Automotive Steel Market Size, Share, Growth, and Industry Analysis, By Type (Low-strength Steel, Conventional HSS & AHSS), By Application (Commercial Vehicle & Passenger Vehicle), and Regional Forecast to 2032

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AUTOMOTIVE STEEL MARKET OVERVIEW

The Automotive Steel Market size was USD 134610 Million in 2023 and is projected to reach USD 226579.78 Million by 2032, exhibiting a CAGR of 5.3% during the forecast period 2024-2032.

The Automotive steel market is an important part of the overall market of the automotive industry, whereby there are several steel categories that are used in the construction of vehicles to provide strength and safety or to reduce weight. With the need to meet consumers’ demand for fuel-efficient vehicles and regulatory pressure to lessen emissions, automakers are looking for AHSS to boost performance while shaving off weight. The market has active advances in steel processing technologies and a steady increase in cooperation between steel manufacturers and automobile companies. With the increasing market share of electric vehicles, there appears to be a tendency for the steel market in the automotive sector to face new demands, which opens up opportunities and threats.

GLOBAL CRISES IMPACTING AUTOMOTIVE STEEL MARKET - COVID-19 IMPACT

"Automotive Steel Industry Had a Negative Effect Due COVID-19 shutdowns during  Pandemic"

The Global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The Ongoing COVID-19 forced the shutdown of many manufacturing industries and affected the automotive steel demand adversely in the beginning. But, when the industry began to focus on manufacturing electric vehicles, fittings that are lighter in weight, and materials that meet the new regulations, the market found a new footing and started to grow. Dynamics during the pandemic favored intensified efforts towards sustainability and fuel efficiency that were defining elements in the automation industry; assuredly, it triggered further investments in AHSS technologies in automotive steel solutions. It not only helps to rejuvenate the market but also ensures long-term growth once the automotive industry turns towards sustainability post-pandemic.

LATEST TREND

"AHSS usage drives market growth for lightweight, fuel-efficient vehicles"

In the automotive industry today, there are several trends in the market; some of the prominent ones include the use of advanced high-strength steel, a focus on environmental consciousness, a higher percentage of the EV market, and so on. Of these, AHSS stands out because it allows car manufacturers to create vehicles that are lightweight yet stronger and more fuel efficient than their counterparts. This has been made necessary by the ever-tightening emission standards and improved performance desired by consumers. Since automakers are beginning to strive for better designs and, simultaneously, weight reductions of automobiles, the production of AHSS has emerged as an important area of concern for the manufacturing industry.

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AUTOMOTIVE STEEL MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Low-strength Steel, Conventional HSS & AHSS

• Low-Strength Steel: Low-strength steel is mainly applied in the automotive industry, where it is necessary to produce flexible parts and constructions that can be easily bent, for example, inner panels and other small finds that do not require high strength. While possessing less tensile strength compared to cold rolled, its relatively cheap price, as well as ease for machining, is why it is used in some aspects of automobile construction. It is used normally for producing components in an inexpensive manner and where performance is a moderate factor.

• Conventional HSS & AHSS: High-strength steel (HSS) and advanced high-strength steel (AHSS) are used because of their high strength/weight ratios, which have been particularly important in structural elements and safety-related applications in automobiles. These materials allow car makers to shed weight while increasing the vehicle’s ability to withstand a crash, which enhances fuel economy and safety. AHSS particularly offers contemporary automobile design principles with respect to performance, safety, and sustainability.

BY APPLICATION

Based on Application, the global market can be categorized into Commercial Vehicle & Passenger Vehicle

• Commercial Vehicle: In the commercial vehicle segment, automotive steel is quite crucial for manufacturing the structural parts such as frames and chassis, as well as the body structures of cargo. Some of these automobiles are manufactured to endure tough situations during transportation of bulky items; hence, manufacturers use high-strength steel to improve the durability of these vehicles. This application is especially important for sectors such as transportation and construction because of vehicles’ reliability and protection needs.

• Passenger Vehicle: The automotive steels are readily applied in passenger cars in the body construction, doors, and safety reinforcements for improved durability without compromising on the weight of the automobile. Of the metals, advanced high-strength steel (AHSS) is very popular in increasing fuel economy, safety, and performance. This segment creates demand for new, lightweight material based on steel, which will meet consumer needs for secure and effective vehicles.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

DRIVING FACTOR

"Demand for lightweight vehicles fuels market growth for automotive steel"

Another important stimulus for the automotive steel market growth is the ever-rising demand for lightweight vehicles, the goal of which is to improve car fuel economy and emissions. Investment in utilizing high-strength steel is on the rise to form substitute materials that enable automotive industry lighter vehicles without compromising the safety and strength. This change not only allows the company to address such requirements as strictly defined by regulations but also to respond to consumer desires, and resulting automotive steel market growth.

"Electric vehicle production drives market growth for advanced steel technologies"

The Increasing production of electric vehicles (EVs) is another factor that provides stimuli to the automotive steel market. As the automotive industry progresses towards electrification, automakers need component materials that provide high energy density and support overall vehicle performance. This trend results in increased research of new steel technologies suitable for use in EVs to enhance the growth of the automotive steel industry.

RESTRAINING FACTOR

"Raw material cost fluctuations hinder market growth"

Perhaps one of the most formidable limiting factors for automotive steel is a variable cost of raw materials, such as the iron ores and the scrap steels. Fluctuations in the prices of commodities cost the manufacturers of steel, which may in turn transfer these costs to automakers and even the end-users. This uncertainty poses a great disadvantage in the investment of new technologies and innovations in the automotive steel market, thus slowing down the overall growth rate of the market.

OPPORTUNITY

"Sustainable practices foster market growth"

One new drive that is notable for the automotive steel market is sustainable circular economy. Car companies are under pressure to cut on their emissions and therefore the emergence of recycled steel and environmentally friendly forming methods. They enhance innovation of other processes in the manufacturing of steel by helping producers of steel to come up with environmentally friendly methods that are standard in the market. Utilizing these specific nodes of sustainability, the automotive steel market can ensure itself a spot in the new landscape of the green revolution in the automotive market.

CHALLENGE

"Substitute materials threaten market growth"

The Global vehicle manufacturers’ automotive steel market faces a major threat arising from the availability and usage of substitute materials such as aluminum and composites. Such materials tend to be lightweight and more resistant to corrosion than some traditional materials; hence, they may lead to improvements in fuel efficiency and generally the performance of the vehicle. This is due to challenging economic times as well as a revolution in structures where automakers seek out and find new designs and manufacturing methods; steel makers need to follow suit in order to capture the market. These pressures to innovate but at the same time control costs remain a challenge in the automotive steel sector and may lead to a compromise of the growth and profitability of businesses in the sector.

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AUTOMOTIVE STEEL MARKET REGIONAL INSIGHTS

• NORTH AMERICA

"North America drives market growth in automotive steel consumption and innovation"

North America is the largest consumer of automotive steel due to its well-developed manufacturing industry, more steel industry investment in enhanced technology, and strong automotive industry. The United States Automotive Steel Market is also centrally connected with this dominance, as primary automobile producers and suppliers strive to innovate AHSS for improving car efficiency and eco-friendliness. Also, the regional steel makers cooperate with automotive makers in the development of automotive steel that fulfills demanding regulations. These factors jointly place North America in a vantage position as the key player in a network of automotive steel markets.

• EUROPE

"Europe’s focus on sustainability drives market growth"

Thus, Europe plays a considerable role in the market of automotive steel through the focus on increased use of technologies in car manufacturing and ecological concerns. The area is established with a number of the significant automotive producers who recognize AHSS for enhanced safety, efficiency, and weight reduction of their vehicles. Also, demanding environmental policies force European steel companies to integrate innovations in technologies related to the environment and recycling, thus increasing the sustainability of automotive steel. This commitment to the green shifts has placed Europe in a strategic place to sensibly and proactively take on the necessary steps towards a more sustainable auto industry.

• ASIA

"Europe’s focus on sustainability drives market growth "

Asia holds remarkable Automotive Steel Market share due to a fast-growing automobile industry, chiefly in China, Japan, and India. The steel producers In this region, we are also gearing up to incorporate advanced high-strength steel, or AHSS, technologies in response to the world’s need for lightweighting cars and improving fuel economy. Also, infrastructure development and urbanization are essential in Asia, which is demanding automotive steel for the expansion of the automotive industry. With the rise in electric vehicle production in Asia, such as electric cars, automotive steel also has potential for further penetration due to emerging steel uses.

KEY INDUSTRY PLAYERS

"Innovation and alliances drive market growth in automotive steel advancements"

The automotive steel market has seen great advancements and shifts by major market players through innovation and strategic alliances. Prominent leaders in this industry engage in research and development of high-strength steel (AHSS) and introduce eco-friendly production processes. Supermarket steel makers and automotive firms are involved in technological advancement, whereby they work together to develop new lightweight, strong materials for the automotive industry.

LIST OF TOP AUTOMOTIVE STEEL COMPANIES

• ArcelorMittal (Europe)
• Baowu (China)
• POSCO (South Korea)
• ThyssenKrupp (Germany)
• Nippon Steel (Japan)

KEY INDUSTRY DEVELOPMENT

March 2024: ArcelorMittal, one of the world's leading steel manufacturers, introduced a new high-strength steel product specifically designed for the automotive industry. The product, named ""Aperam"", is a dual-phase steel* developed to provide enhanced performance in terms of  safety, fuel efficiency, and lightweight construction for vehicles. This steel is part of ArcelorMittal’s push to support the growing trend of sustainable automotive manufacturing, aiming to meet stricter regulatory requirements for fuel economy and emissions while improving vehicle safety. The new product is expected to play a key role in reducing vehicle weight, thus contributing to overall energy efficiency and performance improvements in modern automobiles.

REPORT COVERAGE

The Study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential Applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

This Research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.