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Electrical Steel Market

Electrical Steel Market

Electrical Steel Market - Global Industry Assessment & Forecast

Number Of Pages # Pages:

149

Base Year:

2021

Date

Dec - 2022

Format:

PDF XLS PPT

Report Code:

VMR-1946

Segments Covered
  • By Types Grain-Oriented, Non-Grain-Oriented
  • By End Use Industries Energy, Automotive, Household Appliances, Manufacturing, Other End Use Industries
  • By Applications Transformers, Motors, Inductors, Other Applications
  • By Region North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Snapshot
Forecast YearsForecast Years: 2022 - 2028
Historical YearsHistorical Years: 2016 - 2021
Revenue 2021Revenue 2021: USD 33.1 Billion
Revenue 2028Revenue 2028: USD 46.8 Billion
Revenue CAGRRevenue CAGR (2022 - 2028): 5.9%
Fastest Growing Region Fastest Growing Region (2022 - 2028) Asia Pacific
Largest Region Largest Region (2021): Asia Pacific
Customization Offered
  • Cross-segment Market Size and Analysis for Mentioned Segments
  • Additional Company Profiles (Upto 5 With No Cost)
  • Additional Countries (Apart From Mentioned Countries)
  • Country/Region-specific Report
  • Go To Market Strategy
  • Region Specific Market Dynamics
  • Region Level Market Share
  • Import Export Analysis
  • Production Analysis
  • Others Request Customization Speak To Analyst
Electrical Steel Market Share

The Global Electrical Steel Market was valued at USD 33.1 Billion in 2021 and is projected to reach a value of USD 46.8 Billion by 2028. The Global Market is anticipated to grow to exhibit a CAGR (Compound Annual Growth Rate) of 5.9% over the forecast period.

Premium Insights

The steel industry is one of the most energy-intensive sectors, and as a result, is one of the largest contributors to greenhouse gas emissions. In order to combat climate change and meet emissions targets, steelmakers are increasingly turning to Electrical Steel making methods. Electrical Steel making uses electricity to melt scrap steel or iron ore in an electric arc furnace. This process is much cleaner than traditional steel making methods, which use carbon-rich blast furnaces that produce large amounts of carbon dioxide emissions. Electric arc furnaces are not only more environmentally friendly, but they are also more efficient, using up to 30% less energy than blast furnaces. Additionally, electric arc furnaces can be powered by renewable energy sources such as solar and wind power, further reducing their environmental impact. The switch to Electrical Steel making is being driven by both environmental concerns and economic factors. As regulations tighten and public pressure mounts for industries to reduce their emissions, steelmakers are turning to electric arc furnaces in order to meet their sustainability goals.

The demand for Electrical Steel is driven by several factors. Firstly, the growing automotive industry is increasingly using electric vehicles (EVs), which require steel with higher electrical conductivity. Secondly, the shift from traditional coal-fired power plants to cleaner energy sources such as solar and wind power is driving demand for Electrical Steel for use in larger generators and transformers. Thirdly, the need for more energy-efficient buildings is driving up demand for Electrical Steel in construction applications. These trends are expected to continue in the coming years, resulting in strong growth in the Global Electrical Steel Market. As the automotive industry continues to grow, electric vehicles are becoming an increasingly popular option. There are a number of reasons for this shift, including the fact that electric vehicles are more efficient than traditional gasoline-powered cars and emit far less pollution. Additionally, the cost of batteries and other components needed to power an electric car has come down significantly in recent years, making them more affordable for consumers. As the world becomes more focused on reducing its carbon footprint, it's likely that the electric vehicle market will continue to grow. This is good news for the steel industry, as steel is a key component in the construction of electric vehicles. In fact, demand for steel is expected to increase by as much as 30% by 2028 as the number of electric cars on the road grows.

Electrical Steel Market Size, 2021 To 2028 (USD Billion)

In the Electrical Steel Market, one of the key drivers is the shift from traditional coal-fired power plants to cleaner energy sources. This is being driven by a number of factors, including environmental concerns, the need to reduce emissions, and the increasing cost of coal. As a result of this shift, there is growing demand for Electrical Steel making products that use cleaner energy sources. These include natural gas, hydroelectricity, and wind power. Electrical Steel making products that use these cleaner energy sources are more expensive than those that use coal, but they are becoming more competitive as coal prices increase. This shift away from coal-fired power plants is expected to continue in the future, as more countries adopt policies to reduce emissions and fight climate change. This will provide further opportunities for growth in the Electrical Steel Market.

The construction industry is one of the largest consumers of energy in the world. In fact, buildings account for approximately 40% of the world’s total energy use. And with the population expected to increase by another 2.5 billion people by 2050, the need for more energy-efficient buildings will only become more apparent. One way to make buildings more energy efficient is to use Electrical Steel. Electrical Steel is made from 100% recycled scrap steel and is up to 30% more efficient than traditional steel products. Not only does Electrical Steel help reduce carbon emissions, but it also requires less energy to produce, making it a more sustainable option for the construction industry. In addition to being more energy efficient, Electrical Steel also has a higher strength-to-weight ratio than traditional steel products. This makes it an ideal material for use in high-rise buildings and other structures where weight is a factor. As the world progresses, the need for energy-efficient buildings is becoming more and more apparent. The Electrical Steel Market is no exception – in fact, it’s one of the key drivers of the market’s growth. Electrical Steel is used in a variety of ways to make buildings more energy efficient. For example, it’s often used in electrical submetering, which helps building owners and managers track and understand their electricity usage. This data can then be used to make informed decisions about how to reduce consumption and save money. In addition, Electrical Steel is also frequently used in energy-efficient lighting systems. These systems can help reduce a building’s overall energy consumption by up to 30%. And as Electrical Steel becomes increasingly popular in construction, the prices for these materials are likely to continue dropping, making them even more accessible and affordable.

The key restraints of the Electrical Steel Market are as below

1. Lack of long-term contracts: The Electrical Steel Market is largely reliant on short-term contracts, which makes it difficult for companies to invest in new capacity or expand existing operations. This lack of long-term contract visibility makes it difficult for Electrical Steel producers to justify large capital expenditures, which limits the growth of the Electrical Steel Market.

2. High raw material costs: Electrical Steel production uses a significant number of raw materials, including iron ore, coal, and scrap metal. These raw materials are subject to volatile price movements, which can lead to fluctuations in the cost of Electrical Steel production. This cost volatility makes it difficult for Electrical Steel producers to forecast their costs and pricing, and ultimately hampers the growth of the Electrical Steel Market.

3. Competition from alternative materials: There are several alternative materials that can be used in place of Electrical Steel, such as stainless steel or carbon steel. These materials are often cheaper and have better performance characteristics than Electrical Steel, which put pressure on Electrical Steel producers to lower prices or offer better-quality products.

Top Market Trends

As the world progresses, society is demanding more sustainability and efficiency across all industries. The Electrical Steel Market is no different – in recent years, there has been an increased focus on developing new technologies to meet these demands. As a result, the top market trends of the Electrical Steel Market are becoming more defined.

Some of the key trends shaping the Electrical Steel Market include:

1. Decarbonization: as the global push for decarbonization continues, steelmakers are under pressure to reduce their emissions. Electric arc furnaces (EAFs) are seen as a key technology in this transition, as they produce significantly less carbon dioxide than traditional blast furnaces.

2. Digitalization: the steel industry is undergoing a digital transformation, with most firms investing in Industry 4.0 technologies such as big data and artificial intelligence. This is allowing companies to optimize their production processes and become more efficient.

3. circular economy: there is a growing focus on the circular economy within the steel industry, as this model offers a more sustainable way of doing business. Circular economy principles emphasize waste reduction and resource reuse, which aligns well with the goals of decarbonization and digitalization.

4. environmental regulations: stricter environmental regulations are being enacted around the world, putting pressure on steelmakers to clean up their act. EAFs are again seen as an advantageous technology in this regard, as they emit lower levels of pollutants than blast furnaces.

5. The shift from internal combustion engine (ICE) vehicles to EVs is one of the key trends being witnessed in the market. According to The International Energy Agency, the sales of EVs are expected to reach 30 million by 2028, which would account for around 15% of new car sales worldwide. This increase in EV sales would lead to a rise in the demand for Electrical Steel.

6. The battery manufacturing industry is undergoing a phase of consolidation with several small players either merging or being acquired by larger companies. This trend is likely to continue in the coming years, which would lead to consolidation in the Electrical Steel Market as well.

7. The prices of raw materials such as iron ore and coking coal have risen sharply in recent years, which has led to an increase in steel prices as well. This trend is likely to continue in the near future, which may have a negative impact on the growth of the Electrical Steel Market.

Market Segmentation

The market is segmented based on Types, End-Use Industries, Applications, and Region. On the basis of Types, the market is further segmented into Grain-Oriented and Non-Grain Oriented. Furthermore, on the basis of End-Use Industries, the market is further bifurcated into Energy, Automotive, Household Appliances, Manufacturing, and Other End-Use Industries. Moreover, based on the Applications, the market is further divided into Transformers, Motors, Inductors and Other Applications. Likewise, based on the Region, the Global Electrical Steel Market is further fragmented into North America, Europe, Asia Pacific, Latin America, Middle East & Africa.

Below tree is interactive. You can click the nodes to get more information.

Base on Types

Non-Grain Oriented Electrical Steel is expected to have the highest market share in the Global Electrical Steel Market. This is attributed to the growing demand for non-grain-oriented Electrical Steel from the power generation and transmission industry. Non-Grain Oriented Electrical Steel has better magnetic properties and higher resistivity, which makes it ideal for use in power transformers. The expansion of the power generation industry, especially in developing countries, is one of the major factors driving the growth of the non-grain-oriented segment. The growing demand for electricity in the Asia Pacific and Africa is resulting in the construction of new power plants in these regions. These new power plants are expected to use large quantities of Electrical Steel, which will drive the growth of the non-grain-oriented segment over the forecast period. In addition, government regulations mandating the use of energy-efficient equipment are also facilitating the growth of this segment. For instance, The European Union has implemented several directives and regulations requiring member states to promote energy efficiency and reduce emissions from industries. The non-grain-oriented segment is further sub-segmented into silicon steels and high-strength low alloy (HSLA) steels. The silicon steel sub-segment is expected to grow at the highest CAGR during the forecast period, owing to the growing demand for these steels from the power generation industry. The HSLA steel sub-segment is also expected to grow at a significant rate during the forecast period, due to its superior properties, such as high strength and toughness.

Based on End-Use Industries

The growth in the Electrical Steel Market is driven by the increase in demand from the manufacturing industry, which is expected to have the highest market share among all end-use industries. The automotive industry is also expected to witness significant growth in demand for Electrical Steel due to the increasing production of electric vehicles. The demand for Electrical Steel is expected to be highest in the manufacturing industry, owing to growing economies and industrialization. This is due to the increasing use of Electrical Steel in various end-use industries such as automotive, construction, electrical & electronics, and others. The manufacturing industry is forecast to account for the largest share of the Electrical Steel Market during the forecast period. The automotive industry is one of the major consumers of Electrical Steel. Electrical Steels are used in various automotive applications such as suspension systems, engine mounts, drive shafts, and others. The construction industry is another major consumer of Electrical Steel. Electrical Steel finds applications in various construction activities such as support structures, beams & columns, roofing & flooring, and others. The electrical & electronics industry is also a key consumer of Electrical Steel. They are used extensively in electrical machines, transformers, generators, motors, cables & wires, switchgear & fuse gear products, and other electrical equipment.

Based on Applications

The motor segment is expected to have the largest growth rate due to the increasing demand for electric vehicles. Electric vehicles are becoming increasingly popular due to their environmental benefits and lower running costs. The motors used in electric vehicles are anticipated to drive the growth of the Electrical Steel Market. Increasing awareness about the harmful effects of carbon emissions has led to a rise in the demand for electric vehicles. In order to power these electric vehicles, efficient and powerful motors are required. Additionally, the advancement of technology has led to the development of more powerful and efficient motors that can be used in electric vehicles. This is one of the major factors driving the growth of the Electrical Steel Market. The demand for Electrical Steel in the motors segment is expected to increase due to the growing production of vehicles and the need for energy-efficient motors. Additionally, regulations related to fuel economy and emissions are anticipated to boost the demand for Electrical Steel in motors.

Based on Region

The Asia Pacific region is one of the most populous regions in the world and is anticipated to have the fastest growth in terms of volume and revenue for the Electrical Steel Market. This region has seen a surge in industrialization and urbanization in recent years, which has led to an increase in demand for electricity. China is one of the key countries driving this growth, followed by India and Japan. The Asia Pacific region is expected to account for more than half of the Global Electrical Steel Market by 2028. The need for energy-efficient and environment-friendly construction materials will continue to drive market growth in this region. Rapid industrialization, coupled with infrastructural development projects, such as smart city initiatives, will further boost market demand. Some of the leading companies operating in the Electrical Steel Market are focused on expanding their production capacities and product portfolios to gain a larger share of the rapidly growing Asia Pacific market. The Asia Pacific region is anticipated to have the fastest growth in terms of volume and in terms of revenue, due to the growing demand for steel in the construction and automotive industries. The region has abundant resources of iron ore and coal, which are the key raw materials used in the production of steel. Moreover, the region has several developing economies, such as China and India, which are experiencing rapid industrialization and urbanization. This is resulting in increasing demand for steel products from various industries.

Competitive Landscape

The key players in the Global Electrical Steel Market include- Aperam (Luxembourg), Arcelor Mittal (Luxembourg), Tata Steel (India), POSCO (South Korea), Nippon Steel Corporation (Japan), Baosteel Group Hu (China), Voestalpine AG (Austria), JFE Holdings (Japan), Cleveland-Cliffs Inc. (US), Slovenian Steel Group (Slovenia) and others.

Recent Market Developments

● In May of 2021, JFE Steel Corporation and JSW Steel Limited signed a memorandum of agreement to perform a feasibility study (JSW). Through this MOU, the parties would be able to form a joint venture in India for the production and sale of grain-oriented Electrical Steel sheets.

● To meet the rising demand for its Electrical Steel sheets, Japanese steelmaker Nippon Steel announced in November 2020 that it will invest about $1 billion to boost production at two of its plants. By the year 2023, this will be finished, and production capacity will be increased by almost 40%.

● In May of 2021, JFE Steel Corporation and JSW Steel Limited (JSW) agreed to work together on a feasibility study for establishing a joint venture company in India dedicated to the manufacturing and marketing of grain-oriented Electrical Steel sheets.

● In November 2020, Nippon Steel revealed intentions to invest almost $1 billion to develop its Electrical Steel sheet capability at two Japanese plants. It is expected that production capacity would increase by 40% after this series of capacity and quality-improvement initiatives are fully executed in the first half of 2023.

● The Saint Chély d'Apcher, France, plant of ArcelorMittal, which produces iCARe Electrical Steels for the automotive industry, received an investment of €13 million in March of 2021. The mill will be able to produce state-of-the-art non-grain oriented (NO) iCARe Electrical Steel grades thanks to upgrades in manufacturing to meet the demands of the electro-mobility market.

Segmentation of the Global Electrical Steel Market

Parameter Details
Segments Covered
  • Types (Grain-Oriented, Non-Grain-Oriented)
  • End Use Industries (Energy, Automotive, Household Appliances, Manufacturing, Other End Use Industries)
  • Applications (Transformers, Motors, Inductors, Other Applications)
  • Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa)
Regions & Countries Covered
  • North America - (U.S., Canada, Mexico)
  • Europe - (U.K., France, Germany, Italy, Spain, Rest Of Europe)
  • Asia Pacific - (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
  • Latin America - (Brazil, Argentina, Rest Of Latin America)
  • Middle East & Africa - (GCC Countries, South Africa, Rest Of Middle East & Africa)
Companies Covered
  • Aperam (Luxembourg)
  • Arcelor Mittal (Luxembourg)
  • Tata Steel (India)
  • POSCO (South Korea)
  • Nippon Steel Corporation (Japan)
  • Baosteel Group Hu (China)
  • Voestalpine AG (Austria)
  • JFE Holdings (Japan)
  • Cleveland-Cliffs Inc. (US)
  • Slovenian Steel Group (Slovenia)
Report Coverage Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis

Electrical Steel Market to Reach Valuation of USD 46.8 Billion by 2028 –Increasing Demand of EV Vehicles to Drives the Market
In terms of revenue, the Global Electrical Steel Market is expected to reach USD 46.8 Billion by 2028, growing at a CAGR (Compound Annual Growth Rate) of 5.9% from 2022 to 2028. Electrical Steel Market is a soft magnetic material with improved electrical properties that finds widespread use in a va...
FAQ
Frequently Asked Question
  • The global Electrical Steel valued at USD 33.1 Billion in 2020 and is expected to reach USD 46.8 Billion in 2028 growing at a CAGR of 5.9%.

  • The prominent players in the market are Aperam (Luxembourg), Arcelor Mittal (Luxembourg), Tata Steel (India), POSCO (South Korea), Nippon Steel Corporation (Japan), Baosteel Group Hu (China), Voestalpine AG (Austria), JFE Holdings (Japan), Cleveland-Cliffs Inc. (US), Slovenian Steel Group (Slovenia).

  • The market is project to grow at a CAGR of 5.9% between 2021 and 2028.

  • The driving factors of the Electrical Steel include

    • Increase in demand from energy generation & transmission industries

  • Asia Pacific was the leading regional segment of the Electrical Steel in 2020.