Automotive Steel Market Report 2026

The automotive steel market size has grown strongly in recent years. It will grow from $118.7 billion in 2025 to $125.16 billion in 2026 at a compound annual growth rate (CAGR) of 5.4%. The growth in the historic period can be attributed to growth in global automotive production, increasing use of steel in vehicle manufacturing, demand for durable and high-performance steel components, advancements in basic oxygen and electric arc furnace processes, expansion of passenger and commercial vehicle markets.

The automotive steel market size is expected to see strong growth in the next few years. It will grow to $152.8 billion in 2030 at a compound annual growth rate (CAGR) of 5.1%. The growth in the forecast period can be attributed to shift towards electric and hybrid vehicles, growing demand for lightweight and advanced high-strength steel, increasing use of dual-phase and trip steel for safety, adoption of corrosion-resistant and coated steel technologies, expansion of automotive manufacturing in asia-pacific. Major trends in the forecast period include increasing use of high-strength steel (hss) and advanced high-strength steel (ahss), growing demand for lightweight steel components, expansion of alloy steel applications in powertrain and suspension, rising adoption of dual-phase and trip steel in vehicle body structures, increasing focus on corrosion-resistant and coated steel.

The increasing demand for automobiles is expected to drive the growth of the automotive steel market in the coming years. Automobiles are self-propelled vehicles designed to transport passengers or cargo on roadways. Automotive steel is widely used in vehicle manufacturing as it helps reduce overall vehicle weight, improve fuel efficiency, lower emissions, and enhance durability. For example, in March 2025, the European Automobile Manufacturers Association, a Belgium-based trade organization, reported that in 2024, global car sales reached 74.6 million units, a 2.5% increase compared to 2023. The EU car market grew by 0.8% in 2024, with total sales reaching 10.6 million units, while car sales in North America remained strong, recording a 3.8% growth. As a result, the rising demand for automobiles is contributing to the growth of the automotive steel market.

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 report are 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, Baosteel Group Corporation, China Steel Corporation, Gerdau S.A., 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, Essar Gujarat Limited.

Asia-Pacific was the largest region in the automotive steel market in 2025. The regions covered in the automotive steel market are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive steel market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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