According to a recent report by Reportlinker, a France-based market research firm, the automotive steel market is set to rise from $107.81 billion in 2022 to a remarkable $113.76 billion in 2023. Despite the disruptive influence of the Russia-Ukraine conflict and ongoing repercussions from the COVID-19 pandemic, the industry exhibits resilience and a potential compound annual growth rate (CAGR) of 5.5%. The report predicts the market will attain a value of $135.24 billion by 2027, sustaining a CAGR of 4.4%.
The automotive steel industry underpins vehicle manufacturing, producing vital components including wheel rims, exhaust pipes, bearings, radiators, and automobile frames. The values expressed in the report represent the total revenue generated from goods sold directly by manufacturers.
Producing automotive steel necessitates raw materials like iron ore and coal. These are melted in a blast furnace to yield molten iron, which is then refined and converted into steel fit for vehicle manufacturing. Automotive steel primarily comprises mild steel, alloy steel, high strength steel, and advanced high strength steel.
The rising global demand for automobiles serves as a driving force for the automotive steel market’s expansion. Employing automotive steel in vehicle manufacturing facilitates significant reductions in vehicle weight and emissions, and it increases fuel efficiency and durability.
As stated by the International Organization of Motor Vehicle Manufacturers (OICA), the global production of motor vehicles, encompassing cars, trucks, and buses, is set to grow from 80,145,988 million units in the previous year to 85,016,728 million units in 2022. The European Automobile Manufacturers Association (ACEA) also reported a 5.5% surge in US passenger car sales in 2021, reaching 11.9 million units.
Staying competitive necessitates constant innovation for industry leaders. A notable instance is the collaborative production of Docol1000CP steel by Gestamp and SSAB. This new steel variant offers heightened strength, reduced weight, and improved environmental sustainability. It has already been incorporated in the manufacturing of parts for the Toyota Yaris.
Significant business developments also help shape the market landscape. One such instance is the acquisition of a 50.1% stake in Big River Steel by United States Steel Corporation in December 2020, for an approximate sum of $774 million. This strategic move expanded the corporation’s product range and enhanced its cost efficiency.
Reportlinker’s comprehensive report provides crucial insights into the automotive steel market across several countries including Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, and the USA. At the same time, the view that aluminum will dominate the EV and Hydrogen vehicle revolution is also active in the market.
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