Japan Automotive Steel Market Outlook

japan is an important player in the automotive steel market and is a key supplier to global markets. with a significant share in the global market, japanese companies continue to hold a major presence in the steelmaking industry. in 2018, the japanese market for automotive steel coverplate materials grew by 6.5%, reaching a market size of 6.2 trillion yen. the main drivers of this growth are continued innovation in steel production technologies and better emphasis on meeting societal demands for a higher quality of steel products. in 2017, the increased use of advanced steel materials such as high strength steels, ultra-high strength steels and non-grain oriented steels in automobile manufacturing accounted for 25% of the overall growth in the industry. as demand for lighter yet stronger automotive components rises, further innovation and application of the latest technologies will strengthen the market presence of japanese companies in the global market. additionally, increased demand of aluminum-based materials in the automotive industry has posed a great challenge to the carbon steel market as weight is an essential factor in automobile function. the growth of the carbon steel market will depend largely on how well japanese companies can take on this challenge. to maintain a technological edge, investment in research and development in advanced steels like tailor-made product is essential. the key focus areas for japanese companies over the next few years should concentrate on increasing application of innovative products like non-grain orientated silicon steel, i.e. grain premature weak magnetic steel, as well as development of advanced aluminum alloys for automobile frame and other structural parts. looking ahead to 2032, the japanese automotive steel market is expected to continue growing in the near and medium-term, driven by development of new materials and growing demand from the automotive industry. the competitive landscape could also see major shifts as new players enter the market and technological advancements render current players obsolete. in order to remain successful, japanese steel companies must maximize their presence in the global market as well as continually innovate to stay ahead of the competition.