Global Automotive Steel Market Overview
In automotive, steel is used in various parts. More than one-third is used in the body structure, panels, doors, and trunk closures for high-strength and energy absorption. Over 20% is used in the drive train, consisting of cast iron for the engine block and machinable carbon steel for the wear-resistant gears. Around 11 % is employed in the suspension, using rolled high-strength steel strips. The rest is found in the wheels, tires, fuel tank, steering, and braking systems. There are many advantages of employing steel in automotive, endlessly recyclable, has lower CO2 life cycle emissions than other automotive material, enables engineering of crash-resistant structures, allow the design of stronger & lightweight vehicles; therefore fuel-efficient, durable and remanufacture-friendly, enables affordable repairs, and cost-efficient compared to other materials.
According to Value Market Research, the global automotive steel market size was valued at about USD 113.5 billion in 2020 and is estimated to grow at a CAGR of around 4 % during the forecast period 2021 to 2027.
There has been a drastic rise in automobiles production and sales due to the thriving businesses, vehicle electrification, increasing purchasing power, demand for automated and comfortable vehicles, stringent vehicle expiration rules, and revival of carbon emission norms. Market projections are estimated from the new consumer requirements, spurring manufacturing, surging investment, quality demand, and new regulations. The emergence of new connected cars and autonomous vehicles might prove opportunities for the automotive steel market growth. Automakers are making substantial capital investments in research and development activities to develop more strong body structure.
However, boosting the fuel economy to meet objectives to reduce emissions is negatively impacting the global automotive steel market as low-density alternative materials are being used to reduce vehicle’s overall weight. Also, trade restrictions and economic uncertainties are estimated to hinder market growth. The automotive industry is witnessing a steep decline due to the economic slowdown caused due to COVID-19 pandemic. The economic downturn has resulted in recession and weakening purchasing power, hindering the global automotive steel market.
Global automotive steel market is fragmented. ArcelorMittal, ThyssenKrupp, Nippon Steel, POSCO, Baosteel, HYUNDAI steel, JFE, Tatasteel, HBIS, United States Steel, and Nucor are key players associated with the market.
In this research report, the automotive steel market is segmented by type, vehicle, application, and region.
Analysis, By Type:
Based on type, the global automotive steel market is segmented into low-strength steel, conventional HSS (high-strength steels), AHSS (Advanced high-strength steels), and others. AHSS (Advanced high-strength steels) is the most lucrative segment in the global automotive steel market. AHSS is now used for nearly every new vehicle design because of its unique mechanical properties, higher strain hardening capacity, and excellent strength-ductility balance. It makes up as much as two-thirds of today’s vehicles body structures, making lighter, improved crash protection, optimized vehicle designs that enhance safety and improve fuel efficiency.
Analysis, By Vehicle:
Based on vehicle, the global automotive steel market is divided into passenger vehicles, light commercial vehicles, and heavy commercial vehicles. In 2020, the passenger car segment dominated the global automotive steel market by vehicle type. The segment is projected to grow due to increased sales of passenger cars and body structure embedded value, rising disposable income in rural and urban sectors, easy finance availability, and improving safety and comfort requirements. Companies operating within the segment are focused on designing lightweight vehicles. The passenger segment is growing at the highest pace, with more and more luxury cars entering the market. LCV is a second prominent segment of the global automotive semiconductor market. The segment would see growth momentum with increased e-commerce logistic service providers, and the potential implementation of fleet modernization or scrappage program.
Analysis, By Application:
Based on application, the global automotive steel market is segmented into the body structure, drive train, suspension, and others. The body structure segment held a major chunk of the global automotive steel market. One-third of automotive steel goes for designing vehicle body structures such as panels, doors, and trunk closures for high-strength and energy absorption. Rising demand for safer & crash protective vehicles and spurring production of heavy and light commercial vehicles drive the body structure segment growth.
Analysis, By Region
Based on region, the market automotive steel market is divided into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. The Asia Pacific ranks highest and will remain dominant throughout the forecast period. Asia Pacific market has evolved into the most prominent automotive industry and, consequently, the largest automotive steel consumer worldwide. Potential prospects are expected attributed to a substantial gain in manufacturing activity, personal income level, consumer expenditure, combined with favorable urbanization and regulation. The region will witness the fastest growth and will remain the dominant due to its vast consumer base. Overall, some healthy growth rates are seen in China, Japan, India, and South Korea. The automotive steel will continue to swell with trends in performance, safety, comfort, convenience, and entertainment.
Market Segmentation covered in the Report:
- Low-strength Steel
- Conventional HSS
- Light Commercial Vehicle
- Heavy Commercial Vehicle
- Passenger Vehicle
- Body Structure
- Drive train
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.