Automotive Steel is being used as stamping among automakers globally, to achieve desired strength standards along with safety of vehicles at lower costs. The metallurgical designation of vehicles incorporates the use of low-strength steels, conventional high strength steel (HSS) and the new advanced high strength steel (AHSS). Emphasis on reduction of greenhouse gas as well as enhancing the fuel efficiency among the transportation industry has led to development of high strength steel with improved features such as formability and crash worthiness (performance of vehicles in protecting its occupants in terms of crash). There is increased use of advanced high strength steel owing to its excellent mechanical properties such as higher strain hardening capacity, toughness, ductility and fatigue properties. With the rapid adoption of steel, automotive manufacturers achieved certain standards of strength and safety of vehicles at lower costs.
There is increased demand of light weight steels among industry players in order to enhance the safety and fuel economy of vehicles. This has forced steel manufacturers to develop materials with properties such as manufacturability, durability, quality as well as costs. The development of AHSS (advanced high strength steel) has catered to the growing industry challenges of meeting strength for diverse performance of vehicle components. This growth of the market is also attributed to rapid need for reducing the vehicle mass by optimization of the vehicle designs and in turn enhancing the fuel efficiency. In addition to it, improved crash performance offered by the use of advanced high strength steel is another driving factor for the market. Regulations pertaining to pollutant emission limits of diesel and petrol vehicles as well as fuel economy standards to reduce energy consumption also surge the product demand and thereby drive the market. Growing car ownership and rising income levels imply strong growth potential in developing economies such as India and China. However, rising scope of aluminum in automobiles manufacturing owing to its light weightness and compliance to favorable regulatory environment is expected to hinder the global automotive steel market in coming years.
Geographically, Asia-Pacific, dominated the market in 2020 and is projected to continue its dominance during the forecast period on account of rising disposable income, new launches by original equipment manufacturers (OEM) as well as rising investments towards the development of infrastructure and growing need for commercial vehicles for transportation purposes. Additionally, increasing sales of low-priced cars which heavily incorporates steel and its components further propels the market growth. Apart from this, Europe and North America is expected to be the other major markets after Asia-Pacific owing to rapid industrialization, high urban population, improving GDP growth rate in countries such as U.S. and Canada, is projected to positively impact the automotive sector and in turn lead to increased steel demand. Latin America and Middle East and Africa are witnessing technological advancements as well as shift in consumer lifestyles which is bound to grow the market during the forecast period.
Some of the key players profiled in the market include include ArcelorMittal, United States Steel Corporation, Severstal, Baosteel, JFE Steel Corporation, Nippon Steel, POSCO, ThyssenKrupp, Hesteel Group and TimkenSteel.
Automotive manufacturers are involved in designing light weight vehicles with more fuel efficient engines so as to reduce fleet consumption in accordance with legal regulations which has led to the utilization of advanced high strength steels (AHSS) in passenger vehicles. These steels improve crash performance and long term durability of the small sized vehicles. Therefore, passenger cars dominated the market in 2020 and is projected to maintain its dominance in the years to come owing to the rising sales of passenger cars coupled with rise in per capita income of consumers in developing countries such as India, China and Brazil.
Moreover, medium and heavy duty trucks is projected to exhibit potential growth in the near future as these vehicles are used for purposes such as freight movement, towing and off road purposes. Therefore, high strength steels are increasingly use in automobiles while designing so as to meet safety and crash-test ratings which is expected to boost the global automotive steel market.
In 2020, high strength steels accounted for a significant share of the market and is expected to remain dominant throughout the forecast period. High strength steels are carbon manganese strengthened steel consisting of other micro alloying segment namely titanium, vanadium, or niobium etc. These steels find vast utilization among vehicles in body closures as well as in energy absorbing areas. Enhancement of electric motors efficiency, range and power with the use of high strength steels are some of the other factors driving the market.
Advanced high strength steels (AHSS) are being rapidly adopted among vehicles as compared to its counterparts such as aluminum, magnesium and composites as its utilization generates 20 times lesser carbon dioxide. Further, implementation of AHSS tends to reduce the vehicle weight by 10%-20%, thus driving the market growth. Additionally, AHSS is easily stamped and molded into new parts without the need for additional investments in infrastructure. Currently, certain industry players such as General Motors subsidiary of Chevrolet, have successfully incorporated the use AHSS for its 2019 Chevrolet Malibu to ease the four-inch wheelbase stretch and in turn reduce the 300 pounds of weight when compared to earlier 2019 model. Apart from this, lesser carbon foot print achieved through the use of AHSS attracts car makers and car owners towards its increased adoption in vehicle manufacturing and in turn stimulating the market demand.
In 2020, body in white segment dominated the market and is projected to maintain its dominance throughout the forecast period. Body-in white (BIW) is a stage in the manufacturing of automobiles, where the metal components of vehicles are welded together. Hood (frame and panel), floor and other panels, roof frame, tunnel, doors, rear side panels are some of the metal components where steel penetration is high. Enabling the use of advanced high strength steel in BIW makes the vehicle cost effective, light weight, enhance aesthetics of outer panels and the vehicles lifetime. Moreover, the fuel economy standards laid down by original equipment manufacturers (OEM’s) has further lead to the demand of lightweight steels with higher strength such as advanced high strength steel in body-in white applications. Currently, rising promotion of budget cars owing to tax incentives on small cars is significantly encouraging the use of higher strength steel in vehicle body and parts owing to its lesser cost which in turn drives the market.
Steel offer a light weight solution for vehicles suspension components such as suspension arms, torsion bars, springs and linkages. Therefore, suspension segment is expected to exhibit major growth potential during the forecast period. Increasing use of high carbon steel for the manufacture of helical springs of suspension systems, so as to obtain high stiffness and light weight is expected to fuel the market demand over the forecast years.
Asia-Pacific dominated the market in 2020, and is expected to maintain its dominance throughout the forecast period. Increasing launches of heavy and medium duty vehicles by original equipment manufacturers (OEM’s), investments towards infrastructure, rising disposable incomes are some factors surging the market growth. Additionally, low interest rates over vehicle purchase leading to increased consumer confidence as well as need for commercial vehicles for transportation is further driving the market in this region. Rising sales of low-priced/budget cars due to its low maintenance, enhanced life and cost-effectiveness has diverted the attention of manufacturers in Asia-Pacific towards heavier investments on small cars, which enhances the use of steel. In addition to it, investment boosting reforms such as “Make in India” in countries such as India led to increase in FDI, boosting vehicle production and in turn contributing to wide steel consumption among automotive industry. However, demand for steel is poised to improve in European and North American regions on account of reviving industrial production and better investment prospects in these regions. Latin America and Middle East and Africa (MEA) are expected to show average growth rate during the forecast period. Construction was the dominating sector in this region and production of steel in this region was based on demand by the construction sector. Therefore, automotive industry in these regions is highly dependent on construction activities such as in Brazil, as production of long steel is based on requirements by construction industry. However, declining construction activities in this region is expected to hamper the production of steel as well as market growth in the coming years.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Automotive Steel market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
| Segmentation | |
Type
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Vehicle
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Application
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
