Global steel market for cars: forecast up to 2026
Researchers from Acumen Research and Consulting predict that the CAGR of automotive steel production will increase by 4.5% over the next seven years and the volume of investments in this sector in 2026 will reach 78.3 billion US dollars.
The trend is driven by the rapid development of the automotive industry in Asia, Brazil and Mexico.
Therefore, manufacturers strive to satisfy their needs by offering new products. Thus, the South Korean steel corporation Posco has improved its Giga steel, making lightweight products with increased elasticity. And ArcelorMittal started to create ultra-light steel products.
The steel market for cars is segmented by:
- vehicle type;
- structural purpose (for body parts, chassis, etc.)
- region.
At the end of 2018, it was the Asian automakers who took the lead. And they with competitors from Central and North America (China Steel Corp., U.S. Steel, etc.) will develop the market in the future.
China, Japan and India are the largest markets in the Asia Pacific region. Southeast Asian countries are expected to improve significantly in the coming years, driven by a growing selection of electric vehicles (EVs), clearly in China.
The rapid expansion of the automotive and transportation industries in developing countries such as India is needed to increase interest in vehicle parts within an estimated time frame. This will thus help support market development in the Asia Pacific region. In 2016, India's car production totaled almost 4,488,965 units, an increase of about 5.8% to about 4,782,896 units in 2017.
In terms of revenue, Asia Pacific will be the largest regional market in 2018 and is expected to grow in the coming years. Extensive research and development activities to meet growing needs will be converted into market development.
The rapid expansion of the automotive division in developing countries such as Brazil and Argentina is a significant driving force for the provincial market. According to measurements by OICA, sales in Argentina in 2017 amounted to about 900 thousand vehicles. Thus, the constant volume of vehicle transactions in the region is likely to have a significant impact on the market during the forecast period.
North America will show 2.7% growth in the car market annually from 2018 to 2026. The USA is the largest manufacturer and also the buyer of motor vehicles in this area. The country recorded total vehicle sales from 11.7 million units in 2010 to 17.5 million units in 2017 as measured by OICA in 2017
In 2018, Europe accounted for 22.8% of the global auto market. Recovery from the financial crisis in Europe has led to an increase in the number of new passenger car registrations, especially in France, Germany, Italy and Spain. In addition, buyers in Europe are getting greener alternatives that are likely to expand the current generation of electric vehicles.
Key players in the global automotive steel market are China Steel Corp., Nucor Corp., ArcelorMittal SA, Nippon Steel & Sumitomo Metal Corp., Tata Steel Ltd., JFE Steel Corp., United States Steel Corp., JSW Group, HYUNDAI STEEL Co. Ltd. (HSC) and POSCO are among the main players in the global market. Players are constantly developing and implementing new products to match the competitive environment.