Automotive Stainless Steel Tube Market Size, Share & Trends Analysis Report By Product (Welded, Seamless), By Region (NA, Europe, APAC, CSA, MEA), And Segment Forecasts, 2020 - 2024

Report Overview

The global automotive stainless steel tube market size was valued at USD 3.85 million in 2019 and is projected to grow at a CAGR of 4.0% from 2020 to 2024. Stainless steel has become one of the primary materials in the automotive industry on account of its high strength-to-weight ratio that helps in the overall weight reduction of the vehicle.

Stainless steel tubes are utilized in diesel spark plugs, motor block reheating, diesel particulate filters systems, fuel lines, and exhaust gas recirculation systems. Their growing demand is attributable to good corrosion resistance & dent performance, coupled with high durability.

The growth of the automotive industry is expected to be the major driver for the market. Growing vehicle demand from emerging economies such as China and India is projected to boost the industry over the forecast period. Besides, government-backed schemes & foreign investments, ingenious marketing strategies, and recovery of economies have also provided the necessary momentum to the industry.

The industry growth coupled with factors such as stringent regulations regarding vehicle safety and fuel economy in order to increase the strength of the vehicle, and at the same time, reduce its kerb weight, are expected to propel growth.

The market growth is expected to be hindered by high manufacturing costs. Utilization of expensive raw materials including chromium, nickel, and titanium adds to high costs of the product as compared to its alternatives such as aluminum. The expensive nature of the product is likely to hinder the market growth.

Automotive Stainless Steel Tubes Market Trends

Investments in R&D for new grades of stainless steel is expected to benefit the market growth over the coming years. For instance, in September 2021, Korea Institute of Materials Science (KIMS) announced the development of lightweight grade of stainless steel (SS), which is nearly 20% lighter than the existing SS grade. The research team at the KIMS added 12% of aluminum to reduce the weight while optimizing inclusion of elements such as manganese, chromium and carbon, to decrease the brittleness.

Stainless steel comprises a variety of alloying materials such as chromium, nickel, titanium, molybdenum, and manganese according to their specific grades and compositions. Presence of these elements results in high strength and resistance to corrosion of stainless steel, as compared to ordinary steel. Chromium, which accounts for a share of 10% to 18% among all materials in stainless steel, increases its resistance to oxidation, resulting in increased corrosion resistance. Similarly, addition of nickel, which makes up around 8% of stainless steel, helps in increasing its strength, which is important during collision and impact.

In order to be introduced in the market, vehicles have to go through a variety of tests regarding safety, fuel efficiency and pollution emission. Rigorous safety tests are conducted in which the strength of the frame of the vehicle is tested against severe impacts, failing which, the launch of the vehicles is suspended. Manufacturers are compelled to use materials with high strength such as stainless steel tubes, which not only improve the rigidity of the vehicles, but also make them lightweight, since stainless steel tubes are lighter as compared to other materials. This, in turn, decreases the curb weight of vehicles, resulting in improved fuel efficiency.
Although stainless steel tubes have numerous advantages in the automotive industry, the biggest factor that could restrain the growth of this market is the high cost. As compared to other materials such as aluminum, stainless steel tubes are proven to be stronger, but at the same time, more expensive. Since materials such as chromium, nickel, and titanium are used in making stainless steel tubes, the manufacturing costs go up.

The automotive industry is a cost sensitive market, particularly in emerging countries such as China, India, and Brazil. The prices of vehicles are bound to go up if expensive materials such as stainless steel tubes are used. The biggest challenge faced by the automotive stainless steel tube players is controlling the manufacturing costs, which in turn, will lower the prices for end users.
Recent sluggishness across the global automotive sector has affected the component demand for market vendors including automotive stainless steel tubes producers. For instance, as reported by International Organization of Motor Vehicle Manufacturers (OICA), the global production of vehicles observed y-o-y decline of 16% in 2020, while 3% y-o-y decline in 2021. However, increased production in Asian countries such as China and India is likely to keep the positive momentum for industry. Notably, automotive production in China and India witnessed y-o-y growth of 3% and 30% in 2021 respectively.

Product Insights

Welded and seamless were the two main product types of the market. Welded tube is manufactured by welding the seam on the tube. Seamless products do not have a longitudinal weld seam and hence, do not crack or leak.

Welded tubes dominated the market in 2015, with a volume share of 95.7%. These are more readily available, which results in minimum waiting period, consequently, making them cost-effective. Their wall thickness is more consistent as compared to the seamless product type. Besides, they can withstand extreme temperatures and pressures, making them ideal for critical automotive components such as exhaust systems.

The seamless stainless steel tube is projected to grow at the CAGR of 7.9% from 2016 to 2024. Since there is no welding, their corrosion resistance is very high. However, they are not as widely used as welded products on account of high cost.

Regional Insights

Asia Pacific dominated the automotive stainless steel tubes market and accounted for the largest revenue share of 50.4% in 2015. The region is likely to continue its dominance over the forecast period. Asia Pacific is considered to be the one of the emerging regions in the world. With fast growing countries such as China and India, this region is expected to be the leader in various industry sectors such as automotive, manufacturing, IT, telecom and many more. The automotive industry in this region is driven by increase in demand for automobiles, government backed schemes and foreign investments, ingenious marketing strategies, and recovery of economies.

China is one of the developed countries in the Asia Pacific region and have high volume production across the world. As per the OICA estimates, China held share of over 32.5% in 2021 in global automotive production. The automotive industry has received support from the Chinese Government in the form of consumer subsidies and tax breaks especially for electric vehicles, which has boosted the market. Cost competitiveness and skilled labor are some of the major factors making China the automotive manufacturing hub of the world.

Germany is another major automotive hub in the world and projected to attract significant demand for automotive stainless steel tubes. Investments in operating facilities is expected to boost the production in the country. For instance, in September 2021, Mannesmann Stainless Tubes (MST) installed one of the largest mill for production of seamless stainless tubes at its Remscheid facility in Germany. This will assist the company to produce the larger pipes with outside diameter (OD) of up to 290 mm.

The industry participants in automotive stainless steel tubes industry are focused on various organic and inorganic growth strategies to improve their market share. For instance, in February 2021, Sandvik, a producer of stainless steel and other high performance materials, announced investment in hydraulic factory at its Gujrat plant, India. With this investment, the company aims to improve its stainless steel service capabilities across India.

North America is home to some of the major automobile manufacturers such as Ford Motors and General Motors. Other European and Asian automotive manufacturers such as Volkswagen, BMW, Honda, Hyundai, and much more operate in this region.

Europe, which held the second largest share in 2015, is projected to be the second-fastest growing region in this market, over the forecast period. Countries such as the UK and Germany have witnessed increased demand for these products, courtesy growing automobile industries.

Key Companies & Market Share Insights

The industry is highly consolidated owing to the presence of both, small and large scale manufacturers throughout the world. Sandvik Group, Nippon Steel & Sumitomo Metal Corporation, ArcelorMittal, ThyssenKrupp accounted for the majority of services in the market.

Tubacex, Handytube Corporation, Plymouth Tube Company, Fischer Group, Maxim Tubes Company Pvt. Ltd., JFE Steel Corporation, ChelPipe, Penn Stainless Products Inc., Bri-Steel Manufacturing, and Centravis are other well-known global names in the industry.

These players adopted organic and inorganic strategies such as mergers & acquisitions, expansions, new product developments, and agreements, collaborations & joint ventures in order to expand their product portfolio, geographical reach, and consequently, increase their shares.

In August 2015, Sandvik Group launched the Pressurfect series of stainless steel tube that are used for GDI (Gasoline Direct Injection) fuel systems. This range was designed to handle high pressures and also delivered weight reductions by 40%.

In September 2014, ArcelorMittal unveiled Fortiform, a new range of steel products for the automotive industry. This range offered significant safety improvements to vehicles while reducing the weight of the vehicles. This expanded the company’s existing product portfolio.

Automotive Stainless Steel Tube Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2020 to 2025. For this study, Grand View Research has segmented the global automotive stainless steel tube market report based on end-use and region:

• Automotive Stainless Steel Tube Product Outlook (Volume, Tons; Revenue, USD Thousand, 2013 - 2024)

  • Welded Automotive Stainless Steel Tube

  • Seamless Automotive Stainless Steel Tube 

• Automotive Stainless Steel Tube Regional Outlook (Volume, Tons; Revenue, USD Thousand, 2013 - 2024)

  • North America

    • U.S.

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • China

    • Japan

  • Central & South America

    • Brazil

  • MEA