Automotive Steel Market To Reach $123.4 Billion By 2030

Automotive Steel Market Growth & Trends

The global automotive steel market size is expected to reach USD 123.4 billion in 2030 and is expected to witness a CAGR of 6.9% from 2025 to 2030. 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

• The body structure segment dominated the market and accounted for the largest revenue share of 39.8% in 2024

• In terms of volume, the passenger vehicle segment led the market and accounted for the largest revenue share of 62.6% in 2024. Increasing production of passenger cars supported by growing income levels is projected to contribute to the growth of the automotive steel market.

• The Asia Pacific automotive steel market dominated the global market and accounted for the largest revenue share of 48.5% in 2024 and is likely to maintain its position during the forecast period on account of large-scale automotive production in India and China.

• In terms of volume, Europe automotive steel market is expected to grow at a CAGR of 7.8% over the forecast period, improvement in fuel efficiency and weight reduction in vehicles are projected to remain key growth factors for market vendors.

Automotive Steel Market Segmentation

Grand View Research has segmented the global automotive steel market report based on vehicle type, application, and region:

Automotive Steel Vehicle Type Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• Passenger Vehicle

• Light Commercial Vehicle

• Heavy Commercial Vehicle

Automotive Steel Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• Body Structure

• Power Train

• Suspension

• Others

Automotive Steel Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • France

  • Italy

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

• Latin America

  • Brazil

  • Argentina

• Middle East and Africa

List of Key Players in Automotive Steel Market

• ArcelorMittal

• China BaoWu Steel Group Corporation Limited

• Hyundai Steel

• JFE Steel Corporation

• JSW

• Nippon Steel Corporation

• Nucor

• POSCO

• Tata Steel

• United States Steel Corporation