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The Automotive AHSS Market has been segmented on the basis of Vehicle Type (Passenger Vehicles and Commercial Vehicles), Application Type (Structural Assembly and Closures, Bumpers, Suspension, and Other Application Types), and Geography.
The global automotive AHSS (advanced high-strength steel) market is expected to register a CAGR of around 10% during the forecast period, 2019-2024.
Automakers are continuously focusing and working on technologies that can reduce the overall weight of the vehicle, as a result of which, automakers have become very selective about the material that they use in the vehicle. According to the Steel Market Development Institute (SMDI), new grades of steel are bound to play a significant role in vehicles, in the future. The advanced high-strength steel (AHSS) significantly outperforms the competing materials, for current and future automotive applications.
The automakers are using AHSS for some of their models, as a part of their ongoing drive to build lighter vehicles that are more fuel-efficient, without compromising on safety. For example, Chevrolet, Kia, and Volkswagen are using AHSS in their cars. On an average, an AHSS chassis can be 15% lighter than conventional steel, although it costs up to 35% more to produce, than traditional automotive steel. Volkswagen has included AHSS in its seventh generation Golf, and it has reduced the Golf’s fuel consumption and CO2 emissions by around 23%.
The global automotive AHSS market has been segmented on the basis of vehicle type, application type, and geography.
|By Application Type|
|Structural Assembly and Closures|
|Other Application Types|
|By Vehicle Type|
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According to the Steel Recycling Institute (SRI), a recent study analyzed the importance of material production emissions in a vehicle’s lifetime environmental impact. According to that study, the AHSS-intensive vehicles had lower life cycle emissions than aluminum-intensive vehicles, for every class of vehicles tested, such as sedans, trucks, SUVs, and alternative power train vehicles.
New grades of AHSS enable automakers to reduce vehicle weight by 25%-39%, as compared to conventional steel. The AHSS system reduces the overall weight of the vehicle by 170 kg to 270 kg, which corresponds to a lifetime saving of 3 to 4.5 metric ton of greenhouse gases, over the vehicle’s total life cycle. This saving in emissions represents more than the total amount of CO2 emitted during the production of all the steel in the vehicle.
Due to the growing environmental concerns, caused by the rising exhaust emissions, countries across the world have been significantly focusing on tackling vehicle emissions. For instance, the United States is one of the major countries where the government, with the help of both departments, namely, the Environmental Protection Agency (EPA) and the National Highway Traffic Safety Administration (NHTSA), has implemented vehicle emission standards.
Over the period of 2012-2016, automakers were successful in meeting the emission standards set under the EPA’s Green House Gases (GHG) program, in the US automotive industry. However, after 2016, a few vehicle models exceeded the limit of the emission level, as fuel consumption increased with the growing, advanced technology in the vehicles, since the number of components in the vehicles increased with the adoption of new technologies that lacked optimum energy consumption features.
Thus, the manufacturers across the world have geared up again, to limit their current GHG emission levels, by optimizing their vehicle designs through materials, such as AHSS.
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Europe is anticipated to dominate the AHSS market till 2024. 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, post the recession period, across the region, will further support the regional growth. Within the European region, Germany is one of the prominent markets for AHSS in automobiles. The country is the largest steel producer in the EU28, having registered an annual production of approximately 42.4 million metric ton of crude steel in 2018. Germany is one of the fastest growing European countries, even in the electric vehicles market. According to IEA, in 2017, Germany had registered nearly 54.56 thousand units of electric vehicle (EV) sales (including battery electric vehicle (BEV) and plug-in-hybrid vehicles (PHEV)), with an increase of 121% from its 2016 EV sales. Future applications of AHHS in these electric vehicles is also expected to drive the market.
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The major companies in the carbon fiber market include Arcelor Mittal SA, ThyssenKrupp AG, SSAB AB, Kobe Steel Ltd, and AK Steel Holding Corporation. Most of the steel companies are now investing heavily in AHSS. For instance, ArcelorMittal SA is developing a third-generation, advanced high-strength steel, known as HF1050; HF stands for highly formable. Its versatility factor comes with weight savings of between 10% and 20%, in the vehicle parts.
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Application Type
5.1.1 Structural Assembly and Closures
5.1.4 Other Application Types
5.2 By Vehicle Type
5.2.1 Passenger Vehicles
5.2.2 Commercial Vehicles
5.3.1 North America
188.8.131.52 United States
184.108.40.206 Rest of North America
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
22.214.171.124 Rest of Asia-Pacific
5.3.4 South America
126.96.36.199 Rest of South America
5.3.5 Middle East & Africa
188.8.131.52 United Arab Emirates
184.108.40.206 South Africa
220.127.116.11 Rest of Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share**
6.2 Company Profiles
6.2.1 Arcelor Mittal SA
6.2.2 ThyssenKrupp AG
6.2.4 Tata Steel Limited
6.2.5 SSAB AB
6.2.6 United Steel Corporation
6.2.7 AK Steel Holding Corporation
6.2.8 Kobe Steel Ltd
6.2.9 Baoshan Iron & Steel Co. Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject to Availability