Advanced High Strength Steel Market Report

Due to the swift changes in the global economy and expansion in emerging economies, the car industry has emerged as one of the most highly valued economic sectors. The growing global economy has resulted in a rise in new car sales. The rapidly growing vehicle sector is generating several prospects for high-tech steel. This is related to the surge in high-performance demand, which may be satisfied by making cars lighter in general. Consumers' growing worries about safety have also increased the market for automakers' products. Additionally, the government-set fuel economy criteria are encouraging automakers to use AHSS.

Environmental concerns are causing an increase in electric car manufacturing, which is opening up a wide range of opportunities for high-tech steel producers. When it comes to the requirement to reduce the weight of electric vehicles, AHSS may play a key role in achieving the standards of the design. The market will grow as a result of rising passenger car production, rapid adoption of electric vehicles, and the use of AHSS in their manufacture.

Due to low initial yielding stress, high tensile strength, potent early-stage strain hardening, and homogeneous plastic flow, dual phase steels are the ideal material for structural components and reinforcements, as well as other automotive jobs. The dual-phase steel's superior mechanical strength, outstanding fatigue resistance, and significant energy absorption capacity improve the finished components.

Dent resistance is another benefit to the car industry. Dent resistance offers the potential for increased client satisfaction, a decrease in warranty claims, and a decrease in-plant damage. Dent and ding conditions are to blame for a large amount of consumer dissatisfaction with a car's structure. This dissatisfaction may ultimately result in the loss of future business. Therefore, using DP steel might be advantageous for automakers economically. A sizeable revenue share in the global market is represented by the Dual-phase (DP) advanced high strength steel segment.

During the COVID-19 pandemic, the automotive high strength steel sector saw a decline. This is indicated by the substantial decline in the industrial, automotive, and construction industries. Prior to receiving orders from the government authorities to reopen, manufacturing enterprises continued to shut down all of their activities at their workplaces and production facilities.

In order to boost sales and long-term customer retention, manufacturers have strategically teamed with leading automobiles. Market participants have also pursued capacity development through organic growth methods or acquisitions to meet the sporadic global demand. Additionally, prominent market players are contributing to technical developments to enhance steel quality by boosting their R&D expenditures. To fulfil the rising demand, particularly from the automobile industry, manufacturers are concentrating on increasing their production capacity. ArcelorMittal acquired 80% of voestalpine's HBI plant in Texas in July 2022 to expand capacity and create high-quality raw materials required for the production of steel with low carbon emissions. SSAB announced in January 2022 that it will invest US$ 4.1 billion on a new Nordic manufacturing system to expand the range of its premium products, AHSS and Q&T.

Germany, which makes up around one-third of regional AHSS demand, dominates Europe. The leading producer and exporter of cars in the EU is Germany. In 2021, German OEMs has spent Approximately 28.3 billion on research and development, or 33% of all automotive R&D expenditures worldwide. The need for side impact beams, chassis, and structural elements utilised to give automobiles impact resistance and greater safety has increased as a result of the expanding automobile industry. Additionally, accelerating its adoption are regional rules on emission standards. Along with advancements in processing and forming techniques, ongoing work is being carried out to increase tensile strength. The price of AHSS for usage in mass-produced automobiles is emphasised by the manufacturers. Germany is expected to have a lot of potential for AHSS sales in the upcoming years due to the existence of key automobile manufacturers.