Electrical Steel Market

Electrical Steel Market Outlook

As per rigorous research by ChemView Consulting, our analysts believe that the global electrical steel market will grow at a 4% CAGR during the period 2023–2033 to reach a valuation of US $42,278.2 million by 2033.

Key Findings on the Electrical Steel Market

1. Which is the largest market for electrical steel?

The biggest market for electrical steel is East Asia. As per our analysis, East Asia holds nearly 36.1% share of the electrical steel market.

2. What is the largest application segment within the electrical steel market?

As per ChemView Consulting, the largest segment by application is transformers. As per our analysis, this segment accounts for nearly 43.1% of total revenues.

3. At what rate is the electrical steel market expected to grow?

The electrical steel market is expected to grow at a CAGR of 4% during the period 2023–2033.

4. What are the major trends influencing the electrical steel market?

• Rising Demand for Energy-Efficient Solutions: The growing emphasis on energy efficiency across industries is boosting demand for electrical steel, which is a critical component in the production of transformers, motors, and generators used in energy-efficient applications.
• Urbanization and Infrastructure Development: Rapid urbanisation and construction projects in developing countries fuel demands for power generation and distribution systems, driving up demand for electrical steel-based equipment.

5. Who are the leading players in the electrical steel market?

The key companies in the electrical steel market are Cleveland-Cliffs Corporation, JFE Steel, Baosteel Group Hu, Slovenian Steel Group, Cleveland-Cliffs Inc., ArcelorMittal, Nippon Steel Corporation, thyssenkrupp, POSCO, and Tata Steel.

Key Drivers for Electrical Steel Demand

• The automotive industry’s shift towards electric and hybrid vehicles is a driving reason behind the expansion of the electrical steel market. Electric drivetrains, battery systems, and charging infrastructure all rely on electrical steel components to operate efficiently.
• Additionally, many governments throughout the world are emphasising electrification in order to cut carbon emissions and improve energy security. These activities include expanding electrified transport networks, integrating renewable energy, and improving existing power infrastructure, all of which increase demand for electrical steel.
• Furthermore, continuous R&D efforts lead to better electrical steel formulations with improved magnetic characteristics and lower core losses. These advancements improve the overall performance of electrical equipment and drive market growth.

Key Challenges Inhibiting Demand for Electrical Steel

• The electrical steel market is sensitive to changes in the world economy. Economic downturns, trade wars, and geopolitical instability can all have an impact on demand for electrical steel products. Reduced expenditures in infrastructure and energy-related projects during periods of economic instability can result in lower demand for electrical steel, limiting market growth.

Key Challenges & Opportunities for Electrical Steel Manufacturers

• Finding high-quality raw materials for electrical steel manufacture, such as silicon and iron, at reasonable rates can be difficult due to flexible market conditions and supply chain interruptions.
• However, the growth of smart grids requires the use of modern transformers and power distribution equipment. Manufacturers may capitalise on this potential by providing high-quality electrical steel that enables efficient power transmission and distribution in modern grid systems.

Country/Region-wise Insights

US Electrical Steel Market Forecast

• Rising demand for energy-efficient solutions, as well as increased use of renewable energy sources in the US market, are projected to observe significant growth?in the estimated period.
• Additionally, continuous advancements in the automotive industry, particularly the growing popularity of electric vehicles, are driving up demand for electrical steel components used in the production of motors and transformers.

Europe Electrical Steel Market Outlook

• Ongoing infrastructure modernisation and the development of smart grids in the Europe market are anticipated to drive sales in the market over the assessment period.
• In addition, the increased emphasis on electric mobility, coupled with a thriving electric car industry, is expected to drive demand for electrical steel used in motor cores.

Japan Electrical Steel Market Forecast

• The thriving automotive and electronics sectors rely significantly on electrical steel for a variety of applications such as motors, transformers, and generators in the Japan market is anticipated to drive the market over the forecasted period.
• In addition, the country’s commitment to improving its infrastructure and modernising its manufacturing sector emphasises the electrical steel market’s expected expansion.

China & India Electrical Steel Market Forecast

• Rapid industrialization, urbanization, and infrastructural development in the China & India markets are anticipated to fuel the market over the forecast period. China & India electrical steel markets are likely to account for a leading share of the global electrical steel market.?
• Additionally, government initiatives and policies encouraging sustainable energy solutions are driving up demand for electrical steel in these markets.

Electrical Steel Market Outlook & Forecast by Segmentation

By Product Type

Based on product type, the grain-oriented electrical steel segment is expected to remain at the forefront of electrical steel market share over the assessment period. The growth is mainly because grain-oriented electrical steel is known for its exceptional magnetic characteristics, specifically its ability to efficiently conduct magnetic flux. This makes it perfect for use in transformers, where magnetic performance is crucial. As a result, there is still a considerable demand for this sort of electrical steel.

Furthermore, grain-oriented electrical steel improves the energy efficiency of transformers and electrical equipment. As energy efficiency becomes a more important concern globally, manufacturers are increasingly likely to adopt materials that improve the performance of their products.

By Application

Based on application, the transformers segment is set to account for 43.1% of the electrical steel market share over the assessment period. The growth is mainly due to the magnetic properties of electrical steel, which is the ideal material for the core of transformers. It enables transformers to step up or step-down voltage effectively, making it an essential component of the electrical system.

In addition, with rising worldwide demand for electricity, there is a constant need to upgrade and extend the power grid. This increases demand for transformers, which in turn increases demand for electrical steel.

By End Use

Based on end use, the energy segment is expected to remain at the forefront of electrical steel market share over the assessment period. The growth is mainly because electrical steel is used in the construction of generators, which play an important part in many energy generation processes. Whether it is traditional power plants or renewable energy sources such as wind and hydroelectric power, manufacturers require materials that can tolerate magnetic flux while minimising energy losses. Electrical steel contributes to these goals by increasing the total efficiency of energy generation.

Furthermore, the expansion of renewable energy sources such as wind and solar power necessitates the use of modern electrical equipment. Wind turbines, for example, use electrical steel in their generators and transformers. As renewable energy technologies become more widely used, the need for electrical steel in these applications is expected to rise.

Which Company Owns the Largest Share in the Electrical Steel Market?

The key companies in the electrical steel market are Cleveland-Cliffs Corporation, JFE Steel, Baosteel Group Hu, Slovenian Steel Group, Cleveland-Cliffs Inc., ArcelorMittal, Nippon Steel Corporation, thyssenkrupp, POSCO, and Tata Steel.

Recent Developments:

• In May 2023, JFE Steel, the country’s second-largest steel producer, announced the extension of its initial electric steel sheet capacity as well as the installation of a second phase expansion at its West Works’ Kurashiki steel facility. This expansion will upgrade to world-class technologies and innovative steel products, lowering CO2 emissions and contributing to a more sustainable globe.

• In December 2022, Cleveland-Cliffs Inc., North America’s largest flat-rolled steel production and iron ore pellet provider to numerous industries, primarily automotive, announced the launch of its MOTOR-MAX product range of non-oriented electrical steels for high-frequency motors and generators.

• In March 2022, ArcelorMittal, a multinational steel manufacturing firm, announced plan to invest more than €300 million to build a new production facility for electrical steels at its Mardyck plant in northern France, with the help of the French government.

As per our analysis, the companies that hold the largest share in the market are

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Nippon Steel Corporation

Founded in 1950 and headquartered in Chiyoda City, Tokyo, Japan, it is the third-largest steel manufacturer in the world.

POSCO 

Founded in 1968 and headquartered in Pohang-si, South Korea, it is the biggest steel manufacturer in the world.

Tata Steel 

Founded in 1907 and headquartered in Mumbai, it is an international steel manufacturer.

thyssenkrupp

Founded in 1999 and with headquarters in Essen, Germany, it is a multinational conglomerate engaged in industrial engineering and steel manufacture.

Slovenian Steel Group

Founded in 1990 and with headquarters in Slovenia, it is a major manufacturer of stainless steel and special steels.

What Makes this Report More Insightful than Others?

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