The North America Automotive AHSS Market is expected to register a CAGR of about 10.27 % during the forecast period (2020 - 2025).
Key Highlights
- The demand for reducing the weight to enhance vehicle performance and safety is growing in the world, and North America is one the largest market for AHSS Market. As a result, Advanced High Strength Steel (AHSS), which is a crucial material for mass vehicle reduction and, is the fastest-growing material in today’s automotive industry.
- Steel makes up around 70 % of an average automobile’s weight. Compared to standard steel, AHSS enable to reduce vehicle weight by 23-35% which is around 165 to 250 kg, for a regular passenger car, saving 3 - 4.5 tons of greenhouse gases over the vehicle’s total life cycle. This saving in emissions is much more substantial than the CO2 emitted during the complete production of steel needed in a car.
- Also, with the emergence of electric vehicles and an increasing ban on diesel vehicles production of gasoline and diesel engine, may face negative growth. However, AHSS will remain a driving factor due to its application in an alternative fuel vehicle market.
Key Market Trends
Continuous Evolution in automotive AHSS technology
The steel composition involves 34% as the body structure, panels, doors, and trunk closures, giving it an energy absorption as well as high-strength and in case of a crash. 23% is the engine and machinable carbon steel for the wear-resistant gears. 12% is used in the suspension, using rolled high-strength steel and the remainder in the wheels, tires, fuel tank, steering, and braking systems.
To produce higher strength for reduced steel section size and weight, automakers use less material, significantly reducing a vehicle’s weight. The steel industry is focusing on developing different alloys for processing combinations, steel with high tensile strength and ductility, along with optimizes chemical compositions to achieve multiphase microstructures of AHSS.
Other advancements include the expanded capabilities to automotive steels that have high strength, which enable the design of thinner parts optimizing stiffness but maintaining geometries. AHSS such as Nano Steel helps deliver thinner gauges of steel and components to manufacture at room temperature.
United States Remains Largest Market
The United States government raised norms for CAFÉ fuel standards and EPA Tier-3 norms
In the United States, the Corporate Average Fuel Economy (CAFE) implemented laws to improve fuel efficiency for automobiles categories by 2025. There is an increasing growth rate for miles per gallon (MPG) regulation, which is growing at 5% every year for all segments of automobiles.
Manufacturers are working to reduce overall vehicle weight, which lowers the energy required to operate the vehicle, thereby increasing fuel economy. The Body-In-White system is the critical focal point for automakers looking for fuel savings because of its weight reduction potential, importance to crash safety and impact on compounded weight reduction for other sub-systems, such as the powertrain
Often materials are not recycled and sent to landfills. Environmental Protection Agency (EPA) proposed life cycle assessment (LCA) studies to detect higher emissions over the entire life cycle of the vehicle. LCA looks at resources, energy, emissions, extraction phase, and end-of-life phase along with disposal and recycling. As a result, there is growing importance being given to AHSS technology and its recyclability process due to regulations to limit GHG emissions from vehicles.
Competitive Landscape
The North America Automotive AHSS Market is moderately consolidated with existing players such as United Steel Corporation, AG, SSAB AB, POSCO, ArcelorMittal SA, AK Steel Holding Corporation, Ltd.
As the demand for AHSS is growing in the region, the automotive AHSS manufacturers are trying to have an edge over its competitors by making joint-ventures, partnerships, launching new products with advance technology. For instance, Hyundai Santa Fe and the 2019 Acura RDX both relied on excessively on the steel framework., with a composition of 67% and 50% high-strength steel. Also, vehicles like 2019 Jeep Cherokee, the 2019 Mercedes-Benz G-Class, and the 2019 Subaru Forester use AHSS for improved crash safety regulations.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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Table of Contents
Methodology
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