PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1684403
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1684403
Automotive steel market size was valued at US$ 83,967.25 Million in 2024, expanding at a CAGR of 6.8% from 2025 to 2032.
Automotive steel is a high-strength, durable material used in vehicle manufacturing to enhance safety, performance, and fuel efficiency. It includes advanced high-strength steels (AHSS) and ultra-high-strength steels (UHSS), offering superior crash resistance while reducing vehicle weight. Widely used in body panels, chassis, and structural components, automotive steel ensures durability, cost-effectiveness, and recyclability, making it a key material in modern and sustainable automobile production.
Automotive Steel Market- Market Dynamics
Increasing demand for EVs and rising vehicle production to propel market demand
The automotive industry is increasingly adopting advanced high-strength steel (AHSS) to reduce vehicle weight and enhance fuel efficiency. The rise in EV production necessitates specialized automotive steel for battery enclosures and lightweight structures, presenting new market opportunities. Developing economies, particularly in Asia, are experiencing increased vehicle ownership, driving demand for automotive steel. However, the imposition of tariffs has led to increased raw material costs, impacting vehicle manufacturing expenses.
Automotive Steel Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 6.8% over the forecast period (2025-2032)
Based on Product segmentation, dual phase steel was predicted to show maximum market share in the year 2024
Based on Process segmentation, basic oxygen furnace (BOF) was the leading Process in 2024
Based on Vehicle segmentation, passenger vehicles was the leading Vehicle in 2024
On the basis of region, Asia-Pacific was the leading revenue generator in 2024
The Global Automotive Steel Market is segmented on the basis of Product, Process, Vehicle, Application, and Region.
The market is divided into four categories based on Product: transformation induced plasticity (TRIP) steel, complex phase (CP), dual phase steel, and others. The dual phase steel sector is expected to hold the largest market share. This is due to its superior combination of strength and ductility, making it ideal for enhancing vehicle safety and reducing weight.
The market is divided into four categories based on Application: power train, body structure, suspension, and others. The body structure sector is expected to hold the largest market share in the automotive steel market. This dominance is due to the extensive use of steel in vehicle frames and body panels, which are crucial for structural integrity and safety.
Automotive Steel Market- Geographical Insights
The Asia Pacific is projected to maintain the largest market share in the automotive steel industry, driven by significant vehicle production in countries like China and India. Besides, the North America region is expected to experience the fastest growth during the forecast period, attributed to increasing vehicle production and technological advancements in automotive manufacturing.
Rising demand for lightweight, fuel-efficient vehicles is driving competition in the industry. Companies focus on developing advanced high-strength and ultra-high-strength steels to enhance safety while reducing vehicle weight. Strategic collaborations with automakers help in designing custom steel solutions. Investments in research and development aim to improve material properties and recyclability. Market players also expand production capacities and adopt sustainable manufacturing processes to meet regulatory requirements and environmental goals, ensuring long-term competitiveness in a rapidly evolving automotive sector.
In January 2025, ArcelorMittal Nippon Steel India (AMNS) announced plans to commission two automotive-grade steel production lines at its Hazira plant by 2025. Part of the CRM 2 complex, this expansion aims to reduce India's reliance on imported high-grade automotive steel.
In January 2025, ArcelorMittal Brazil launched the XCarb Spring Flat Bar, made from 100% recycled steel and renewable energy, cutting CO2 emissions by over 60%. Designed for heavy vehicle suspensions, it promotes sustainability in the automotive sector.