What are the Historical Developments and Current Growth Metrics of the Automotive Stainless Steel Market?
The automotive stainless steel market has seen considerable growth due to a variety of factors.
• The size of the market for stainless steel in the automotive industry has seen significant growth in the past few years. The market is projected to escalate from $126.51 billion in 2024 to $133.56 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 5.6%.
The robust growth during the historical period can be traced back to factors such as increased automotive production, focus on lightweight materials, heightened consumer demand for quality, strict emission regulations, and enhanced emphasis on safety.
What is the Forecasted Market Size and CAGR for the Automotive Stainless Steel Market?
The automotive stainless steel market is expected to maintain its strong growth trajectory in upcoming years.
• The vehicle-based stainless steel industry is projected to experience substantial expansion in the coming years, with the market size expected to reach $162.73 billion in 2029 at a 5.1% compound annual growth rate (CAGR). Various factors contributing to this projected growth during the forecast period include the ongoing trends towards lighter vehicles, the expanding electric vehicle (EV) industry, a dedication to sustainability, a rise in worldwide urbanization, and improvements in various grades of stainless steel. Upcoming trends during the forecast period include the customization and specialized use of stainless steel alloys, their use in autonomous and interconnected vehicles, emphasis on the infrastructure for EV charging, strategic alliances, and collaborations within the supply chain, and their adoption in next-generation automotive materials.
What Key Factors and Trends Are Driving The Growth Automotive Stainless Steel Market?
The upward trend in electric vehicle usage is projected to significantly contribute to the expansion of the automotive stainless-steel market. Electric vehicles, fortified by an electric motor that sources power from an externally chargeable battery, are gaining traction in the automobile industry with the advancement in electric and self-driving technologies. Such vehicles require robust materials like stainless steel that possess properties like corrosion resistance, durability, and design adaptability. A prediction made by the Edison Electric Institute (EEI), a representative body for the US electric firms, suggests that there will be a rise in electric vehicles on the US roads, projecting an increase from 2.4 million in 2021 to an astounding 26.4 million by 2030. The anticipated annual sales of electric cars are around 5.6 million in 2030, making up roughly 32% of the overall light-duty vehicle sales per year. Therefore, the surge in electric vehicle usage is likely to stimulate the expansion of the automotive stainless-steel market. The upswing in the demand for passenger vehicles is likely to further drive the growth of the automotive stainless-steel market. Passenger vehicles, intended primarily for transporting people rather than goods, hugely benefit from the use of stainless steel in automotive components, ensuring resilience amidst harsh environmental conditions. As reported by the European Automobile Manufacturers' Association (ACEA), a body that dictates the auto industry standards in the European Union, the worldwide production of passenger cars saw a leap by 7.9%, accounting for more than 68 million automobiles in 2022. Furthermore, the North American auto production witnessed a bounce by 10.3%, amounting to 10.4 million units in 2022. Thus, the burgeoning demand for passenger vehicles is expected to be a major driver for the growth of the automotive stainless-steel market.
What Are The Market Segments In The Automotive Stainless Steel Market?
The automotive stainless steel market covered in this report is segmented –
1) By Tube Type: Straight Tubes, U-Bends, Coiled Tubes
2) By Manufacturing Method: Seamless Tubes, Welded Tubes
3) By Vehicle Type: Passenger Cars, Commercial Vehicles
4) By Application: Exhaust Systems, Fuel And Break Lines, Heat Exchangers, Structural Components, Other Applications
5) By End-Use: Original Equipment Manufacturers (OEMs), After market
Subsegments:
1) By Straight Tubes: Standard Straight Tubes, High-Performance Straight Tubes
2) By U-Bends: Standard U-Bends, Custom U-Bends
3) By Coiled Tubes: Tight Radius Coiled Tubes, Large Diameter Coiled Tubes
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What Emerging Trends Are Influencing The Growth Of The Automotive Stainless Steel Market?
Leading businesses in the automotive stainless-steel market are focused on developing innovative products like green stainless steel to lessen their environmental impact and enhance their market reputation. Green stainless steel signifies that its production uses responsibly sourced raw materials with an emphasis on ecological aspects. For example, Outokumpu Oyj, which is headquartered in the United States, introduced Circle Green in September 2022. This line of sustainable stainless steel claims a carbon dioxide footprint that's 92% lower than the industry average and 64% less than their standard stainless steel. They were able to accomplish this by utilizing bio-based resources such as biogas, biodiesel, and bio-coke, in addition to electricity from low-carbon sources. This novel approach aligns with the rising demand for environmentally friendly, durable products, aiding in the transition to a more sustainable future. The procedure was carried out on an industrial scale, symbolizing a crucial milestone in realizing Outokumpu's sustainability goals.
Who Are the Key Players In The Automotive Stainless Steel Market?
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.
What Are The Regional Insights Into The Automotive Stainless Steel Market?
North America was the largest region in the automotive stainless-steel market in 2024. The regions covered in the automotive stainless steel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
