According to the latest study by Global Market Insights Inc., the global automotive steel market will hit a record $161.75 billion by 2030.
The growth of the market is explained by the growing demand for cars around the world. The expansion of initiatives to reduce fuel emissions in the automotive sector, as well as the shift in consumer interest in electric vehicles, will stimulate the consumption of automotive steel.
Pricing inconsistencies and disruptions in the supply chain can be major deterrents. On the other hand, a sharp increase in consumption of light steel products in emerging economies could help industry players expand their customer base.
Based on the process, the report divides the automotive steel market into Electric Arc Furnaces (EAF) and Oxygen Furnaces (BOF). The EAF segment will show a notable growth of 3.08% on average by 2030 due to the improvement in the efficiency of electric arc furnaces.
Due to the reduction in the use of heavy steel in vehicles, the ordinary steel segment is projected to grow by 2.4% and reach USD 28,635 million by 2030.
The heavy commercial vehicle segment of the automotive steel market is estimated to achieve a CAGR of more than 3% and generate revenues of more than US$19,320 million by 2030 thanks to the growing penetration of the logistics sector in developed and developing countries.
Increasing use of active suspension systems will drive demand for automotive steel, which is likely to boost the growth of the suspension segment.
The automotive steel market in Latin America is expected to exceed US$14,030 million by 2030. Favorable foreign direct investment from various governments will accelerate the growth of the industry in the region.
Growth in annual sales of luxury cars will positively influence the industry scenario in the Middle East and Africa region. According to the report, the Middle East and Africa market will grow by more than 2% until 2030.