Shift towards Light Weight Vehicles to Accelerate Demand for Advanced High Strength Materials Post COVID-19 Recovery
The global advanced high strength steel (AHSS) market has gained high momentum over the historical years. This is attributed to the increasing demand for high strength and efficient materials from automakers. Globally, the overall consumption of advanced high strength steel market was pegged at a near 14 Mn Tonnes in 2019 and accounted for ~1% share in global steel sector.
In addition, increasing pressure from several government and regulatory authorities towards weight reduction of automotive components and control emissions has veered end users toward manufacturers of advanced high strength steel to get effective and lightweight materials. The global market for AHSS is anticipated to register a CAGR of 8.5% over the long-term forecast period (2020-2030).
Recent rise of COVID-19 pandemic has slowed down production and trade within the AHSS market during the first half of the 2020. A list of key manufacturers based out of Asia Pacific and Europe have shut down their production units on the back of novel coronavirus and halted supply of raw materials to produce AHSS. Thus, the global AHSS market is likely to witness a sudden decline in the year-on-year growth rate in 2020 as compared to 2019.
Automakers Resort to Third-Generation AHSS for Value-Added Product Offerings
Advanced high strength steel products have gained momentum owing to their strength to elongation ratio characteristic enhancing properties. This is attributed the high level penetration of frontrunners (1st & 2nd generation manufacturers) in the global AHSS market. However, with the growing availability of potential alternatives and high cost, frontrunners in the market will emphasize on different strategies to maintain their footprint.
As a result, manufacturers have come up with 3rd generation advanced high strength steel. Moreover, only a handful of manufacturers have launched new and exclusive products under 3rd generation AHSS category. Other players are on the verge of developing exclusive versions in the mid-term forecast.
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Halted Automotive Production due to Impact of COVID-19 to Impede Market Growth of AHSS
Outbreak of COVID-19 pandemic across the globe has created economic hardship and uncertainty for automakers and component manufacturers since the start of 2020. Dramatic changes in the global economy and developments across legacy and developing markets have imposed numerous challenges in automotive sector and has disrupted the supply chain of several key manufacturers across Europe and Asia Pacific.
In addition, the automotive sector is estimated to register a steady growth post COVID-19, which is likely to create new market platform for existing and new entrant engaged in advanced high strength steel. With frequent technology upgrades, many companies are incorporating green technology and advanced functions & applications of AHSS in automobiles to strengthen revenue and reduce operating margin loss due to novel coronavirus. Moreover, in the vehicle type segment, the passenger cars segment is expected to grow 2.3X in the foreseeable future.
Europe will continue its Hegemony despite 120 BPS Share Loss
From the regional perspective, Europe is estimated to dominate global advanced high strength steel market through the forecast period. AHSS demand in the region has risen from prominent automakers striving to achieve improved safety and fuel economy requirements in the vehicle.
Furthermore, owing to presence of prominent companies like ThyssenKrupp AG, this region is anticipated to incline towards high value – high growth segments during forecast period. Furthermore, East Asia will remain a highly attractive market throughout the forecast period owing to the growing automotive production coupled with green field investments across the region.
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Control on Volatility and High Cost of Raw Materials: A Key to Success within AHSS Market
Global advanced high strength steel market is moderately consolidated in nature, with leading players in the market having monopoly. Prominent companies operating in the global advanced high strength steel (AHSS) market, include ThyssenKrupp AG, Nucor Corp, ArcelorMittal SA., AK Steel Holding Corp, Baoshan Iron & Steel Co., Ltd and SSAB AB. Buoyancy of the leading players can be attributed to their global presence and R&D activities.
Supplier-specific input cost is expected to increase in coming years, which is expected to become a prominent challenge for manufacturers to control the volatility and high prices of raw materials. Furthermore, key stakeholders have entered into strategic collaborations with leading auto makers to achieve higher sales and long-term customer retention. Furthermore, manufacturers have also targeted capacity expansion organically or through acquisitions in order to meet scattering global demand.
- In May 2019, US Steel Corporation planned to invest US$ 1 Bn to construct new casting and rolling facilities in its Pennsylvania operations. This project will produce sustainable AHSS which will improve environmental performance.
- In 2018, ArcelorMittal signed a definitive agreement to acquire Votorantim S.A. from Brazil. Post this acquisition, the company’s annual steel production capacity increased by 5.6 million tons and cold rolling steel product’s capacity raised by 5.4 million tons.
- In 2019, Nucor Corp announced the expansion of its advanced high strength steel manufacturing facilities. Company has planned to invest around US$ 470 Mn for its cold mill and galvanizing line expansion.
The global advanced high strength steel market is expected to witness several collaborative activities after the end of COVID-19 among key manufacturers and end use sectors such as railways, energy, and infrastructure. In addition, key market actors need to create strategic advantages with advancement in steel characteristics through higher spending on research and development.
An Adaptive Approach to Modern-day Research Needs
Global Advanced High Strength Steel (AHSS) Market: Scope of the Report:
- The recent global advanced high strength steel market report by Fact.MR offers a 10-year forecast from 2020 to 2030. The report elaborates on the key drivers, restraints, opportunities and threats to the expansion of the global advanced high strength steel A detailed segmental analysis, based on type, car type, tensile strength, and application, has been provided in the report.
- Regional analysis in terms of supply chain analysis, business execution and market value analysis provides an in-depth perspective about the future scope of the global advanced high strength steel In addition, a separate section on market structure has also been provided. The section provides a detailed analysis of key market players and the strategies for expansion in the advanced high strength steel market.
Advanced High Strength Steel (AHSS) Market Segmentation
Fact.MR has studied the advanced high strength steel (AHSS) market with detailed segmentation on the basis of type, vehicle type, tensile strength, application, and key regions.
- Dual-phase (DP)
- Martensitic (MS)
- Transformation-induced plasticity (TRIP)
- Twinning-induced plasticity(TWIP)
- Up to 600 MPa
- 600-900 MPa
- 900-1200 MPa
- 1200-1500 MPa
- Above 1500 MPa
- Structural details
- Car Seats
- Chasis, wheels & power train
- Side impact beams
- North America
- Latin America
- East Asia
- South Asia & Oceania
- Middle East & Africa
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Advanced High Strength Steel (AHSS) Market- Scope of the Report
The recent study by Fact.MR on advanced high strength steel (AHSS) market offers a 10-year forecast between 2020 and 2030. The study analyzes crucial trends that are currently determining the growth of advanced high strength steel (AHSS) market.
This report explicates on vital dynamics such as the drivers, restraints and opportunities for key market players along with key stakeholders as well as emerging players associated with the manufacturing of advanced high strength steel (AHSS). The study also provides dynamics that are responsible for influencing the future status of the advanced high strength steel (AHSS) market over the forecast period.
A detailed assessment of advanced high strength steel (AHSS) value chain analysis, business execution, and supply chain analysis across the regional markets has been covered in the report. A list of prominent companies operating in the advanced high strength steel (AHSS) market along with their production capacity analysis enhances the reliability of this comprehensive research study.
Advanced High Strength Steel (AHSS) Market: Report Summary
The study offers a comprehensive analysis on diverse features including production capacities, demand, product developments, revenue generation and sales in advanced high strength steel (AHSS) market across the globe.
A comprehensive estimate on advanced high strength steel (AHSS) market has been provided through an optimistic scenario as well as a conservative scenario, taking into account the sales of advanced high strength steel (AHSS) during the forecast period. Price point comparison by region with global average price is also considered in the study.
Advanced High Strength Steel (AHSS) Market: Analysis on Market Size Evaluation
Advanced high strength steel (AHSS) market has been analyzed for each market segment, in terms of volume (Kilo tons) and value (US $ Mn).
Market estimates at global and regional levels for advanced high strength steel (AHSS) is available in terms of “US$ Mn” for value and in “Kilo tons” for volume. A Y-o-Y growth contrast on prominent advanced high strength steel (AHSS) market segments, along with the market attractiveness evaluation has been incorporated in the report.
-Furthermore, the absolute dollar opportunity analysis of all the segments adds prominence to the report. Absolute dollar opportunity plays a crucial role in assessing the level of opportunity that a manufacturer/distributor can look to achieve along with identifying potential resources, considering sales and distribution perspective in the global advanced high strength steel (AHSS) market.
Advanced High Strength Steel (AHSS) Market: Inspected Assessment on Regional Segments
Key sections have been elaborated in the advanced high strength steel (AHSS) report, which have helped to deliver projection on the regional markets. These chapters include the regional macros (political-economic, and business environment outlook), which are expected to have a momentous influence on the growth of the advanced high strength steel (AHSS) market during the forecast period.
Country-specific valuation on demand for advanced high strength steel (AHSS) has been offered for each regional market, along with the market scope estimate and forecast, price index, and impact analysis of dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the report.
Detailed breakup in terms of value & volume for emerging countries has also been included in the report.
Advanced High Strength Steel (AHSS) Market: In-depth Analysis on Competitive Landscape
The report sheds light on the leading manufacturers of advanced high strength steel (AHSS) along with their detailed profiles. Essential and up-to-date data information related to the market performers, who are principally engaged in the production of the advanced high strength steel (AHSS), has been brought with the help of a detailed dashboard view.
Market share analysis and comparison of prominent players provided in the report permit the report readers to take preemptive steps in advancing their businesses.
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