Pune, India, January 2023, MRFR Press Release/- Market Research Future has published a Cooked Research Report on the Global Automotive Plain Carbon ERW Tubes Market.
Global Automotive Plain Carbon ERW Tubes Market is expected to be valued at USD 8.1 Billion by 2032, with a CAGR of 4.2% during the forecast period (2023–2032).
The report covers segmentation and drivers for a better glimpse of the market in the coming years. An automotive plain carbon ERW tubes are primarily used across steering linkages, steering column, shock absorber, propeller shaft, tie rod, body frames, rear body frames, and axel tube application. The plain carbon ERW tubes are derived from the major presence of carbon and includes incidental elements in limited amounts such as manganese, silicon, sulphur and phosphorus. These tubes have excellent formability and weldability primarily for cold deformed shapes across automobile body frames and rear body frames. However, the research report does not cover two-wheelers.
Some of the prominent players in the Global Automotive Plain Carbon ERW Tubes Market are JFE Steel Corporation (Japan), AK Steel Corporation (US), Innoventive Industries Limited (India), Hyundai Steel (South Korea), Nippon Steel Corporation (Japan), Tata Precision Tubes (India), Jindal Pipes Ltd (India), ArcelorMittal (Luxembourg), Tubular Steel Inc. (US), and Rexal Tubes (India).
JFE Steel Corporation is focused on developing a new business model for high demand markets to make use of upstream facilities and secure cost competitiveness. Additionally, it is developing carbon steel supply bases in Southeast Asia to meet the demand for pipes and tubing in the automotive and other industries in this region. The company strategizes to increase its stagnant R&D expenses to reduce the risk of dependency on core products. Furthermore, it is also focusing on increasing its profit margin and cash flow during the period, 2018 and 2020. Moreover, it intends to achieve a return on equity (ROW) of 10% by the end of the FY2020.
AK Steel Corporation is transforming operations related to the automotive industry to improve its competitive position in the market significantly. It is focusing on automotive market to increase the variants of steel ERW tubes to meet the need for light and safer vehicles. The company is working on developing innovative steel solutions and improving its existing products to reduce its carbon footprint in the automotive industry. It is concentrating on increasing investments in research and development to comply with the automotive industry standards in North America and Europe. The company is providing tubular solutions that ensure enhanced heat resistance in vehicle exhaust systems, enabling exhaust systems to handle the higher engine exhaust temperatures needed for an increased fuel economy.
Browse In-depth Detailed Research Report [Table of Content, List of Figures, List of Tables] of Automotive Plain Carbon ERW Tubes Market Trends
The Global Automotive Plain Carbon ERW Tubes Market is segmented based on application and vehicle type. On the basis of application, the frame segment is expected to dominate the global market. The tubes in automotive frames assemblies must be extremely rigid and strong to meet the payload capacity and withstand shocks, twists, stress, and vibrations, during vehicle driving on uneven road. Automotive component manufacturers are primarily developing vehicle chassis by using carbon containing ERW tubes for to meet the demand for fuel and payload efficiencies. Additionally, the frames are manufactured with the support of plain carbon ERW tubes. It is widely adopted for manufacturing seat frames, body frames, bumper frames, rear body frames, and headrest frames. Moreover, the need to meet the demand for cost-effective and efficient materials and efficient weldability is expected to enhance the demand for plain carbon ERW tubes for frames.
On the basis of vehicle type, the passenger car segment is expected to dominate the market. Passenger cars widely use automotive plain carbon ERW tubes across steering linkages, steering column, shock absorber, propeller shaft, tie rod, and axel tube. A rise in demand for passenger vehicles due to the increased population and rising purchasing power are expected to increase the share of the passenger car segment. The need for passenger safety from individual users and the government norms are expected to drive the growth of this segment between 2022 and 2030.
Geographic analysis of the global automotive plain carbon ERW tubes market spans across North America, Europe, Asia-Pacific (APAC), and rest of the world.
In 2018, Asia-Pacific was the leading market with a market value of USD 1,300.2 million. The regional market value is expected to reach USD 2,383.1 Million by 2032 with an impressive 9.14% CAGR during the forecast period.
Asia-Pacific is one of the prominent markets in the global automotive plain carbon ERW tubes market owing to the presence of China, Japan, and India. The growth of the automotive component manufacturing industry in Asia-Pacific is rising due to the automobile manufacturing industry, primarily in countries, such as China, India, and Malaysia. Thus, the global automotive component manufacturers have established their production plants and distribution networks in Asia-Pacific. The leading companies invest heavily to strengthen their presence in this region to take competitive advantage. Such companies include JFE Steel Corporation, Innoventive Industries Limited, Jindal pipes Limited, and Tata Precision Tubes. The manufacturing companies are intending to establish manufacturing facilities for automotive components and automotive raw materials in the region to meet the demand in Asia-Pacific.
In 2018, Europe held the second largest market share in the automotive plain carbon ERW tubes market. Europe is expected to witness high growth in the automotive plain carbon ERW tubes market between 2019 and 2025 due to the growing investment in research and development by regional market players, increase in the sales of vehicles, and a large number of automotive component suppliers in this region. The European Automobile Manufacturers’ Association (ACEA), in 2017, stated that automobiles and related components exported by the region accounted for USD 142,725.1 million. Major automotive plain carbon ERW tubes manufacturers are expanding their presence through increasing distribution channel and stockiest in this region, which further grows the demand for plain carbon ERW tubes, parts, and components from premium German OEMs, such as Audi, Mercedes, and BMW, is pushing global market players to strengthen their operational network in Europe. In 2018, the regional market was valued at USD 853.6 million, which is expected to reach USD 1,284.7 Million by 2032 with a 6.11% CAGR during the forecast period.
North America is a key market for automotive plain carbon ERW tubes and components in the automotive industry. The major factors that drive the growth of the market in this region are the rising demand for ERW tubes in different automotive applications and increase in the production of vehicles. This region is characterized by the presence of plain carbon ERW tubes manufacturers and tier-1 motor vehicle component suppliers, who also sell their products to aftermarket buyers, such as chassis and frames remanufacturing, rebuilding, and recycling firms. The presence of major plain carbon ERW tubes manufacturers such as AK Tube Corporation, North American Steel & Pipe, and Innoventive Industries Limited is expected to further grow the demand for plain carbon ERW tubes in this region during the forecast period. The regional automotive plain carbon ERW tubes market is expected to be valued at USD 832.1 Million by 2032 at a CAGR of 4.82% during the forecast period.