In recent years the government in the US has taken vital initiatives to encourage domestic production for various industries including automotive industry. The government had also enlist and transform regulation to curb the steel dumping by the developing countries such as India and China. The constant production of vehicle and the anticipated stability in regulatory and price attributes in steel industry penetrates the growth of the automotive stainless steel tubes market in the US over the forecast period
The automotive industry in Canada is mainly dependent on exports. Major proportion of vehicle manufactured in the country are exported overseas. Additionally, the country is also one of the major market for the machine-tool-die-and-mould (MTDM) industry. The automotive steel tube market in Canada exhibits discernible elevation in the behest of prodigious volume and expertise present in the automotive and MTDM industry
The US holds around 85% of the market share of the stainless steel tubes market in North America majorly due to its dominating share in the automotive production in 2018. FCA US, Ford, and General Motors are among the top automotive manufacturers who produce around 50% of the automotive manufactured in the country. In 2018, more than 11 million vehicles were manufactured in the country, creating massive demand for stainless steel tubes for the industry
Automotive industry production in the US adheres meagre growth of 1.10% in the year 2018 along with prodigious growth in the production of heavy vehicle industry. The heavy truck industry penetrates an annual growth of 17% in 2018 compared to the year 2017. In addition, the automotive stainless steel tubes industry in Canada is driven by the surge in the production of heavy trucks exhibiting the 13.5% growth in 2018
The Canada automotive market is mainly driven by surge in the production of heavy vehicles which witnessed an annual increase of around 4% in 2018. The rise in production of heavy trucks in the country is further propagating the growth of automotive stainless steel tubes market in Canada over the forecast period
The US shows considerable surge in light commercial vehicle market adhering the 4% surge in 2018 from previous year. The initiatives by the government to liberalize the emission standards is anticipated to augment the demand of vehicle due to the unchanged cost in forth coming years. The nominal prices of vehicles transmits increase demand due to increase in the disposable income due to higher employment rate (unemployment rate contracted to 3.6% in Q1 2019), and per capita income.
Additionally, the initiatives to safeguard the domestic automotive industry by the government (increased tariff on auto imports from China from 15% to 25%) manifests further strengthening of production output revamping the growth of automotive stainless steel tubes over the forecast period
The automotive industry in Canada substantially dependent on the exports. The major proportion of production of vehicle in the country is exported to various developed economies of Europe and North America. Canada automotive holds over 5% of the global automotive exports. However, automotive exports have declined over the years due to the policy transformation by United States to safeguard domestic automotive manufacturing due to the major exports by Canada are aligned to the country.
Additionally, decline in the export is substantially offset by the domestic increment in demand of vehicles in the country and is also expected to excel in forth coming years. The complementary market such as automotive stainless steel tubes in Canada evince considerable growth over the forecast period on due to rising demand of heavy vehicles in the country