PUBLISHER: The Business Research Company | PRODUCT CODE: 1426332
PUBLISHER: The Business Research Company | PRODUCT CODE: 1426332
Automotive stainless steel refers to a corrosion- and heat-resistant alloy used in vehicle components, providing durability and aesthetics due to its high strength and polished finish, enhancing both performance and visual appeal in automobiles. It is used in the automotive industry to improve future performance, particularly in vehicle chassis, body, and suspension components.
The main types of automotive stainless steel include tube types such as straight tubes, u-bends, and coiled tubes. Straight tubes are cylindrical tubes with a linear shape without any bends or curves, used in chassis components and fuel lines due to their corrosion-resistant properties and superior strength-to-weight ratio. These tubes are manufactured as seamless tubes and welded tubes for applications in passenger cars and commercial vehicles, including exhaust systems, fuel and brake lines, heat exchangers, structural components, and others. The end-users of these stainless steel products are original equipment manufacturers (OEMs) and the aftermarket.
The automotive stainless steel market research report is one of a series of new reports from The Business Research Company that provides automotive stainless steel market statistics, including automotive stainless steel industry global market size, regional shares, competitors with an automotive stainless steel market share, detailed automotive stainless steel market segments, market trends and opportunities, and any further data you may need to thrive in the automotive stainless steel industry. This automotive stainless steel market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future- scenario of the industry.
The automotive stainless steel market size has grown strongly in recent years. It will grow from $119.59 billion in 2023 to $126.51 billion in 2024 at a compound annual growth rate (CAGR) of 5.8%. The growth in the historic period can be attributed to the increasing automotive production, emphasis on lightweight materials, rising consumer demand for quality, stringent emission standards, and increased focus on safety in the automotive industry.
The automotive stainless steel market size is expected to see steady growth in the next few years. It will grow to $153.72 billion in 2028 at a compound annual growth rate (CAGR) of 5.0%. The growth in the forecast period can be attributed to continued lightweighting trends, the growing electric vehicle (EV) market, a focus on sustainability, rising global urbanization, and advancements in stainless steel grades in the automotive industry. Major trends in the forecast period include customization and specialty stainless steel alloys, application in autonomous and connected vehicles, a focus on electric vehicle charging infrastructure, and strategic alliances and collaborations in the supply chain, as well as adoption in next-generation automotive materials.
The rise in electric vehicle adoption is poised to drive the expansion of the automotive stainless-steel market. With ongoing advancements in electric and autonomous vehicles, the automotive industry seeks robust and durable materials such as stainless steel, valued for their corrosion resistance, strength, and design adaptability. For instance, as per the Edison Electric Institute (EEI) in June 2022, the projection anticipates a surge in U.S. electric vehicle (EV) numbers, soaring from 2.4 million in 2021 to an estimated 26.4 million by 2030. This expected growth translates to around 5.6 million EV sales annually by 2030, constituting about 32% of total light-duty vehicle sales. Hence, the shift towards electric vehicles is set to elevate the automotive stainless-steel market.
The escalating demand for passenger vehicles is set to bolster the automotive stainless-steel market. Stainless steel plays a pivotal role in enhancing the longevity of various vehicle components, ensuring their resilience in diverse environmental conditions. For example, based on a report by the European Automobile Manufacturers' Association (ACEA) in February 2023, global production of passenger automobiles surged to over 68 million in 2022, marking a 7.9% increase from the preceding year. Additionally, North American auto production witnessed a robust uptick of 10.3%, reaching 10.4 million units in 2022. This escalating demand for passenger vehicles signifies a corresponding uptrend in the need for stainless steel, thereby driving growth in the automotive stainless-steel market.
The availability of alternative materials, particularly the rising use of lightweight alternatives such as aluminum, poses a challenge to the automotive stainless-steel market's growth. Aluminum's lightweight properties have led to its increased adoption in the automotive industry, directly impacting stainless steel sales. The competition between alternative materials intensifies as manufacturers continually strive to enhance their offerings. For instance, as per the Aluminum Association's report in March 2023, the demand for aluminum in the United States and Canada surged to approximately 27.5 billion pounds in 2022, exhibiting a 4.8% growth by the year's end. This increased usage of alternative materials, particularly aluminum, hinders the automotive stainless-steel market's growth prospects.
Major companies in the automotive stainless-steel sector are innovating to introduce eco-friendly stainless-steel variants, such as green stainless steel, aimed at reducing environmental footprints and cultivating a positive market image. Green stainless steel signifies a commitment to sourcing raw materials responsibly and prioritizing environmental considerations in production. For instance, Outokumpu Oyj launched Circle Green in September 2022, a sustainable stainless-steel line boasting a carbon dioxide footprint 92% lower than the industry average and 64% lower than their standard stainless-steel production. This remarkable reduction is achieved by incorporating bio-based materials such as biogas, biodiesel, and bio-coke, coupled with electricity sourced from low-carbon outlets. This innovation meets the demand for environmentally friendly and durable products, marking a significant stride towards sustainability goals in industrial-scale production.
In August 2023, Klockner & Co. SE, a German-based manufacturer of steel and metal products, completed the acquisition of National Material of Mexico for an undisclosed sum. This strategic move is expected to greatly expand Klockner's presence in Mexico, strengthening its position in crucial markets related to the automotive and industrial sectors. National Material of Mexico is a Mexican steel manufacturing company specializing in serving the automotive industry.
Major companies operating in the automotive stainless steel market report are ArcelorMittal SA, Pohang Iron and Steel Co. Ltd. (POSCO), Nippon Steel Corporation, Tsinghan Holding Group, Baosteel Group, ThyssenKrupp AG, Nucor Corporation, JFE Steel Corporation, Cleveland Cliffs Inc., Salzgitter AG, Outokumpu Oyj, Sandvik AB, Acerinoc SA, Commercial Metals Company, Jindal Stainless Limited, Sanyo Special Steel Co. Ltd., Yieh Corporation, Aperam SA, British Steel Ltd, Tubacex S.A., Acciai Speciali Terni S.p.A., Centravis, Ta Chen International Inc., Plymouth Tube Company, Venus Wire Industries Pvt. Ltd., Crucible Industries LLC, Handytube Corporation, Bri-Steel Manufacturing. Ltd., The Fischer Group, Stanch Stainless Steel Co. Ltd.
North America was the largest region in the automotive stainless-steel market in 2023. The regions covered in the automotive stainless steel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the automotive stainless steel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The automotive stainless-steel market consists of sales of exhaust systems, body panels, trims, and engine components. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Automotive Stainless Steel Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on automotive stainless steel market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for automotive stainless steel? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The automotive stainless steel market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.