Automotive Steel Market

Automotive Steel Market Size

Automotive Steel Market size valued at USD 112.93 billion in 2021 and is projected to expand at over 3% in terms of revenue from 2022 to 2030. Rising adoption of electric vehicles will augment the demand for automotive steel.

High government emphasis across varied regions on promoting electrification to reduce the carbon footprint of automobiles will also propel product uptake in the automotive sector. For instance, in 2021, the U.S. government passed a bill to invest USD 550 billion toward a carbon-free initiative, under which USD 7.5 billion was allocated for building EV charging stations.

New lightweight automotive steel product development will transform the market outlook. Companies have been engaging in product innovation and strategic acquisitions to stimulate their presence. Additionally, companies would benefit from the growing demand for sustainable and efficient automobiles.

Availability of substitutes may restrain industry progression

Availability of alternative materials for vehicles is a major factor restraining the automotive steel market growth. The use of aluminum has increased since they are lightweight as compared to steel, which may impact sales. Nonetheless, manufacturers have been investing highly in research and development activities as well as forming strategic alliances, which will benefit the industry revenue.

Automotive Steel Market Analysis

In terms of process, the market is classified into electric arc furnace (EAF) and basic oxygen furnace (BOF). The BOF segment is estimated to attain around 3% growth rate and will reach USD 111,470 million revenue by 2030. The growth is attributed to the cost advantage factor of these furnaces.

The advanced high strength steel segment is expected to cross USD 68,880 million in revenue by 2030. The segment accounted for the highest industry share due to the rising demand for light weight steel in electric as well as ICE vehicles.

Based on vehicle, the automotive steel market is categorized into light commercial vehicles, passenger vehicles, heavy commercial vehicles, and two-wheeler vehicles. The passenger vehicles segment held the majority market share on account of increasing passenger car sales in the past few years and will continue to experience a positive outlook, exhibiting a CAGR of over 3% through 2030.

With respect to application, the automotive steel industry has been divided into body structure, power train, suspension, and others. The body structure segment is set to record a valuation of about USD 66,620 million by 2030, expanding at above 3% CAGR. Body structure dominated the application segment as a result of the growing use of CHSS to optimize strength, reduce vehicle weight, and improve vehicle performance.

The Asia Pacific automotive steel market is predicted to observe nearly 3.4% CAGR to surpass USD 86,295 million in revenue by 2030 backed by soaring automotive production and increasing vehicle demand in the region.

Another region that may emerge as a key revenue hub is Europe. The regional industry growth is owing to strict regulations to reduce carbon dioxide emissions in nations including the UK and Germany.

Automotive Steel Market Share

Key participants operating in the industry are:

• ArcelorMittal
• TATA Steel
• China Steel Corporation
• Hyundai Steel
• United States Steel Corporation
• JSW Group
• POSCO
• Nippon Steel & Sumitomo Metal Corporation
• JFE Steel Corporation
• NUCOR Corporation
• Jindal Steel & Power
• Grow Ever Steel 
• HBIS Group
• Outokumpu OYJ
• Kobe Steel.
  

Varied acquisition opportunities and consistent research & development to enhance product reliability will shape the strategic landscape. Besides, burgeoning initiatives toward the mitigation of carbon footprint of the automobile sector will prove advantageous for companies.

To cite an instance, in July 2022, Tata Steel and BHP, a major global resources firm, signed an MoU to jointly explore steelmaking technology and low carbon iron. As a part of the deal, the firms planned to work together to find ways to reduce emissions produced by the blast furnace steel route.

Impact of COVID-19 Pandemic

The COVID-19 pandemic had a slightly negative impact on the industry due to stringent lockdowns, delays in production, and disruptions in the global supply chain. However, surging disposable incomes have bolstered the demand for vehicles. Moreover, government initiatives toward the adoption of EVs have positively influenced the automotive industry. Propelled by the surge in automobile sales and high product penetration in the automotive sector, the industry is set to witness positive outcomes through 2030.

This market research report on automotive steel includes in-depth coverage of the industry with estimates & forecast in terms of volume in thousand tons and revenue in USD million from 2018 to 2030 for the following segments:

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Market, By Process

• Basic Oxygen Furnace (BOF)
• Electric Arc Furnace (EAF)

Market, By Vehicle

• Passenger Vehicles
• Light Commercial Vehicles
• Heavy Commercial Vehicles
• Two-wheeler Vehicles

Market, Product By Application

• Low Strength Steel
• Conventional HSS
• Advanced High Strength Steel (AHSS)
• Others

Market, By Application

• Body Structure
• Power Train
• Suspension
• Others

Market, By Region

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Indonesia
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa
  • South Africa
  • Saudi Arabia