Automotive Steel Market By Vehicle Type (Passenger Vehicles, Light Commercial Vehicles, Heavy Commercial Vehicles), By Type (Mild Steel, Alloy Steel, High Strength Steel, Advanced High Strength), By Application (Body-in-White, Drive Train, Suspension, Others) - Growth, Future Prospects & Competitive Analysis, 2018 – 2026

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.

Automotive Steel Market

Geographically, Asia-Pacific, dominated the market in 2017 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.

On the basis of its applications, the global automotive steel market is categorized into following segments:

  • Body-in-White
  • Drive Train
  • Suspension
  • Others

Automotive Steel Market

In 2017, 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.

Based on geographical distribution, the global automotive steel market is segmented into following categories:-

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • Spain
    • France
    • UK
    • Rest of Europe
  • Asia Pacific
    • Japan
    • China
    • India
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • Rest of Middle East & Africa

Automotive Steel Market

Asia-Pacific dominated the market in 2017, 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.      

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Published Date:  Jan 2018
Category:  Advanced Materials
Report ID:   58950
Report Format:   PDF
Pages:   120
Rating:    4.4 (12)
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