Market Size of Europe Automotive AHSS Industry
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Study Period | 2019-2029 |
Market Size (2024) | USD 4.81 Billion |
Market Size (2029) | USD 7.33 Billion |
CAGR (2024 - 2029) | 8.80 % |
Fastest Growing Market | Europe |
Largest Market | Europe |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
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Europe Automotive AHSS Market Analysis
The Europe Automotive AHSS Market size is estimated at USD 4.81 billion in 2024, and is expected to reach USD 7.33 billion by 2029, growing at a CAGR of 8.80% during the forecast period (2024-2029).
Over the long term, the demand for reducing the weight to enhance vehicle performance and safety is growing in Europe which may drive the AHSS market. As a result, Advanced High Strength Steel (AHSS), a crucial material for vehicle mass reduction, is the fastest-growing material in today’s automotive industry.
Europe is the world's largest producer of crude steel, and it is expected that Europe will dominate the AHSS industry through 2025. The high-revenue market value can be attributed to the presence of major automobile manufacturers and OEMs in the region. Recovery of the automobile sector during the recession period, across the region, may further support regional growth.
Steel makes up around 70 % of an average automobile’s weight. Compared to standard steel, AHSS enables to reduce vehicle weight by 23-35% which is around 165 to 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.
Further, Within Europe, Germany is one of the prominent markets for AHSS in automobiles. The country is the largest steel producer in the EU28, with an annual production of approximately 42.4 million metric tons of crude steel, which in turn is likely to create a lucrative opportunity for the market during the forecast period.
Europe Automotive AHSS Industry Segmentation
Advanced high-strength steel or AHSS has been counted as a major ingredient for the development and innovation of several technical consumer goods to provide to growing customer demands. The automotive sector is one such sector that has effortlessly approved advanced steel as necessary to enhance the efficiency of its production and satisfy consumer needs.
The Europe Automotive AHSS Market is segmented by application type, vehicle type, propulsion, and country. By application type, the market is segmented into engine parts, transmission components, structural parts, and others. By vehicle type, the market is segmented into passenger cars and commercial vehicles. By propulsion, the market is segmented into internal combustion engines, battery electric vehicles, plug-in hybrid electric vehicles, hybrid electric vehicles, and fuel cell electric vehicles. By country, the market is segmented into Germany, the United Kingdom, France, Italy, Spain, and the Rest of Europe.
For each segment, the market sizing and forecast have been done based on the value (USD).
By Vehicle Type | |
Passenger Cars | |
Commercial Vehicles |
By Application Type | |
Engine Parts | |
Transmission Components | |
Structural Parts | |
Others |
By Propulsion | |
Internal Combustion Engine | |
Battery Electric Vehicles | |
Plug-in Hybrid Electric Vehicles | |
Hybrid Electric Vehicles | |
Fuel Cell Electric Vehicles |
By Country | |
Germany | |
United Kingdom | |
France | |
Italy | |
Spain | |
Rest of Europe |
Europe Automotive AHSS Market Size Summary
The Europe Automotive AHSS Market is poised for significant growth, driven by the increasing demand for lightweight materials to enhance vehicle performance and safety. Advanced High Strength Steel (AHSS) is becoming a pivotal material in the automotive sector, offering substantial weight reduction compared to standard steel, which contributes to lower greenhouse gas emissions over the vehicle's lifecycle. The region's dominance in crude steel production and the presence of major automobile manufacturers and OEMs further bolster the market's expansion. Germany, as a key player, is witnessing a surge in vehicle production and electric vehicle registrations, supported by government incentives and policies promoting zero-emission vehicles. This trend is expected to enhance the consumption of steel components, thereby driving the AHSS market forward.
The market landscape is characterized by strategic collaborations and innovations among leading players such as ThyssenKrupp AG, ArcelorMittal SA, and SSAB AB, who are actively developing advanced steel solutions for electric mobility applications. These initiatives include the introduction of new AHSS grades and collaborations aimed at creating lightweight, sustainable, and safe steel solutions for e-mobility. The focus on technological advancements and regulatory support for low-carbon economies is anticipated to propel the market's growth during the forecast period. As the automotive industry in Europe adapts to changing consumer preferences and regulatory frameworks, the demand for AHSS is expected to rise, offering lucrative opportunities for market participants.
Europe 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 Continuous Advancements in Automotive AHSS technology
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1.2 Market Restraints
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1.2.1 Availability of Lightweight Alternative Options to Steel
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1.3 Porters Five Force 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 (Market Size in Value- USD)
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2.1 By Vehicle Type
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2.1.1 Passenger Cars
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2.1.2 Commercial Vehicles
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2.2 By Application Type
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2.2.1 Engine Parts
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2.2.2 Transmission Components
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2.2.3 Structural Parts
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2.2.4 Others
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2.3 By Propulsion
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2.3.1 Internal Combustion Engine
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2.3.2 Battery Electric Vehicles
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2.3.3 Plug-in Hybrid Electric Vehicles
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2.3.4 Hybrid Electric Vehicles
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2.3.5 Fuel Cell Electric Vehicles
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2.4 By Country
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2.4.1 Germany
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2.4.2 United Kingdom
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2.4.3 France
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2.4.4 Italy
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2.4.5 Spain
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2.4.6 Rest of Europe
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Europe Automotive AHSS Market Size FAQs
How big is the Europe Automotive AHSS Market?
The Europe Automotive AHSS Market size is expected to reach USD 4.81 billion in 2024 and grow at a CAGR of 8.80% to reach USD 7.33 billion by 2029.
What is the current Europe Automotive AHSS Market size?
In 2024, the Europe Automotive AHSS Market size is expected to reach USD 4.81 billion.