Global Steel Service Centers Market – Industry Trends and Forecast to 2029

Market Analysis and Size

The various applications of steel service centers is projected to fuel market expansion. Moreover, an increased focus on advanced manufacturing and expenditures in private and public building in nations such as India, China, and the United States is anticipated to favor the market expansion. For instance, China Construction Bank recently partnered with the National Development and Reform Commission to launch a USD 47 billion investment fund focused on biotechnology, new materials, and cars. In addition, China's official plan calls for these sectors to contribute twice as much by 2020. Owing to these growth determinants, the market is anticipated to expand vastly over forecast period.

Global Steel Service Centers Market was valued at USD 650.40 million in 2021 and is expected to reach USD 850.77 million by 2029, registering a CAGR of 3.55% during the forecast period of 2022-2029. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team also includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and climate chain scenario.

Report Scope and Market Segmentation

Market Definition

Steel service centers are basically corporations that generally deal with the steel industry's service activities. A steel company, for instance, might create steel in mass and then sell it to a customer. The customer then applies the steel to their own business. The steel service centers provide various services associated with steel to the consumers.

Steel Service Centers Market Dynamics

This section deals with understanding the market drivers, advantages, opportunities, restraints and challenges. All of this is discussed in detail as below:

Drivers

• Increased Utilisation of Steel for various Applications

Steel is a versatile material with numerous applications in biotechnology and alternative energy vehicles. Metal manufacture, heavy industries, consumer appliances, and food processing procedures all rely on steel. Steel had supplanted wood in modern shipbuilding, and massive industry shipbuilding became the standard Moreover, the growing demand for machinery and equipment in construction, mining, and chemical sectors are projected to drive growth of the steel service centers market. The increased applications of steel are significant factors projected to fuel market expansion.

The high population and rapid industrialization are likely to drive market expansion. The market for steel service centers is also being driven by the factors such as increasing preference for local manufacturing as well as the establishment of new steel service centers in several countries to cater to the manufacturing sector. Moreover, the rising usages of steel due to its properties such as high strength, temperature resistant is projected to bolster the growth of the market.

Opportunities

• Research and Development and Investments

Furthermore, the major focus on research and development activities is expected to provide enormous growth opportunities for the market players in steel service centers. Moreover, the surging investments in private and public constructions in countries, such as India, China, and U.S to increase the production of steel is also estimated to generate various opportunities for market over the forecasted period.

Restraints/Challenges

• Volatility in Steel Prices

Price fluctuations or volatility in raw materials of steel is a key danger to the market's growth. The inconsistent availability of raw resources in one location as well as the low-quality product development due to insufficient production equipment, will derail the market's growth rate. Therefore, the volatility in steel prices for the production is projected to restrict the market growth over the forecasted period.

• Norms, Standards And Regulations

The government's imposition of strict controls on a wide variety of industrial applications relevant to industrial activities will further slow market growth. The market condition would be exacerbated by a lack of standardized rules, a lack of information in backward nations, the availability of replacements, and a shift in demand-supply spectrum due to regulatory strengthening across the globe. Therefore, this factor will challenge the steel service centers market growth rate.

This steel service centers market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the steel service centers market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Steel Service Centers Market

The recent outbreak of coronavirus had a significant impact on the steel service centers market. COVID-19 impacted various manufacturing industries in the year 2020-2021 as it led to the closure of workplaces, disruption of supply chains, and restrictions on transportation. Several countries such as China, India, Brazil, and many more imposed lockdown in this face, leading to the shutdown of production and manufacturing facilities. Owing to various restrictions, the steel service centers were also shutdown, leading to massive financial setback for the market. Since January 2020, the steel industry witnessed a slump in revenue, which had an adverse impact on the market. The supply chain of numerous manufacturing units was adversely affected in this period leading to a major drop in the revenues and profits.

On the other hand, the industrial activities have slowly resumed, albeit with a limited workforce and materials. Following COVID-19, developing economies like China are projected to move faster toward normalization of economic activity across sectors. Owing to these factors, the steel service centers is estimated to recover and show favorable growth post COVID.

Recent Developments

In February 2020, Samuel, Son & Co., Limited, a metals distributor and industrial products manufacturer based in Mississauga, Ontario, Canada, has purchased all of Burloak Technologies' remaining shares in Burlington, Ontario, Canada. In 2017, Samuel purchased a minority investment in Burloak Technologies.

In July 2021, Russel Metals Inc. completed the previously announced merger with Marubeni-Itochu Tubulars America Inc. ("MITI"). The two companies integrated their respective Canadian OCTG/line pipe businesses. Triumph and Hallmark's combined operation will be managed by a newly formed company called TriMark Tubulars Ltd. ("TriMark").

Global Steel Service Centers Market Scope

The steel service centers market is segmented on the basis of type and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Miller Cutting
• Cambering
• Plate Burning
• Tee-Splitting
• Others

Application

• Metal Fabrication and Machine Shops
• Heavy Industry
• Consumer Appliances
• HVAC
• Food Processing and Agriculture
• Oil and Gas
• Ground Transportation
• Others

Steel Service Centers Market Regional Analysis/Insights

The steel service centers market is analyzed and market size insights and trends are provided by country, type and application as referenced above.

The countries covered in the steel service centers market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

North America dominates the recycled asphalt market in terms of market share and market revenue and will continue to flourish its dominance during the forecast period of 2022-2029. The market growth over this region is attributed to the rising preference for local manufacturing. Moreover, increasing investments in mills is also anticipated to boost the overall market growth within the region.

Asia-Pacific on the other hand, is estimated to show lucrative growth over the forecast period of 2022-2029, due to the smart cities Initiative and industrial corridors in India within the region. Moreover, China, India, Japan, and South Korea are leading the way in terms of economic growth, which is estimated to contribute towards the market growth.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Steel service centers Market Share Analysis

The steel service centers market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to steel service centers market.

Some of the major players operating in the steel service centers market are

• NACHI-FUJIKOSHI CORP. (Japan)
• Daido Steel (Japan)
• voestalpine High Performance Metals GmbH (Austria)
• Sandvik AB (Sweden)
• Kennametal Inc. (U.S.)
• Hudson Tool Steel Corporation (U.S.)
• ERASTEEL (France)
• ArcelorMittal (Luxembourg)
• Baosteel Group Corporation (China)
• POSCO (South Korea)
• Nippon Steel & Sumitomo Metal Corporation (Japan)
• JFE Holdings, Inc. (Japan)
• TATA Steel Ltd.(India)
• United States Steel (U.S.)
• Angang Steel Company Limited (China)
• Gerdau SA (Brazil)
• Maanshan Iron and Steel Company Limited (China)      

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