| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 27.24 Billion |
| Market Size (2030) | USD 43.68 Billion |
| CAGR (2025 - 2030) | 9.90 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Europe |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Automotive AHSS Market Analysis
The Automotive AHSS Market size is estimated at USD 27.24 billion in 2025, and is expected to reach USD 43.68 billion by 2030, at a CAGR of 9.9% during the forecast period (2025-2030).
Advanced high-strength steels (AHSS) help to enhance vehicle safety, efficiency, emissions, manufacturability, durability, and quality at a low cost, which is likely to increase the demand for AHSS. According to the Steel Market Development Institute (SMDI), new grades of steel are bound to play significant roles in vehicles. Advanced high-strength steel significantly outperforms the competing materials for current and future automotive applications.
On average, 900 kg of steel is used per vehicle (up to around 70% of an average automobile’s weight). Of these, 40% is used in the body structure, panels, doors, and trunk closures for high-strength and energy absorption in case of a crash, 23% is in the drive train, 12% is in the suspension, and the rest is used in the wheels, tires, fuel tank, steering, and braking systems.
Compared to standard steel, AHSS enables to reduce vehicle weight by 23-35%, which is around 165-250 kg, for a regular passenger car, saving 3-4.5 tons of greenhouse gases over the vehicle’s total life cycle. This saving in emissions is much more substantial than the CO2 emitted during the complete production of steel needed in a car.
Automotive AHSS Market Trends
Growing Demand for Passenger Cars to Propel the Market Growth
The growing awareness about the benefits offered by AHSS and the rising passenger car fleet are expected to act as primary driving factors for market growth. Furthermore, the growing electric vehicle sales are also pushing the demand for AHSS market growth.
Electric mobility is swiftly growing globally, owing to the fact that transportation companies are also converting their existing fleets into electric propulsion-based vehicles. OEM is redefining its roadmap for electric vehicles. For instance,
In February 2023, General Motors (GM) is coming up with a new EV strategy to push its sales. GM expects to push past the competition with plans to launch seven Ultium-based Evs. Furthermore, the company is focusing on retooling its supply chain for the Bolt EV and EUV in the near future.
Due to the high cost of aluminum as compared to steel, the price of electric vehicles is becoming higher. Therefore, advanced high-strength steels are being used as alternatives due to their stiffness, strength, and ability to absorb energy in the event of a crash. As AHSS has such a high strength, the thickness of the parts can be reduced, helping to bring down the weight. Major vehicle manufacturers use AHSS over conventional steel, which reduces the weight by 25-39%. Such a reduction in vehicle weight helps enhance vehicle fuel efficiency.
Many automobile manufacturing companies are likely to monetize the outpouring of opportunities by gradually including sustainable mobility vehicles in their portfolio. For instance,
In March 2022, Ford Motors announced that it would include three all-electric passenger vehicles in Europe by the end of 2024 and set a target to sell more than 600,000 electric vehicles annually by 2026 in Europe.
In January 2022, General Motors announced that it was considering investing more than USD 4 billion in two Michigan factories to increase its electric car manufacturing capacity.
Governments globally have been proactive in enacting policies to encourage the adoption of electric vehicles. China, India, France, and the United Kingdom have announced plans to completely phase out the petrol and diesel vehicles industry before 2040. By 2040, nearly 54% of the new car sales and 33% of the global car fleets are expected to be electric. Out of it, more than 50% will be battery-electric.
Understand The Key Trends Shaping This Market
Download PDF
Europe is Expected to Dominate the Market
Europe is projected to dominate the automotive advanced high-strength steel market during the forecast period. Within Europe, Germany is one of the prominent markets for AHSS in automobiles. As one of the largest automotive markets in the world, Germany plays a crucial role in ensuring vehicle safety, performance, and environmental sustainability. Germany's automotive sector is home to some of the world's most renowned automakers like Volkswagen, BMW, and Mercedes-Benz. This naturally translates into a substantial demand for high-strength steel.
The country is the largest steel producer in the EU28, with an annual production of approximately 38.64 billion metric tons of crude steel in 2022. Germany is one of the fastest-growing European countries, even in the electric vehicles market.
According to IEA, in 2022, Germany registered nearly 8.3 million units of electric vehicle (BEV) sales (including battery electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs)). Future applications of advanced high-strength steel in these electric vehicles are also anticipated to propel the market.
Additionally, due to the existence of major companies like ThyssenKrupp AG, SSAB Group, and Lech-Stahlwerke GmbH, this region is expected to rise towards high growth and high-value segments in the coming years. Additionally, carmakers such as Daimler, Volkswagen, Volvo, Opel, and Toyota are working together to produce more efficient vehicles. Their goal is to reduce energy consumption by 10% and global warming potential (GWP) by 6% by reducing the vehicle’s weight by 31-33% while maintaining the cost. These developments are expected to help the market grow.
Asia-Pacific will remain an extremely attractive market over the forecast period due to the rising automotive production along with green field investments around the region. Following Europe, Asia-Pacific also dominates the significant market share in terms of revenue during the forecast period. An enactment of stringent regulations regarding vehicle fuel efficiency and vehicle safety across the world is likely to boost the market.
Get Analysis on Important Geographic Markets
Download PDF
Automotive AHSS Industry Overview
The major companies in the automotive Advanced High-Strength Steel (AHSS) market include ArcelorMittal SA, ThyssenKrupp AG, SSAB AB, Kobe Steel Ltd, Tata Steel, and Cleveland-Cliffs Inc. Most of the steel companies are now investing heavily in advanced high-strength steel (AHSS). For instance, in November 2023, Klöckner & Co. announced the acquisition of Industrial Manufacturing Services (IMS) through its subsidiary Kloeckner Metals Corporation. As a result, KMC will significantly strengthen its position within the market and further differentiate its offering from competitors.
Automotive AHSS Market Leaders
-
ArcelorMittal SA
-
Tata Steel
-
ThyssenKrupp AG
-
SSAB AB
-
Cleveland-Cliffs Inc.
- *Disclaimer: Major Players sorted in no particular order
Need More Details on Market Players and Competiters?
Download PDF
Automotive AHSS Market News
- Aug 2023: Klöckner & Co. announced the acquisition of National Material of Mexico, a leading independent service center and materials supplier serving automotive and industrial end markets in North America with ten facilities throughout Mexico.
- Jan 2022: SSAB planned a new Nordic production system to bring forward the green transition. The investment will result in a broader offering of SSAB’s premium products, advanced high-strength steel (AHSS), and quenched and tempered steel (Q&T).
- Sept 2021: ArcelorMittal introduced a third generation of advanced high-strength steels (AHSS) specifically developed for OEMs. The company utilizes cold stamping and forming technologies for the development of third-generation AHSS.
Automotive AHSS Industry Segmentation
Advanced high strength steel or AHSS in automotive refers to a category of steel alloys designed to exhibit enhanced strength, durability, and formability. These steels are developed to meet stringent safety and fuel standards in modern vehicles and have a minimum tensile strength of 440 MPa.
The Automotive AHSS market is segmented by Vehicle Type, Application Type, and Geography. By Vehicle Type, the market is segmented into Passenger Cars and Commercial Vehicles. By Application Type, the market is segmented into Structural Assembly and Closures, Bumpers, Suspension, and Other Application Types. By Geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.
| Application Type | Structural Assembly and Closures | ||
| Bumpers | |||
| Suspension | |||
| Other Application Types | |||
| Vehicle Type | Passenger Cars | ||
| Commercial Vehicles | |||
| Geography | North America | United States | |
| Canada | |||
| Rest of North America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| South Korea | |||
| Rest of Asia-Pacific | |||
| Rest of the World | South America | ||
| Middle-East and Africa | |||
Need A Different Region or Segment?
Customize Now
Automotive AHSS Market Research Faqs
How big is the Automotive AHSS Market?
The Automotive AHSS Market size is expected to reach USD 27.24 billion in 2025 and grow at a CAGR of 9.90% to reach USD 43.68 billion by 2030.
What is the current Automotive AHSS Market size?
In 2025, the Automotive AHSS Market size is expected to reach USD 27.24 billion.
Who are the key players in Automotive AHSS Market?
ArcelorMittal SA, Tata Steel, ThyssenKrupp AG, SSAB AB and Cleveland-Cliffs Inc. are the major companies operating in the Automotive AHSS Market.
Which is the fastest growing region in Automotive AHSS Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Automotive AHSS Market?
In 2025, the Europe accounts for the largest market share in Automotive AHSS Market.
What years does this Automotive AHSS Market cover, and what was the market size in 2024?
In 2024, the Automotive AHSS Market size was estimated at USD 24.54 billion. The report covers the Automotive AHSS Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Automotive AHSS Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Our Best Selling Reports
Automotive AHSS Industry Report
Statistics for the 2025 Automotive AHSS market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Automotive AHSS analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
