Europe Automotive AHSS Market Size (2024 - 2029)

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).