Advanced High Strength Steel (AHSS) Market
Advanced High Strength Steel (AHSS) Market Study by Dual Phase, Martensitic, Transformation-induced Plasticity, and Twinning-induced Plasticity from 2024 to 2034
Analysis of Advanced High Strength Steel (AHSS) Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Advanced High Strength Steel (AHSS) Market Outlook (2024 to 2034)
The global advanced high strength steel (AHSS) market size is approximated at a value of US$ 23.2 billion in 2024. Rising use of AHSS in oil rigs, bridges, civil engineering, and construction machines, owing to its light weight, strength, durability, recyclability versatility, and high corrosion resistance, is set to push product sales at a CAGR of 7.9% to reach US$ 49.6 billion by 2034.
Use of lightweight advanced high strength steel is associated with significant environmental effects in general. With active structures in particular, AHSS is finding major application in rail coach building and related fields.
- Short Term (2024 to 2027): Increasing deployment and incorporation of AHSS in the automobile, aviation, and marine industries will positively influence product sales growth.
- Medium Term (2027 to 2030): Key developments in high-potential economies will increase the demand for AHSS on the back of growing infrastructure and high adoption of EVs.
- Long Term (2030 to 2034): Development of third-generation steel with improved steel strength and elongation properties will increase its utilization in several industries.
AHSS is used in solar heating systems for warehouses & buildings and also finds application in the construction of solar panel roofing systems. Growing demand for manufacturing parts with improved performance, strength, and durability is expected to have a positive influence on the advanced high strength steel market growth over the decade.
Requirements for weight reduction in automobiles are expected to rise with progressing technologies for safety, comfortable driving, and environmental measures. Advanced high-strength steels are increasingly being utilized in automotive parts such as crash boxes, front-end structures, automotive pillars, automotive rails, sill reinforcement doors, etc.
- The North American advanced high strength steel market size is calculated at US$ 4.3 billion in 2024.
- East Asia is forecasted to account for 24.6% of the global advanced high strength steel market share by 2034.
| Report Attributes | Details |
|---|---|
| AHSS Market Size (2024E) | US$ 23.2 Billion |
| Forecasted Market Value (2034F) | US$ 49.6 Billion |
| Global Market Growth Rate (2024 to 2034) | 7.9% CAGR |
| South Korea Market Value (2034F) | US$ 1.7 Billion |
| Dual Phase Steel Demand Growth Rate (2024 to 2034) | 8.1% CAGR |
| Key Companies Profiled | United States Steel Corporation; Baker Hughes Company; Baoshan Iron & Steel Co., Ltd; AK Steel Holding Corp; ArcelorMittal SA.; Big River Steel; SSAB AB; Steel Technologies LLC; Tata Steel Ltd; Nucor Corp; ThyssenKrupp AG |
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Which Market Dynamics are Influencing Sales of Advanced High Strength Steel?
“Rising Use in Automotive Manufacturing to Reduce Weight Notable Advanced High Strength Steel Market Trend”
The automobile industry is becoming one of the most highly regarded economic sectors as a result of the rapid changes in the global economy. Sales of new vehicles are increasing as a result of the rising spending power of individuals. Numerous opportunities are being created by the expanding automobile industry for advanced high strength steel producers.
Usage of composites and AHSS in the production of automotive parts is gaining traction due to the need for lighter commercial vehicles. Numerous OEMs in the automotive industry are likely to follow this trend as composite-made auto parts help reduce the overall weight of automobiles.
This is linked to the rise in high-performance demand, which can be met by lightening the overall weight of automobiles. Rising safety concerns from automotive consumers are also driving the AHSS product demand from automakers. Also, the fuel economy standards set by the respective government authorities are lifting the adoption of AHSS by automakers.
“Investments in R&D to Produce Innovative AHSS”
Spending on R&D is growing as automakers are now facing competition from Silicon Valley. Traditionally, OEMs consolidated their position by working on the hardware aspect, but as technology drives the vehicles of tomorrow, the industry is forced to dive into a domain in which it has limited expertise. Collaboration with tech companies remains a feasible option in the long term.
Emphasis on R&D is expected to increase in the coming decade as automakers looks to match the pace of changing environmental norms and automotive lightweight materials. Advanced lightweight materials are expected to become a key component of brand marketing.
Automakers are now speeding up and scaling up their R&D activities due to the rate at which new technologies are changing the automotive industry’s landscape. Rising focus on products with improved performance, strength, and durability is expected to have a positive influence on AHSS sales in coming 10 years.
What are the Leading Threats for AHSS Producers?
“High Cost of AHSS and Presence of Alternatives such as Aluminum”
With shifting consumer demands, the design of automobile vehicles is consistently changing. However, making significant efforts to improve equipment design results in more spending, which raises the cost of the equipment. The challenge for manufacturers is to reduce the cost of their products while increasing productivity and efficiency.
Consumers place a high priority on car costs, and the use of cutting-edge high-strength steel raises the total cost of the vehicle. As a result, the high price of advanced high strength steel relative to traditional steel could impede their widespread adoption.
AHSS is relatively expensive and growing standards from consumers with time have made the market dynamic. Aluminum appears to be the top contender among the low-weight, great-strength elements that automotive makers are continuously looking for. Aluminum is appealing a lot of attention of manufacturers due to its efficiency, functionality, and performance, boosting sales of automotive aluminum extruded parts.
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Will This Be a Profitable Market for New Companies to Enter?
“Sustainability Trend Would Make Development of Green Steel Profitable”
Startups are focusing on transforming the landscape of AHSS. New companies are investing on research and development initiatives to introduce innovative steel solutions. By offering innovative products new companies are set to attract a wider consumer base.
- H2 Green Steel, a Sweden startup, is focused on the production of green steel. The company is utilizing green hydrogen in the production of steel to reduce the harmful gas emissions. This decarbonization process is expected to transform the steel industry growth.
Country-wise Analysis
Why is the United States a Key Market for AHSS?
“Rising Need for Lightweight Materials in Automobile Production and Strict Emission Regulations”
| Attribute | United States |
|---|---|
| Market Value (2024E) | US$ 3.1 Billion |
| Growth Rate (2024 to 2034) | 7.6% CAGR |
| Projected Value (2034F) | US$ 6.4 Billion |
Strict regulations on vehicle safety and emission control are expected to boost the consumption of AHSS in the automotive manufacturing sector in the United States. Growing popularity of electric vehicles and increasing need for lightweight components is set to boost AHSS sales in the United States in the coming decade.
Why are Advanced High Strength Steel Suppliers Thriving in Germany?
“Presence of Prominent Automotive Manufacturers Increasing Adoption of Advanced High Strength Steel”
Europe, led by Germany, is considered to be profitable marketplace for AHSS producers. Germany is the major manufacturer and exporter of automobiles in the Europe. The automotive industry is witnessing increasing demand for side impact beams, chassis, and structural details used to provide cars with impact resistance and improved safety. Strict regulations on emission standards are also boosting their implementation.
Continuous development on improving tensile strength is being made, coupled with the improvement of processing and forming technology. Manufacturers are stressing the cost of AHSS for use in mass-produced vehicles. Owing to the presence of ley manufacturers in the automotive sector, Germany is anticipated to exhibit increasing demand for AHSS over the coming decade.
What is Pushing Demand for Advanced High Strength Steel in China?
“Rising Green Field investments and High Production of Automobiles”
| Attribute | China |
|---|---|
| Market Value (2024E) | US$ 3.4 Billion |
| Growth Rate (2024 to 2034) | 7.5% CAGR |
| Projected Value (2034F) | US$ 7 Billion |
China is still the world’s largest automotive market by manufacturing output as well as annual sales.
- According to the International Trade Administration, domestic production is anticipated to reach 35 million units by 2025.
Sales of AHSS in China are expected to boost owing to growing automotive production coupled with green field investments across the country. AHSS demand is rising from prominent automakers who are striving to achieve improved safety and fuel economy in vehicles.
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Category-wise Analysis
Which Type of Advanced High Strength Steel is Most Widely Utilized?
“Effective Work Hardening and Formability Properties of TRIP Steel”
| Attribute | Transformation-induced Plasticity (TRIP) |
|---|---|
| Segment Value (2024E) | US$ 5.9 Billion |
| Growth Rate (2024 to 2034) | 7.6% CAGR |
| Projected Value (2034F) | US$ 12.4 Billion |
Transformation-induced plasticity (TRIP) steel is a part of AHSS family. TRIP steel is gaining traction due to its high carbon content than other members such as dual phase steel. Trip steel is also widely demanded due to their high work hardening rate. Their formability properties are also increasing their sales growth.
Which Vehicle Type Accounts for High Usage of AHSS?
“Rising Use of Advanced High Strength Steel in Production of Durable Commercial Vehicles”
| Attribute | Commercial Vehicles |
|---|---|
| Segment Value (2024E) | US$ 16.1 Billion |
| Growth Rate (2024 to 2034) | 7.9% CAGR |
| Projected Value (2034F) | US$ 34.3 Billion |
AHSS is the preferred material for passenger safety cage parts such as bumpers, waistline reinforcements, side impact beams, A-pillars, B-pillars, and roof bows. In all other essential sections of the automobile industry, advanced high-strength steel is also gaining momentum. Rising industrial and logistic activities across the globe are directly boosting the application of AHSS in commercial vehicle production. Effective properties of AHSS are set to offer lightweight and durable vehicles for transport.
Competitive Landscape
Key players in the advanced high strength steel market are focusing on product innovation, with '3rd Generation' being the buzzword. Forward integration with leading automotive players remains a key differentiating strategy.
An inorganic strategy such as acquiring an AHSS firm that is preferable over the expansion of the firm is majorly followed by industry leaders. Collaborations among leading companies and automotive players remain a major point.
- In July 2022, ArcelorMittal acquired 80% of voestalpine's HBI plant in Texas to increase its capacity and produce high-quality steel grades.
Key Segments of AHSS Market Research
-
By Type :
- Dual Phase (DP)
- Martensitic (MS)
- Transformation-induced Plasticity (TRIP)
- Twinning-induced Plasticity (TWIP)
- Others
-
By Vehicle Type :
- Passenger
- Commercial
-
By Tensile Strength :
- Up to 600 MPa
- 600 to 900 MPa
- 900 to 1200 MPa
- 1200 to 1500 MPa
- Above 1500 MPa
-
By Application :
- Structural Details
- Car Seats
- Bumpers
- Chassis
- Wheels & Power Train
- Side Impact Beams
- Others
-
By Region :
- North America
- Latin America
- Europe
- East Asia
- South Asia & Oceania
- Middle East & Africa
Table of Content
- 1. Market - Executive Summary
- 2. Market Overview
- 3. Market Background and Foundation Data
- 4. Global Demand (KT) Analysis and Forecast
- 5. Global Market - Pricing Analysis
- 6. Global Market Value (US$ million) Analysis and Forecast
- 7. Global Market Analysis and Forecast, By Type
- 7.1. Dual phase (DP)
- 7.2. Martensitic (MS)
- 7.3. Transformation-induced plasticity (TRIP)
- 7.4. Twinning-induced plasticity (TWIP)
- 7.5. Others
- 8. Global Market Analysis and Forecast, By Vehicle Type
- 8.1. Passenger
- 8.2. Commercial
- 9. Global Market Analysis and Forecast, By Tensile Strength
- 9.1. Up to 600 MPa
- 9.2. 600-900 MPa
- 9.3. 900-1200 MPa
- 9.4. 1200-1500 MPa
- 9.5. Above 1500 MPa
- 10. Global Market Analysis and Forecast, By Application
- 10.1. Structural details
- 10.2. Car Seats
- 10.3. Bumpers
- 10.4. Chassis, wheels & power train
- 10.5. Side impact beams
- 10.6. Others
- 11. Global Market Analysis and Forecast, By Region
- 11.1. North America
- 11.2. Latin America
- 11.3. Europe
- 11.4. East Asia
- 11.5. South Asia & Oceania
- 11.6. Middle East & Africa
- 12. North America Market Analysis and Forecast
- 13. Latin America Market Analysis and Forecast
- 14. Europe Market Analysis and Forecast
- 15. East Asia Market Analysis and Forecast
- 16. South Asia & Oceania Market Analysis and Forecast
- 17. Middle East & Africa Market Analysis and Forecast
- 18. Country-level Market Analysis and Forecast
- 19. Market Structure Analysis
- 20. Competition Analysis
- 20.1. AK Steel Holding Corp
- 20.2. ArcelorMittal SA.
- 20.3. Baker Hughes Company
- 20.4. Baoshan Iron & Steel Co., Ltd
- 20.5. Big River Steel
- 20.6. Nucor Corp
- 20.7. POSCO
- 20.8. SSAB AB
- 20.9. Steel Technologies LLC
- 20.10. Tata Steel Ltd
- 20.11. ThyssenKrupp AG
- 20.12. United States Steel Corporation
- 21. Assumptions & Acronyms Used
- 22. Research Methodology
- FAQs -
How big is the advanced high strength steel market?
The global advanced high strength steel market is evaluated at US$ 23.2 billion in 2024.
How much is the projected size for the AHSS market by 2034?
Sales of advanced high strength steel are forecasted to reach US$ 49.6 billion by 2034.
What are the future projections for advanced high strength steel?
Demand for AHSS is forecasted to rise at a CAGR of 7.9% from 2024 to 2034.
Which type of AHSS is most widely demanded?
Transformation-induced plasticity (TRIP) steel sales are expected to reach US$ 12.4 billion by 2034.
What is the estimated value of the South Korea AHSS market?
The South Korea market is calculated at US$ 700 million for 2024.
Who are the leading suppliers of advanced high strength steel?
Key manufacturers of AHSS are AK Steel Holding Corp, Baker Hughes Company, and Baoshan Iron & Steel Co., Ltd.
Advanced High Strength Steel (AHSS) Market