High Strength Steel Technologies Create Value for OEMs by Improving Vehicle Performance

The ever-growing automotive industry has created a steady demand for high strength steel (HSS). As such, in terms of end use, the automotive segment of the high strength steel (HSS) market is projected for exponential growth in terms of value and volume. Hence, companies are tapping opportunities in the automotive industry to develop lightweight vehicles. For instance, General Motors-a leading U.S. automotive innovator won the “Automotive Excellence Award” for the 2019 Chevrolet Silverado at the 18th Annual Great Designs in Steel seminar.

Companies in the high strength steel (HSS) market are increasing production capabilities to manufacture Advanced High Strength Steel (AHSS) and Ultra-High Strength Steel (UHSS). They are increasing R&D in advanced high strength steel technologies. Manufacturers are leveraging benefits of AHSS to aid in weight reduction of vehicles. Thus, the launch of new vehicles are creating incremental opportunities for manufacturers. High strength steel technologies are offering the best value to OEMs and are growing popular, as they improve vehicle performance and sustainability.

high strength steel market infographic

To gauge the scope of customization in our reports Ask for a Sample

Cost-efficiency of HSS Aid Use in Sophisticated Lightweight Construction Applications

Apart from the automotive industry, companies in the high strength steel (HSS) market are leveraging opportunities in the construction sector. This is evident since building & infrastructure end use segment is predicted for significant growth, in terms of value and volume, in the market for high strength steel (HSS). Hence, manufacturers are developing steel with outstanding processing properties that are a great fit in sophisticated lightweight construction applications. For instance, in October 2019, Voestalpine AG-a provider of international steel-based technology, announced the launch of alform® steels to ensure high levels of component reliability in the construction space.

High adoption of high strength steel in machinery, processing industry, and automotive industry are some of the key market drivers. HSS is being highly used in laser cutting applications. Excellent weldability of HSS is contributing toward the growth of the high strength steel (HSS) market. On the other hand, AHSS is growing popular to reduce cost of construction, since stakeholders in the value chain need not invest in high quantities of steel and filler materials.

Adoption of AHSS in Lightweight Vehicles to Drive Global Market

The high strength steel (HSS) market is fragmented, while seven leading players account for ~20% of the market share. This indicates that regional and local players act as tough competitors for major players. However, manufacturers need to address the limitations of higher strength grades in energy absorption in numerous automotive applications. Hence, companies are introducing HSS with high corrosion protection capacities and surface quality that align with demanding automotive applications in both exposed and non-exposed parts of vehicles.

Get an idea about the offerings of our report from Report Brochure

AHSS is being highly used in cold stamping that combines superior ductility and formability to exceed expectations in body engineering. As such, the AHSS product type segment is expected for exponential growth in the high strength steel (HSS) market. The global high strength steel (HSS) market is expected to expand at a CAGR of ~9% during the forecast period. Companies are leveraging the advantages of AHSS for the development of lightweight vehicles, thus achieving the goal of fuel economy. With the help of AHSS, automakers can meet stringent norms catering to crash and safety requirements.

Sustainable Steelmaking Processes Bolster Credibility of Manufacturers in North America

Companies in North America are increasing research activities to achieve environmental sustainability. This is evident since the high strength steel (HSS) market in North America is projected for substantial growth during the forecast period. Thus, the global high strength steel (HSS) market is estimated to reach an output of ~57,600-kilo tons by the end of 2027. Hence, manufacturers in North America are steering innovations and bolstering their credibility by adopting sustainable production procedures.

High strength steel is acquiring prominence in construction, machinery, and energy sectors of North America. Companies are increasing efforts to manufacture new steel grades that cater to the needs of stakeholders in various end markets. Sustainable building construction and energy transmission are some of the key drivers contributing to market growth. Likewise, manufacturers in North America are leading by example to reduce energy use and GHG (Green House Gas) emissions through sustainable steelmaking processes.

high strength steel market segmentation

Looking for Regional Analysis or Competitive Landscape in High Strength Steel (HSS) Market, ask for a customized report

Analysts’ Viewpoint

Analysts of Transparency Market Research opine that HSS tools are projected to fuel innovations in the development of lighter and stronger vehicles. The influx of plug-in hybrid electric vehicles and battery electric vehicles is another key driver of the high strength steel (HSS) market. Companies are tapping opportunities in industrial machinery such as mobile cranes, concrete pumps, and railcars.

Companies are manufacturing HSS, which is compatible with current welding systems used in the industry. However, design-related problems of HSS are restricting its use in various final products. Hence, manufacturers in the high strength steel (HSS) market should increase efforts to streamline a set of standards that increase the utilization of HSS.

High Strength Steel (HSS) Market: Overview

  • In terms of value, the global high strength steel (HSS) market is expected to reach ~US$ 41.3 Bn by 2027
  • The global automotive industry offers strong potential for the production of electric vehicles, due to the increase in demand for environment-friendly vehicles. As per the International Energy Agency (IEA), the share of electric vehicles in total sales of vehicles in Europe is expected to reach 26% by 2030. Substantial rise in the production of electric vehicles across the globe is anticipated to augment the demand for HSS in the near future.

High Strength Steel (HSS) Market: Key Drivers and Restraints

  • Electric vehicles represent a lucrative end use for HSS during the forecast period. In response to toughening regulations around the world, automakers are intensifying their efforts to develop mass market electric vehicles (EVs). Consumption of EVs lags behind that of conventional ICE vehicles; however, EVs are projected to make up a quarter of all new car sales by 2027.
  • Rise in infrastructure development in Asia Pacific is anticipated to boost the demand for HSS in the region during the forecast period

High Strength Steel (HSS) Market: Key Product Segments

  • Based on product, the global high strength steel (HSS) market has been broadly segregated into conventional HSS, Advanced High Strength Steel (AHSS), and Ultra High Strength Steel (UHSS)
  • Demand for AHSS is estimated to be high in the automotive industry during the forecast period. The use of AHSS reduces a vehicle’s structural weight by as much as 25% and can cut total lifecycle carbon dioxide emissions by up to 15% more than any other automotive material.
  • Major automotive companies are likely to demand AHSS in order to lower the weight of vehicles to maximize fuel economy for internal combustion engines and increase range for battery electric powertrains. In order to meet stringent fuel efficiency regulations, vehicle body structures have been modified with an increasing content of AHSS (above 50%).
  • Demand for High Strength Low Alloy (HSLA) steel is projected to be high in application areas such as heavy-duty vehicles, passenger car components, oil & gas pipelines, construction & industrial machinery, mining, and lawn mowers

High Strength Steel (HSS) Market: Key End Use Segments

  • Based on end use, the global high strength steel (HSS) market has been divided into building & infrastructure, automotive, industrial machinery, aerospace & defense, and others
  • Steel has been the material of choice in the automotive industry over a long period of time. In 2017, Audi A8 switched back to steel, with body structures made of more than 40% of steel. The body structure of Peugeot 3008 is made of 90% of steel. Demand for HSS in the automotive industry is expected to rise at a CAGR of ~8% during the forecast period.
  • Increase in demand for steel in automotive production is anticipated to boost the high strength steel (HSS) market between 2019 and 2027

Asia Pacific to be Highly Lucrative Region of High Strength Steel (HSS) Market

  • In terms of value and volume, Asia Pacific constituted major share of the global high strength steel (HSS) market in 2018. This trend is projected to continue during the forecast period.
  • China and India collectively accounted for more than 60% share of the high strength steel (HSS) market in Asia Pacific in 2018
  • India replaced Japan as the world's second-largest steel-producing country in 2018, following China. Favorable demand-supply dynamics of the steel industry in India is estimated to be a key factor driving the high strength steel (HSS) market in the country in the next few years. Initiatives such as ‘Make in India’ and growth of the chemical industry can play a major role in making India a key consumer of high strength steel in the next decade.
  • The automotive industry in ASEAN has been attracting significant investments of late. In February 2019, Scania AB inaugurated a new assembly plant for heavy commercial vehicles in Bangkok, Thailand, It also unveiled an entire range of new trucks. In January 2019, Vietnam’s Trường Hải Auto Corporation (Thaco) invested VNĐ 4.5 Trn (nearly US$ 200 Mn) in a car manufacturing plant with the annual capacity of producing 20,000 Peugeot cars for domestic use and exports. In October 2018, Mitsubishi Motors announced plans to increase the production capacity of its plant at Bekasi, West Java (Indonesia), from 160,000 units to 220,000 units by 2020. 

High Strength Steel (HSS) Market: Competition Landscape

  • Major players operating in the global high strength steel (HSS) market include
    • POSCO Group
    • ArcelorMittal
    • Nippon Steel Corporation
    • Tata Steel
    • Baosteel Group Corporation
    • Essar Steel
    • JFE Steel Corporation
    • Nucor Corporation
    • Hesteel Group
  • The global high strength steel (HSS) market was moderately concentrated in 2018. This trend is projected to continue during the forecast period.

High Strength Steel (HSS) Market – Scope of the Report

A new study on the global high strength steel (HSS) market published by Transparency Market Research (TMR) presents a wealth of information on key market dynamics, including drivers, market trends, and challenges, as well as structure of the global high strength steel (HSS) market. TMR’s study offers valuable information on the global high strength steel (HSS) market to illustrate how growth would discern during the forecast period i.e. 2019–2027.

Key indicators of market growth, which include value chain analysis as well as supply chain analysis and compounded annual growth rate (CAGR), are elucidated in TMR’s study in a comprehensive manner. This data can help readers interpret quantitative growth aspects of the global high strength steel (HSS) market during the forecast period.

An extensive analysis of leading market players’ business strategies is also featured in TMR’s study on the global high strength steel (HSS) market. This can help readers understand principal factors to foresee growth of the global high strength steel (HSS) market. In this study, readers can also find specific data on avenues for qualitative and quantitative growth of the global high strength steel (HSS) market, which would guide market players in making apt decisions in the near future.

Key Questions Answered in TMR’s Study on High Strength Steel (HSS) Market

  • What is the scope for growth of high strength steel companies in the automotive sector?
  • What would be the Y-o-Y growth rate of the global high strength steel (HSS) market between 2019 and 2027?
  • What is the influence of changing trends in technologies on the high strength steel (HSS) market?
  • Would Asia Pacific continue to remain the most profitable regional market for providers of HSS in the near future?
  • Which factors would impede the growth of the global high strength steel (HSS) market during the forecast period?
  • Which are leading companies in the global high strength steel (HSS) market?

Research Methodology

A unique research methodology is utilized by TMR to conduct comprehensive research on the global high strength steel (HSS) market arrive at conclusions on future growth prospects for the market. This research methodology is a combination of primary and secondary research, which helps analysts warrant the accuracy and reliability of the conclusions drawn.

Secondary resources referred to by analysts during production of the report on the global high strength steel (HSS) market include statistics from company annual reports, SEC filings, company websites, World Bank database, investor presentations, regulatory databases, government publications, and market white papers. Analysts also interviewed senior managers, product portfolio managers, CEOs, VPs, and market intelligence managers, who contributed to the production of TMR’s study on the global high strength steel (HSS) market as a primary resource.

These primary and secondary resources provided exclusive information during interviews, which served as a validation from leading players operating in the global high strength steel (HSS) market. Access to an extensive internal repository and external proprietary databases allows this report to address specific details and questions about the global high strength steel (HSS) market with accuracy. The study also uses a top-down approach to assess numbers for each segment and a bottom-up approach to counter-validate them. This has helped in making TMR’s estimates on future prospects of the global high strength steel (HSS) market more reliable and accurate.

High Strength Steel (HSS) Market – Segmentation

TMR’s study on the global high strength steel (HSS) market segments the market based on product type, end use, and region. Changing market trends and other crucial market dynamics associated with these segments of the global high strength steel (HSS) market have been discussed in detail.

Product Type

Conventional HSS

  • Carbon-Manganese
  • Bake-Hardenable
  • High Strength Low Alloy (HSLA)

AHSS

  • Dual Phase (DP)
  • Transformation Induced Plasticity (TRIP)
  • Others

UHSS

End Use

Building & Infrastructure

Automotive

  • Conventional Vehicles
  • Passenger Vehicles
  • Light Commercial Vehicles
  • Heavy Duty Vehicles
  • Electric Vehicles
  • Passenger Vehicles
  • Light Commercial Vehicles
  • Heavy Duty Vehicles

Industrial Machinery

Aerospace & Defense

Others

Region

North America

Europe

Asia Pacific

Latin America

Middle East & Africa

Custom Market Research Services

TMR offers custom market research services that help clients to get information on their business scenario required where syndicated solutions are not enough.

REQUEST CUSTOMIZATION

High Strength Steel Market

Buy Now