Automotive Steel Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 142.59 Billion
CAGR (2026-2031)	7.07%
Fastest Growing Segment	Electric Arc Furnace
Largest Market	Asia Pacific
Market Size (2031)	USD 214.83 Billion

Market Overview

The Global Automotive Steel Market will grow from USD 142.59 Billion in 2025 to USD 214.83 Billion by 2031 at a 7.07% CAGR. Automotive steel encompasses a range of high-performance iron-carbon alloys, particularly Advanced High-Strength Steel (AHSS), engineered to fabricate critical vehicle components such as chassis, body structures, and powertrains. The market is primarily driven by stringent government regulations regarding fuel efficiency and emissions, which compel Original Equipment Manufacturers to adopt lightweight materials that reduce vehicle mass without compromising structural integrity or crashworthiness. Furthermore, the rising production of Electric Vehicles creates sustained demand for specialized steel grades designed to protect heavy battery packs and support alternative powertrain configurations.

However, the sector encounters significant challenges related to macroeconomic instability and fluctuating industrial output which can dampen manufacturing activities. One major impediment is the volatility in global demand for durable goods, which directly impacts raw material consumption orders from vehicle manufacturers. According to the 'World Steel Association', in '2024', 'global steel demand was forecast to decrease by 0.9 percent due to a continued slowdown in the manufacturing and automotive sectors'. This contraction highlights the market's vulnerability to broader economic headwinds and supply chain disruptions that restrict the expansion of automotive steel procurement.

Key Market Drivers

Rapid electrification driving demand for electrical and battery-grade steels is fundamentally reshaping the material requirements of the automotive sector. As manufacturers transition from internal combustion engines to electric powertrains, there is an immediate surge in the consumption of non-grain oriented electrical steel for efficient traction motors and advanced high-strength steel to reinforce heavy battery packs. This technological shift compels steelmakers to innovate alloy compositions that offer superior magnetic properties and structural rigidity without incurring excessive weight penalties. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', electric car sales reached nearly 14 million units in 2023, creating a sustained trajectory for specialized value-added steel procurement.

The expansion of global automotive manufacturing and sales volumes acts as the primary catalyst for overall market growth, directly dictating the tonnage of flat carbon and galvanized steel required for chassis and body production. As supply chains stabilize and consumer demand recovers in major economic zones, Original Equipment Manufacturers are ramping up assembly rates, thereby increasing their raw material intake. According to the International Organization of Motor Vehicle Manufacturers, March 2024, in the '2023 Production Statistics', global motor vehicle production increased by 10 percent to 93.5 million vehicles. This upward trend is further evidenced by record-breaking performance in developing regions; according to the Society of Indian Automobile Manufacturers, April 2024, in the 'Flash Report 2023-24', domestic passenger vehicle sales reached a historic peak of 4.21 million units, underscoring the robust demand for automotive-grade steel in emerging markets.

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Key Market Challenges

The volatility in global demand for durable goods constitutes a significant barrier to the expansion of the Global Automotive Steel Market. This instability, often fueled by macroeconomic factors such as high interest rates and inflationary pressures, directly diminishes consumer purchasing power for high-ticket items like vehicles. Consequently, Original Equipment Manufacturers are compelled to recalibrate production schedules and reduce inventory levels to mitigate financial risk. This leads to erratic procurement patterns for essential raw materials, disrupting the supply chain stability required for steelmakers to maintain the consistent production of specialized high-performance alloys necessary for modern chassis and powertrain components.

The direct impact of this industrial contraction is evident in recent regional manufacturing data which reflects broader global trends. According to the 'European Steel Association', in '2024', 'automotive output in the European Union was forecast to drop by 3.0 percent due to ongoing industrial weakness and subdued economic growth'. Such a decline in vehicle manufacturing directly translates to reduced consumption of automotive steel grades, preventing suppliers from optimizing capacity utilization. This unpredictability effectively creates a bottleneck for market growth, as manufacturers face uncertain revenue streams and restricted volume orders that discourage the capital-intensive expansion of steel production facilities.

Key Market Trends

The transition towards fossil-free and hydrogen-based green steel production is becoming a defining trend as manufacturers aggressively target supply chain decarbonization. This shift moves beyond simple lightweighting to address the embedded carbon footprint of the material itself, utilizing hydrogen-based direct reduced iron (DRI) and electric arc furnace (EAF) processes to eliminate coal from smelting. European OEMs and Tier-1 suppliers are actively securing long-term contracts for these low-emission materials to meet stringent Scope 3 emission targets before regulations tighten. According to H2 Green Steel, January 2024, in the 'Kirchhoff Automotive signs €130m supply agreement' press release, the company secured a seven-year contract worth €130 million to supply fossil-free steel for automotive body-in-white applications starting in 2027.

Simultaneously, the market is witnessing the expansion of press hardening steel (PHS) applications, particularly for constructing complex vehicle safety cells and chassis components. Unlike conventional cold stamping, the press hardening (or hot stamping) process allows for the fabrication of ultra-high-strength components with complex geometries that resist springback, offering superior crash energy absorption for electric vehicle architectures without adding significant weight. This technology is increasingly critical for protecting battery enclosures and passenger compartments in heavier electrified platforms. According to Gestamp, February 2024, in the 'Annual Report 2023', the company reported a revenue increase of 14.4 percent to €12.3 billion, directly attributing this growth to the rising demand for specialized hot-stamped body-in-white parts and battery box structures.

Segmental Insights

The Electric Arc Furnace segment is the fastest-growing category in the global automotive steel market, primarily driven by the industry-wide shift toward sustainable manufacturing. This production method utilizes recycled steel scrap, allowing for a substantial reduction in carbon emissions compared to conventional blast furnaces. The adoption of this technology facilitates compliance with rigorous environmental standards set by authorities such as the European Union, which demand lower industrial carbon footprints. As automakers seek to decarbonize their supply chains, the demand for steel produced via this energy-efficient route continues to accelerate.

Regional Insights

Asia Pacific commands the Global Automotive Steel Market, sustained by extensive vehicle manufacturing hubs in China and India. The region’s accelerated shift toward electric mobility drives significant demand for Advanced High-Strength Steel (AHSS), which is essential for offsetting battery weight and maximizing range. Additionally, rigorous safety and emission regulations enforce the adoption of these lighter, durable materials. Industry insights from the China Association of Automobile Manufacturers (CAAM) confirm that robust production volumes and strong government support for new energy vehicles remain the primary catalysts for the region’s enduring market leadership.

Recent Developments

In June 2025, SSAB entered into a long-term agreement with Polmotors, a Tier 1 automotive supplier, to provide fossil-free steel for structural vehicle components. The collaboration aimed to explore the application of these sustainable materials in demanding automotive uses, such as crash management systems and bumpers. This partnership combined the steelmaker's pioneering work in decarbonized production with the supplier's manufacturing expertise to meet the rising market demand from premium original equipment manufacturers. The initiative represented a significant move towards eliminating carbon dioxide emissions from the automotive supply chain and fostering a greener industrial standard.
In January 2025, ArcelorMittal Nippon Steel India unveiled two advanced automotive steel production lines at its flagship facility in Hazira, Gujarat. The new Continuous Galvanising Line and Continuous Galvanising and Annealing Line were established to manufacture high-strength steel grades with tensile strengths up to 1180 MPa. This expansion aimed to reduce the nation's reliance on imported automotive steel and cater to the growing domestic demand for premium steel products. The Chief Executive Officer of the joint venture emphasized that these units would strengthen the local steel ecosystem and support the manufacturing of safer, lighter vehicles.
In October 2024, Thyssenkrupp Steel showcased its latest product innovations for the automotive industry at the International Suppliers Fair (IZB) in Wolfsburg. The company presented its CO2-reduced steel brand, bluemint, which was designed to support climate-neutral mobility, alongside powercore Traction, a high-performance electrical steel strip optimized for electric vehicle motors. These new offerings aimed to meet the sector's increasing demand for sustainable materials and efficient electrification solutions. The display underscored the steelmaker's dedication to supporting the automotive transition through advanced material technologies and reduced environmental impact.
In June 2024, ArcelorMittal announced a strategic collaboration with ZF, a global technology company supplying systems for passenger cars and commercial vehicles, to advance sustainability in the automotive sector. The partnership focused on decarbonizing the supply chain through the provision of XCarb recycled and renewably produced steel. This low-carbon material was intended for use in the manufacturing of various vehicle components, aiming to significantly reduce CO2 emissions compared to conventional steel production methods. The initiative highlighted the companies' shared commitment to environmental responsibility and marked a significant step towards achieving carbon neutrality in the wider automotive manufacturing ecosystem.

Key Market Players

ArcelorMittal SA
China Steel Corporation
JFE Steel Corporation
NIPPON STEEL CORPORATION
Nucor Corporation
Tata Steel Limited
United States Steel Corporation
Grow Ever Steel (India) Private Limited
Hyundai Steel Co., Ltd.
Steel Dynamics, Inc.

By Process	By Product	By Vehicle Type	By Region
Basic Oxygen Furnace Electric Arc Furnace	Low-strength Steel Conventional HSS Advanced High Strength Steel (AHSS) Others	Passenger Car Commercial Vehicle	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Automotive Steel Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Automotive Steel Market, By Process:

Basic Oxygen Furnace
Electric Arc Furnace

Automotive Steel Market, By Product:

Low-strength Steel
Conventional HSS
Advanced High Strength Steel (AHSS)
Others

Automotive Steel Market, By Vehicle Type:

Passenger Car
Commercial Vehicle

Automotive Steel Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Automotive Steel Market.

Available Customizations:

Global Automotive Steel Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Automotive Steel Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Automotive Steel Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Process (Basic Oxygen Furnace, Electric Arc Furnace)

5.2.2. By Product (Low-strength Steel, Conventional HSS, Advanced High Strength Steel (AHSS), Others)

5.2.3. By Vehicle Type (Passenger Car, Commercial Vehicle)

5.2.4. By Region

5.2.5. By Company (2025)

5.3. Market Map

6. North America Automotive Steel Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Process

6.2.2. By Product

6.2.3. By Vehicle Type

6.2.4. By Country

6.3. North America: Country Analysis

6.3.1. United States Automotive Steel Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Process

6.3.1.2.2. By Product

6.3.1.2.3. By Vehicle Type

6.3.2. Canada Automotive Steel Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Process

6.3.2.2.2. By Product

6.3.2.2.3. By Vehicle Type

6.3.3. Mexico Automotive Steel Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Process

6.3.3.2.2. By Product

6.3.3.2.3. By Vehicle Type

7. Europe Automotive Steel Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Process

7.2.2. By Product

7.2.3. By Vehicle Type

7.2.4. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Automotive Steel Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Process

7.3.1.2.2. By Product

7.3.1.2.3. By Vehicle Type

7.3.2. France Automotive Steel Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Process

7.3.2.2.2. By Product

7.3.2.2.3. By Vehicle Type

7.3.3. United Kingdom Automotive Steel Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Process

7.3.3.2.2. By Product

7.3.3.2.3. By Vehicle Type

7.3.4. Italy Automotive Steel Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Process

7.3.4.2.2. By Product

7.3.4.2.3. By Vehicle Type

7.3.5. Spain Automotive Steel Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Process

7.3.5.2.2. By Product

7.3.5.2.3. By Vehicle Type

8. Asia Pacific Automotive Steel Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Process

8.2.2. By Product

8.2.3. By Vehicle Type

8.2.4. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Automotive Steel Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Process

8.3.1.2.2. By Product

8.3.1.2.3. By Vehicle Type

8.3.2. India Automotive Steel Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Process

8.3.2.2.2. By Product

8.3.2.2.3. By Vehicle Type

8.3.3. Japan Automotive Steel Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Process

8.3.3.2.2. By Product

8.3.3.2.3. By Vehicle Type

8.3.4. South Korea Automotive Steel Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Process

8.3.4.2.2. By Product

8.3.4.2.3. By Vehicle Type

8.3.5. Australia Automotive Steel Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Process

8.3.5.2.2. By Product

8.3.5.2.3. By Vehicle Type

9. Middle East & Africa Automotive Steel Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Process

9.2.2. By Product

9.2.3. By Vehicle Type

9.2.4. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Automotive Steel Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Process

9.3.1.2.2. By Product

9.3.1.2.3. By Vehicle Type

9.3.2. UAE Automotive Steel Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Process

9.3.2.2.2. By Product

9.3.2.2.3. By Vehicle Type

9.3.3. South Africa Automotive Steel Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Process

9.3.3.2.2. By Product

9.3.3.2.3. By Vehicle Type

10. South America Automotive Steel Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Process

10.2.2. By Product

10.2.3. By Vehicle Type

10.2.4. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Automotive Steel Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Process

10.3.1.2.2. By Product

10.3.1.2.3. By Vehicle Type

10.3.2. Colombia Automotive Steel Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Process

10.3.2.2.2. By Product

10.3.2.2.3. By Vehicle Type

10.3.3. Argentina Automotive Steel Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Process

10.3.3.2.2. By Product

10.3.3.2.3. By Vehicle Type

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Automotive Steel Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. ArcelorMittal SA

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. China Steel Corporation

15.3. JFE Steel Corporation

15.4. NIPPON STEEL CORPORATION

15.5. Nucor Corporation

15.6. Tata Steel Limited

15.7. United States Steel Corporation

15.8. Grow Ever Steel (India) Private Limited

15.9. Hyundai Steel Co., Ltd.

15.10. Steel Dynamics, Inc.

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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