The global automotive steel market has made significant strides recently and may continue to witness an upward trend in the forthcoming years as well. The industry expansion is primarily backed by the flourishing outlook of the automotive sector. The considerable rise in concerns about reducing CO2 and GHG emissions has significantly propelled the demand and sales of electronic vehicles globally. 

According to the latest Global Electric Vehicle Outlook, sales of electric cars comprising fully electric and plug-in hybrids increased two folds in 2021 to set a new record of 6.6 million. These concerns, accompanied by the strict regulations about climate change and global warming, have further prompted automakers to reduce the weight of auto vehicles in order to keep a check on emissions.

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This, in turn, has led to several intelligent innovations like Advanced High-Strength Steel (AHSS) and High Steel, which are likely to stimulate product demand in the forthcoming years. A recent Global Market Insights Inc. analysis suggests that the automotive steel market size may surpass USD 161 billion by 2030.

Listed ahead are some noteworthy trends outlining the market expansion throughout the forecast period.

Increasing demand for Passenger Commercial Vehicles (PCVs)

The growing desire to opt for personal mobility has augmented the demand for PCVs. As per July 2022 SIAM (Society of Indian Automobile Manufacturers) estimates, the country registered sales of 275,788 passenger vehicles in June 2022, which is 19% higher than the 231,633 sales witnessed in the corresponding period in 2021. 

The SIAM estimates are exclusive of the sales by Tata Motors, which accounted for 45,197 passenger vehicle sales in June 2022. These statistics point toward a visible surge in PCV sales. In consequence, this may significantly push vehicle production further, strengthening the automotive steel industry outlook.

North America to emerge as a prominent region for the industry

The demand for automotive steel across North America is primarily driven by the rising sales of autonomous, hybrid, and electric vehicles. According to the U.S. Department of Energy, new light-duty plug-in electric vehicle sales, including plug-in hybrid electric vehicles (PHEVs) and all-electric vehicles (EVs), increased two folds to 608,000 in 2021 from 308,000 in 2020.

EV sales held about 73% of the PEV (plug-in electric vehicle) sales in 2021, growing by almost 85% from 2020 to 2021. The governments across economies like the U.S. and Canada have been making significant investments to ramp up EV sales due to increasing focus on reducing the environmental impact. These investments will create new growth prospects for the North America automotive steel industry in the foreseeable future. 

 Portfolio expansion to push the market growth trajectory

In June 2022, ArcelorMittal and Nippon Steel announced a joint venture intended to spend around $1.1 billion to construct advanced steel processing lines in India. These steel processing lines will have the potential to expand capacity further to tap the increasing demand for steel in the country.

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The new infrastructure is likely to be installed at AM/NS, Hazira plant, India, a consolidated steelworks in the western state of Gujarat. The steel produced in the facility would be utilized by local automakers to streamline their production process. The adoption of similar expansion tactics will increase the automotive steel market share.

Governments across several economies have been stressing on enhancing the safety aspects of automobiles. Such regulations have boosted the utilization of steel across the automotive sector due to its hardness, strength, and superior strength-to-weight ratio. The presence of a supportive regulatory framework and rising EV sales will help transform the automotive steel industry dynamics during the analysis timeframe.

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