Electrical Steel Market Size, Share, and Trends 2024 to 2034

Electrical Steel Market Size and Forecast 2024 to 2034

The global electrical steel market size is estimated at USD 47.09 billion in 2024 and is anticipated to reach around USD 93.51 billion by 2034, expanding at a CAGR of 7.10% from 2024 to 2034.

Electrical Steel Market Key Takeaways

• By product, the non-grain oriented electrical steel (NGOES) segment has held the largest market share of more than 71% in 2023.
• By application, the transformer segment accounted for 53% of the overall market share in 2023.
• By end user, the energy segment has held a market share of 34% in 2023.
• By region, Asia Pacific region has contributed a revenue share of over 72% in 2023.
• North America region has held a market share of 9% in 2023.

Asia Pacific Electrical Steel Market Size and Growth 2024 to 2034

The Asia Pacific electrical steel market size is evaluated at USD 33.90 billion in 2024 and is predicted to be worth around USD 67.79 billion by 2034, rising at a CAGR of 7.17% from 2024 to 2034. 

The Asia Pacific market is anticipated to have the fastest growth in terms of volume and in terms of revenue when it comes to the electrical steel market. The reasons for the growth of the electrical steel market in this region is the existence of the largest market for power Transformers. There is a great demand for power Transformers in many nations like China India in Indonesia in the Asia Pacific region. China is one of the largest manufacturers of the power Transformers across the globe. India is also expected to have a growth at a considerable rate due to various factors like growing demand for renewable energy sector, increased demand for energy and increase in the population and urbanization.

The European electrical steel market also holds a significant share in the overall industry and it is expected to see a substantial growth in the future. due to the proliferating automotive and manufacturing sectors in the European region the demand for this product is expected to grow. Germany dominates the domestic automotive market in the European region as it has leading automotive producers. Due to an increased emphasis on electrification of the vehicles the demand for automotive motors will boost this region's market growth. 

Market Overview

The pandemic had affected the electric steel market negatively. The disrupted operations of the manufacturing plants, halt in the infrastructure projects and the decline in the automobile production during the lock down had affected the market growth majorly. The demand for electricity across many nations had dropped during the lockdown. Electrical steel is the ferromagnetic material which has different quantities of silicon. It helps in reducing the dissipation of heat and therefore it is used across many industries. Dissipation of heat leads to energy wastage so there is an increased application of electrical steel in devices.

Increased focus of the governments on energy efficiency is promoting the product growth. In order to support the power generation in many countries like India, UAE, China Governments are coming up with initiatives which are foreseen to bolster the demand for this product. Due to the replacement of old transformers and advancements in transmission lines due to the trend of smart transformers there shall be rampant growth in the demand for this product. Electrical steel is able to provide higher efficiency and it is extremely sustainable. Under the sustainable development program of the United Nations the vendors of the electrical steel market shall have a lot of benefits in terms of revenues.

Electrical Steel Market Growth Factors 

Electrical steel is a soft magnetic material which has improved electrical properties and varied applications in electric motors, solenoids, generators, small relays and other. Electrical steel is also known as lamination steel or Transformers steel. It helps in reducing the dissipation of heat. Due to the presence of silicon in the electrical steel there is an increased resistivity and improved permeability. Due to these factors there's an increase in the demand for the generation of energy and transmission with the use of electrical steel. Increasing popularity of profoundly efficient, elite execution and low emission vehicles along with the regulations by the government regarding the vehicle discharge is driving the growth of electric vehicles.

• The electric vehicle is lightweight and helps in meeting the security principles. These factors provide new opportunities for the growth of this market.
• Increased per capita income in the developing regions like India Mexico and China will support the development of this product.
• Increase in the usage of electric cars across Europe is expected to helping the growth of the market during the forecast period.

Pictures of electrical industry and the electronics industry are making an effective utilization of electrical steel as it is able to provide abrasion resistance, improved durability, strength and vibration control. It also helps in reducing the production cost and improves the quality of the product. Owing to all of these reasons the electrical steel market is expected to grow during the forecast period.

Electrical Steel Market Scope

Type Insights

The grain oriented electrical steel segment is expected to have the fastest growth during the forecast period. there is a growth of electrical Transformers due to various factors like the upgradation of existing grid networks, initiatives for the smart grid development and increase in the demand for these electrical Transformers.

The rapid increase in the demand for electrical transformers will boost the adoption of grain oriented electrical steel during the forecast period. This segment is expected to grow at a CAGR of 4.6% in terms of volume. The demand for non-grain oriented electrical steel shell grow as there is an increasing demand for electric vehicles across varied nations the use of non-oriented electrical steel helps in building efficient hybrid electric vehicles which provides a better driving range and good performance.

Application Insights

On the basis of application, the motor segment is anticipated to have the largest growth rate during the forecast period. In recent years the motor segment has shown a good growth in terms of volume. In the projection. The demand for electric motors shall increase as there is an increase in the penetration of electric vehicles across many developed and developing nations around the globe. Growing awareness regarding the usage of electrical steel and the benefits of his use are creating demand which is providing opportunities for electrical steel manufacturers.

Europe and North America are the regions that have maximum number of electrical vehicles on road as compared to the other developing nations. This happens to be the most important factor for the growth of this segment in Europe as well as North America. The supporting policies in this region are helping in the growth of the market. The grain oriented electric steel industry has great demand as it provides excellent power and permeability features. The grain oriented electrical steel is extensively used in large power Transformers and this is expected to support the growth of this segment.

Electrical Steel Market Top Companies

• ArcelorMittal (Luxembourg)
• Voestalpine AG (Austria)
• TATA Steel Limited (India)
• Thyssenkrupp AG (Germany
• JFE Steel Corporation (Japan)
• Baosteel (China)
• Nippon Steel & Sumitomo Metal Corporation (Japan)
• United States Steel Corporation (United States)
• POSCO (South Korea)
• SAIL India

Key Market Developments 

• JFE Steel Corporation signed a memorandum of understanding in May 2021 to conduct a feasibility study with JSW Steel Limited (JSW). This memorandum of Understanding will be able to establish a grain oriented electrical steel sheet manufacturing and sales joint-venture company in India.
• In November 2020, Nippon Steel announced plans to invest nearly US $1 billion to expand its electrical steel sheet facilities at two different plants located in Japan., This will be completed by the year 2023 with manufacturing capacity expected to increase by approximately 40%.

Segments Covered in the Report

By Type

• Grain-oriented
• Non-grain-oriented
  • Fully-Processed
  • Semi-Processed

By Application

• Transformers
  • Transmission
  • Portable
  • Distribution
• Motors
  • 1hp - 100hp
  • 101hp - 200hp
  • 201hp - 500hp
  • 501hp - 1000hp
  • Above 1000hp
• Inductors
• Others

By End-User

• Energy
• Automotive
• Household Appliances
• Manufacturing
• Others 

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)