Automotive Steel Market Size, Share & Trends Report

Automotive Steel Market Size, Share & Trends Analysis Report By Vehicle Type (Passenger Vehicles, LCVs, HCVs) By Application (Body Structure, Power Train, Suspension), And Segment Forecasts, 2018 - 2025

  • Published Date: Dec, 2018
  • Base Year for Estimate: 2017
  • Report ID: GVR-2-68038-722-3
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 109

Industry Insights

The global automotive steel market size was valued at USD 58.16 billion in 2017 and is expected to witness a CAGR of 3.6% from 2018 to 2025. Increasing production of automobiles and demand for Electric Vehicles (EVs), particularly in North American and European countries, is likely to propel the market growth over the forecast period. Asia Pacific is expected to emerge as one of the fastest-growing regional markets for automotive steel in the coming years.

Rising vehicle production coupled with high demand for technologically advanced passenger cars is estimated to promote the market growth in this region over the forecast period. North America automotive sector has observed a steady growth, in terms of unit sales, from 2010 to 2017. As per the statistics of International Organization of Motor Vehicle Manufacturers (OICA) published in 2017, the overall motor vehicle sales in North America increased from 19.7 million units in 2010 to nearly 25.7 million units in 2017.

North America automotive steel market

Such steady growth is likely to have a positive impact on the demand for automotive steel over the forecast period. As per the OICA statistics of 2017, the production volume of automobiles reached nearly 20.6 million units in 2017, which also contributed to the market development. Statistics published by Canada Vehicles Manufacturers’ Association in 2016 state that the regional automotive sector contributed nearly USD 20 billion to the national GDP.

In addition, the contribution of the sector to the overall NAFTA trade was of nearly USD 230 billion in 2016. The overall trade figure mentioned above includes nearly 55% of the parts and 45% of the vehicles trade. Thus, the automotive industry in Canada is expected to be one of the key driver for the market in the years to come.

Vehicle Type Insights

Passenger vehicle segment led the global market in 2017 and is expected to maintain its dominance over the forecast period. The segment is projected account for 77.8% of the global market volume share by 2025. Growing production of passenger cars in countries including India and China, due to rising population and consumer disposable income, is expected to drive the segment growth.

According to the 2017 statistics published by the OICA, the global production of passenger cars was 72.3 million units in 2016, which increased to 73.4 million units in 2017. Escalating demand from the Southeast Asian countries, particularly from Philippines and Vietnam, is anticipated to have a positive impact on the segment growth.

Moreover, increasing disposable income levels and rapid urbanization are likely to contribute to the segment development over the forecast period. Light Commercial Vehicles (LCVs) segment accounted for 19.5% of the global volume share in 2017. Increasing demand for commercial carrying services is expected to propel the demand for light commercial vehicles over the forecast period.

Application Insights

Body structure segment led the global automotive steel market in 2017 and is expected to expand further over the forecast period. The increasing crash regulatory norms is pushing the manufacturers to use high strength metals. Thereby, driving the demand for advanced high strength steel demand in the body structure segment. Globally, power train segment is estimated to progress at a CAGR of 2.7% from 2018 to 2025.

Global automotive steel market

Power train is a crucial element for the automotive manufacturers. Rising demand for high-performance, fuel-efficient, and lightweight vehicles is expected to be a key factor driving the segment growth over the next few years. Increasing complexity of design and mechanical operation resulting in high demand for automobile parts with high surface flatness, roughness, waviness, and porosity, which is also likely to support segment expansion.

Regional Insights

In terms of revenue, Asia Pacific was the largest regional market in 2017 and is said to expand further over the forecast years. Extensive R&D activities to cater to rising demand are expected to contribute to the market growth.

Europe accounted for 22.6% of the global market volume share in 2017. Recovery from the financial crisis in Europe has led to a rise in new passenger car registrations, particularly in Germany, France, Italy, and Spain. Moreover, consumers in Europe are adopting green and eco-friendly options, which is likely to augment the production of EVs, consequently propelling the market growth.

North America is expected to witness a CAGR of 2.6% from 2018 to 2025. U.S. is the largest producer, as well as consumer, of motor vehicles in this region. The country recorded overall vehicle sales of 11.7 million units in 2010 to 17.5 million units in 2017 as per the OICA statistics of 2017. Automotive industry in U.S. has been witnessing developments, in terms of vehicle type. advent of high-quality, compact SUVs has positively influenced the vehicle sales in the country.

Central & South America accounted for a revenue share of 3.9% in the global market in 2017. Rapidly expanding automotive sector in developing countries, such as Brazil and Argentina, is a major driving factor for the regional market. As per OICA statistics, Argentina accounted for a sales volume of nearly 900 thousand unit of vehicles in 2017. Thus, steady sales volume of vehicles in the region is likely to positively influence the market over the forecast period.

Automotive Steel Market Share Insights

Some of the prominent manufacturers in the market are ArcelorMittal S.A., China Steel Corp., Tata Steel Ltd., United States Steel Corp., HYUNDAI STEEL Co. Ltd. (HSC), POSCO, JSW Group, JFE Steel Corp., Nippon Steel & Sumitomo Metal Corp., and Nucor Corp.

Manufacturers often seek long-term contracts with raw material suppliers, such as Hausner Hard Chrome, Inc. and Masemanzi Mining Holdings, to avoid fluctuations in the supply. Iron ore, coal, metallic products (scraps, solid fuels, and alloys), natural gas, and base metals are the key raw materials used by the manufacturers.

Report Scope

Attribute

Details

Base year for estimation

2017

Actual estimates/Historical data

2014 - 2016

Forecast period

2018 - 2025

Market representation

Volume in tons, Revenue in USD Million, and CAGR from 2018 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Country scope

U.S., Canada, Mexico, Germany, U.K., Spain, China, India, Japan, and Brazil

Report coverage

Revenue and volume forecast, company share, competitive landscape, growth factors and trends

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Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global automotive steel market report on the basis of vehicle type, application, and region:

  • Vehicle Type Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Passenger Vehicles

    • Light Commercial Vehicles

    • Heavy Commercial Vehicles

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Body structure

    • Power train

    • Suspension

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • Spain

    • Asia Pacific

      • China

      • Japan

      • India

    • Central and South America

      • Brazil

    • MEA

Key questions answered by the report
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