Market Trends of India Structural Steel Fabrication Industry
Rising Demand for Pre-engineered Buildings and Components
- Structural steel is one of the major raw materials used to construct pre-engineered buildings. The pre-engineered buildings market in India is expected to register a CAGR of 11%-15% from 2017 to 2021, as the industry has been experiencing an increased focus from various end-user segments, such as automotive, power, logistics, pharmaceuticals, FMCG, and retail.
- The increase in focus is primarily due to the significant cost benefits and reduction in construction time of manufacturing plants, warehouses, etc., compared to the traditional construction model.
- The rising demand for pre-engineered buildings is expected to drive the market for structural steel fabrication during the forecast period.
- The increasing importance of green building construction is also an important factor contributing to the growth of PEB (Pre-Engineered Building) in India. Pre-engineered construction has a comparatively smaller impact on the environment compared to that of the conventional construction model.
- Additionally, the production method of steel used for these structures helps in substantially reducing greenhouse gas emission. Moreover, after demolition, pre-engineered buildings and components, which are 90% recyclable, do not have a significant impact on the environment to that of wastages, like asphalt, concrete, brick, and dust.
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Increasing Number of Manufacturing Plants and Infrastructure Development Activities in India
- The rising demand in India, combined with the fact that global manufacturing companies focus on diversifying their production by setting up low-cost plants in countries other than China, is expected to drive India's manufacturing sector to grow more than six times by 2025 USD 1 trillion.
- For instance, the number of mobile manufacturing plants in India has increased more than 60 times since 2014. This shows the increasing demand for structural steel fabrication due to the increasing number of manufacturing units in the country.
- The infrastructure development activities by the Government of India are the major driving factors expected to boost the Indian structural steel fabrication market over the next few years.
- Government initiatives, such as the construction of metro stations, new no-frill airports, international terminals, industry corridors, power plants, and ports, require heavy steel structures. Thus, these factors are expected to drive the growth of the structural steel fabrication market in India.
- Moreover, the construction and infrastructure sector is the largest end-user segment in India. In 2021, the construction and infrastructure sector accounted for the major share of 62% of the overall Indian steel market.
- In the 2021 financial year, more than INR 3 trillion (USD 36.26 billion) in infrastructure investment had flowed into the manufacturing sector across India. In addition, INR 2.2 crore (USD 265, 923) was invested for the construction and maintenance of roads.
- As part of the National Infrastructure Pipeline (NIP), the Indian government has increased its infrastructure investment since 2019. In addition, it also wants to raise private funding for infrastructure projects.
