Market Trends
- Extensive R&D in the market gives augmented material resulting into lighter mass per unit volume. The lighter steel amplify the overall capacity of vehicle. Standards such as BS VI emission norms create vacancy for such material to suffice the automotive market. Companies such as Benteler AG and Ford Motors have taken various initiatives to transform the market. Ford Motors induced Martensitic steel in place of aluminum tubes to decrease the weight of its offering F-150 pickup (2015).
Introductory Overview
The stainless steel tubes are widely used in the automotive industry for instance, structures, exhaust system, transmission systems, steering pipes etc. are sustained by stainless steel tubes in the automotive industry in North America. The acceleration in the commercial vehicle production transmutes coherent growth in the automotive stainless steel tubes market in North America.
Market Size and Forecast
The regulatory transformation in the US penetrates growth of automotive industry. For instance, the US government has imposed 10% additional tariff on imports from China from December 2019 is anticipated to drive the automotive stainless steel tube market in North America over the forecast period. Electric vehicle production also manifests relatively higher growth in production facilitating the allied industries such as automotive stainless steel tube market to grow at a considerable rate in the region. Additionally, the electric bus production in Canada is further catalyzing the market in the region.
North America automotive stainless steel tube market was valued at USD 8,712.2 million in 2018, and is expected to cross USD 11,478.9 million by the end of 2027 growing at a CAGR of 3.1% over the forecast period i.e. 2019-2027. By volume, North America automotive stainless steel tube market was valued at 1.98 million tonnes in 2018 and is anticipated to reach 2.37 million tonnes in 2027 at a CAGR of 2% over the forecast period.
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Country-Wise Growth Highlights – 2019-2027
In recent years the US government had taken vital initiatives to encourage domestic production in various sectors, which includes automotive industry, Infrastructure & construction sector and heavy machinery industry.Constant production of vehicle and the anticipated regulatory policies such as section 232 of Trade Expansion Act of 1962 to stabilized price attributes in steel industry is further strengthening market growth. The US automotive stainless steel tube was valued to USD 7,341.6 million in 2018 and is estimated to reach USD 9,763.1 million in 2027 registering a CAGR of 3.2% over the forecast period. By volume, the automotive stainless steel tube market in the US is estimated to grow at a CAGR of 1.7 million tonnes in 2018 and is estimated to reach 2.0 million tonnes in 2027 commuting a CAGR of 2.10% over the forecast period.
The Canada automotive stainless steel tube market was valued to USD 1,370.6 million in 2018 and is estimated to reach USD 1,715.8 million in 2027 registering a CAGR of 3.2% over the forecast period. By volume, the automotive stainless steel tube market in Canada was valued a CAGR of 0.30 million tonnes in 2018 and is estimated to reach 0.35 million tonnes in 2027 growing at a CAGR of 1.60% over the forecast period. In addition, growth in electric vehicles and heavy commercial vehicle in the country tends to boost the demand of automotive stainless steel tube in Canada.
Market Segmentation Synopsis
By Tube Type
The North America automotive stainless steel tubes market is segmented by tube type into welded and seamless. Welded steel tubes is projected to lead the market and is expected to occupy a market share of 90% by 2027, while growing at a CAGR of 1.9% during the forecast period. These are majorly used in emission tubes, fuel tubes, oil cooler tubes, power steering tubes, and freezing and refrigeration equipment components.
By Vehicle Type
The North America automotive stainless steel tubes market is segmented by vehicle type into passenger, light commercial, medium commercial and heavy commercial vehicle. Among these segments, the light commercial vehicle segment is projected to lead the market and is expected to occupy a market share by volume to 43.7% by 2027, while growing at a CAGR of 3.1% during the forecast period and by value to 44.7% in 2027 growing at CAGR of 3.1%. The light commercial vehicle sustains major share in automotive stainless steel tubes market in North America owing to its large share in overall automotive production.
By Steel Grade
The North America automotive stainless steel tube market is segmented by steel grade into steel grade to AISI 300 Series, AISI 400 Series and others. AISI 400 Series is projected to lead the market and is expected to occupy a North America market share by volume to 50.1% by 2027, while growing at a CAGR of 2.05% during the forecast period and by value to 2.05.4% in 2027 growing at CAGR of 3.2%. AISI 400 series steel are having its application to manufacture tubes prominently used in automotive to manufacture exhaust systems. Various other use of the grade includes fuel ingestion and transmission applications. Tubes with AISI 400 series generally come with the outer diameter with the range from 25mm to 40mm.
By Vehicle Component
The North America automotive stainless steel tubes market is segmented by vehicle component into drivetrain, fuel injection, engine and, transmission, exhaust system and others. exhaust system is projected to lead the market and is expected to occupy a market share by volume to 45% by 2027, while growing at a CAGR of 1.95% during the forecast period and by value to 47% in 2027 growing at CAGR of 3.1%. In vehicle component, exhaust system uses major fraction of stainless steel tubes in the vehicles since it holds the large network of steel tubular structures. However, carbon steel and aluminum tubes are also majorly used as an alternative to its application, the stainless steel provides edge over corrosion resistant making it more suitable for the application.
By Diameter
The North America automotive stainless steel tubes market is segmented by diameter 4 mm to 14 mm, 15 mm to 25 mm, 26 mm to 40 mm and others. Among these segments, the 26 mm to 40 mm segment is projected to lead the market and is expected to occupy a market share by volume to 45% by 2027, while growing at a CAGR of 1.9% during the forecast period and by value to 44.8% in 2027 growing at CAGR of 9.8%. By tube diameter, 26 mm – 40 mm outer diameter vitally use by major fraction of automotive stainless steel tubes industry since it holds the large application of steel tubular in the fuel injection and other structures propagating the growth in the segment.
Growth Drivers
US government had recently announced to 10% increase in tariff on USD 300 Billion goods including automotive import from China. The current tariff rate exist at 25% over the price of the commodity imports. Rise in the tariff tends to safeguard domestic automotive industry and translates to acceleration in the complementary industries such as automotive stainless steel tubes. The implementation of section 232 of Trade Expansion Act of 1962 to prohibit dumping of steel in the US stabilizing the stainless steel prices emanates strengthening of automotive stainless steel tube market in the country.
In addition, the recovery of economy from subprime crisis tends to bolster the demand of commercial vehicle. Increase in industrial production of the Region since 2011 continues in 2019 propelling the demand of commercial vehicle in the country. The coherent growth of disposable income in the country carve the growth of automotive industry propelling the automotive stainless steel tubes market in North America. Moreover, growing production of commercial vehicle in the US and Canada tends to empower the market over the years.
Restraints
Conversely, the availability of feasible substitute such as carbon steel, aluminum, and titanium are easily available in the market which are becoming popular alternative to stainless steel tubes for automotive application. These alternative raw materials sustains properties such as lighter weight and corrosion resistance that makes them suitable for the vehicles when compared to stainless steel offsetting the growth of automotive stainless steel tubes over the forecast period. In addition, the volatile price of steel in the past oscillates the profitability of complementary automotive industries such as automotive stainless steel tubes hampering the growth.
Top Featured Companies Dominating the Market
Sandvik Group, Nippon Steel, Arcelor Mittal, ThyssenKrupp, Tubacex S.A., Handytube Corporation, Plymouth Tube Company, Fischer Group, Maxim Tubes Company Pvt. Ltd., JFE Steel Corporation are some of the leading players in the North America automotive stainless steel tube market. The leading companies in the steel industry across the globe such as Sandvik group, Nippon Steel, ArcelorMittal holds considerable business and operation in North America exhibiting surge in the region.
