Home > Pressrelease > Global Steel Market size for automotive & aerospace applications worth above USD 175 billion by 2027
Global Steel Market size for automotive & aerospace applications worth above USD 175 billion by 2027
- Published Date: February 24, 2021
According to a new research report by Global Market Insights Inc., the Steel Market size for automotive & aerospace applications is set to surpass USD 175 billion by 2027. Growing demand for hybrid electric vehicles and increasing government regulations promoting the usage of transformers to prevent energy loss in vehicles should trigger electrical steel sheet market growth.
Electrical steel finds widespread adoption in the laminated cores of various motors such as induction, brushless DC and DC series motors which are essential in electric vehicles. In addition, light-weight design and safety in car bodies will continue to gain significance with increasing electromobility will support the product demand and steel market for automotive & aerospace applications.
Furthermore, the booming automotive industry and increasing regulations regarding the safety & strength of vehicles worldwide should trigger steel tubes & fittings growth in the coming years. Steel tubes & fittings find extensive application in motor block reheating, diesel spark plugs, fuel lines, diesel particulate filter systems and exhaust gas recirculation systems. These wide applications of the product led to drive its market growth and concurrently steel market share for automotive & aerospace applications.
Exemplary durability and cost-effective properties of steel should propel the market demand from wheels and axles segment
Automotive & aerospace applications from wheels and axles is projected to gain traction in the forecast period by the CAGR of 4.5 % owing to growing technological advancement to reduce overall vehicle weight, increasing aesthetic requirements and rising capital investment by automotive OEMs is projected to promote steel wheels and axles the steel market growth in the future period.
In addition, Steel wheels are more durable and cost effective as compared to alloy wheels which makes them well-suited for rugged driving conditions. Steel wheels and axles offer high cost affordability in comparison to other alloys and materials which makes them a suitable alternative in the automotive industry.
These products provide high strength than alloy wheels which makes them ideal for use in powerful vehicles. Steel wheels are 70-80% less expensive in comparison to alloy wheels, provide high performance provide safety and stability for load-bearing vehicles. Steel provides wheels improved toughness and durability which helps in creating a long-lasting wheel that is extremely resistant to breakage. Growing consumer inclination towards the use of light-weight vehicles along with increasing R&D investments in the industry further shows lucrative growth opportunities for steel market for automotive & aerospace applications.
Browse key industry insights spread across 300 pages with 260 market data tables and 52 figures & charts from the report, “Steel Market for Automotive & Aerospace Applications by Product (Angles. Shapes and Sections, Hot-Rolled Bars and Rods, Wire Rod, Drawn Wire, Other Bars And Rods, Hot-Rolled Strip, Cold-Rolled Strip, Hot-Rolled Sheets And Coils, Plates, Cold-Rolled Sheets And Coils, Electrical Sheet And Strip, Tin mill Products, Galvanized Sheet, Other Coated Sheet, Steel Tubes And Fittings, Wheels And Axles, Castings, Forgings), By Application (Automotive, Aerospace), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Escalating Usage of Steel in Manufacturing Lightweight & Low-Cost Equipment Is Likely to Spur the Market Demand from Aerospace Application
Aerospace applications are anticipated to be the fastest growing product segment with a CAGR of 3.5 % at the end of 2027. Growing military expenditure, rising passenger travel demand and increased production of commercial aircraft should fuel global steel market from aerospace applications. This increasing demand for commercial aircraft owing to the rise in demand for new-generation, lightweight and fuel-efficient aircrafts will drive the market growth. Improved efficiency and increased mobility are the key attributes driving the product demand from the industry. These products provide high corrosion resistance & maintain the mechanical properties at elevated temperatures.
Growing number of air transport passengers owing to its time saving benefits and ease of convenience led to fuel the demand for high performance and fuel-efficient aircrafts. Hence this factor is anticipated to have a positive impact on the product demand in the aerospace industry. Steel in aerospace industry provides lightweight, low cost and is technically advanced in terms of forming and alloying which are the key driving factors for product demand from the industry. Growing trend towards manufacturing lightweight aircraft further shows substantial opportunities for product demand and steel market for automotive & aerospace applications.
“As per industry forecast, steel market from aerospace applications is projected to exceed above USD 10.5 Bn by the end of 2027, owing to immense demand for commercial and high performance and fuel-efficient aircrafts”
Growing adoption of steel in the automotive industry is supporting market growth in Asia Pacific
Asia Pacific market is anticipated to exceed over USD 115 billion at the end of 2027 owing to increasing consumer preference towards light-weight materials is likely to drive the demand for steel in the automotive market. Additionally, rise in disposable income has enabled consumers to purchase technologically advanced cars which has significantly increased the demand for automotive, thereby driving the steel market demand over the forecasted timeframe.
Substantial population growth, growing housing requirements, and rapid economic development should boost the automotive industry and trigger the demand for steel. Steel is routinely used in automotive construction on account of its unique mechanical properties, enhancing passenger safety by ensuring that the energy produced in a collision is absorbed by deformation. It is used in various automotive components such as roofs, body panels, door beams, and exhausts.
Various countries in Southeast Asia such as Indonesia, Malaysia, and Thailand serve as manufacturing hubs owing to the ease of attaining economies of scale in the region. Traditional car manufacturers and new startups are increasingly making significant investments in developing electric vehicles, appropriate infrastructure, and powering networks to achieve regulatory compliance. These listed factors are attributing towards steel market for automotive & aerospace applications.
“As per industry forecasts, steel market for automotive & aerospace applications in Asia Pacific is likely to grow with CAGR of over 5.5 % by the end of 2027 owing to growing transportation and logistics activities, increasing investments in road infrastructure and consumer perceptions towards safety vehicles”
Industry players operating in the market are also engaged in innovation, research and development activities as steel is widely use in aerospace and automotive application owing to increasing demand for electric vehicle and robust demand for light weight vehicles. Industry players operating in the steel industry for automotive & aerospace application are Celsa Steel UK, NJR Steel ,Thyssenkrupp AG, ArcelorMittal, JFE Steel Corporation, Mechel OAO, Jiangsu Shagang Group, Commercial Metals Company, Nucor Steel, Essar Steel, Acerinox S.A., Hyundai Steel, Jindal Steel & Power Ltd., POSCO, Steel Dynamics, Inc. Baosteel Group, Gerdau S/A, Nippon Steel & Sumitomo Metal Corporation Daido Steel Co., Ltd., Kobe Steel, Ltd., Tata Steel, Steel Authority of India Limited (SAIL), China Steel Corporation, United States Steel Corporation and Outokumpu OYJ.