Enjoy complimentary customisation on priority with our Enterprise License!
The electrical steel market size is estimated to increase by USD 24.25 billion, at a CAGR of 11.29% between 2023 and 2028. The market is experiencing notable growth driven by the rising demand for electrical steel across various industries, particularly within the automotive sector. The industry's transition toward electric vehicles (EVs) and hybrid vehicles (HVs) is fueling this growth, as these vehicles necessitate substantial amounts of electrical steel for their motors and transformers. In response to this increasing demand, companies are expanding their production capacities. Moreover, the excess production capacity for steel in manufacturing plants presents an opportunity for price competition, potentially fostering further market growth. Collectively, these factors contribute to a favorable market outlook, making it an appealing investment opportunity for stakeholders.
To learn more about this market report, Request Free Sample
The electrical steel market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The grain-oriented electrical steel segment is expected to experience substantial growth throughout the forecast period. This type is essential for manufacturers of large, high-performance generators and energy-efficient transformers. It is produced from laminated, wrapped, or punched sheets and serves as a vital component in distribution transformers, power transformers, and miniature transformers.
Get a glance at the market contribution of various segments. View PDF Sample
The grain-oriented electrical steel segment represented the largest portion of the market, valued at USD 18.88 billion in 2018. This material is increasingly favored for high-efficiency transformers due to its superior permeability and enhanced energy efficiency, aligning with the growing emphasis on products that reduce electricity consumption. In power generation plants, it finds applications in turbine body casings, turbine rotor shafts, generator rotor shafts, compressors, rotors, disks, rods, and various other components. These applications will significantly contribute to the growth of the electrical steel market.
Based on end-user analysis, the automotive industry commands the largest market share. The anticipated rise in global vehicle production is expected to drive demand within this sector throughout the forecast period. Leading automobile-producing countries, including Germany, South Korea, Japan, India, and China, serve as significant hubs for automotive manufacturing. Consequently, the expansion of the automotive industry worldwide, coupled with the growing demand for vehicles in emerging economies like India, will stimulate the demand for electrical steel products and contribute to the overall growth of the global electrical steel market.
APAC is estimated to contribute 77% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
For more insights on the market share of various regions, Download PDF Sample now!
Demand is anticipated to rise steadily due to rapid industrialization and infrastructure developments in the region. The market is experiencing significant growth driven by the increasing need for sustainable infrastructure and the incorporation of renewable energy sources into power grids. Industrial gases, such as silicon and ferroalloys, are vital in producing electrical steel. However, carbon emissions resulting from the manufacturing process present environmental challenges and contribute to climate change. To address these issues, the adoption of green technologies, including recycling and energy efficiency measures, is on the rise.
High-efficiency transformers, produced from grain-oriented electrical steel, are crucial for power generation and transmission, as they reduce hysteresis loss and enhance overall system performance. Furthermore, renewable energy sources like wind and solar power necessitate advanced power transmission technologies and high-efficiency motors to ensure reliable and efficient operation. Sectors such as consumer electronics, industrial automation, and robotics depend on electrical devices and motors, further increasing the demand for electrical steel. Amorphous and nanocrystalline alloys provide enhanced magnetic properties, making them suitable for smart grids and advanced motor applications. Sustainable production methods and electric grid modernization are key trends in the market, while electrification and electromobility infrastructure present significant opportunities for growth.
Electrical steel plays a vital role in a range of electrical and electronic applications due to its distinct magnetic properties. Its demand stems from features like high permeability and low core loss, which make it an optimal choice for magnetic components found in solenoids, electric motors, generators, small relays, power distribution, and electricity generation. The magnetic permeability of electrical steel is crucial in assessing its appropriateness for different uses. Grain-oriented electrical steel, such as Powercore, is frequently utilized in distribution transformers for voltage transformation and in power grids for effective power transmission.
The magnetic flux generated in these applications must incur minimal loss, achievable through the low core loss and resistivity characteristics of electrical steel. The power sector, which includes transformers, Powercore, and distribution networks, constitutes a significant market for electrical steel. This material, a type of steel that maintains the ferromagnetic properties of iron, ranks among the most commonly used soft magnetic materials. Additionally, the increasing emphasis on energy conservation and infrastructure development drives demand for electrical steel in renewable energy sources like wind turbines and solar power. Its applications extend to high-efficiency motors, consumer electronics, and power transmission technologies. Advancements in steel production and processing techniques have led to a reduction in hysteresis loss, a key factor influencing market dynamics.
The increasing demand in the automotive sector is a significant factor enhancing market share. Automakers globally are focusing on lightweight, fuel-efficient, and environmentally friendly vehicles to comply with stringent regulations, often utilizing plastic or polymer components to lower emissions and enhance fuel economy. However, essential automotive parts like engines, chassis, gearboxes, exhaust systems, and other metal components are crafted from metals for improved strength and durability. The rise in global automotive vehicle production is expected to drive demand during the forecast period. Furthermore, the swift adoption of electric vehicles in Europe and Asia is likely to further elevate automotive production, thereby increasing the demand for electrical steel on a global scale.
The expansion of production capacity among companies is a significant trend driving growth in the electrical steel market. Its outstanding mechanical and magnetic properties are enhancing its use in industrial applications. In response to strong demand across various sectors, companies in the market have been increasing their production capabilities. A notable example is the merger of Ansteel Group Corp. Ltd. (Ben Gang Group) in August 2021, which positioned the company as the world's third-largest steelmaker, with an annual production capacity of 63 million tons of crude steel. Furthermore, the company aims to reach an annual production capacity of 70 million tons of crude steel by 2025. Given the rising demand from diverse industries and the efforts by companies to expand production capacity, the market is anticipated to experience significant growth during the forecast period.
Excess production capacity in steel manufacturing plants poses a significant challenge that restrains market growth. The global steel market is grappling with this issue, resulting in low capacity utilization rates and an imbalance between supply and demand. Unstructured capacity expansion, fueled by low production costs, subsidies, and easy access to financing, exacerbates the problem. In response, the Chinese government is implementing measures to reorganize the market structure, which includes shutting down certain steel production facilities. Additionally, low-cost material production in specific regions impacts manufacturing activities and demand in other areas, highlighting the need for reasonable trade tariffs to combat dumping practices. Despite the rapid growth of the industry, investments in capacity expansion are expected to lead to lower prices, which could hinder the growth of the electrical steel market during the forecast period.
The electrical steel market report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the electrical steel market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Voestalpine AG- The company offers electrical steels such as isovac high conductivity, isovac high strength and isovac high frequency.
The electrical steel market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:pjp
Ansteel Group Corp. Ltd., Aperam SA, ArcelorMittal, Arnold Magnetic Technologies Corp., Beijing Shougang Co. Ltd., China BaoWu Steel Group Corp. Ltd., China Steel Corp., Cleveland Cliffs Inc., JFE Holdings Inc., JSW STEEL LTD., Nippon Steel Corp., NLMK Group, Nucor Corp., POSCO holdings Inc., Steel Authority of India Ltd., Tata Sons Pvt. Ltd., thyssenkrupp AG, United States Steel Corp., voestalpine AG, and Yieh Corp.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Electrical steel plays a vital role in numerous electrical and electronic applications due to its distinctive magnetic characteristics. High permeability and minimal core loss are the key magnetic properties that render electrical steel an indispensable material for manufacturing magnetic components, including solenoids, electric motors, generators, small relays, and industrial machinery. The increasing demand for electrical steel is influenced by the rising electricity generation from renewable sources such as wind turbines and hydroelectric plants, which is integral to the energy transition. The magnetic properties of electrical steel are influenced by factors like resistivity, hysteresis loss, and grain structure.
Additionally, grain-oriented electrical steel, often referred to as powercore, is widely utilized in the production of transformers, inductors, and distribution transformers due to its excellent magnetic permeability and low hysteresis loss. The grain structure of electrical steel can either be non-grain oriented or grain oriented, depending on the specific application requirements. The production costs of electrical steel are significantly affected by the raw material prices of iron ore and coal. Furthermore, the growing emphasis on energy conservation and environmental protection is fueling the demand for sustainable steel production methods and energy-efficient vehicles, including electric and hybrid cars. The power sector is another significant consumer of electrical steel, using a substantial amount for voltage transformation and magnetic flux control.
Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.29% |
Market Growth 2024-2028 |
USD 24.25 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.22 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 77% |
Key countries |
China, India, Japan, US, and Russia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ansteel Group Corp. Ltd., Aperam SA, ArcelorMittal, Arnold Magnetic Technologies Corp., Beijing Shougang Co. Ltd., China BaoWu Steel Group Corp. Ltd., China Steel Corp., Cleveland Cliffs Inc., JFE Holdings Inc., JSW Group, Nippon Steel Corp., NLMK Group, Nucor Corp., POSCO holdings Inc., Steel Authority of India Ltd., Tata Sons Pvt. Ltd., thyssenkrupp AG, United States Steel Corp., voestalpine AG, and Yieh Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Market Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for Market forecast period. |
Customization purview |
If our electrical steel market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this electrical steel market trends and growth report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.