Electrical Steel Sheet Market Research Report By Application (Transformers, Motors, Generators, Relays, Inductors, Other applications), By Grade (Fully processed, Semi-processed, Non-oriented, Grain-oriented), By Core Loss (Less than 0.5 watts per kilogram (W/kg), 0.5-1.0 W/kg, 1.0-1.5 W/kg, 1.5-2.0 W/kg, More than 2.0 W/kg) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Global Electrical Steel Sheet Market Overview

The Electrical Steel Sheet Market Size was estimated at 14.87 (USD Billion) in 2022. The Electrical Steel Sheet Industry is expected to grow from 15.47 (USD Billion) in 2023 to 22.1 (USD Billion) by 2032. The Electrical Steel Sheet Market CAGR (growth rate) is expected to be around 4.04% during the forecast period (2024 - 2032).

Key Electrical Steel Sheet Market Trends Highlighted

Technological Advancements: Development in the production of electrical steel sheets, including grain-oriented electrical steel (GOES) and non-oriented electrical steel (NOES), is supporting the growth of the market. The GOES has the most favorable magnetic features, while the NOES is less expensive and best suited for low-performance use. Surging Demand from Renewable Energy: New sources of renewable energy, such as electric vehicles and wind turbines, are generating very high demand for electrical steel sheets. Such Displacement tends to require using high-performance electrical steel in order to reduce energy losses and enhance efficiency. Growing Infrastructure Development: Increasing infrastructure activities across the globe, especially in emerging markets, is increasing the need for electrical steel sheets. There is growing urban and industrial growth which prompts the construction of new power transmission and distribution lines and equipment that depend on these resources heavily. Restraints due to Environmental Regulations and Sustainability Factors: As governments impose stricter environmental policies, the use of such energy-related materials is becoming very popular. Electrical steel sheets are valued for their capability to lower energy and carbon wastage, thereby making them valued in the hands of fashion-forward manufacturers and consumers. Miniaturization and Integration: With the rising trends of miniaturization and integration of electronic equipment, there is a rising need for thinner electrical steel sheets that are also more pliable. The industry, in this case, is being driven towards the invention of new technologies and materials that are able to provide satisfactory solutions to these emerging trends.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Electrical Steel Sheet Market Drivers

Rising Demand for Energy-Efficient Electrical Equipment

The Electrical Steel Sheet Market Industry is primarily driven by the increasing demand for energy-efficient electrical equipment. Electrical steel sheets are used in a wide range of applications, including transformers, motors, generators, and appliances. As the population continues to grow, the demand for electricity is expected to increase, which will, in turn, drive the demand for energy-efficient electrical equipment. Electrical steel sheets are used in the production of energy-efficient electrical equipment due to their ability to reduce energy losses. Government regulations and initiatives aimed at promoting energy efficiency are also contributing to the growth of the Electrical Steel Sheet Market Industry.For example, the European Union has implemented regulations that require the use of energy-efficient electrical equipment in new buildings. These regulations are expected to drive the demand for electrical steel sheets in the coming years. The increasing adoption of renewable energy sources is another factor that is driving the growth of the Electrical Steel Sheet Market Industry. Renewable energy sources, such as solar and wind power, require the use of energy-efficient electrical equipment to maximize their efficiency.Electrical steel sheets are used in the production of energy-efficient electrical equipment for renewable energy applications. The growing popularity of electric vehicles is also expected to drive the demand for electrical steel sheets. Electric vehicles require the use of energy-efficient electrical equipment, including motors and generators. Electrical steel sheets are used in the production of energy-efficient electrical equipment for electric vehicles. The Electrical Steel Sheet Market Industry is expected to grow significantly in the coming years, driven by the increasing demand for energy-efficient electrical equipment, government regulations and initiatives aimed at promoting energy efficiency, the increasing adoption of renewable energy sources, and the growing popularity of electric vehicles.

Technological Advancements in Electrical Steel Sheet Production

Technological developments in electrical steel sheet production are also boosting the Electrical Steel Sheet Market Industry. New and improved electrical steel sheets are being developed as a result of these developments, which are more efficient and cost-effective. One of the most important technological advances in electrical steel sheet production is the production of grain-oriented electrical steel sheets. Grain-oriented electrical steel sheets have a crystal structure that is quite oriented, resulting in lower energy losses and higher efficiency.Grain-oriented electrical steel sheets are used in the production of high-efficiency transformers and motors. In addition, the development of non-oriented electrical steel sheets is an electrical steel sheet production breakthrough. The crystal structure of non-oriented electrical steel sheets is random, which reduces the cost and increases the strength of the film. Generators and appliances are among the various electrical equipment that employ non-oriented electrical steel sheets.The development of new and improved electrical steel sheets will boost the Electrical Steel Sheet Market Industry in the future years. More efficient and cost-effective electrical equipment can be produced as a result of these new and improved electrical steel sheets.

Growing Demand from Emerging Economies

The Electrical Steel Sheet Market Industry is also driven by increasing demand from emerging economies. Countries like India, China, and Brazil, among other emerging countries, are experiencing high economic growth. Economic growth in these countries translates to increased demand for electricity and electrical equipment. Electrical steel sheets are used in the production of transformers, generators, and motors. Growing demand for electricity and electrical equipment in emerging economies is expected to boost demand for electrical steel sheets.The emerging countries are also investing huge sums of money in infrastructure development. An increase in infrastructure leads to increased demand for electricity and related equipment, hence increasing demand for electrical steel sheets. The Electrical Steel Sheet Market Industry is likely to benefit from the growing demand by emerging economies in the future. 

Electrical Steel Sheet Market Segment Insights

Electrical Steel Sheet Market Application Insights 

The Electrical Steel Sheet Market is segmented by application into Transformers, Motors, Generators, Relays, Inductors, and Other applications. Among all these segments, the Transformers segment held the largest market share in 2023, equal to nearly 45% of the Electrical Steel Sheet Market revenue. The growth of this section of the industry can be explained by the increasing use of transformers in power transmission and distribution networks. The Motors segment is projected to grow at the highest rate during the given period, as electric motors are increasingly being used in the industrial and automotive industries.It is also expected that the Generators segment will grow during the same period, as the use of solar and wind power and other renewable energy sources is increasing. Finally, usage in the Relays and Inductors sectors is going to grow at moderate rates, and that in the Other applications segment is causing the lowest revenue growth. The reasons behind the growth of the Electrical Steel Sheet Market include the increasing demand for energy-efficient devices, the rising use of renewable resources of energy, and the increasing automotive industry. The market is being supported by the effect of the relevant government regulations for the use of such equipment and the development of electric vehicle technologies.At the same time, the growth of this market is being negatively affected by the high price of raw materials and their market fluctuation. Finally, the market is highly competitive, as it includes a range of prominent players. Among them are Nippon Steel Sumitomo Metal Corporation, ArcelorMittal, Baoshan Iron Steel Co.Ltd., and ThyssenKrupp AG. These companies continue to invest in research and development to improve the performance of their products.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Electrical Steel Sheet Market Grade Insights 

The Electrical Steel Sheet Market is segmented by Grade into Fully Processed, Semi-processed, Non-oriented, and Grain-oriented. The Non-oriented segment held the largest market share in 2023, accounting for over 60% of the market. The Grain-oriented segment is expected to grow at the highest CAGR during the forecast period, owing to its superior magnetic properties and increasing demand from the electric vehicle industry. The Fully processed segment is expected to witness a steady growth rate, driven by its wide range of applications in transformers, motors, and generators.The Semi-processed segment is expected to grow at a moderate pace, primarily due to its lower cost compared to fully processed grades. The Electrical Steel Sheet Market revenue is expected to reach 17.2 billion USD by 2024, growing at a CAGR of 4.3% during the forecast period. The market growth is attributed to the increasing demand for electrical steel sheets from various industries, including automotive, power generation, and construction.

Electrical Steel Sheet Market Core Loss Insights 

The Core Loss segment is a crucial aspect of the Electrical Steel Sheet Market, which caters to the demand for electrical steel sheets with varying core loss levels. Core loss refers to the energy dissipated in the steel core of electrical machines when subjected to alternating magnetic fields. Electrical steel sheets with lower core loss are preferred as they enhance the efficiency of electrical devices. The 'Less than 0.5 watts per kilogram (W/kg)' segment holds a significant share of the Core Loss market. This segment caters to applications requiring minimal core losses, such as high-performance motors and generators.The '0.5-1.0 W/kg' segment also accounts for a substantial portion of the market, addressing the need for a balance between core loss and cost-effectiveness in various electrical applications. As we move towards higher core loss ranges, the '1.0-1.5 W/kg' segment finds its niche in applications where cost constraints are a primary concern. The '1.5-2.0 W/kg' segment caters to specific applications that can tolerate slightly higher core losses. Finally, the 'More than 2.0 W/kg' segment addresses unique applications where cost is a critical factor and core loss is less important.The Electrical Steel Sheet Market is projected to reach a valuation of USD 17.8 billion by 2026, driven by the growing demand for energy-efficient electrical devices and the proliferation of electric vehicles. The Core Loss segment is expected to continue playing a vital role in this market growth as industries strive to enhance the efficiency and performance of electrical equipment.

Electrical Steel Sheet Market Regional Insights 

The Electrical Steel Sheet Market is segmented into North America, Europe, APAC, South America, and MEA. The APAC region is expected to hold the largest market share in 2023 and is projected to grow at a CAGR of 4.3% from 2023 to 2032. The growth of the APAC market is attributed to the increasing demand for electrical steel sheets from the automotive and power generation industries. The North American region is expected to be the second-largest market for electrical steel sheets in 2023 and is projected to grow at a CAGR of 3.9% from 2023 to 2032.The growth of the North American market is attributed to the increasing demand for electrical steel sheets from the construction and infrastructure industries. The European region is expected to be the third-largest market for electrical steel sheets in 2023 and is projected to grow at a CAGR of 3.7% from 2023 to 2032. The growth of the European market is attributed to the increasing demand for electrical steel sheets from the renewable energy and transportation industries. The South American region is expected to be the fourth largest market for electrical steel sheets in 2023 and is projected to grow at a CAGR of 3.5% from 2023 to 2032.The growth of the South American market is attributed to the increasing demand for electrical steel sheets from the mining and manufacturing industries. The MEA region is expected to be the fifth-largest market for electrical steel sheets in 2023 and is projected to grow at a CAGR of 3.3% from 2023 to 2032. The growth of the MEA market is attributed to the increasing demand for electrical steel sheets from the oil, gas, and construction industries.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Electrical Steel Sheet Market Key Players And Competitive Insights

Major players in the Electrical Steel Sheet Market are focusing on expanding their production capacities to meet the growing demand for electrical steel sheets. For instance, in 2023, Nippon Steel Corporation announced plans to invest JPY 100 billion (USD 900 million) to expand its electrical steel sheet production capacity in Japan. Leading Electrical Steel Sheet Market players are also investing in research and development to develop new and improved products. For example, JFE Steel Corporation is developing a new type of electrical steel sheet that has a lower iron loss and higher magnetic permeability. The electrical Steel Sheet Market industry is expected to witness significant growth in the coming years, driven by the increasing demand for electrical steel sheets from the automotive and power generation industries.Nippon Steel Corporation is a leading player in the Electrical Steel Sheet Market industry. The company has a strong presence, with production facilities in Japan, the United States, Europe, and China. Nippon Steel Corporation offers a wide range of electrical steel sheets, including grain-oriented electrical steel sheets, non-grain-oriented electrical steel sheets, and amorphous electrical steel sheets. The company's electrical steel sheets are used in a variety of applications, including transformers, motors, generators, and inverters. Nippon Steel Corporation is committed to providing high-quality electrical steel sheets that meet the needs of its customers.POSCO is a major competitor in the Electrical Steel Sheet Market industry. The company is headquartered in South Korea and has a presence, with production facilities in South Korea, China, the United States, and Europe. POSCO offers a wide range of electrical steel sheets, including grain-oriented electrical steel sheets, non-grain-oriented electrical steel sheets, and amorphous electrical steel sheets. The company's electrical steel sheets are used in a variety of applications, including transformers, motors, generators, and inverters. POSCO is committed to providing high-quality electrical steel sheets that meet the needs of its customers.

Key Companies in the Electrical Steel Sheet Market Include

• Voestalpine


• ThyssenKrupp


• Acerinox


• Baosteel


• Nippon Steel


• EVRAZ


• Tata Steel


• JFE Steel


• Gerdau


• S. Steel


• POSCO


• Hyundai Steel


• ArcelorMittal


• Nucor


• Ternium

Electrical Steel Sheet Market Industry Developments

The electrical steel sheet market is projected to grow from an estimated USD 15.47 billion in 2023 to USD 22.1 billion by 2032, at a CAGR of 4.04%. The growth of the market is attributed to the increasing demand for energy-efficient electrical equipment, such as transformers, motors, and generators, across various end-use industries, including automotive, power generation, and industrial machinery.Recent news and developments in the market include the launch of new products, such as Nippon Steel's ultra-low loss electrical steel sheet, and the expansion of production capacity by major players, such as ArcelorMittal and ThyssenKrupp. Additionally, governments worldwide are implementing stringent energy efficiency regulations, which is further driving the demand for electrical steel sheets.

Electrical Steel Sheet Market Segmentation Insights 

Electrical Steel Sheet Market Application Outlook

• Transformers


• Motors


• Generators


• Relays


• Inductors


• Other applications

Electrical Steel Sheet Market Grade Outlook

• Fully processed


• Semi-processed


• Non-oriented


• Grain-oriented

Electrical Steel Sheet Market Core Loss Outlook

• Less than 0.5 watts per kilogram (W/kg)


• 5-1.0 W/kg


• 0-1.5 W/kg


• 5-2.0 W/kg


• More than 2.0 W/kg

Electrical Steel Sheet Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa