The Steel Industry Will Be Investing $6 Billion Per Annum in Digital Transformation by 2030, Finds ABI Research
By
Research Associate and Content Manager, Sheridan LePlatt
Steel manufacturers’ investment in digital transformation will grow at a CAGR of 10.9% between 2022 and 2031, reaching $5.9 billion.
Investment into data analytics to optimize the steel production process will to worth up to $2.9 billion in 2031.
“For the industry and technology suppliers, safety, sustainability, and productivity are the three north stars. Technology suppliers should aim to align their solutions to assist steelmakers with at least two of these priorities.”
The steel industry generates contrasting views. For some, it is a vital component for the construction and transportation industries, while for others is somewhat of a pariah as steelmaking requires large quantities of coke and coal for the blast furnaces. According to a new analysis by global technology intelligence firm ABI Research, steel manufacturers’ investment in digital transformation will grow at a CAGR of 10.9% between 2022 and 2031, reaching $5.9 billion. Investment into data analytics to optimize the steel production process will to worth up to $2.9 billion in 2031. Bolstering the data flows will be an investment into industrial devices and applications, fortified by security expenditures, both seeing fair growth by CAGR of 5.9% and 8.4% respectively.
Michael Larner, ABI Research
“For the industry and technology suppliers, safety, sustainability, and productivity are the three north stars. Technology suppliers should aim to align their solutions to assist steelmakers with at least two of these priorities. For example, providers of manufacturing execution systems help customers’ productivity as well as improve the sustainability of their operations. Artificial Intelligence (AI) to monitor quality levels to reduce scrap and optimize equipment performance. And, digital twins should encompass the three perspectives,” explains Michael Larner, Industrial and Manufacturing Research Director at ABI Research.
Technology suppliers providing software to the industry include those that specialize in helping producers optimize their processes (Falkonry, RealSteel, Smart Steel Technologies, and Samotics), keep track of information (KnowIT ERP and SteelTrace), and keep workers safe (Everguard.ai).
“Individual steel plants produce dozens of different steel products (e.g., plates, coils bars, etc.) to exact quality grades. This requires firms to effectively manage product changeovers so that output remains within quality thresholds. Analyzing quality levels in real-time will be an investment priority over the rest of the decade,” Larner concludes.
To read more, please visit: https://www.abiresearch.com