The global steel market for automotive and aerospace applications is projected to expand substantially in the forthcoming years, driven by the rapid developments in the automotive and aerospace sectors. The demand for steel angles, shapes, and sections is likely to grow at a 4.5% CAGR through 2027.
The drawn wire segment is expected to be worth more than USD 3 billion by 2027. Drawn wires are extensively used in the reinforcement of tires in order to enhance their strength and durability. They also find wide use in the production of automotive controls.
The demand for steel wire rods is expected to increase at a CAGR of around 5.5% over the same timeframe. Steel is widely preferred in wire rods on account of its high strength, ductility, malleability, and corrosion resistance which is required in various automotive components. The hot rolled bars and rods segment will be worth more than USD 27.5 billion by 2027. Meanwhile, the adoption of other bars and rods will increase at a 3% CAGR.
The hot rolled steel sheets and coils segment is estimated to garner more than USD 19.5 billion by the end of the projected period. On the other hand, the demand for cold rolled steel strips will rise at a robust 7% CAGR. These strips are prominently used in numerous aerospace and automotive applications including body and structural components, electrical equipment, and high-quality sintered bearings.
Steel plates industry will generate revenue in excess of USD 6 billion by the end of 2027. Increasing environmental concerns and the introduction of stricter vehicle emission norms is driving their adoption in aerospace and automotive applications.
Other steel coated sheets segment is gaining traction and is projected to grow at a CAGR of about 3.5% over 2021-2027. The demand for steel casting components will rise at a healthy 5.5% CAGR through the years with rising demand for freight aircrafts and the need for improved productivity in the automotive sector. The other products segment will capture a market share of around USD 5 billion in terms of annual revenue by 2027.
The steel industry for aerospace and automotive applications in Latin America is likely to record a 3% CAGR up to 2027. The regional growth will be powered by the increasing consumer demand for high-end premium vehicles along with rising foreign direct investments in the auto industry. Additionally, the rise in air travel will further bolster the regional outlook.
Meanwhile, the Middle East and Africa steel market for automotive and aerospace applications will grow at a CAGR of over 3.5% in the forthcoming years, driven by the increased demand for highspeed, effective, and time saving means of transportation.