Global Automotive Plain Carbon ERW Tubes Market was valued US$ XX Bn. in 2019 and is expected to grow US$ 5.91 Bn. by 2027, at a CAGR of XX% during the forecast period.
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An automotive plain carbon ERW tubes are mainly 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 include incidental elements in limited amounts, like manganese, silicon, sulphur, and phosphorus. These tubes have outstanding formability and weldability primarily for cold deformed shapes across automobile body frames and rear body frames.
Demand for ERW pipes is driven by construction, building materials, infrastructure, automobile, and energy sectors. Until the last decade, ERW pipes were mainly used in sewage transportation, last-mile gas distribution, and automobiles. Also, ERW pipes have found applications in infrastructure, commercial real estate, pre-fabricated structures, and furniture because of increased load-bearing capacity. Demand drivers for ERW pipes include higher investments in water supply and sanitation, irrigation, and other newer applications. Organized ERW pipe makers will continue to benefit from the formalization of the economy post-implementation of the Goods and Services Tax.
ERW pipes industry is largely a regional industry, thanks to low operating margins (5-8%). Logistics costs can make it unviable to transport over long distances, hence proximity to end-user is serious. Smaller and unorganized players face issues, like tight working capital, low capacity utilization, old technology, high cost of raw materials, etc. Hence, organized players have noted strong growth in the last five-seven years as they gained share from unorganized players and also because of growth in end markets. On the other hand, approximately 40% of market share is still held by unorganized players indicating opportunities to penetrate further for organized players.
Nevertheless, demand for ERW pipes faces the threat of substitution from PVC pipes for last-mile conveyance applications, mostly in the water industry. Players with diversification in structural and square pipe segments are better placed to avoid this threat.
According to the application, the frame segment held the largest market share in 2018 and expected to hold continuous dominance by 2027 at a CAGR of XX% during the forecast period. The tubes in automotive frame assemblies must be extremely rigid and strong to meet the payload capacity & withstand shocks, twists, stress, and vibrations, during vehicles driving on uneven road. Automotive component manufacturers are mainly developing vehicle chassis by using carbon-containing ERW tubes to meet the demand for fuel and payload efficiencies. Also, the frames are manufactured with the support of plain carbon ERW tubes. It is broadly adopted for manufacturing seat frames, body frames, bumper frames, rear body frames, and headrest frames.
By vehicle type, Passenger cars generally used automotive plain carbon ERW tubes across steering linkages, steering column, shock absorber, propeller shaft, tie rod, and axel tube. The need for passenger safety from individual users and the government standards are expected to drive the growth of this segment during the forecast period.
Region-wise, Asia-Pacific is expected to hold the largest market share of the global market by 2027, thanks to the booming automobile manufacturing industry and the presence of emerging countries, such as China, India, and Japan. The global automotive component manufacturers established their production plants and distribution facilities in Asia-Pacific.
Europe held the second-largest market share in 2018, in the global automotive plain carbon ERW tubes market. The growing investment in R&D by regional market players, an increase in the sales of vehicles, and many automotive component suppliers in this region. Major automotive plain carbon ERW tubes manufacturers are growing their presence through the 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 improve and develop their operational network in Europe.
JFE Steel Corporation is focused on emerging 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.
AK Steel Corporation is transforming operations related to the automotive industry to improve its competitive position in the market significantly. It is focusing on the 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 R&D to comply with the automotive industry standards in North America and Europe.
The objective of the report is to present a comprehensive analysis of the Global Automotive Plain Carbon ERW Tubes Market including all the stakeholders of the industry. The past and current status of the industry with forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that includes market leaders, followers and new entrants. PORTER, SVOR, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.
The report also helps in understanding Global Automotive Plain Carbon ERW Tubes Market dynamics, structure by analyzing the market segments and project the Global Automotive Plain Carbon ERW Tubes Market size. Clear representation of competitive analysis of key players by type, price, financial position, product portfolio, growth strategies, and regional presence in the Global Automotive Plain Carbon ERW Tubes Market make the report investor’s guide.
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