PUBLISHER: Grand View Research | PRODUCT CODE: 1493502
PUBLISHER: Grand View Research | PRODUCT CODE: 1493502
The global automotive advanced high strength steel market size is expected to reach USD 25.45 billion by 2030, according to a new report by Grand View Research, Inc., expanding at a CAGR of 6.4% from 2024 to 2030. Rising demand for advanced high-strength steel (AHSS) in lightweight vehicles is driving market growth.
AHSS can help reduce greenhouse gas emissions by 5%. With the development of new grades of AHSS, car manufacturers can now reduce the weight of their vehicles by 25-39% compared to conventional steel. For example, a common family car that fits five people can be made lighter by 170 to 270 kg, which would result in a total saving of 3 to 4.5 tons of greenhouse gases over the entire life of the car.
Based on product type, the complex phase segment is expected to register a CAGR of 8.1% in the said forecast period. This material is utilized in the side panels, bumper rails, and door impact bars of vehicles, which are the crucial components that determine the safety ratings of the vehicle. It possesses exceptional strength and shock-absorbing characteristics without adding extra weight to the vehicle. This material is widely used by automotive manufacturers such as Renault, Samsung Motors, SsangYong Motors, and GM Korea.
The Europe region is expected to experience a CAGR of 7.4% in terms of revenue during the forecast period. The governments in the region are offering lucrative subsidies, which are driving up the demand for electric vehicles (EVs) and positively impacting product growth. As an example, subsidies were announced by Italy's government of up to EUR 6,000 (~ USD 6,570) for new EV purchases. This decision was part of the plan to support the auto industry of the country.
To further secure the future growth of AHSS, key manufacturers are investing to set up new plants or expand their existing manufacturing capacity. For instance, in December 2022, Jindal Steel announced that it is going to invest INR 73,930.0 million (~USD 886.7 million) in the construction of a new specialty steel manufacturing plant under the PLI Scheme of India. The new plant is expected to produce auto-GR steel AHSS, cold rolled, and coated products.