Global Electrical Steel Market Overview
The Electrical Steel Market Size was estimated at USD 12.58 Billion in 2022. The Electrical Steel Industry is expected to grow from USD 13.07 Billion in 2023 to USD 18.5 Billion by 2032. exhibiting a compound annual growth rate (CAGR) of 3.94% during the forecast period (2024 - 2032).
Key Electrical Steel Market Trends Highlighted
Key market drivers for the Electrical Steel market include the growing demand for energy-efficient appliances and vehicles. Governments worldwide are implementing regulations promoting sustainable practices, further boosting the demand for electrical steel in these sectors. Additionally, advancements in electric motor and transformer technologies are creating new opportunities for electrical steel applications.
Opportunities to be explored in the Electrical Steel market include developing innovative production technologies and expanding into emerging regions. As the market becomes more competitive, companies must invest in research and development to stay ahead of the curve. Moreover, tapping into untapped markets in developing economies presents significant growth potential for electrical steel manufacturers.
Recent market trends show an increasing focus on sustainable and low carbon steel production. Consumers are becoming more environmentally conscious, driving demand for eco-friendly materials like electrical steel. Additionally, the integration of artificial intelligence (AI) and automation in manufacturing processes is optimizing production efficiency and improving product quality.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electrical Steel Market Drivers
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Increasing Demand for Energy-Efficient Appliances
The growing international demand for power-efficient home equipment is another factor that is driving the growth of the Electrical Steel Market Industry. As customers have an increased consciousness concerning the environmental effects of their energy demand, the demand for power-efficient electrical steel has increased. Electrical steel is used in the manufacturing of energy-efficient transformers, motors, and generators.
Hence, the fast increasing demand for power-efficient home equipment will proceed to drive the development of the Electrical Steel Market Industry for the subsequent few years.
Growing Adoption of Electric Vehicles
Electricity driven motor systems have also gained popularity in recent years. It is one of the significant factors that has continued to boost its demand over the years. Mainly because electric vehicles require a significant amount of electrical steel in order to automate their motors and generators chiefly for the durability of their use and life span. In addition, the increasing adoption of electric vehicles tends to promote a high demand for electrical steel in the future.
Most importantly it lays an excellent opportunity for the growth of the Electrical Steel Market Industry in the forthcoming years.
Rising Demand for Renewable Energy Sources
The elevation in demand for renewable energy sources is also expected to act as a major driver to the Electrical Steel Market Industry. There has been a surge in the usage of renewable energies such as solar energy and wind energy sources due to their positive impact on the environment. Increasing demand for such a form of energy has led to increase usage of electrical steel in making transformers. The need for transformers is to help control the electricity voltage produced from the renewable source to the voltage used in the power grid.
The transformer helps lower the voltage to the substations and power machines as well. The demand for renewable energy sources is expected to rise in the upcoming years and hence the elevation in demand for electrical steel.
Electrical Steel Market Segment Insights
Electrical Steel Market Grade Insights
The Electrical Steel Market is divided into grade clusters namely, non-oriented electrical steel, grain oriented electrical steel, high permeability electrical steel, and amorphous electrical steel. Non-Oriented Electrical Steel is the most common grade with over 60% of the global market and is used in transformers, motors, and generators applications. The market for non-oriented electrical steel is expected to grow from USD6.2 billion in 2020 at a CAGR of 3.5% to USD8.7 billion in 2032. Grain-Oriented Electrical Steel is a high performing grade up to transformers and other applications that require low core losses.
The market for Grain-Oriented Electrical Steel from USD5.1 billion in 2020 at a CAGR of 4.2% to USD6.2 billion in 2032. High Permeability Electrical Steel is a grade which inner chemical structure give high magnetic permeability. The market will rise from USD1.6 billion in 2020 to USD2.8 billion in 2032 at a CAGR of 3.8%. The amorphous electrical steel is a newer grade than the rest of the four that exhibit high magnetic permeability, but with extremely low hysteresis loss. It is used in most rotating machines and power transformers. The market will be driven by the increasing demand for energy efficient motors and transformers.
It is also driven by the rapid growth of the renewable energy sector in the industry, especially the solar Ppanel and wind PV which have gained more attraction to lower the electricity bills.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electrical Steel Market Application Insights
Significant applications of electrical steel include power and distribution transformers, electric motors and generators, and industrial equipment. The largest applications of electrical steel are power transformers, and the segment is attributed to the highest market share. The high demand for electricity and the growing proportion of installed renewable power systems such as solar and wind power drive the growth of the power transformer segment. The second major application is distribution transformers, owing to the increasingly pressing demand for efficient distribution of power in both urban and rural areas.
Motors, whose application is growing as a result of the rising adoption of energy-efficient electric motors in heavy industries and establishments in the commercial sectors, and generator segments are other important applications that use electrical steel. Generators are employed in power generation, and the demand for power in different sectors is increasing the demand for electrical steel in the segment. Another major application is industrial equipment which encompasses a range of electrical machinery and other appliances. Industrial equipment application segment is anticipated to increase during the forecast period due to the rapid growth of industrial activity as a result of the growing manufacturing activity in the emerging economies.
Electrical Steel Market Manufacturing Process Insights
The Electrical Steel Market is segmented into Cold Rolled, Hot Rolled, Continuous Annealed, and Batch Annealed by Manufacturing Process. Among these, Continuous Annealed is expected to capture a significant market share over the forecast period owing to its superior magnetic properties and cost-effectiveness. Cold Rolled is another widely adopted segment due to its high strength and good surface finish. Hot Rolled, while less precise than Cold Rolled, is often preferred for applications requiring high magnetic permeability. Batch Annealed, though less common, finds use in applications demanding high electrical efficiency.
Electrical Steel Market Silicon Content Insights
The silicon content segment in the Electrical Steel Market is expected to witness significant growth in the coming years. The increasing demand for energy-efficient electrical equipment is driving the growth of the silicon content segment. Silicon steel is used in the production of transformers, motors, and generators, and it helps to reduce energy losses and improve efficiency. The 1.5-2.5% silicon content segment is expected to hold the largest share of the Electrical Steel Market in 2023, and it is projected to continue to grow at a steady pace in the coming years.
The 2.5-3.5% silicon content segment is expected to witness the fastest growth over the forecast period, as it is increasingly used in high-efficiency applications. The growth of the silicon content segment is being driven by a number of factors, including the increasing demand for energy-efficient electrical equipment, the rising adoption of renewable energy sources, and the growing demand for electric vehicles. The silicon content segment is expected to continue to grow in the coming years, as the demand for energy-efficient electrical equipment continues to increase.
Electrical Steel Market Coating Insights
The Electrical Steel Market is segmented by Coating into Oiled, Inorganic, Organic, and Hybrid. Inorganic coatings held the largest share of the market in 2023 and are expected to continue to do so over the forecast period. This is due to their excellent corrosion resistance and high temperature stability. Organic coatings are expected to grow at the highest CAGR over the forecast period, due to their superior electrical insulation properties and flexibility. The Electrical Steel Market revenue for Coating segment is expected to reach USD 18.5 billion by 2032, growing at a CAGR of 3.94% over the forecast period.
The increasing demand for electrical steel in the automotive, power generation, and distribution industries is driving the growth of the Coating segment.
Electrical Steel Market Regional Insights
North America holds a significant market share due to the presence of established electrical and automotive industries. In 2023, the region accounted for approximately 35% of the Electrical Steel Market revenue. Europe follows closely, driven by stringent energy efficiency regulations and a growing renewable energy sector. The Asia-Pacific region is projected to witness the highest growth rate during the forecast period, attributed to rapid industrialization and increasing demand from emerging economies such as China and India.
South America and the Middle East Africa regions are expected to contribute a smaller yet steadily growing share to the Electrical Steel Market, fueled by infrastructure development and urbanization.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electrical Steel Market Key Players and Competitive Insights:
The biggest players in the sphere of this market are trying to preserve their status and even enlarge it. Electric Steel Market companies spend large sums on R to be able to provide their customers with brand new products and technologies. Now the market is a point of concern for signing a great number of strategic agreements and partnerships starting from joint investments to mergers and takeovers. As a result, companies can capitalize on this or that partners’ strength. They often participate in such schemes due to the level of competition within the Electric Steel Market – now it is extremely high. The goods and services from major and other players are almost equivalent and the only tool to overplay rivals is pricing policy, so companies always must be wide awake and to offer better conditions. Nippon Steel Corporation is a well-known participant that offers its non-oriented electrical steel sheets and grain-oriented electrical steel sheets. This company has high-tech manufacturing capacities in Japan, Europe and the US and its products are famous for their quality. One bigger and more well-known participant is ArcelorMittal, also a multi-national company based in Luxembourg. It offers non-oriented electrical steel and grain-oriented electrical steel, and its manufacturing facilities are located in North America, Europe and Asia. Like Nippon Steel Corporation the company spends large amounts on R
Key Companies in the Electrical Steel Market Include:
- POSCO
- HBIS Group
- Hyundai Steel
- thyssenkrupp Steel
- Ansteel Group
- Tata Steel
- China Baowu Steel Group
- Wuhan Iron and Steel Group
- Nippon Steel
- JFE Steel
- Voestalpine
- Shougang Group
- Nucor
- ArcelorMittal
- Baosteel
Electrical Steel Market Industry Developments
The Electrical Steel Market is projected to reach USD 18.5 billion by 2032, exhibiting a CAGR of 3.94% during the forecast period. Increasing demand for energy-efficient electrical equipment, particularly in the automotive and power generation industries, is driving market growth. Growing adoption of electric vehicles and the expansion of renewable energy sources are further contributing to the demand for electrical steel. Recent news developments include the strategic partnership between ArcelorMittal and POSCO to enhance their electrical steel production capabilities and the investment by Nippon Steel in a new electrical steel production line in Japan. These developments indicate a positive outlook for the electrical steel market in the coming years.
Electrical Steel Market Segmentation Insights
Electrical Steel Market Grade Outlook
- Non-Oriented Electrical Steel
- Grain Oriented Electrical Steel
- High Permeability Electrical Steel
- Amorphous Electrical Steel
Electrical Steel Market Application Outlook
- Power Transformers
- Distribution Transformers
- Motors
- Generators
- Industrial Equipment
Electrical Steel Market Manufacturing Process Outlook
- Cold Rolled
- Hot Rolled
- Continuous Annealed
- Batch Annealed
Electrical Steel Market Silicon Content Outlook
- 5-1.5%
- 5-2.5%
- 5-3.5%
- 5-4.5%
Electrical Steel Market Coating Outlook
- Oiled
- Inorganic
- Organic
- Hybrid
Electrical Steel Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
Report Attribute/Metric
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Details
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Market Size 2022
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12.58(USD Billion)
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Market Size 2023
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13.07(USD Billion)
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Market Size 2032
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18.5(USD Billion)
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Compound Annual Growth Rate (CAGR)
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3.94% (2024 - 2032)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2023
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Market Forecast Period
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2024 - 2032
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Historical Data
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2019 - 2023
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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POSCO, HBIS Group, Hyundai Steel, thyssenkrupp Steel, Ansteel Group, Tata Steel, China Baowu Steel Group, Wuhan Iron and Steel Group, Nippon Steel, JFE Steel, Voestalpine, Shougang Group, Nucor, ArcelorMittal, Baosteel
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Segments Covered
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Grade, Application, Manufacturing Process, Silicon Content, Coating, Regional
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Key Market Opportunities
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Electrification of transportation Growing demand for energyefficient appliances Rise in renewable energy generation Expanding construction industry Government regulations promoting energy efficiency
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Key Market Dynamics
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Increased demand for energyefficient motors Growing adoption of electric vehicles Push for renewable energy sources Government regulations promoting energy efficiency Technological advancements in electrical steel production
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Countries Covered
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North America, Europe, APAC, South America, MEA
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Frequently Asked Questions (FAQ) :
The Electrical Steel Market was valued at 13.07 billion USD in 2023, and it is expected to reach 18.5 billion USD by 2032, exhibiting a CAGR of 3.94% during the forecast period.
The Asia Pacific region is expected to dominate the Electrical Steel Market throughout the forecast period. This can be attributed to the increasing demand for electrical steel in various industries such as automotive, power generation, and construction in this region.
Electrical steel finds its application in various sectors. Some of the major applications of electrical steel include generators, transformers, electric motors, and automotive components.
Some of the key players in the Electrical Steel Market include ArcelorMittal, Baosteel, Nippon Steel Sumitomo Metal Corporation, JFE Steel, and ThyssenKrupp.
The growth of the Electrical Steel Market is primarily driven by the increasing demand for energy-efficient electrical equipment and the growing automotive industry.
The Electrical Steel Market faces several challenges, including the volatility of raw material prices, intense competition, and stringent environmental regulations.
Some of the latest trends in the Electrical Steel Market include the development of new high-performance electrical steel grades, the adoption of advanced manufacturing technologies, and the increasing focus on sustainability.
The Electrical Steel Market is expected to exhibit steady growth over the forecast period. The market is expected to be driven by the increasing demand for energy-efficient electrical equipment and the growing automotive industry.
New entrants in the Electrical Steel Market can focus on developing innovative products and technologies, expanding their geographical presence, and forming strategic partnerships with key players in the industry.
Before investing in the Electrical Steel Market, it is important to consider factors such as market size and growth potential, competitive landscape, technological advancements, and regulatory environment.