Global Automotive Stainless Steel Market Size, Trades, COVID-19 Impact & Growth By Stainless Steel Type (Austenitic, Ferritic, Martensitic, Duplex, and Precipitation-Hardening), By Application (Exhaust Systems, Structural Components, Fuel Tanks, Transmission Systems, and Other Applications), By Vehicle Type (Passenger Cars, Light Commercial Vehicles (LCV), Heavy Commercial Vehicles (HCV), and Electric Vehicles (EVs)), By Distribution Channel (OEMs and Aftermarket), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Automotive Stainless Steel Market size is expected to be worth around USD 206.5 Billion by 2032 from USD 142.2 Billion in 2022, growing at a CAGR of 3.90% during the forecast period from 2023 to 2032.

Stainless steel is an alloy composed of iron, with a certain percentage of chromium and other elements like nickel, molybdenum, and carbon. Stainless steel is the most popular material in various industries due to its corrosion resistance, strength, and aesthetic appearance. Stainless steel plays a vital role in the automotive industry.

The main feature of stainless steel that makes it attractive for automotive applications is its corrosion resistance. Stainless steel can withstand high temperatures, which is important for components like exhaust systems and turbochargers which makes it an ideal material in automotive manufacturing. Manufacturers are more inclined towards lightweight and 100% recyclable material, which propels the demand for stainless steel in the automotive industry.

Actual Numbers Might Vary in the Final Report

Driving Factors

Rising Demand for Lightweight Materials and Electric Vehicles

The global automotive industry is growing at a rapid pace, driven by the increasing disposable income of people in emerging economies and the growing demand for personal transportation. This growth in the automotive industry is leading to an increased demand for stainless steel.

Which is used in a variety of automotive components, such as exhaust systems, fuel tanks, and body panels. Manufacturers in the automotive industry are increasingly focusing on the use of lightweight materials to improve fuel efficiency and reduce emissions.

Stainless steel is a lightweight material that is strong and durable, making it an ideal choice for automotive applications. EVs use stainless steel in a variety of components, such as battery packs, motors, and power electronics.

Thus rising demand for electric vehicles propels the demand for automotive stainless steel. Also automotive industry is evolving rapidly with the emergence of new technologies to improve the performance and efficiency of the vehicles, which drives market growth.

Restraining Factors

Availability of Substitute Materials and Fluctuations in Raw Material Prices

Stainless steel is a relatively expensive material, and there are many substitute materials available in the market, such as aluminum, galvanized steel, carbon steel, and engineered plastic. These materials are often lighter than stainless steel, which makes them attractive to automotive manufacturers, which hinders market growth.

Stainless steel production depends on raw materials such as iron, nickel, chromium, and other alloying materials. Fluctuations in these raw materials have significant impacts on market growth. The global supply of stainless steel is limited, which can lead to shortages and price volatility, which also restrains the market growth.

Growth Opportunities

Rising Demand for Electric Vehicles Expected to Drive Market Growth

Stainless steel is a lightweight material that can help to improve fuel efficiency and reduce emissions. As governments across the globe increasingly focus on reducing the environmental impact of vehicles, the demand for stainless steel is expected to increase.

Stainless steel is used in a variety of automotive applications, including exhaust systems, fuel tanks, mufflers, and engine components. Stainless steel is used in the battery packs and motors of electric vehicles. It is estimated that in 2028, there will be 17.1 million EV unit sales worldwide.

Global sales of electric vehicles surged in 2022, reaching over 10 million. This represents a 55% increase from 2021, when 6.6 million EVs were sold. As of 2023, there are more than 26 million EVs on the world’s road, which is a 60% increase from 2021.

The electric vehicle market is expected to reach a revenue of US$ 906.7 billion by 2028, with a CAGR (2023-2028) of 10%. Thus rising demand for electric vehicles in the global market is expected to create lucrative growth opportunities in the global automotive stainless steel market.

Latest Trends

Emerging Markets and Advanced Manufacturing Drive the Evolution of Stainless Steel Use in the Automotive Sector

Stainless steel is being used in new and innovative applications in the automotive industry, such as in the bodyworks of self-driving cars. The automotive industry is expanding rapidly in emerging markets such as China and India. This propels the growth of the automotive stainless steel market, as these markets are demanding more vehicles and are increasingly using stainless steel in vehicles.

Automotive manufacturers globally are shifting towards more fuel-efficient vehicles and becoming more environmentally conscious. The adoption of advanced manufacturing methods, such as 3D printing and industry 4.0 strategies, is influencing the automotive stainless steel market.

Stainless Steel Type Analysis

Austenitic Stainless Steel Dominates the Global Automotive Stainless Steel Market

Based on the stainless steel type, the global automotive stainless steel market is classified into austenitic, ferritic, martensitic, duplex, and precipitation-hardening stainless steel. The austenitic stainless steel segment is dominant in the market, with the largest global market share of 65%, and is expected to remain dominant in the market during the forecast period.

Austenitic stainless steel is known for its high corrosion resistance, formability, and toughness. These properties make them ideal for a variety of applications in automotive such as exhaust systems, catalytic converters, fuel tanks, engine components, and body panels.

The demand for austenitic stainless steel is expected to grow in the forecast period due to the increasing demand for lightweight and durable materials in the automotive industry. Ferritic stainless steel is less expensive than austenitic stainless steel but is less corrosion-resistant.

They are widely used in engine blocks, gearboxes, and driveshafts. Martensitic, duplex, and precipitation-hardening stainless steel also have high demand in the automotive industry, which is expected to drive market growth in the projected period.

Application Analysis

Rising Demand in Exhaust Systems Drive Growth of Global Automotive Stainless Steel Market

Based on application the global automotive stainless steel market is classified into exhaust systems, structural components, fuel tanks, transmission systems, and other applications. Applications in the exhaust systems segment are the dominant segment in the market, accounting for the largest share of 42% in 2022. The growth of this segment is attributed to the increasing demand for lightweight and corrosion-resistant material in exhaust systems.

Stainless steel is an ideal material for exhaust as it is lightweight, strong, and durable. The other major application segments of the automotive stainless steel market are structural components, fuel tanks, and transmission systems.

Structural components such as suspension components, driveshafts, and steering components are increasingly made of stainless steel due to their high strength. Stainless steel plays an important role in fuel tanks due to its high ability of resistance to corrosion and ability to withstand high temperatures.

Vehicle Type Analysis

Passenger Cars Lead the Global Automotive Stainless Steel Market with Largest Market Share

Based on vehicle type global automotive stainless steel market is segmented into passenger cars, light commercial vehicles, heavy commercial vehicles, and electric vehicles. The passenger car segment is dominant in the market, accounting for the largest market share of 52% in 2022. Stainless steel is a light and corrosion-resistant material that can help to improve fuel efficiency and reduce emissions.

Stainless steel is used to create a sleek and stylish appearance for cars. Thus it is becoming more important as automakers compete for customers in the premium and luxury segments.

The passenger cars segment is expected to continue to grow in the forecast period due to rising demand for lightweight, corrosion-resistant, and aesthetically appealing materials. The LCV segment is the second largest segment driving the market growth due to rising demand in developing countries such as China and India.

The electric vehicles segment is also growing at the fastest CAGR due to the rising sale of EVs in developing countries. China is the leader in the electric vehicles market, with a revenue of US$ 292,100 million, due to the rising population in China.

Distribution Channel Analysis

OEMs Lead the Automotive Stainless Steel Market with a Dominant 70% Share in 2022

Based on distribution channels global automotive stainless steel market is segmented into OEMs and aftermarkets. The Original Equipment Manufacturers (OEMs) segment dominated the market with the largest market share of 70% in 2022.

Most of the stainless steel used in the automotive industry is used in original equipment manufacturer (OEM) parts. OEMs are the companies that design, manufacture, and sell vehicles. They use stainless steel in a variety of components in vehicles such as exhaust systems, fuel tanks, and structural components.

The aftermarket segment is the second dominating segment and is expected to grow at the fastest CAGR during the forecast period due to rising demand for stainless steel replacement parts. The aftermarket is made up of companies that sell parts and accessories for vehicles after they have been sold by the OEM. Stainless steel is used in a variety of replacement parts, such as exhaust systems, fuel tanks, and body panels.

Global Automotive Stainless Steel Market Segments Includes:

By Stainless Steel Type

• Austenitic
• Ferritic
• Martensitic
• Duplex
• Precipitation-Hardening

By Application

• Exhaust Systems
• Structural Components
• Fuel Tanks
• Transmission Systems

By Vehicle Type

• Passenger Cars
• Light Commercial Vehicles (LCV)
• Heavy Commercial Vehicles (HCV)
• Electric Vehicles (EVs)
• Other Applications

By Distribution Channel

• OEMs
• Aftermarket

Regional Analysis

Asia Pacific Dominates the Global Automotive Stainless Steel Market, propelled by Rising Vehicle Demand and EV Adoption

Asia Pacific is the largest market for automotive stainless steel, accounting for 50% of the global market. The growth of the region is propelled by increasing demand for passenger cars and commercial vehicles, as well as the rising popularity of electric vehicles. The Asia Pacific region accounts for 60% of the world’s population.

About 37.5 million passenger cars were sold in the Asia Pacific region; out of them, 23.6 million cars were sold in China alone. Asia Pacific is also leading the way in the adoption of electric vehicles due to government initiatives and the increasing awareness of the environmental benefits of electric vehicles. The Asia Pacific automotive stainless steel is expected to continue to grow at a rapid pace in the forecast period.

The North American market is expected to grow at a moderate pace in the coming years, driven by rising demand for pickup trucks and SUVs. The market is also emerging in Europe, Latin America, and Middle East & Africa due to rising demand for passenger and commercial vehicles.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Italy
  • Spain
  • Russia & CIS
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • United Arab Emirates
  • Rest of the Middle East & Africa

Market Share & Key Players Analysis

The global automotive stainless steel market is becoming more and more competitive due to the penetration of new key companies in the market. Several key players in the market are focusing on business strategies such as merging, acquisition, collaboration, and joint ventures to obtain a competitive edge in the market.

The Nippon Steel & Sumitomo Metal Corporation is the leading company in the global market and is constantly developing new products and applications for stainless steel. In addition, key players in the market are engaged in mergers and acquisitions. For instance, in 2021, Nippon Steel & Sumitomo Metal Corporation acquired Aperam SA, a leading producer of stainless steel.

Market Key Players:

• ThyssenKrupp AG
• ArcelorMittal
• POSCO
• Nippon Steel & Sumitomo Metal Corporation
• United States Steel Corporation
• Aperam
• Outokumpu
• Jindal Stainless
• Baosteel
• Tata Steel
• Stainless Steel Corporation of America
• Other Key Players

Recent Developments

• In June 2023, Outokumpu entered into a collaboration with Boysen Group and Thyssenkrupp Materials Processing Europe to introduce the first in the world towards zero stainless steel in the automotive sector.
• In July 2023, Nippon Steel Corporation announced 100 billion yen (about US$ 870 million) to expand its stainless steel production capacity in Japan.
• In August 2023, Aperam announced that it had started production of its new high-performance stainless steel grade, Aperam 17-4PH, at its plant in Brazil.

Report Scope: