Market Highlights
The idea of HRC toll processing services is becoming increasingly prevalent over the years. This is largely because these services are very cost-effective. A toll processing service provider helps in processing the material according to the customer's specifications before delivering it to the customer's specified location. These providers generally have the requisite experience, infrastructure, storage space, and employee size that aid in the smooth operation of the toll processing facility.
Steel plays a key role in the development of automotive chassis, engines, and charging stations that power the next-generation electric vehicles (EVs), simultaneously boosting its market penetration in the transportation sector in the coming years. The USA, in particular, accounts for over 80% share of the total hot-rolled steel production in North America. It has also been estimated that nearly 35 million tonnes of toll-processed steel are likely to be sold in the country in the coming five years, equivalent to approximately 3 times of Canada and Mexico combined.
The transportation industry is a valuable market stakeholder with the large-scale usage of processed aluminum sheets and coils in the railway and aerospace industries. Moreover, the presence of automotive companies such as General Motors and Tesla along with the global aerospace giants such as Boeing and Bombardier in the region substantially fuel the market growth. The aerospace industry is also a major contributor to the USA economy that drives the demand for aluminum, a key component used in aircraft manufacturing. Consequently, the overall North American hot-rolled coil toll processing market is estimated to grow at a decent CAGR of 4.8% during the forecast period to reach a value of US$ 2.6 Billion in 2027.
Market Segments' Analysis
Based on the material type, the market is bifurcated into carbon steel, stainless steel, aluminum, and others. As carbon steel is the major type of steel produced, it is expected to remain the biggest demand generator in the market in the forthcoming years. It has a large usage in the construction and automotive industries, significantly driving its market dominance. Moreover, as stainless steel has widespread usage across the healthcare, food processing, and industrial industries, due to its low maintenance and excellent corrosion resistance, its market for toll processing is likely to witness the fastest growth during the forecast period.
Based on process type, the market is segmented into cut-to-length, slitting, and blanking. Among these process types, toll slitting of hot-rolled coil generates the largest demand from various industries, especially but not limited to transportation and construction. Furthermore, the metals processed from slitting are easily moldable, which provides a series of benefits to the final product formed, driving its demand. Also, several toll processing companies in North America, such as National Material Company L.P. and Ryerson Holding Corporation, are vigorously involved in the slitting of hot-rolled steel. The blanking process, on the contrary, is the most expensive and the least-preferred process, which is only executed by a handful number of regional companies.
Similarly, based on the application type, the market is classified as construction, transportation, machinery, and others. Construction, being a major contributor to the USA economy, holds the market supremacy as the HRCs are widely used in the manufacturing of highways, bridges, large buildings, garages, etc. Moreover, the transportation industry also accounts for a fair slice of the pie due to the extensive usage of the HRCs in the manufacturing of aircraft, vehicles, trains, and ships.
In terms of country, the USA is likely to maintain its dominance in the North American hot-rolled coil toll processing market throughout the forecast period. This is primarily attributed to the widespread presence of toll processing companies in the country along with the large-scale investments by the transportation and construction end-use industries. Also, the country is home to some major automotive manufacturers, such as Tesla and General Motors, and aerospace giants, such as Boeing, which strongly fuels the country’s market demand and growth.
Key Players
There is widespread competition in the North American hot-rolled coil toll processing market as there are over 100 toll processing companies to cater to the demand generated from several end-use industries such as automotive, aerospace, packaging, and building & construction. These companies primarily differentiate their service offerings based on their cost, quality, and industrial experience. In addition, over 70% of the total number of toll processing companies are present in the USA.
The following are some of the major players in the North American hot-rolled coil toll processing market:
- Ryerson Holdings Corporation
- National Material Company L.P
- PRECISION STRIP INC.
- Olympic Steel
- RMP (Rolled Metal Products)
Research Methodology
This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s North American hot-rolled coil toll processing market realities and future market possibilities for the forecast period of 2022 to 2027. The report segments and analyses the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.
This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in the North American region and industry experts to obtain both qualitative and quantitative insights.
Report Features
This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Process portfolio, New Process Launches, etc.
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The North American hot-rolled coil toll processing market is segmented into the following categories:
North American Hot-Rolled Coil Toll Processing Market, by Material Type
- Carbon Steel
- Stainless Steel
- Aluminum
- Others
North American Hot-Rolled Coil Toll Processing Market, by Process Type
- Cut-to-length
- Slitting
- Blanking
North American Hot-Rolled Coil Toll Processing Market, by Application Type
- Construction
- Transportation
- Machinery
- Others
North American Hot-Rolled Coil Toll Processing Market, by Country
Report Customization Options
With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:
Company Profiling
- Detailed profiling of additional market players (up to three players)
- SWOT analysis of key players (up to three players)
Competitive Benchmarking
- Benchmarking of key players on the following parameters: Process portfolio, geographical reach, regional presence, and strategic alliances
Custom Research: Stratview Research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@Stratviewresearch.com
