U.S. Automotive Metal Market (By Product: Aluminum, Steel; By Vehicle-type: Passenger, LCV, HCV; By Application: Body Structure, Power Train) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

U.S. Automotive Metal Market Size and Growth

The U.S. automotive metal market size was valued at USD 29.07 billion in 2023 and is anticipated to reach around USD 41.93 billion by 2033, growing at a CAGR of 3.73% from 2024 to 2033. The U.S. automotive metal market stands as a cornerstone of the nation's industrial landscape, providing crucial materials for the production of vehicles that drive the economy forward.

Key Pointers

• By Product, the steel generated the maximum market share of 60% in 2023.
• By Product, the magnesium segment is expected to witness the fastest CAGR of 10.83% during the forecast period.
• By Vehicle-type, the passenger cars segment contributed the largest market share of 55% in 2023.
• By Vehicle-type, the light commercial vehicle segment is estimated to expand the fastest CAGR of 4.03% from 2024 to 2033.
• By Application, the body structure segment dominated the market with a revenue share of over 38% in 2023.
• By Application, the suspension segment is anticipated to grow at the noteworthy CAGR from 2024 to 2033.

U.S. Automotive Metal Market Growth Factors

The growth of the U.S. automotive metal market is propelled by the technological advancements in metal manufacturing processes have led to increased efficiency, cost-effectiveness, and product quality, driving demand within the industry. Additionally, the rising consumer preference for lightweight vehicles, driven by fuel efficiency and environmental concerns, has spurred the adoption of advanced metal alloys and composites in automotive design. Moreover, stringent regulatory standards aimed at enhancing vehicle safety and reducing emissions have necessitated the use of high-performance metals with superior strength-to-weight ratios. Furthermore, the ongoing trend towards vehicle electrification has created new opportunities for metal suppliers, as electric vehicles require specialized components and materials for their construction.

U.S. Automotive Metal Market Trends:

• Lightweight Materials: The industry is witnessing a significant shift towards lightweight materials such as aluminum and advanced high-strength steel (AHSS) to enhance fuel efficiency and reduce emissions. Automakers are increasingly integrating these materials into vehicle designs to achieve higher performance while meeting stringent regulatory standards.
• Electrification Drive: The growing popularity of electric vehicles (EVs) is driving demand for specialized metals and alloys. EV components such as battery enclosures, chassis, and powertrain systems require lightweight yet durable materials like aluminum and copper to optimize performance and range.
• Advanced Manufacturing Technologies: Innovations in metal manufacturing technologies, including additive manufacturing (3D printing) and laser welding, are revolutionizing the automotive industry. These advancements enable precise and complex metal components to be produced with greater efficiency and flexibility, driving improvements in vehicle performance and design.
• Increased Customization: Consumer demand for personalized vehicles is prompting automakers to offer more customization options, driving the need for versatile metal solutions. Advanced metal forming techniques and coatings allow for greater design flexibility and aesthetic appeal, catering to diverse customer preferences.
• Supply Chain Resilience: The COVID-19 pandemic highlighted the importance of supply chain resilience in the automotive industry. As a result, automakers and metal suppliers are reevaluating their supply chain strategies, diversifying sourcing locations, and investing in digital technologies to enhance visibility and agility.

U.S. Automotive Metal Market Restraints:

• Raw Material Price Volatility: Fluctuations in the prices of raw materials, such as steel and aluminum, pose a significant challenge for automotive metal manufacturers. Price volatility can impact production costs, profit margins, and overall competitiveness, leading to uncertainties in the market.
• Intensive Capital Requirements: The automotive metal manufacturing process often requires substantial capital investment in equipment, technology, and facilities. High initial capital expenditures can pose barriers to entry for new market players and limit the expansion opportunities of existing manufacturers.
• Global Trade Uncertainties: The automotive metal market is susceptible to global trade dynamics and geopolitical uncertainties, including tariffs, trade agreements, and supply chain disruptions. Uncertainties in trade relations can disrupt supply chains, increase costs, and hinder market growth and stability.
• Competition from Alternative Materials: The emergence of alternative materials, such as composites and plastics, presents a competitive challenge for traditional metal suppliers. These materials offer advantages in terms of weight reduction, design flexibility, and cost-effectiveness, posing a threat to the market share of automotive metals.

Product Insights

Steel dominates the U.S. automotive metal industry with a revenue share of 60% in 2023 on account of its wide application in the manufacturing of parts such as vehicle body structure, panels, doors, closures, engine blocks, gears, wheels, steering parts, braking systems, and more. It accounts for about 900 kg of an average vehicle weight. The high strength and cost-effectiveness of steel is likely to increase its utilization in the automotive sector over the coming years. The market has been witnessing increased utilization of lightweight steels, including Advanced High-Strength Steels (AHSS). This product reduces the weight of the vehicle structure, enhances safety, and improves the fuel efficiency of the vehicles.

Magnesium segment is expected to witness the fastest CAGR of 10.83% during the forecast period. The light weight of the material facilitated its utilization in racing cars to add a competitive advantage for the racers. Commercial vehicles, including Volkswagen Beetle, contained about 20kg of magnesium. It is being used in gearbox, steering column, air bag housing, steering wheels, seat frames, and fuel tank covers. Increasing focus onenvironmental issues coupled with increased fuel efficiency, performance, and sustainability is expected to propel the utilization of the product over the forecast years.

Vehicle-type Insights

The passenger cars segment held a revenue share of over 55% in the market in 2023. High demand for passenger cars in the U.S. is anticipated to increase at a rapid pace on account of growing consumer disposable income and changing consumer lifestyles. Consumers are increasingly willing to pay for all vehicles in order to obtain better quality and durability on the market. Consequently, manufacturers are working on the development of new innovative products with premium features at a low cost. The demand for metal in passenger vehicles is likely to be stimulated by these factors.

The light commercial vehicle segment is expected to grow at the fastest CAGR of 4.03% during the forecast period. Low operation and maintenance costs facilitate an increase in the use of these vehicles for commercial purposes. Increasing demand for commercial transportation services, including taxis are expected to propel the demand for light commercial vehicles over the forecast period, thereby resulting in increased demand for automotive metals.

Application Insights

The body structure segment dominated the market with a revenue share of over 38% in 2023in 2023. One of the main factors boosting the demand for metals in vehicle body structures is the ease of maintenance and repair along with the high recyclability compared to plastics and composites.The body structure includes frames, panels, doors, bonnets, and trunk closures. These are usually produced from steel for gaining robustness and providing crash energy absorption to the structure. The casted aluminium products and hot-stamped steel products provide a high level of safety for the body structure compared to plastic materials. This is likely to augment the utilization of lightweight metals in the body structure over the coming years.

The suspension segment is expected to witness the fastest growth during the forecast period. Numerous manufacturers are shifting towards lightweight metals such as aluminium and magnesium in order to reduce vehicle weight. In addition, specialized applications like military vehicles are also utilizing titanium alloys for manufacturing of suspension for armoured vehicles. Low rigidity and strength of plastics as compared to metals is likely to augment the market growth in suspension application over the coming years.

U.S. Automotive Metal Market Key Companies

• Alcoa Corporation
• Allegheny Technologies
• ArcelorMittal
• Hyundai Steel Co., Ltd.
• Kaiser Aluminum
• Nippon Steel Corporation
• Novelis
• ThyssenKrupp AG
• United States Steel Corporation
• voestalpine AG.

Recent Development

• In December 2023, Nippon unveiled its acquisition of the U.S. Steel Corporation. This strategic move signifies the collective ambition of both companies to establish themselves as the foremost steelmaker with unparalleled global capabilities.
• In February 2024, Schaeffler disclosed its intentions to expand operations within the U.S. market. The company plans to invest USD 230 million in the construction of a new greenfield manufacturing facility in Ohio, with further expansion endeavors slated until 2032.

U.S. Automotive Metal Market Segmentation:

By Product

• Aluminium
• Steel
• Magnesium
• Others

By Vehicle-type

• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles

By Application

• Body Structure
• Power Train
• Suspension
• Others