Automotive Stainless Steel Market Size - By Vehicle Type (Passenger Cars, Commercial Vehicles), , By Manufacturing Method (Seamless Tubes, Welded Tubes), Application, Tube Type, Outer Diameter, End Use & Global Forecast, 2023 – 2032

Automotive Stainless Steel Market Size

Automotive Stainless Steel Market size was valued at USD 120 billion in 2022 and is estimated to witness 3.1% CAGR from 2023 to 2032. The lightweight, strong & durable nature of stainless steel makes it an excellent alternative to traditional automotive materials such as cast iron & carbon steel. The rising uses of stainless steel in various automotive components can be attributed to the growing focus of the automotive industry on lowering vehicle weight to improve fuel efficiency and reduce emissions.
 

Stainless steel exhibits excellent corrosion resistance properties, making it highly suitable for automotive applications in harsh environmental conditions. The automotive industry requires corrosion-resistant materials to ensure the longevity & reliability of critical components such as exhaust systems, fuel tanks, and body panels.
 

Stainless steel has an attractive appearance and is highly valued for its design versatility. It offers a range of surface finishes & textures, which enables automotive designers to create visually-appealing and distinctive exterior & interior components. The emphasis of the automotive market on aesthetics & customization options is augmenting the demand for stainless steel.
 

Stainless steel is expensive compared to the other materials that are commonly used in the automotive industry such as carbon steel or aluminum. Cost competitiveness is a major challenge faced by stainless steel manufacturers & suppliers, especially when automakers are seeking cost-effective solutions to meet the automotive stainless steel market demand. The automotive industry continuously explores alternate materials that can meet the necessary performance requirements while offering cost-saving options.
 

This factor poses a challenge for stainless steel manufacturers, pushing them to offer unique benefits & value propositions in their products compared to other materials to retain their market share. The global automotive stainless steel market relies on a complex supply chain that includes raw material suppliers, steel mills, and distributors. The risks associated with automotive stainless-steel instruments may diminish the acceptance rate of the product, further hampering business growth.
 

COVID-19 Impact

The COVID-19 pandemic led to lockdowns, travel restrictions, and the temporary closure of manufacturing facilities, thereby triggering supply chain disruptions in the automotive stainless steel market. The reduced availability of raw materials, logistics challenges, and the availability of a limited workforce affected the production & distribution of stainless-steel products. The pandemic forced many manufacturing facilities to temporarily suspend operations or function at reduced capacities, thereby initiating a sharp decline in global automotive production. This decline directly impacted the demand for stainless-steel components & parts used in vehicles, resulting in reduced market demand.
 

Economic uncertainties and financial constraints due to the COVID-19 pandemic led to a decline in consumer demand for automobiles. The reduction in COVID-19 cases as well as the implementation of subsequent strategies by government & non-government organizations is estimated to drive the market growth.
 

Automotive Stainless Steel Market Trends

The growing popularity of electric vehicles is driving the demand for stainless steel in the automotive sector. Stainless steel is used in battery components, such as casings and connectors, as well as in charging infrastructure. Thus, the growing demand for stainless steel can be attributed to the rising adoption of EVs. Technological advancements are enabling the production of highly precise, efficient & complex stainless-steel components. Advanced manufacturing techniques, such as laser cutting, 3D printing, and robotics, are improving production processes and reducing costs. These advancements are estimated to fuel the adoption of stainless steel in the automotive industry.
 

The expanding aftermarket for automotive stainless-steel components can be attributed to the rise in vehicle customization & modification activities. Consumers are looking for stainless-steel accessories, such as grilles, exhaust tips, and interior trims, to personalize their vehicles. This trend is driving the demand for stainless steel in the automotive aftermarket.
 

Automotive Stainless Steel Market Analysis

The automotive stainless steel market from commercial vehicles segment held over USD 98 billion revenue in 2022. There is a specific demand for stainless steel for use in commercial vehicles including trucks, buses, and vans. The demand for stainless steel in commercial vehicles can be attributed to its various characteristics such as strength, durability, and resistance to corrosion.
 

Stainless steel has a high tensile strength and is resistant to harsh environmental conditions owing to which they are highly used in components such as exhaust systems, chassis, frames, and fuel tanks. Vehicle aesthetics is one of the key demand drivers for stainless steel in passenger cars. Stainless steel is often used in exterior trims, decorative elements, and exhaust systems to improve the visual appeal of passenger cars.
 

The exhaust systems segment accounted for 40% of the automotive stainless steel market share in 2022. Stainless steel is extensively used in automotive exhaust systems due to its outstanding resistance to heat & corrosion. The need for durability, performance, and compliance with emission regulations will drive the demand for stainless steel in exhaust systems. Stainless steel assists in diminishing the weight of exhaust systems while retaining its strength & resistance to high temperatures and corrosive gases.
 

The automotive stainless steel market from seamless tubes segment is poised to register a CAGR of 5.6% through 2032. Automotive applications require seamless stainless-steel tubes that offer high strength & durability. Seamless tubes are popular due to their advanced mechanical properties such as higher tensile strength, resistance to impact & vibration, and exceptional fatigue resistance. These properties make them appropriate for use in difficult automotive applications including exhaust systems, structural components, and hydraulic systems.
 

The automotive stainless steel market from straight tubes segment will gain remarkable momentum during the forecast timeline. Straight stainless-steel tubes are generally used in various structural applications in automobiles such as chassis components, roll bars, and frame reinforcements. These tubes offer the required strength, rigidity, and load-bearing capacity to support the structural integrity of vehicles. In automotive exhaust systems, straight tubes are utilized to transport & direct exhaust gases from the engine to the tailpipe. Stainless-steel straight tubes are favored in exhaust systems due to their resistance to high temperatures & corrosion and the ability to withstand tough operating conditions.
 

The automotive stainless steel market from less than 4mm segment is set to show tremendous growth in the coming years. The automotive industry is always concentrating on the reduction of component size & weight to improve space utilization and enhance the overall vehicle performance. The stainless-steel tubes with smaller outer diameters are ideal in functions with space constraints such as sensor systems, electronic modules, or small engine components.
 

The OEM segment held a dominant automotive stainless steel market share in 2022. Aesthetics, durability, and the need for lightweight materials are a few factors encouraging OEMs to demand vehicle designs that include the use of stainless steel in certain components. OEMs must adhere to various regulatory standards related to vehicle safety, emissions, and fuel efficiency. Stainless steel is often used in components, such as exhaust systems, catalytic converters, and fuel tanks, that meet the requirements of these standards.
 

The U.S. automotive stainless steel market was reached USD 102 billion revenue in 2022. The overall increase in vehicle production in North America is a significant factor driving the demand for automotive stainless steel in the region. As the automotive industry expands, the demand for stainless steel in various applications, increases. North America has stringent regulations on vehicle emissions and fuel efficiency such as the Corporate Average Fuel Economy (CAFE) standards. Stainless steel is used in exhaust systems, catalytic converters, and other emissions-related components to meet these regulations. The need to comply with such standards is propelling the demand for automotive stainless steel.
 

Automotive Stainless Steel Market Share

Major companies in the automotive stainless steel market are :

• Outokumpu Oyj
• thyssenkrupp AG
• AK Steel Holding Corporation
• Nippon Steel Corporation
• JFE Steel Corporation
• POSCO,
• Acerinox S.A.
• Sandvik AB
• Aperam S.A
•  Ta Chen International, Inc.

These companies concentrate on strategic partnerships, new product launches, and commercialization efforts for market expansion. They are also making heavy investments in research to launch advanced products and gain the maximum market revenue.
 

Automotive Stainless Steel Industry Leaders

• In May 2022, Jindal Stainless became an Alstom supplier for the development of technologically innovative and cutting-edge trainsets for the Regional Rapid Transit System. Alstom will receive about 2 kilotons of 301LN stainless steel grade in 2J finish from Jindal Stainless for the development of 210 trainsets under this project. This steel is being used to create a variety of components, including sidewall skins, brackets, end walls, solebars, contrails, roofs, and under-frames.
   
• In July 2022, Outokumpu agreed to sell the majority of the Long Products business activities to Marcegaglia Steel organization, a global industrial organization specializing in steel processing. Outokumpu will now concentrate its efforts on its core business of flat stainless steel goods. Long Products' melting, rod and bar operations in Sheffield, UK; bar operations in Richburg, US; and wire rod mill in Fagersta, Sweden are included in the purchase. Outokumpu Long Products AB operations in Degerfors and Storfors, Sweden, are not included in the purchase.
   
• VINCO introduced a new line of steel wires and slings in February 2021. These goods are commonly utilized in the lift, industrial and automotives. This launch will assist the organization in meeting the consumer demands for these applications.
   

The automotive stainless steel market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) & volume (Kilo Tons) from 2018 to 2032, for the following segments:

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Market, By Vehicle Type

• Passenger cars
• Commercial vehicles

Market, By Application

• Exhaust systems
• Fuel & brake lines
• Heat exchangers
• Structural components
• Others

Market, By Manufacturing Method

• Seamless tubes
• Welded tubes

Market, By Tube Type

• Straight tubes
• U-bends
• Coiled tubes

Market, By Outer Diameter

• Less than 4mm
• 4mm - 12mm
• Above 12 mm

Market, By End Use

• OEMs
• Aftermarket

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Russia
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Indonesia
  • Malaysia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE