Global Automotive Stainless Steel Tube Market - 2022-2029
Market Overview
The global automotive stainless steel tube market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).
Stainless steel tubes are widely used within the automotive industry for various applications. Stainless steel has several major advantages, including high tensile strength, corrosion resistance and low cost. Automotive stainless steel tubes are used in the manufacturing of vehicles for various purposes, including exhaust systems, fuel lines, hydraulic lines, brake lines and roll cages. Austenitic stainless steel is widely preferred for automotive applications due to its excellent heat and corrosion resistance. AISI 304, AISI 316 and AISI 409 are the most common types of stainless-steel grades used for manufacturing automotive components.
Market Dynamics
The rising global demand for automobiles is the major driver for the global automotive stainless steel tube market. The high cost of steel production is a key factor in limiting the growth of the global automotive stainless steel tube market.
Rising global demand for automobiles
The economic development of emerging regions has led to improved socioeconomic conditions and rising incomes. It has led to increased demand for passenger vehicles. Automotive manufacturers are undertaking various efforts in response to rising demand. Companies are releasing new vehicles at affordable prices and entering into partnerships with banks and financial institutions to create attractive financing schemes for vehicle buyers.
Automotive companies are expanding production to cater to rising demand. The expansion of automotive production leads to increasing demand for stainless steel tubes to fabricate various components and subsystems. The rising global vehicle demand is a key driver for the growth of the automotive stainless steel tube market.
High cost of steel production
Generally, AISI 304, AISI 316 and AISI 409 grade stainless steel are used in automotive applications. The high grade of these stainless steel requires complex manufacturing operations, which increases their cost. The high cost of stainless-steel production makes it less economically attractive to automotive manufacturers due to its thin operating margins. Steel manufacturing is an energy-intensive activity; therefore, stainless-steel tubes are vulnerable to variations in global energy prices.
High steel production costs can lead to increased costs for automotive manufacturers, which may be passed on to consumers through higher prices for vehicles or automotive components made from stainless steel. It can make the vehicles less competitive and potentially reduce demand for them.
The high cost of steel production may also make it difficult for manufacturers to compete with foreign producers with access to lower-cost inputs, potentially leading to a decline in market share and reduced growth. The high cost of steel production is a major impediment to the growth of the global automotive stainless steel tube market.
COVID-19 impact analysis
The global automotive stainless steel tube market witnessed major impacts due to the COVID-19 pandemic. The pandemic led to a drastic reduction in demand and production in the global automotive industry. In the early stages of the pandemic, there was a significant decline in demand for vehicles due to lockdowns and restrictions on movement, which led to a decrease in production and a surplus of inventory. It has led to a decrease in demand for stainless steel tubes and other automotive components. The decline in automotive industry demand had a knock-on effect on the steel industry.
The impact of the pandemic on the automotive industry and the automotive stainless steel tubes market has been highly variable and dependent on several factors, including the severity of the pandemic in different regions and the specific industries and businesses that have been most affected.
However, with a decline in the pandemic due to rapid vaccination from mid-2021, the global economic outlook is improving, thereby raising the growth prospects of the automotive stainless steel tube market. With the receding of the pandemic, there has been an increase in vehicle demand as people look to replace older models or purchase vehicles for the first time. It has led to an increase in production and a corresponding increase in demand for stainless steel tubes and other automotive components. The global market will likely experience steady growth in the post-pandemic period.
Segment Analysis
The global automotive stainless steel tube market is segmented into type, application, end-user and country. The global automotive stainless steel tube market by end-user is further segmented into OEM and aftermarket. OEM is leading within this segmentation since it generates the largest demand for automotive stainless steel tubes during the vehicle manufacturing process.
Due to its various desirable properties, such as corrosion resistance and mechanical strength, OEMs use stainless steel for manufacturing various automotive systems. Stainless steel tubes are often used in the construction of exhaust systems because they are resistant to corrosion and high temperatures. Stainless steel tubes can be used to transport fuel in a vehicle due to their high resistance to corrosion and ability to withstand the pressure of the fuel. Stainless steel tubes can be used in the vehicle's hydraulic system to transport fluids under pressure.
Geographical Analysis
North America is an industrialized and developed region with a major automotive market. Global automotive manufacturers are leading in the introduction of new automotive technologies. Battery electric vehicles, fuel cell vehicles and hybrid vehicles are being introduced in the global market. The global automotive stainless steel tube market will witness sustained growth in the upcoming years.
Europe is another developed and industrialized region with a well-developed automotive industry and is home to many iconic global automotive brands. European automotive manufacturers are gradually moving towards electric and hybrid vehicles. The European automotive stainless steel tube market is expected to exhibit steady growth in the coming years.
Asia-Pacific is a rapidly developing and industrializing region that generates the largest demand for passenger and commercial vehicles. Major growing economies such as India and China generate the bulk of the demand for new vehicles due to their large populations. Other emerging countries in the region, such as Indonesia, Malaysia, Vietnam and Thailand, generate substantial vehicle demand. With rising socioeconomic indicators, vehicle demand in Asia-Pacific will likely grow significantly in the coming years. The Asia-Pacific automotive stainless steel tube market will witness major growth during the forecast period.
Competitive Landscape
Some major players contributing to the growth of the global automotive stainless steel tube market are Nippon Steel Corporation, POSCO, JFE Steel Corporation, Thyssenkrupp AG, ArcelorMittal, Sandvik AB, Outokumpu, The Fischer Group, Salzgitter AG and Centravis. The major players in the global automotive stainless steel tube market are adopting various strategies to advance growth of the global automotive stainless steel tube market. Some key strategies pursued by the major market players include developing and patenting new stainless-steel alloys, entering into partnerships and joint ventures with automotive manufacturers and expanding production output
Nippon Steel Corporation
Overview: Nippon Steel Corporation is a Japanese steel producer formed in 2012 through the merger of Nippon Steel and Sumitomo Metal Industries. The company is involved in producing a wide range of steel products, including stainless steel, carbon steel and special steel. It serves a variety of industries, including automotive, construction, energy and machinery. The company has a global presence, with manufacturing operations and offices in Japan, China, Thailand, Vietnam, India, U.S., Mexico, UK and the Middle East. In addition to its steelmaking operations, Nippon Steel is also involved in several other businesses, including engineering, real estate and finance. The company is headquartered in Chiyoda-Ku, Tokyo, Japan.
Product Portfolio
• NAR-316L stainless steel contains a high percentage of chromium, nickel and molybdenum. It is known for its chemical and corrosion resistance and high mechanical strength. The steel is suitable for various applications such as automotive, healthcare and food processing industries.
Recent Developments
• In November 2022, ArcelorMittal Nippon Steel, the joint venture of ArcelorMittal and Nippon Steel corporation in India, announced the commencement of expansion works worth ₹60,000 crores at its steelmaking plant in Hazira, Gujarat, India.
Why Purchase the Report?
• Visualize the composition of the global automotive stainless steel tube market segmentation by type, product, composition and region, highlighting the critical commercial assets and players.
• Identify commercial opportunities in the global automotive stainless steel tube market by analyzing trends and co-development deals.
• Excel data sheet with thousands of global automotive stainless steel tube market-level 4/5 segmentation data points.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Application mapping in excel for the critical product of all major market players
The global automotive stainless steel tube market report would provide approximately 57 market data tables, 54 figures and 210 pages.
Target Audience 2022
• Automotive Component
• Vehicle Manufacturers
• Steel Companies
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Research Professionals
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