Rising Demand for Galvanized Steel Will Propel the Global Zinc Market Through 2020, Says Technavio
By Business Wire News
By Business Wire News
Technavio analysts forecast the global zinc market to post a CAGR of close to 4% by 2020, according to their latest report.
The research study covers the present scenario and growth prospects of the global zinc marketfor 2016-2020. Zinc is the most widely used metal after steel, aluminum, and copper, especially in the automobile and construction industry. The increasing use of zinc oxide in the ceramics and paints industries will lead to the increased consumption of zinc, thereby leading to overall market growth.
Technavio’s report highlights three major factors that are influencing the growth of the global zinc market. They are as follows:
- Infrastructure development in emerging markets
- Rising demand for zinc fertilizers
- Rising demand for galvanized steel
Infrastructure development in emerging markets
Zinc is a highly malleable metal, which makes it an important component in several mechanical and product applications such as the manufacture of dry cell batteries. It is also used in the manufacturing of bronze and brass used in gutters, downpipes, and roofing. The fact that zinc does not alter even after recycling is leading to its increased demand in the market. Technavio analysts expect the global demand for zinc to rise during the forecast period owing to the increase in residential and non-residential construction projects worldwide.
Technavio’s lead metals and minerals research analyst Chandrakumar B J says, “Growing modernization and urbanization in China is boosting the growth of the construction industry, which in turn is leading to the rise in demand for zinc. A similar trend is noted in emerging countries such as India, Brazil, and Indonesia. This will aid the growth of the market over the next four years.”
Rising demand for zinc fertilizers
Technavio’s research study states that zinc is an essential micronutrient in cereals. It is required for the catalytic activity of approximately 100 enzymes and it plays an important role in immune function, protein synthesis, and wound healing. Cereal crops in many countries are deficient in zinc, leading to poor crop yields. Zinc deficiency is a major issue in many parts of the world, especially in countries such as India, China, Pakistan, and Turkey, where cereals are one of the main components of the local diet. Therefore, it is imperative to develop cost-effective solutions to control zinc deficiency.
“Zinc fertilization methods have helped control the deficiency problem to a large extent. In India, zinc-deficient soils occupy approximately 50% of the agricultural area, which is a critical constraint for crop yields. But with the use of zinc fertilizers, there has been an increase in crop yields. Therefore, the high demand for zinc fertilization is leading to the growth of the overall market,” says Chandrakumar.
Rising demand for galvanized steel
Galvanization is the process of immersing steel in molten zinc to create a corrosion-resistant coating of zinc steel. It also provides resistance to mechanical damage. Galvanized steel sheets are used in many industrial applications like construction materials, automobiles, and electrical appliances as these products are lightweight and offer high strength, formability, and recyclability.
In the automobile industry, the use of galvanized, advanced high-strength steel helps in the reduction of car body weight and helps reduce emissions. It also improves safety performance and fuel efficiency, which are the primary requirements of modern automobiles.
The global demand for galvanized steel is increasing owing to its benefits in industrial applications. There are more than 800 continuous galvanizing lines in operation around the world. Thus, the rising demand for galvanized steel will lead to increased demand for zinc during the forecast period.
Browse Related Reports:
- Global Nickel Market 2015-2019
- Global Cobalt Market 2015-2019
- Seamless Copper Tubes Market in MENA 2015-2019
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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