The Asia Pacific Automotive AHSS Market is expected to register a CAGR greater than 10.2% during the forecast period (2020 - 2025).
The demand for reducing the weight to enhance vehicle performance and safety is growing in the world, and Asia Pacific fastest growing market for AHSS Market. As a result, Advanced High Strength Steel (AHSS), which is a crucial material for mass vehicle reduction and, is the fastest-growing material in current automotive industry.
Steel makes up around 70 % of an average automobile’s weight. Compared to standard steel, AHSS enable to reduce vehicle weight by 23-35% which is around 165 to 250 kg, for a regular passenger car, saving 3 - 4.5 tons of greenhouse gases over the vehicle’s total life cycle. This saving in emissions is much more substantial than the CO2 emitted during the complete production of steel needed in a car.
Also, with the emergence of electric vehicles and an increasing ban on diesel vehicles production of gasoline and diesel engine, may face negative growth. However, AHSS will remain a driving factor due to its application in an alternative fuel vehicle market.
Key Market Trends
Advancement in AHSS Driving the Market
The steel composition involves 34% as the body structure, panels, doors, and trunk closures, giving it an energy absorption as well as high-strength and in case of a crash. 23% is the engine and machinable carbon steel for the wear-resistant gears. 12% is used in the suspension, using rolled high-strength steel and the remainder in the wheels, tires, fuel tank, steering, and braking systems.
To produce higher strength for reduced steel section size and weight, automakers use less material, significantly reducing a vehicle’s weight. The steel industry is focusing on developing different alloys for processing combinations, steel with high tensile strength and ductility, along with optimizes chemical compositions to achieve multiphase microstructures of AHSS.
Other advancements include the expanded capabilities to automotive steels that have high strength, which enable the design of thinner parts optimizing stiffness but maintaining geometries. AHSS such as Nano Steel helps deliver thinner gauges of steel and components to manufacture at room temperature.
China and India Are Expected to Witness the Fastest Growth in The Asia-Pacific Region
With the increase in the automotive industry, the lightweight market is experiencing a steady increase in the Chinese automotive industry. Although there is a rise in income levels and rapid growth in the manufacturing sector, yet there is a more increased awareness about fuel efficiency and environmental benefits. As a result, major players in this region offer highly competitive solutions that put other players in the other areas under pressure.
China recorded a 14% increase in car sales compared to 18 million units sold in 2018. In 2020, 35% of worldwide automotive is accounted for by Chinese growth. Operations shall resume after the Covid-19 pandemic with stainless steel strip and cold-rolled steel to see an increase in production from 10% to 13%.
Over in India, Maruti Suzuki has optimized the overall system like instead of manufacturing separate components, AHSS is used for energy absorption in case of a car crash. While Ultra High Strength Steel (UHSS) is used in the passenger cabin. All this has improved the overall performance and has helped achieve an efficient platform, optimized structures, and advanced materials like 40% high tensile steel.
The Asia Pacific Automotive AHSS Market is moderately consolidated with existing players such as ArcelorMittal SA, China Baowu Steel Group Corp, POSCO and Tata Steel Limited. But, as the demand for AHSS is growing in the region, the automotive AHSS manufacturers are trying to have the edge over its competitors by making joint-ventures, partnerships, launching new products with advanced technology.
For instance, weight optimization using AHSS has seen a 125kg weight optimization with the latest Swift model compared to the first-generation model launched in 2005. Maruti Suzuki saw tremendous success with Swift's launch primarily due to its reduced carbon emission due to the reduced weight of the car. In 2019, all passenger cars manufactured by Maruti Suzuki were provided with AHSS.
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Table of Contents
1.2 Scope of the Study
4.2 Market Restraints
4.3 Porters Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1.1 Passenger Vehicles
5.1.2 Commercial Vehicles
5.2 Product Type
5.2.1 Dual-Phase Steel
5.2.2 Boron Steel
5.2.3 Transformation-induced plasticity (TRIP) Steel
5.3.1 Structural Assembly and Closures
5.4.1 Asia Pacific
126.96.36.199 South Korea
188.8.131.52 Rest of Asia Pacific
6.2 Company Profiles
6.2.1 ArcelorMittal SA
6.2.2 China Baowu Steel Group Corp
6.2.4 Tata Steel Limited
6.2.5 SSAB AB
6.2.6 ThyssenKrupp AG
6.2.7 United States Steel Corporation
6.2.8 AK Steel Holding Corporation
6.2.9 Kobe Steel Ltd
6.2.10 Baoshan Iron & Steel Co. Ltd