Automotive Steel Market Size, Current and Future Trends, Industry Growth and Forecast to 2025
The global automotive steel market is expected to reach USD 130.07 billion by 2025, according to a new report by Grand View Research, Inc. is expected to witness a CAGR of 3.2% over the forecast period. Growing automotive production in Asia Pacific countries is likely to drive the market.
Expansion of production facilities coupled with growing demand in the Asia Pacific are the key factors in the growth of regional automobile sector. In 2018, automotive production in countries including Thailand, Malaysia, Indonesia, and India has observed a significant growth in the production of vehicles.
Growing demand for electric vehicles is another factor which is projected to create a positive impact on the demand for steel products. As per the International Energy Agency, over 1 million cars were sold in 2017 in the global market while China accounted for more than 50% sales. European countries including Norway, Iceland, and Sweden accounted for the highest market share for electric vehicles sales in 2017.
Europe is among the world’s largest producers of vehicles; the automotive industry in Europe accounts for 6.8% of its GDP. Automotive sector is the largest private investor in automotive research & development (R&D) with the support of the European Commission. Reduced CO2 emission and improved fuel economy are the key factors leading to the development of lightweight chassis components in the region.
China is the largest producer of vehicles worldwide. Passenger vehicles segment is anticipated to witness lucrative growth in terms of sales over the coming years. Attracted by the significant development of small and microcar segments, various global brands are involved in the expansion of their product lines in these segments.
Leading steel companies are heavily focused on the development of new grades of advanced high-strength steel with high strength. This will assist in the manufacturing of lighter and thinner components with safety features. Steel companies have collaborated with research institutes and global universities in order to develop special and advanced grades of steel for automobile use.
Introduction of new emission regulations is anticipated to create a short term impact on the market. For instance, recently in India BS-VI emission norms were introduced. This is likely to cause changes and disruption in the industry for short term period. However, this also brings new opportunities for automotive steel market vendors.
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Automotive Steel Market Report Highlights
• In terms of revenue, body structure held highest market share of 34.0% in 2018. The growth in this segment is attributed to stringent regulations related with safety of vehicles.
• In terms of volume, power train segment is projected to grow at CAGR of 2.6% during forecast period. Reduction in power train weight using light steel materials is anticipated to remain key focus area over the coming years.
• In terms of volume, passenger vehicles accounted for 73.0% of share in 2018. Increasing production of passenger cars supported by growing income levels is projected to contribute to the growth of the automotive steel market.
• Asia Pacific accounted held highest market share in 2018 and likely to maintain its position during forecast period on account of large-scale automotive production in India and China.
• In terms of volume, Europe is projected to grow at a CAGR of 2.2% from 2019 to 2025. Improvement in fuel efficiency and weight reduction in vehicles are projected to remain key growth factors for market vendors.
• ArcelorMittal S.A., Hyundai Steel Co. Ltd., Tata Steel Ltd., Nucor Corporation, Nippon Steel & Sumitomo Metal Corporation and POSCO are some of the leading market participants in the industry. These players are looking for new opportunities through development of innovative alloys and new materials.
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