Electrical Steel Market Size To Rise USD 71.5 Billion By 2030

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The global electrical steel market size surpassed USD 40.96 billion in 2022 and is projected to rise to USD 71.5 billion by 2030, anticipated to grow at a strong CAGR of 7.21 percent during the projection period from 2022 to 2030.

Rising electricity generation worldwide is one of the important driving factors for market growth. As the name suggests, electrical steel possesses advanced electrical properties like high electrical resistivity, low hysteresis loss, high permeability, and low magnetostriction. These qualities make it highly preferred for appliances related to electricity generation, consumption, and distribution.

Report Highlights:

• On the basis of the type, the grain oriented electrical steel segment is expected to have the fastest growth. Upgradation of the existing grid networks and increasing demand are driving the market. There will be a constant boost in the adoption of green oriented electrical steel due to an increase in the demand for electrical Transformers. The increasing electric vehicle trend it's also creating a demand for the non-grain oriented electrical steel.
• The motor segment on the basis of application is anticipated to grow fastest during the forecast period. The demand for electric motors is expected to grow in the coming years due to the penetration of electric vehicles across the globe. The maximum number of electric vehicles on road in America and Europe.
• Asia Pacific region is expected to have the fastest group in terms of volume as well as revenue. China is the largest manufacturer of power Transformers. India is also expected to grow at a considerable rate due to an increasing demand caused by the population and urbanization in this region.

Electrical Steel Market Report Scope:

Regional Snapshots:

Demand for electrical steel in the U.S. is estimated to rise at a roughly 5% CAGR between 2022 to 2030. In terms of manufacturing and usage by various end-use industries, the U.S. has come out as a market leader in this sector.

East Asia will exist to be one of the appealing markets for electric steel during the forecast period, with China producing over 50% of revenue by 2030.

Market Dynamics:

Drivers:

Demand has increased gradually and unexpectedly for a number of applications across many end-use industries.

Steps to streamline power distribution units in developing countries is a major reason driving demand for electrical steel. Moreover, chances of growth across the automotive industry, amid increasing demand for EVs proves to be a driving factor for the market.

Simultaneously, work-from-home directives have led to a rising energy need for generating electricity. A huge spike has been seen in the healthcare sector, ascribed to the need for uninterrupted power for therapeutic purposes. Numerous advancements have taken place in this industry. For example, Ramco Electric Motors Inc. which is acquired by Arnold Magnetic Technologies, will help the company grow its electric motor and steel solutions, along with semiconductors manufacturing.

Restraints:

As the COVID-19 pandemic cracked, the electrical steel industry had to suffer a significant downturn with regards to production, logistics and supply-chain equilibrium. Compulsory lockdowns forced the manufacturing units to stop production, as a result there was a restricted output. These elements proved to be the restraining factors for the market growth.

Opportunities:

In spite of the difficult circumstances, economies are steadily improving in 2022, as the restrictions ease. Distribution networks are strengthening along with he supply capacity, while company activities have resumed to revive. Amongst all this, the pandemic is unlikely to show long-term consequences for the electrical steel industry. Electrical steel is often known as silicon steel. Silicone is an important component in various manufacturing units, especially in the manufacturing of electrical steel.

The electronics industry will continue to be the leading consumer of silicone material, where silicone is majorly utilized as a semiconductor. Therefore, the propelling demand for silicon components which will boost the sales for the electrical steel market.

Challenges:

Steel prices increased significantly in the first quarter of 2022, pertaining to decreased supply and reimposed lockdowns, particularly across China. This trend is estimated to continue throughout the market, with supply remaining constrained.

This may present itself as a challenge for the growth of the market. Moreover, future predictions indicate gradual easing of this imbalance, which will probably help recover projections eventually.

Recent Developments:

• In July 2021, as a section of its XCarbTM innovation fund, ArcelorMittal invested US$ 25 million in Form Energy . Through this strategy, Arcelor will supply raw iron, modified to specific needs, to Form Energy for its battery technology, which involves electrical steel.
• In November 2020, Nippon Steel disclosed an idea to engage nearly US $1 billion to increase its electrical steel sheet manufacturing at two plants in Japan. This series of developments to enhance capacity and accuracy will be brought into effect amidst the first half of 2023, with production capacity estimated to increase by approximately 40%.  

Major Key Players:

• ArcelorMittal
• Voestalpine AG 
• TATA Steel Limited
• Thyssenkrupp AG
• JFE Steel Corporation
• Baosteel
• Nippon Steel & Sumitomo Metal Corporation
• United States Steel Corporation
• POSCO
• SAIL India

Market Segmentation:

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 

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