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Electrical Steel Market Size, Share, Growth Analysis, By Type(Grain-Oriented, Non- Grain-Oriented, Others), By End User(Household Appliances, Manufacturing, Energy & Power, Automotive), By Application(Transformers, Motors, Inductors and Others), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG15O2013 |
Region:
Global |
Published Date: April, 2024
Pages:
184
|Tables:
65
|Figures:
77
Electrical Steel Market Insights
Electrical Steel Market size was valued at USD 38.34 billion in 2022 and is poised to grow from USD 40.91 billion in 2023 to USD 68.73 billion by 2031, at a CAGR of 6.7% during the forecast period (2024-2031).
Electrical steel is used in a wide range of electromagnetic devices, including small relays, solenoids, electric motors, generators, and many others. Electrical steel has diverse applications in generators, electric motors, relays, solenoids, and various electromagnetic devices, all of which play crucial roles in power distribution systems and related sectors. The United States stands as the second-largest electricity generator worldwide. The nation produced approximately 4,000 terawatt-hours (TWh) of electricity through utility-scale generators, marking a substantial 16.7% increase in renewable power generation from 2019. The burgeoning electric vehicle (EV) industry is another significant catalyst for the electrical steel market. This specialized steel possesses magnetic properties essential for the efficient operation of EV motors, particularly in rotors and stators. Its use results in improved motor efficiency by minimizing core energy losses, consequently extending the vehicle's range.
Despite the disruptive impact of the pandemic on global economic growth, plug-in vehicle sales surged to around 3.24 million, a remarkable increase of over 43%. Notably, Europe outpaced China to become the largest EV market, experiencing a substantial 137% growth in EV sales. This upswing in EV production directly drives the utilization of electric motors, thus boosting the demand for electrical steel. The escalating demand for electrical steel has prompted manufacturers to expand their production capacities. For instance, in May 2021, JSW Steel and JFE Steel Corporation entered into a Memorandum of Understanding (MoU) to explore the feasibility of establishing a joint venture company in India dedicated to the manufacturing and sales of electrical steel sheets within the country. The rise of electric vehicles, driven by environmental concerns and government incentives, has significantly boosted the demand for electrical steel. This material is essential for the motors and batteries in EVs, where it enhances energy efficiency and extends driving range.
US Electrical Steel Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - zz
Global Market Size
Largest Segment
Non-Grain-Oriented
Fastest Growth
Non-Grain-Oriented
Growth Rate
ong>US Electrical Steel Market is poised to grow a CAGR
Global Electrical Steel Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Electrical Steel Market Segmental Analysis
Global electrical steel market is segmented on the basis of type, application, end user and region. By type, the market is segmented into grain-oriented and non- grain-oriented. By end user, the market is segmented into energy, automotive, household appliances, manufacturing and others. By application, the market is segmented into transformers, motors, inductors and others. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Electrical Steel Market Analysis by Application
The transformer segment dominates the electric steel market, accounting for the largest market share with 52.0% of the overall market in 2023. This is primarily due to the robust magnetic permeability of electrical steel, making it an indispensable material in the manufacturing of transformers. Transformers are essential components in power generation, transmission, and distribution systems, as they efficiently and safely transmit and distribute electricity. The increasing complexity of electrical grids, the proliferation of digital loads, and the expansion of decentralized power generation have heightened the demand for transformers, further driving the dominance of the transformer segment in the electric steel market.
The electric motor segment is projected to experience the fastest growth in the electric steel market. This is driven by the increasing adoption of electric vehicles (EVs) and the rising demand for electric motors across various residential, commercial, and industrial sectors. Electrical steel is a critical component in electric motors, as it contributes to their performance and efficiency through its superior magnetic properties and ability to minimize energy losses. The growing emphasis on sustainability and the transition towards electrification in the automotive industry are key factors fueling the rapid expansion of the electric motor segment in the electric steel market.
Electrical Steel Market Analysis by Type
The grain-oriented electrical steel (GOES) segment dominates the electric steel market, accounting for the highest market share. In 2023, GOES held a commanding market share of 51.7% of the global electric steel market. This can be attributed to the superior magnetic properties of GOES, which make it an ideal material for use in high-efficiency transformers, motors, and generators. GOES is widely used in the manufacturing of transformers, power generators, and other electrical equipment due to its ability to enhance efficiency. The increasing demand for electricity in developing economies and the growing trend towards renewable energy sources are expected to further drive the demand for GOES in the near future.
The non-grain-oriented electrical steel (NGOES) segment is projected to experience the fastest growth. NGOES is an important material employed in manufacturing motors, rotors, EV traction motors, and high-performance power generators. Additionally, it is primarily utilized in electrical equipment and offers significant magnetic properties, including high permeability or low hysteresis loss. The rapidly growing automotive and construction industries are propelling product consumption, which includes usage as transformers, power generators, lamination steel, conductive steel, and motors & engines. The increasing adoption of electric vehicles in the automotive industry has fueled the demand for electric motors, resulting in higher consumption of NGOES. Moreover, companies are investing in sustainable product development and have increased the production of electric vehicles, further creating growth opportunities for the NGOES segment.
Global Electrical Steel Market Size By Type
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Electrical Steel Market Regional Insights
Asia Pacific, which holds the largest share of the worldwide market, is anticipated to rise at a CAGR of 5.8% throughout the forecast period. The examination of the Asia-Pacific market covers China, India, Japan, Australia, and the rest of the region. In terms of both power production and consumption, India comes in third place globally. Furthermore, it is predicted that investments totaling USD 179.31 billion will enter the Indian electricity sector. India would account for almost 44% of sales across South Asia and the Pacific. Government initiatives to build reliable and reasonably priced energy generation and distribution networks across the country for rural and urban electrification are predicted to boost India's energy sector development.
During the projection period, Europe is anticipated to expand at a CAGR of 6.8%. because of the region's growing car industry and the emerging electric vehicle market segment. The automobile industry is quickly establishing cost and fuel economy, recyclability, and formability as key focal areas, making material and component selection more important than ever. According to data released by Tata Steel, a division of the Tata Group, the demand for advanced electrical and plated steel in the European automotive industry would climb by 2.6 million tonnes by 2050 as a result of the anticipated increase in demand for electric or ultra-low emission vehicles.
Global Electrical Steel Market Size By Region
- Largest
- Fastest
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Electrical Steel Market Dynamics
Electrical Steel Market Drivers
Rise of Electric Motor to Bolster Market Growth
- One of the key drivers of market expansion is the rising demand for electric motors across various residential, commercial, and industrial sectors. Electrical steel is widely used to produce motors with higher magnetic flux and torque as well as power generators with enhanced electromagnetic properties and minimal carbon dioxide emissions. Additionally, the use of hybrid and electric cars (H/EVs) is expanding, which is boosting market growth. Electric steel vehicle components are lighter while also enhancing the vehicle's aesthetics and safety.
- High rate of electrical steel consumption in motors and transformers the rise in global vehicle manufacturing is one of the key drivers behind the expansion of the electrical steel market. The production is rising annually. The use of electrical steel in automobiles increases fuel efficiency, which raises demand for electrical steel in the automotive industry. Due to the increasing demand for electric and hybrid vehicles, it is predicted that the market for electrical steel would expand even more throughout the forecast period. Energy conservation is a recent market trend. Increased industrial expansion and rising energy consumption are the primary drivers of the industry and the demand for transformers.
Supportive Policies and Regulations
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Supportive policies and regulations implemented by governments worldwide are a key driving factor for the growth of the electrical steel market, as they promote the adoption of renewable energy sources, electric vehicles, and energy efficiency standards. Tax incentives, subsidies, and financial incentives are being offered to encourage the use of renewable energy and electric vehicles, which is indirectly driving the demand for electrical steel in transformers, generators, and EV motors. Governments are also setting energy efficiency standards for various industries, such as manufacturing and construction, to reduce energy consumption and greenhouse gas emissions, further boosting the demand for high-performance electrical components made from electrical steel. Additionally, investments in power generation, transmission, and distribution infrastructure, along with funding and incentives for research and development in the field of electrical steel, are contributing to the expansion of the market and enabling the development of innovative products like amorphous and nanocrystalline alloys with superior magnetic properties and enhanced efficiency.
Electrical Steel Market Restraints
High Initial Investment
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The high initial investment required for the development and manufacturing of electrical steel is a significant restraining factor for the growth of the electrical steel market. The capital expenditure involved in setting up production facilities and procuring advanced technologies can be a major barrier, particularly for new players looking to enter the market.Establishing an electrical steel manufacturing plant requires significant investments in infrastructure, equipment, and specialized machinery. The costs associated with research and development, process optimization, and compliance with regulatory standards further add to the financial burden. This high upfront investment can deter potential market entrants and limit the expansion of existing players, as the long payback period and uncertain returns on investment make it challenging to justify the capital outlay. The capital-intensive nature of the industry acts as a restraint, hindering the overall growth of the electrical steel market.
Price Fluctuation to Hinder Market Growth
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The production of electrical steel requires a variety of raw materials, including iron ore, coal, and other metals. Any volatility in the prices of these raw materials can significantly impact the production cost of electrical steel, which can lead to fluctuations in the market price of electrical steel.
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Electrical Steel Market Competitive Landscape
Due to the presence of multiple significant companies, the market for electrical steel is quite competitive. The leading businesses have a competitive edge thanks to their cutting-edge technology, robust research efforts, and established positions in local marketplaces.
Electrical Steel Market Top Player’s Company Profiles
- ArcelorMittal (Luxembourg)
- Nippon Steel Corporation (Japan)
- JFE Steel Corporation (Japan)
- POSCO (South Korea)
- Baosteel Group Corporation (China)
- AK Steel Corporation (USA)
- Voestalpine AG (Austria)
- ThyssenKrupp AG (Germany)
- Tata Steel Limited (India)
- Kobe Steel, Ltd. (Japan)
- United States Steel Corporation (USA)
- China Steel Corporation (Taiwan)
- NSSMC India Pvt. Ltd. (India)
- Cogent Power Limited (UK)
- ATI Allegheny Ludlum (USA)
- Aperam S.A. (Luxembourg)
- TISCO (India)
- Stalprodukt S.A. (Poland)
- ATI Wah Chang (USA)
- Jindal Steel & Power Ltd. (India)
- JSW Steel Ltd. (India)
- MMK-Metiz (Russia)
Electrical Steel Market Recent Developments
- In February 2024, Germany’s biggest steelmaker Thyssenkrupp received an order for the supply of lower carbon emission grain-oriented electrical steel to Siemens Energy.
- In February 2024, JSW Steel and Japan's JFE Steel jointly invested Rs 5,500 crore in a steel plant in India to produce electrical grade grain-oriented steel.
- In January 2024, POSCO, the South Korean steel giant, successfully concluded the initial phase of constructing its cutting-edge, eco-friendly non-oriented electrical steel sheet plant, known as Hyper No, at Gwangyang Steel Works. This strategic development aims to cater to the increasing demand emerging from the electric vehicle (EV) and high-end appliance sectors.
Electrical Steel Key Market Trends
- Rising Electricity Demand: This surge in demand can be attributed to factors such as rapid population growth, industrialization, and urbanization, all of which necessitate greater energy supply. As electricity remains a fundamental aspect of modern life, it drives the need for energy-efficient electrical equipment. Electrical steel, with its exceptional magnetic properties, plays a critical role in power generation and distribution equipment, particularly in transformers and generators, enabling energy efficiency improvements and the reduction of energy losses in the transmission and distribution of electrical power, thus addressing the escalating need for reliable and efficient electricity supply.
- Globalization of Manufacturing: This trend is fueled by various factors, including access to cost-effective labor, global supply chains, and the pursuit of new markets. Electrical steel, as an essential component in various industries, benefits from this globalization as it allows manufacturers to access efficient, standardized materials for electrical equipment and components, ensuring compliance with international standards and enhancing competitiveness in a global market. This interconnected approach to manufacturing supports the growth of the electrical steel market by facilitating the efficient production and distribution of energy-efficient equipment across diverse industries and geographic regions.
Electrical Steel Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our analyses, the global electrical steel market is experiencing significant growth due to the increasing demand for energy-efficient transformers and motors in various industries. Electrical steel is used in the manufacturing of transformers, electric motors, and other power distribution systems due to its unique magnetic properties. The rise in demand for energy-efficient electrical equipment, coupled with the increasing focus on renewable energy sources, is expected to drive the growth of the global electrical steel market. The market is also expected to benefit from the expansion of the power generation and transmission infrastructure in emerging economies. The market faces a few significant restraints, such as volatility in raw material prices, high capital requirements, and limited availability of raw materials. These factors may limit the growth potential of the market in the coming years. Nonetheless, the increasing demand for energy-efficient electrical equipment and the expansion of the power generation and transmission infrastructure are expected to drive the growth of the market in the long run.
| Report Metric | Details |
|---|---|
| Market size value in | zz |
| Growth Rate | ong>US Electrical Steel Market is poised to grow at a sustainable CAGR for the next forecast year.
% |
| Base year | 2023 |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Electrical Steel Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Electrical Steel Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Electrical Steel Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Electrical Steel Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Electrical Steel Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Electrical Steel Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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