Automotive Stainless Steel Tube Market Size, Share & Trends Analysis Report By Product (Welded, Seamless), By Region (NA, Europe, APAC, CSA, MEA), And Segment Forecasts, 2016 - 2024

Report Overview

The global automotive stainless steel tube market size was valued at USD 3.37 million in 2015 and is projected to grow at a CAGR of 3.9% from 2016 to 2024. Stainless steel has become one of the primary materials in the automotive industry on account of its high strength-to-weight ratio that helps in the overall weight reduction of the vehicle.

Stainless steel tubes are utilized in diesel spark plugs, motor block reheating, diesel particulate filters systems, fuel lines, and exhaust gas recirculation systems. Their growing demand is attributable to good corrosion resistance & dent performance, coupled with high durability.

The growth of the automotive industry is expected to be the major driver for the market. Growing vehicle demand from emerging economies such as China and India is projected to boost the industry over the forecast period. Besides, government-backed schemes & foreign investments, ingenious marketing strategies, and recovery of economies have also provided the necessary momentum to the industry.

The industry growth coupled with factors such as stringent regulations regarding vehicle safety and fuel economy in order to increase the strength of the vehicle, and at the same time, reduce its kerb weight, are expected to propel growth.

The market growth is expected to be hindered by high manufacturing costs. Utilization of expensive raw materials including chromium, nickel, and titanium adds to high costs of the product as compared to its alternatives such as aluminum. The expensive nature of the product is likely to hinder the market growth.

Product Insights

Welded and seamless were the two main product types of the market. Welded tube is manufactured by welding the seam on the tube. Seamless products do not have a longitudinal weld seam and hence, do not crack or leak.

Welded tubes dominated the market in 2015, with a volume share of 95.7%. These are more readily available, which results in minimum waiting period, consequently, making them cost-effective. Their wall thickness is more consistent as compared to the seamless product type. Besides, they can withstand extreme temperatures and pressures, making them ideal for critical automotive components such as exhaust systems.

The seamless stainless steel tube is projected to grow at the CAGR of 7.9% from 2016 to 2024. Since there is no welding, their corrosion resistance is very high. However, they are not as widely used as welded products on account of high cost.

Regional Insights

Asia Pacific was the largest regional segment for automotive stainless steel tube in 2015, accounting for a volume share of 52.5%. This region is driven by its booming automotive sector, which has resulted in growing demand for both, welded as well as a seamless stainless steel tube. This is also projected to be the fastest-growing region over the forecast period.

The North American automotive stainless steel tube market was dominated by the U.S. in 2015. Welded tube held the largest share in this region, while the seamless products are projected to grow at the highest CAGR from 2016 to 2024.

North America is home to some of the major automobile manufacturers such as Ford Motors and General Motors. Other European and Asian automotive manufacturers such as Volkswagen, BMW, Honda, Hyundai, and much more operate in this region.

Europe, which held the second largest share in 2015, is projected to be the second-fastest growing region in this market, over the forecast period. Countries such as the UK and Germany have witnessed increased demand for these products, courtesy growing automobile industries.

Key Companies & Market Share Insights

The industry is highly consolidated owing to the presence of both, small and large scale manufacturers throughout the world. Sandvik Group, Nippon Steel & Sumitomo Metal Corporation, ArcelorMittal, ThyssenKrupp accounted for the majority of services in the market.

Tubacex, Handytube Corporation, Plymouth Tube Company, Fischer Group, Maxim Tubes Company Pvt. Ltd., JFE Steel Corporation, ChelPipe, Penn Stainless Products Inc., Bri-Steel Manufacturing, and Centravis are other well-known global names in the industry.

These players adopted organic and inorganic strategies such as mergers & acquisitions, expansions, new product developments, and agreements, collaborations & joint ventures in order to expand their product portfolio, geographical reach, and consequently, increase their shares.

In August 2015, Sandvik Group launched the Pressurfect series of stainless steel tube that are used for GDI (Gasoline Direct Injection) fuel systems. This range was designed to handle high pressures and also delivered weight reductions by 40%.

In September 2014, ArcelorMittal unveiled Fortiform, a new range of steel products for the automotive industry. This range offered significant safety improvements to vehicles while reducing the weight of the vehicles. This expanded the company’s existing product portfolio.

Automotive Stainless Steel Tube Market Report Scope