Galvanized steel is majorly utilized in automotive industry for different applications such as hoods, fenders, oil pans, roofing, body panel, chassis frame, spring housing, and parking brakes. Apart from this, galvanized steel is also used in various other applications such as telecommunication towers, power transmission towers, steel furniture industry, white goods, and building & construction industry. Factors such as increasing infrastructure projects, urbanization of the region, and growth in automotive and white goods industry are driving the growth of galvanized steel market in Southeast Asia region.

Increasing Urbanization of the Region Fuels the Growth of the Southeast Asia Galvanized Steel Market

Southeast Asia region is one of the fastest growing urban regions in the world, with the urbanization rate expected to reach 64% by 2050, according to the United Nations. This rapidly increasing urban population has amplified the needs of better infrastructure for sustainable development and smooth movement of human capital across the region. Multi-billion infrastructure projects are being announced by the governments of the region to support the rapid urbanization and growing economic prosperity. Several global establishments such as the World Bank, Swiss Bank, Asian Development Bank, and International Finance Corporation have come forward to provide monetary and technical assistance for development of infrastructure in the region. This creates a healthy environment for growth of Iron and Steel industry in the region which will ultimately drive the growth of galvanized steel in the Southeast Asia region during the forecast period.

Automotive Industry Supports the Market Growth

Automotive industry is rapidly growing in the region on account of increasing spending power and growing GDP of the region. According to ASEAN Automotive Federation, the production of automobile in the region has seen a y-o-y increase of 7.9% in 2018 and the region is expected to see a huge amount of growth in the automotive sector because of Vietnam’s ambition to become regional leader in automotive industry surpassing Thailand. This region is also very supportive for the growth of Electric Vehicles and the Philippines is already on the process of introducing excise duty exemptions on EVs and hybrid vehicle technologies. Singapore has seen massive growth in EVs from just 31 vehicles in 2016 to 603 vehicles in 2018 and this figure will go up in the near future. Through all these advances, the consumption of galvanized steel is further expected to expand with an average 50% of galvanized steel is used in automotive industry, which in turn supporting the growth of galvanized steel market in the region.

Southeast Asia Galvanized Steel Market
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Key Findings in the Southeast Asia Galvanized Steel Market Study:
Hot-Dipped Galvanized Steel to Post the Fastest Southeast Asia Galvanized Steel Market Growth
Hot-dipped galvanized steel is poised to post the fastest growth in the region with a CAGR of 7.8%. The growth is mainly attributed to cost-effectiveness, low life-cycle cost, sustainability, durability, longevity, and simplicity of the production process. Because of the sacrificial properties of zinc coating, steel structure coated with zinc have better corrosion resistance properties and longer service life. With the growth of infrastructure activities in the region, hot-dipped galvanized steel market is also expected to grow as it occupies majority of the share of Southeast Asia galvanized steel market.

White Goods to Post the Fastest CAGR in Galvanized Steel Consumption in Southeast Asia
With the growing urbanization of the region, sectors such as residential real estate and commercial real estate are also on the rise. This region is further expected to see some massive investments in infrastructure and real estate development. This also fuels the demand for electrical appliances required for home as well as commercial space. Thailand is already a regional leader in white goods manufacturing and Vietnam is poised to grow at the highest CAGR to catch up with other countries in the region. Through all these advances, the consumption of galvanized steel is expected to grow in the region which will drive the growth of this market.

Indonesia: The Fastest Growing Market

Indonesia is going to be the hot-spot for infrastructure investments in the region with projects to the tune of billions of dollars are already announced or on the planning table. These projects include Mass Rapid Transit (MRT), highway projects, and power plant projects which are planned by the government for development of the country. This coupled with rising manufacturing activities and booming automotive sector in the region is expected to drive the growth of galvanized steel market in the country.

Southeast Asia Galvanized Steel Market Key Players:
The major players operating in the Southeast Asia galvanized steel market are Nippon Steel Corporation (Japan), POSCO (South Korea), JFE Holdings Inc.(Japan), NS BlueScope Steel Ltd.(Australia), Essar Steel India Ltd.(India), Hoa Phat Group (Vietnam), Hoa Sen Steel Ltd.(Vietnam), Dongkuk Steel Mill Co. Ltd. (South Korea), FiW Steel Sdn. Bhd. (Malaysia), JTL Infra Ltd. (India), Chinh Dai Industrial Co. Ltd. (Vietnam), and Galvaco Industries Sdn. Bhd. (Malaysia) among others.

Scope of Southeast Asia Galvanized Steel Market Report:
by Product

Hot-dipped Galvanized Steel
Hot Dipped Zinc Coated Galvanized Steel
Hot Dipped Zinc-Aluminum-Silicon Alloy Coated Galvanized Steel
Hot Dipped Aluminum Coated Galvanized Steel
Zinc-Magnesium-Aluminum Alloy Coated Galvanized Steel
Hot Dipped Sn-Zinc Coated Galvanized Steel
Hot Dipped Zinc-Aluminum-Magnesium
Electro-Galvanized Steel
Electrolytic Zinc Coated Galvanized Steel
Electrolytic Zinc-Nickel Alloy Coated Galvanized Steel
Electrolytic Zinc-Sn-Nickel Alloy Coated Galvanized Steel
Electrolytic Nickel Coated Galvanized Steel
Electrolytic Phosphate Treated Galvanized Steel

by Application

Building and Construction
Automotive
White Goods
Shipbuilding
Other Applications

by Country

Indonesia
Vietnam
Thailand
Philippines
Malaysia
Singapore
RoSEA.

Key questions

Which product type segment is expected to experience the fastest growth during the forecast period?
What is the most prominent galvanized steel type being rapidly adopted across developed as well as developing regions?
Which application will be the largest revenue pocket in future?
How will recent or ongoing technological developments in Automotive industry affect the galvanized steel market?
Who are the major players in the galvanized steel market and what strategies do they employ?