The
global steel service center market demand is expected to
reach 755,191.3 kilotons by 2025, registering a CAGR of 3.5% over the forecast
period, according to a new report by Grand View Research, Inc. High demand for
steel products from construction and advanced manufacturing industries is
likely to remain a prominent growth driver.
Increasing
focus on advanced manufacturing sector coupled with investments in private and
public constructions in countries, such as India, China, and U.S. is expected
to drive the demand for steel and related products. Steel is one of the
versatile materials and has various applications in biotechnology and
new-energy vehicle sectors. Recently, China Construction Bank tied up with the
National Development and Reform Commission to start an investment fund of
around USD 47 billion in the industries such as biotechnology and new materials
and vehicles. Also, as per China’s state plan, the country aims to double the
contribution from these sectors by 2020.
Ground
transportation segment accounted for market share of 15.6% in 2018. Challenges
such as decreasing sales of vehicles are anticipated to create a negative
impact on the steel service center market for a short term. Recently, many
countries have observed a decline in sales of commercial and passenger
vehicles. For instance, China witnessed more than 12% drop in the first six
months of 2019. As per the China Association of Automotive Manufacturers, auto
sales were down by 9.6% in June 2019 compared to the previous year.
Monetary
reforms and new taxation policies to reduce the burden on companies in
developing countries is a positive sign for steelmakers. In September 2019,
India’s Ministry of Finance announced reduction in corporate taxes, to ease the
burden on the corporate sector. As per this announcement, the effective tax
rate for the companies with taxable income greater than INR 1 crore has been
reduced to 25.6% from 34.9% earlier. Also, to attract investors in domestic
manufacturing, the companies incorporated after 1 October 2019 will have a tax
rate of 15%. This was a key decision for the Indian manufacturing companies and
is anticipated to create a positive impact in the long run.
Steelmakers
in the market focus on the data due to the immense potential present in the
sector. To meet the short lead times the companies have started utilizing the
data associated with yield, real-time prices, costing, and tracking. Another
trend observed in the market is the emergence of e-commerce platforms. The
companies are integrating business information to keep up with increasing pace
of online sales.
For Full Research Report On Steel Service Centers Market Visit Here:
https://www.grandviewresearch.com/industry-analysis/steel-service-centers-market
Further key findings from the report suggest:
- In terms
of volume, heavy industry held the highest market share of 27.8% in 2018.
Focus on increasing industrial output supported by government programs are
the key driving factors
- Ground
transportation segment is anticipated grow on the account of increasing
sales of electric and hybrid vehicles. In 2018, this segment accounted for
97.725.5 kilotons of volume
- Asia
Pacific is projected to lead the segment with highest market share of
66.7% in 2018. The growth in this region is characterized by presence huge
manufacturing sector in developing economies including India and China
- In terms
of volume, Europe is likely to expand at a CAGR of 3.3% during forecast
period, owing to increasing R&D expenditure by the regional steel
companies
- Some of
the key market players include Tata Steel, Russel Metals, Reliance Steel
& Aluminum Co, Samuel, Son & Co., thyssenkrupp Materials
Processing Europe GmbH, and voestalpine Steel & Service Center GmbH
among others
- Recently,
many manufacturers have started establishing new steel service centers in
North America through joint ventures and inorganic growth strategies.
Imposition of steel tariffs by the U.S. government is a key factor driving
the establishment of the new centers
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Grand
View Research has segmented the global steel service center market report on
the basis of application and region:
Steel Service Center Application Outlook (Volume, Kilotons, 2014 -
2025)
- Metal
Fabrication & Machine Shops
- Heavy
Industry
- Consumer
Appliances
- HVAC
- Food
Processing & Agriculture
- Oil
& Gas
- Ground
Transportation
- Others
Steel Service Center Regional Outlook (Volume, Kilotons, 2014 -
2025)
- North
America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Asia
Pacific
- China
- India
- Japan
- Central
and South America
- Brazil
- Middle
East & Africa
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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