighter buildings, easy modification, and enhance the aesthetic appeal of structures. Government initiatives for new constructions and the pursuit to build smart cities in these countries can significantly result in the positive growth of the construction sector. For instance, the Indian government announced $1.4 trillion for infrastructure in the Union Budget 2019-20. The money will be utilized for the development of infrastructure of transport, railways, energy and power generation projects, and more. Such huge investments for the development of infrastructure can boost the growth of the construction industry that will eventually result in the positive growth of the steel fabrication market.

Business growth strategies by market leaders 

The key market players in the steel fabrication market are adopting various growth strategies, like mergers, acquisitions, new product offerings, innovations, collaborations, and partnerships to prevail in the highly competitive market. To cite an instance, Tata Steel, an Indian multinational steel-making company entered into a joint venture with ThyssenKrupp AG, a German multinational conglomerate in 2018. The joint venture was aimed at combining both company’s business in the European countries. Such new business expansion strategies by key players of the market can significantly boost the growth of the steel fabrication market during the forecast period.

Key benefits of the report:

• This study represents the analytical representation of the global steel fabrication market combined with the ongoing trends and future predictions to determine investment opportunities.
• The present market is thoroughly analyzed to enlighten the steel fabrication market growth.
• The report gives information regarding the important drivers, restraints, and opportunities provided with an in-depth analysis of the global steel fabrication market.
• Segmentation details of the global steel fabrication market.
• The report gives a comprehensive global steel fabrication market analysis based on competitiveness and how the performance of the competitors will take shape in the coming years. 

 Steel Fabrication Market: Global Opportunity Analysis and Industry Forecast, 2020–2027 Report Highlights