Automotive & Aerospace Steel Market Analysis

Automotive & Aerospace Steel Market Analysis

Cold-rolled sheets and coils segment is probable to grow with the CAGR of 4% at the end of 2027 owing to rising government regulations to reduce carbon dioxide emissions by weight reduction and enhancing crash worthiness by improving car body strength should support the product demand over the forecasted period. It is because cold-rolled steel sheets offer excellent formability, reduce vehicle weight and offer high strength. Also growing awareness toward environment protection led to support the steel market demand for automotive & aerospace applications.

Also, cold-rolled sheets and coils products offer consistent mechanical properties, absolute flatness and provide superior strength which is required in a wide array of auto applications. Cold rolled steel sheets can be potentially strengthened up to 20% through cold rolling which thereby increases the product resistance against crack or split within the environments. These products enable better control over finished product shape, thickness, dimensions and surface finish which are the key attributes driving the product demand from the industry.

In addition, cold rolled steel sheets in automotive and aerospace applications are used in areas that require a superior aesthetic appeal, high thickness tolerances and close dimensional tolerances which are the key driving factors for steek market expansion.

Galvanized steel sheets segment is likely to grow above USD 5.15 billion by the end of 2027 owing to its significant use in the production of automotive body parts as these sheets provide unique chemical resistance as they are chemically treated steel sheets. These products provide high formability, superior surface quality and dimensional accuracy which are the key driving factors for steel market growth.
 

Galvanised steel sheets offer high cost affordability as these products are less labour-intensive which thereby makes them a suitable option in comparison to other alloys and metals. Galvanised sheets offer a thick coating which helps the finished steel sheet to provide better protection against corrosion. In addition, growing car use and increasing awareness of the health risks of driving rusty cars should further propel the product demand in the market and steel market for automotive & aerospace applications.
 

Galvanized steel sheets help in improving durability, strength and formability of steel which in turn provides superior corrosion resistance. Conventional galvanization process involves a coating of zinc is applied to steel to offer protection and prevent rusting. As zinc products provide high economic feasibility in comparison to other treated steels, provide high protection and acts as a protective buffer between the steel and any moisture or oxygen. Furthermore, the process is an environment-friendly finishing process produces which contributes to sustainable development and minimal waste which attributes towards growth of steel market for automotive & aerospace applications.
 

Automotive segment is likely to exceed USD 165 billion at the end of 2027 owing to rapidly growing automotive production which increases the demand for steel as an important part of automotive. Growing government initiatives to curb carbon emissions has boosted the demand for sustainable solutions for the automotive industry which shows lucrative opportunities for the market growth. Significant growth in automotive sales has further increased the demand for lightweight materials which offer exceptional fuel efficiency which shall further escalate the growth of steel market for automotive & aerospace applications.
 

Steel offers lower carbon emissions in comparison to other automotive materials, can be recycled and offers high-cost affordability in comparison to other materials which are the key attributes driving product demand globally. In accordance with the International Energy Agency, the global transportation industry contributes about 25% to the total carbon emissions. Growing awareness towards the superior benefits of steel in providing sustainable development further shows favorable circumstances for the product demand from the steel industry.

North America product business should exceed USD 22.30 billion by 2027 owing to rapid expansion of aerospace and defense sector. Significant technological advancements in the production of defense aircraft and the expansion of the commercial aviation sector should accelerate North America steel market for automotive & aerospace applications. Growing demand for lightweight and fuel-efficient aircrafts, owing to shifting consumers towards air travel is likely to have a positive impact on the North America regional growth.
 

In addition, the U.S. aerospace & defense industry supports technologically advanced aircraft & defense systems which further shows significant opportunities for product in the aerospace industry. Presence of huge aircraft manufacturing base in the region has further enabled the production of high-performance aircrafts which provide minimal environmental degradation.
 

Steel products offer superior corrosion resistance and are able to withstand atmospheric elevations which are the key factors driving product demand from the industry and attribute towards steel market for automotive & aerospace applications.