Automotive Steel Market Report 2025

The automotive steel market size has grown steadily in recent years. It will grow from $115.71 billion in 2024 to $120.9 billion in 2025 at a compound annual growth rate (CAGR) of 4.5%. The growth in the historic period can be attributed to vehicle production and sales, weight and fuel efficiency concerns, safety and crashworthiness requirements, cost-effectiveness and affordability, recyclability, and sustainability.

The automotive steel market size is expected to see strong growth in the next few years. It will grow to $151.3 billion in 2029 at a compound annual growth rate (CAGR) of 5.8%. The growth in the forecast period can be attributed to global automotive industry growth, stringent emission regulations, electric vehicle manufacturing, innovation in steel alloys, integration in advanced manufacturing techniques. Major trends in the forecast period include increased interest in tailored blanks, integration of third-generation advanced high-strength steel (3gahss), collaboration for innovation, focus on sustainable steel production, integration of smart manufacturing technologies, globalization of supply chains.

The automotive steel market is poised for growth, driven by the increasing demand for automobiles globally. Automobiles, defined as self-propelled vehicles for transporting passengers or cargo on roadways, are incorporating automotive steel in their manufacturing processes. This strategic use of steel enables automakers to reduce overall vehicle weight, leading to improved fuel efficiency, reduced emissions, and enhanced durability. Notably, the International Organization of Motor Vehicle Manufacturers (OICA) reported a surge in global motor vehicle production, reaching 85.01 trillion units in 2022, compared to 80.14 trillion units in 2021. Additionally, the European Automobile Manufacturers' Association (ACEA) highlighted a 5.5% increase in sales of passenger cars in the US, reaching 11.9 million units in 2021. The escalating demand for automobiles is a key driver propelling the growth of the automotive steel market.

The automotive steel market is also set to benefit from the rising demand for commercial vehicles. Commercial vehicles, utilized primarily for business purposes, include trucks, vans, and buses designed for transporting goods, passengers, or providing services. The extensive use of automotive steel in commercial vehicles, particularly in body structures, power trains, and suspensions, contributes to the growth of the market. Notably, Pandaily reported a significant year-on-year increase of 49.4% in the sales volume of commercial vehicles in China, reaching 168,000 units in July 2022. The robust demand for commercial vehicles serves as a positive factor propelling the growth of the automotive steel market.

Innovation stands out as a key trend in the automotive steel market, with major companies actively developing new products to strengthen their market position. An exemplar of this trend is the collaboration between Gestamp, a Spain-based automotive engineering company, and SSAB, a Sweden-based steel industry company. Together, they introduced Docol1000CP steel in June 2022, boasting significantly higher strength (1000 Mpa) than conventionally used grades. Docol1000CP, employed in manufacturing chassis parts for the Toyota Yaris, offers a combination of high strength, reduced weight, environmental friendliness, and positive fatigue behavior. This innovative product represents a notable trend in the automotive steel market, emphasizing the importance of technological advancements for market players.

Companies operating in the automotive steel market are increasingly emphasizing strategic partnerships and collaborations to enhance their financial strength, fortify their product portfolios, and broaden their geographical reach. This strategic approach involves leveraging the strengths and resources of each partner to achieve mutual benefits and success. A notable example is the collaboration announced in June 2023 between Outokumpu, a Finland-based stainless steel manufacturer, Thyssenkrupp Materials Processing Europe, a Germany-based steel processing company, and Boysen Group, a Germany-based exhaust system manufacturer. This collaboration aims to introduce the world's first towards-zero stainless steel to the automotive industry, specifically Outokumpu's Circle Green product. The partnership, set to supply larger quantities of Circle Green to the automotive industry starting in the second half of 2023, marks a significant milestone in promoting a low-emission automotive industry. The collaboration encompasses material supply, processing, and just-in-time delivery, contributing to more sustainable supply chains in the automotive sector and setting a global precedent for low emissions throughout the production chain.

In August 2023, Kloeckner Metals Corporation (KMC), a US-based producer and distributor of steel and metal products, acquired National Material of Mexico (NMM) for an undisclosed amount. This acquisition positions KMC to significantly expand its presence in Mexico, particularly in regions where key automotive and industrial customers are concentrated. National Material of Mexico (NMM), an independent service center and materials supplier based in Mexico, offers a range of products, including automotive steel, serving the automotive and industrial sectors. The acquisition aligns with KMC's growth strategy and enhances its capabilities to cater to the needs of automotive and industrial customers in the Mexican market.

Major companies operating in the automotive steel market include ArcelorMittal SA, Tata Iron and Steel Company Limited, Hyundai Steel Co. Ltd., United States Steel Corp., JSW Steel Ltd., Pohang Iron and Steel Company, Nippon Steel Corporation, JFE Steel Corporation, Nucor Corporation, Thyssenkrupp Steel Europe AG, China Baowu Steel Group Corp. Ltd., Hesteel Group Company Limited, Kobe Steel Ltd., Jindal Steel and Power Limited, Grow Ever Steel Pvt. Ltd., Outokumpu Oyj, Baosteel Group Corporation, China Steel Corporation, Gerdau S.A., Essar Gujarat Limited, AK Steel Holding Corporation, Steel Authority of India Limited, Wuhan Iron and Steel Corporation, Maanshan Iron & Steel Company Limited, Shougang Corporation, Ansteel Group Corporation Limited, HBIS Group Co. Ltd., Shandong Iron and Steel Group Co. Ltd., Jiangsu Shagang Group Co. Ltd., Valin Holdings Group Co. Ltd., Benxi Steel Group Corporation Limited, China Minmetals Corporation, China National Chemical Corporation.

Asia-Pacific was the largest region in the automotive steel market in 2024. The regions covered in the automotive steel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive steel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Automotive steel encompasses various steel types used in manufacturing vehicle components. Obtained from raw materials such as iron ore and coal, it undergoes a process in blast furnaces to form molten iron. This iron is then refined and alloyed with other elements to produce different grades of steel.

The primary categories of automotive steel include mild steel, alloy steel, high-strength steel, and advanced high-strength steel. Mild steel, featuring low carbon content, is easily malleable and finds applications in construction, automotive manufacturing, and general engineering. Produced through basic oxygen furnace (BOF) and electric arc furnace (EAF) processes, mild steel serves various purposes in body structures, power trains, suspensions, and other components across passenger vehicles, light commercial vehicles, and heavy commercial vehicles.

The automotive steel market research report is one of a series of new reports that provides automotive steel market statistics, including automotive steel industry global market size, regional shares, competitors with a automotive steel market share, detailed automotive steel market segments, market trends, and opportunities, and any further data you may need to thrive in the automotive steel industry. This automotive 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 steel market consists of sale of wheel rims, exhaust pipes, bushings, bearings, exhaust systems, radiators, and automobile frames. 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.

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