Market Size of Automotive AHSS Industry
| Study Period | 2019-2029 |
| Market Size (2024) | USD 24.79 Billion |
| Market Size (2029) | USD 39.73 Billion |
| CAGR (2024 - 2029) | 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 22.56 billion in 2023, and is expected to reach USD 36.15 billion by 2028, growing at a CAGR of 9.90% during the forecast period (2023-2028).
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 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.
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| Structural Assembly and Closures | |
| Bumpers | |
| Suspension | |
| Other Application Types |
| Vehicle Type | |
| Passenger Cars | |
| Commercial Vehicles |
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Automotive AHSS Market Size Summary
The automotive advanced high-strength steel (AHSS) market is poised for significant growth, driven by its ability to enhance vehicle safety, efficiency, and sustainability at a lower cost compared to traditional materials. AHSS is increasingly favored in the automotive industry due to its superior performance in reducing vehicle weight, which in turn improves fuel efficiency and reduces greenhouse gas emissions. The growing adoption of electric vehicles (EVs) further propels the demand for AHSS, as manufacturers seek to balance the high costs of alternatives like aluminum with the benefits of steel's strength and energy absorption capabilities. Major automotive players are integrating AHSS into their vehicles to meet stringent regulatory standards and consumer demand for more efficient and environmentally friendly vehicles.
Regionally, Europe is expected to dominate the AHSS market, with Germany leading due to its robust automotive sector and significant steel production capabilities. The presence of major automakers and steel producers in Germany supports the demand for AHSS, particularly as the country advances in electric vehicle adoption. The Asia-Pacific region also presents a lucrative market opportunity, driven by increased automotive production and investments in green technologies. Key industry players, including ArcelorMittal, ThyssenKrupp, and SSAB, are actively investing in AHSS to enhance their market positions. Strategic acquisitions and innovations in steel production technologies are expected to further bolster the market's growth trajectory over the forecast period.
Automotive AHSS Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Stringent Emission and Safety Regulations
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1.2 Market Restraints
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1.2.1 Disruptions in Supply Chain Can Hamper the Market
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Application Type
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2.1.1 Structural Assembly and Closures
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2.1.2 Bumpers
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2.1.3 Suspension
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2.1.4 Other Application Types
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2.2 Vehicle Type
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2.2.1 Passenger Cars
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2.2.2 Commercial Vehicles
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Rest of North America
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2.3.2 Europe
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2.3.2.1 Germany
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2.3.2.2 United Kingdom
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2.3.2.3 France
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2.3.2.4 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 India
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2.3.3.4 South Korea
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 Rest of the World
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2.3.4.1 South America
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2.3.4.2 Middle-East and Africa
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Automotive AHSS Market Size FAQs
How big is the Automotive AHSS Market?
The Automotive AHSS Market size is expected to reach USD 24.79 billion in 2024 and grow at a CAGR of 9.90% to reach USD 39.73 billion by 2029.
What is the current Automotive AHSS Market size?
In 2024, the Automotive AHSS Market size is expected to reach USD 24.79 billion.
