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The Electrical Steel Market size is estimated to increase by USD 18,273.08 million between 2022 and 2027, at a CAGR of 9.56%.
The primary factors driving the market include the increasing demand in the automotive industry, high applications in the power sector, and high magnetic properties of electrical steel.
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Electrical steel is a type of steel product that retains the ferromagnetic properties of iron. It is one of the most-used types of soft magnetic material.
Increasing demand in the automotive industry is a major driver boosting the market share. Automakers worldwide prioritize lightweight, fuel-efficient, and eco-friendly vehicles to meet stringent environmental regulations, utilizing plastic or polymer components to reduce emissions and improve fuel efficiency. Nevertheless, essential automotive parts such as engines, chassis, gearboxes, exhaust systems, and other metal components are made from this kind of metal for enhanced strength and durability. The growing global production of automotive vehicles will drive the demand during the forecast period. Additionally, the rapid adoption of electric vehicles in Europe and Asia is expected to further increase automotive production, fueling the demand worldwide.
Expansion of production capacity by companies is a major trend propelling the market. The exceptional mechanical and magnetic properties are fueling its adoption in industrial applications. Consequently, due to the high demand in industries, market companies have been expanding their production capabilities. An example of this is the merger of Ansteel Group Corp. Ltd. (Ben Gang Group) in August 2021, resulting in becoming the world's third-largest steelmaker with an annual production capacity of 63 million tons of crude steel. Additionally, the company aims to achieve an annual production capacity of 70 million tons of crude steel by 2025. As a result of the increasing demand from various industries and the expansion of production capacity by market companies, the market is expected to witness significant growth during the forecast period.
Excess production capacity in steel manufacturing plants is a major challenge restraining the growth of the market. The global market faces a major challenge of excess production capacity, leading to low capacity utilization ratios and an imbalance between steel demand and supply. Unstructured capacity expansion, driven by factors like low production costs, subsidies, and easy access to loans, contributes to this issue. To tackle this, the Chinese government is taking measures to reorganize the market structure by closing down some steel production sites. Low-cost material production in specific regions affects manufacturing activities and demand elsewhere, prompting the need for reasonable trade tariffs to prevent dumping activities. Despite rapid industry growth, investments in capacity expansion are projected to lower the prices, hindering market growth during the forecast period.
The grain-oriented electrical steel segment is estimated to witness significant growth during the forecast period. This type is a crucial component for the manufacturers of massive, high-performance generators and energy-efficient transformers. It is made from laminated, wrapped, or punched sheets and constitutes a critical element of distribution transformers, power transformers as well as miniature transformers.
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The grain-oriented electrical steel segment was the largest segment and was valued at USD 17,861.48 million in 2017. It is becoming the material of choice for high-efficiency transformers. This is because of its higher permeability and better energy efficiency, which are in line with the increasing focus on products that achieve lower electricity consumption. In power generation plants, it is used in turbine body casings, turbine rotor shafts, generator rotor shafts, compressors, rotors, disks and rods, and other components. Such applications of the segment in focus will drive growth.
Based on end-user, the automotive industry holds the largest market share. Rising global vehicle production will increase the demand in the automotive industry during the forecast period. Countries such as Germany, South Korea, Japan, India, and China are the leading producers of automobiles globally. These countries are among the leading hubs for automotive production. Thus, the growing automotive industry globally and increasing demand for automobiles in emerging economies, such as India, will drive the demand for these products and, in turn, will boost the growth of the global market.
APAC is estimated to contribute 74% 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.
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The demand is set to increase steadily due to rapid industrialization and infrastructural developments in the region. The presence of major players like Tata Sons Pvt. Ltd. and China BaoWu Steel Group Corp. Ltd. will be instrumental in driving the market during the forecast period. For instance, Tata Sons Pvt. Ltd.'s Steel Recycling Business launched FerroHaat, a groundbreaking mobile app in August 2022, which facilitates sourcing steel scrap from traders, thus providing a reliable source of scrap metal for the industry and organizing India's scrap market. In parallel, China's efforts to consolidate its industry, exemplified by China BaoWu Steel Group Corp. Ltd.'s acquisition of a stake in Xinyu Iron and Steel Group in November 2022, will further propel market growth during the forecast period.
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- The company offers electrical steels such as isovac high conductivity, isovac high strength and isovac high frequency.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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.
The 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 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
The Global Market is influenced by factors like fluctuating raw material prices, trade disparities, and global economic conditions. Despite challenges, rising demand for electricity-related applications, including distribution, generation, and consumption, propels market growth. Key players such as JFE Steel Corporation dominate, offering electrical material with excellent magnetic properties and low core energy losses. Advancements in the electric car sector and the penetration of electric vehicles (EVs) drive demand for electrical items, particularly in the U.S. Market. Additionally, regional opportunities in Kerala, India, present potential growth prospects, with a focus on quality, maintenance, and supply-demand dynamics to optimize performance in electrical grids, transformers, and electromagnetic devices.
Electrical Steel Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.56% |
Market growth 2023-2027 |
USD 18,273.08 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.5 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 74% |
Key countries |
US, China, India, Japan, 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 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. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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