Automotive Steel Market

Automotive Steel Market - An Overview

The global automotive steel market is expected to witness strong growth during the forecast period between 2021 and 2031.

Automotive steel has emerged as a key raw material, deployed in the designing of any new automobile.

Automotive steel features in large parts of the body structure of vehicles and have proven beneficial in allowing optimized, lightweight designs, leading to improved fuel efficiency and safety.

Steel has been deployed in the automobile manufacturing industry since it offers improved strain hardening capacity, toughness, ductility, and fatigue.

Also, the deployment of automotive steel in other industries has offered several other benefits such as reliability, high strength, and durability.

In addition to this, at the end of its life, automotive steel can be recycled easily. These product features have led to increased demand in industries and fueled the growth in the global automotive steel market.

Automotive Steel Market - Trends and Opportunities

Rising demand for advanced high-strength steel for different automobile designs is the key growth driver for the global automotive steel market.

Also, increased product demand in the manufacturing of electric vehicles could contribute to the growth of the overall automotive steel market, in future.

In addition to this, advancements to existing products to improve the strength properties of the product could lead to increased demand for automotive steel and propel the global market, in the coming years.

Other factors such as rapid industrialization, especially in developing economies such as India as well as expansion of manufacturing units could bolster the overall automotive steel market, in the years ahead.

Powertrain application segment is expected to make the largest contribution to the overall automotive steel market in future because of increasing product demand to manufacture different components such as engines and wear-resistant gears.

Passenger-carrying vehicles segment is anticipated to contribute the most to the overall automotive steel market because of rising product adoption in leading economies, globally.

Automotive Steel Market - Competitive Landscape

The global automotive steel market is highly competitive, with the presence of several well- established market players, many of whom are expected to account for a large share in the overall market, in the coming years.

Research and development activities to produce improved quality of products could be a key growth strategy for leading automotive steel market players, in future.

Collaboration with smaller players could help prominent automotive steel market players expand their presence and increase their revenue shares.

In April 2022, leading market player Tata Steel signed a collaborative agreement with Australia-based market player Thiess in a bid to supply technical services in areas such as resource evaluation, mine planning, and exploration activities.

The smaller automotive steel market players will seek investments from private investors, which could help them in their long-term growth.

Some of the leading players in the global automotive steel market include ArcelorMittal S.A, Tata Steel Ltd., United States Steel Corp., Hyundai Steel Corp., and Nucor Corp.

Automotive Steel Market - Regional Assessment

North America is expected to be the dominant region in the global automotive steel market in future because of increased production of autonomous cars and electric vehicles in countries such as US and Canada.

Europe is expected to offer profitable growth opportunities for the overall automotive steel market because of increasing need to decrease carbon dioxide emissions in countries such as UK and Germany, contributing to market growth in Europe.

Asia Pacific is expected to witness strong growth in the automotive steel market because of increased production of passenger vehicles in economies such as China.

Other regions of the world such as Latin America and Middle East and Africa are expected to witness moderate growth in the global automotive steel market in the years ahead, because of lack of presence of well-established market players in countries belonging to both regions.