U.S. Coated Steel Market Size, Share & Trends Analysis Report By Product (Galvanized, Pre-painted), By Application (Building & Construction, Appliances, Automotive), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The U.S. coated steel market size to be valued at USD 36.71 billion by 2028 and is expected to grow at a compound annual growth rate (CAGR) of 4.4% during the forecast period. The growth in the construction sector is anticipated to augment the market growth over the forecast period. Coated steel is used in several applications including air conditioners, laundry appliances, vehicle parts, refrigerators, roofing, and decks to protect them against the corrosive environment. In addition, it is used for aesthetic appearance particularly required in architectural applications.

New construction activities, especially single-family homes in the residential sector, are expected to propel the use of coated steel products over the coming years in the U.S. The COVID-19 pandemic had a major impact on product demand. However, the market witnessed a moderate recovery in the second half of 2020. For instance, in July 2020, total housing production in the U.S. increased by 22.6% from the previous month.

Moreover, the enactment of the Zero Emission Vehicle (ZEV) program has reinforced the growth of the electric vehicles (EVs) market in the U.S. Coated steel finds many applications in EVs like in battery cases. The growing production of EVs in the country is anticipated to augment the product demand over the forecast period.

The sudden outbreak of the COVID-19 pandemic was a challenge for the U.S. coated steel market. As of 2021 as well, steel prices are witnessing a surge owing to the supply deficit. For instance, the low production and high demand led the price for hot-dipped galvanized coil base price to USD 110 per cwt on September 16, 2021, which is 193.3% higher than last year.

The high prices impact the profit margins of the end-users. However, the price surge also indicates high demand for coated steel products. Growing demand from consumer goods, EVs, and residential construction are thus, anticipated to positively influence the product demand in the U.S. over the forecast period.

U.S. Coated Steel Mraket Trends

Rising importance of metal roofing in adverse climates in the United States has fueled the demand for galvanized steel that provides a superior and long-lasting performance. Fire resistance, easy installation, low heat conduction, and lightweight are all advantages of metal roof. These factors are driving the demand for metal roofs in the United States, and is expected to have a favorable impact on consumption of galvanized steel in the projected period.

Furthermore, metallic coated steels are widely used in the automobile industry to manufacture various components such as structural reinforcements, interiors, crash components, body and closure panels, and other components. Metallic coated steel has a number of advantages in automobiles, including component structural integrity, and corrosion resistance. Increased vehicle manufacturing is likely to fuel the demand for coated steel during the forecast period as steel remains the most preferred material in automobile production around the world.

However, there are certain restraints to the U.S. coated steel market that hinders the market growth.The variations in coated steel prices are expected to stifle the expansion in the projected period. Moreover, a supply-demand imbalance is anticipated to further restrict the market growth.

Rising demand for coated steel in consumer products and electrical appliances is predicted to increase demand during the forecast period due to the rising population and the growth in end-use industries. In addition, the increased demand for lightweight materials in industries such as automotive and aerospace is creating tremendous opportunities for market development.

Application Insights

Based on application, the building and construction segment accounted for the largest volume share of more than 43.0% in 2020. Steel is highly prone to rust, which eventually leads to corrosion. Thus, coated steel is used in the construction sector for piping, support beams, and air conditioning ducts. The building and construction application segment is further segmented into roofing, facades and sidings, decking, and others.

In the automotive segment, the product is preferred for its characteristics and low cost. The increasing prominence of lightweight materials for automotive manufacturing is expected to be the key catalyst for product demand. In addition, critical issues such as environmental pollution and corrosion propensity in coastal areas have augmented the use of coated steel in automobiles.

Other applications include furniture, packaging, and fabrications. The increasing demand for the product in metal furniture, food packaging, and steel fabrication is augmenting the market growth. Steel is extensively used in metal furniture. Its applications range from office furnishings to outdoor settings. It is used in producing hinges, slides, and body pieces.

Product Insights

Galvanized accounted for a revenue share of more than 82.0% in 2020. Galvanization is the most popular option for averting the erosion of steel. The product is obtained by coating steel sheets with zinc. Galvanized steel requires less maintenance and has a long life, which makes it preferable in residential homes. The growth of the U.S. housing construction market is thus, anticipated to further augment the segment growth over the forecast period.

Pre-painted steel finds application in construction, appliances, automotive, and container industries. It is used in metal roofing, garage doors, lighting fixtures, appliances, HVAC, refrigerator cabinets and doors, washing machines, freezers, coolers, microwaves, and dishwashers. Rising demand for consumer goods in the U.S. is anticipated to augment segment growth over the forecast period.

Other products include organic and tin-plated steel. Tin-plated steel is extensively used in producing containers and cans for processed food packaging applications. The U.S. is a major contributor to the global metal cans industry. The growth of the segment can thus, be attributed to the rising demand for metal cans from the packaged food industry.

Regional Insights

South U.S. held the largest revenue share of nearly 38.0% in 2020. The region has immense growth potential as various companies have announced to set up new offices as well as new manufacturing plants in the region, which is expected to propel product demand over the forecast period. For instance, in October 2020, GM announced to transform its plant in Spring Hill, Tennessee to build EVs.

Midwest U.S. held the second-largest revenue share of the market in 2020. The increasing number of infrastructure projects in the region is leading toward increased demand for coated steel. As of September 2021, some of the upcoming projects in the region include Hyperloop One / Midwest Connect, Project Tim Manufacturing Plant, and Golden Plains Technology Park.

The Northeast U.S. market is expected to expand at a CAGR of 5.5%, in terms of revenue, over the forecast period. The region witnessed a slump in construction activities in 2020 owing to the pandemic outbreak. According to the Real Estate Board of New York, New York City witnessed a 17% drop in terms of the number of proposed housing units from 2019 to 2020.

After the plummet in the first half of 2020, the construction sector in the Northeast is expected to recover with new projects. For instance, on January 1, 2021, the new Moynihan Train Hall for inter-city and local rail traffic opened in New York City. The project has 5,116 square meters of free-form steel and glass roof.

Key Companies & Market Share Insights

The major companies operating in the industry are primarily focused on capacity expansion and merger and acquisition. For example, in April 2021, Steel Dynamics Inc. announced to build four new flat-rolled coating lines in the U.S., which is expected to be worth an investment of USD 400 million. Two coating lines are anticipated to be built in the Southern U.S. whereas the other two in the Midwest. The coating lines will include a 300 kiloton galvanizing line with a Galvalume coating capability and a 240 kiloton paint line in both regions.

Recent Developments

• In March 2022, The Cleveland-Cliffs Inc. and NBA Cleveland Cavaliers, North America's largest flat-rolled steel producer extended their multi-year marketing partnership to include the Cliffs logo on Cavs player uniforms starting in 2022-23

• In June 2022, Nippon Steel Corporation launched ZEXEED, the company's high corrosion-resistant coated steel. ZEXEED is a corrosion-resistant coated steel sheet that outperforms post-plating which is extensively utilized in the social infrastructure and civil engineering sectors

• In April 2022, ArcelorMittal stated that it would acquire an 80 % stake in voestalpine's world-class Hot Briquetted Iron factory in Corpus Christi, Texas. The remaining 20% belongs to voestalpine. The Corpus Christi businesses are valued at $1 billion, and the transaction is subjected to customary regulatory requirements

Some of the prominent players operating in the U.S. coated steel market are:

• ArcelorMittal

• Cleveland-Cliffs Inc.

• Nippon Steel Corporation

• NLMK

• Nucor

• Salzgitter AG

• Steel Dynamics, Inc.

• United States Corporation

• voestalpine AG

U.S. Coated Steel Market Report Scope

U.S. Coated Steel Market Segmentation

This report forecasts revenue and volume growth at the country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the U.S. coated steel market report based on product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Galvanized

  • Pre-painted

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Building & Construction

  • Appliances

  • Automotive

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • U.S.

    • Northeast

    • Midwest

    • West

    • South