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The Electrical Steel Market size was estimated at USD 51.76 billion in 2023, USD 55.23 billion in 2024, and is expected to grow at a CAGR of 6.80% to reach USD 82.05 billion by 2030 . Speak directly to the analyst to clarify any post sales queries you may have.
Electrical steel is a specialized form of steel tailored to produce specific magnetic properties. It has a low carbon content and contains varying levels of silicon, typically ranging from 0.5% to 5.0%, which significantly increases the electrical resistivity of the steel. This specialized material is designed to minimize energy loss by generating eddy currents. Electrical steel is predominantly used to manufacture transformers, inductors, electric motors, generators, and other applications where efficient energy conversion is essential. The shift towards electric vehicles (EVs) and hybrid electric vehicles (HEVs) and the expansion of renewable energy installations, requiring transformers and various generators, further boost the need for electrical steel. However, the high costs of producing high-grade electrical steel due to complex processing and materials may impede market growth. Nevertheless, improvements in material science and manufacturing processes enable higher efficiency and performance of electrical steel, creating lucrative prospects for the electrical steel market.
Regional Insights
Asia Pacific region's demand for electrical steel is growing due to rapid urbanization, expansion of its power sector, and investments in renewable energy infrastructure. Recent policies focusing on energy efficiency in electrical applications also contribute to the evolving consumer needs and purchasing behaviors in the market. In addition, countries in this APAC region are renowned for their high-technology industries, and the demand for high-performance grades characterizes its electrical steel market. Companies focus on innovative products for competitive differentiation, reflected in their consistent patent filings that often lead to cutting-edge products in the electrical steel market. In the Americas, the electrical steel market is influenced by the transformation of energy systems, including the shift towards renewable energies and the modernization of the grid. Heavy R&D investments in energy and automotive sectors correlate with the sophisticated needs of US consumers, who often require high-grade electrical steel for efficiency and performance. The EU's strict environmental standards and the push for energy-efficient products have influenced the electrical steel industry in the EMEA region. High-quality, non-grain-oriented (NGO) steels are in demand for reducing energy loss in high-efficiency motors. Investment in green technologies and sustainable products, often backed by government incentives, is a considerable trend in the region. On the other hand, investments in infrastructure and the diversification of oil-based economies into power and utility sectors are driving the growth in the electrical steel market in the Middle East. Moreover, Africa's electrical steel market is emerging, with the continent's vast natural resources and expanding power infrastructure leading to gradual growth. There is increased interest in establishing local industries to reduce import dependency, leading to potential investment opportunities in electrical steel production and processing.Type: Burgeoning usage of non-grain-oriented electrical steel as a cost-effective choice for a vast array of applications
Grain-oriented electrical steel is silicon steel designed to provide superior magnetic properties in the rolling direction. This type of steel undergoes a complex manufacturing process that aligns the crystal lattice of the silicon steel so that the magnetic flux density is enhanced in the direction in which the steel has been rolled. Fully processed electrical steel refers to grain or non-grain-oriented steel undergoing a complete thermal treatment during production. This annealing process improves the steel's magnetic properties by promoting uniform grain structure and relieving internal stresses. Semi-processed electrical steel is provided to the end user in an annealed but not fully decarburized state and requires additional processing to optimize its magnetic properties. This is generally less expensive than fully processed steel and is often chosen when the material cost is a critical factor, and some degree of compromise on the magnetic performance can be tolerated. Non-grain-oriented electrical steel is a silicon steel designed to have identical magnetic properties in all directions of the sheet. Unlike grain-oriented steel, the crystalline structure is not directionally aligned, allowing for consistent magnetic properties regardless of the direction of current flow. NGOES is widely used in rotating machinery, including motors and generators, as well as inductors and transformers, where uniform magnetic performance is required across varying directions.Form: Growing preference for electrical steel sheets cater to precision and custom-shaped requirements
Electrical steel coils are one of the primary forms used in manufacturing transformers, motors, and inductors, offering ease of manufacturing for large-scale production as they can be wound into the desired shape and then cut to specification. This form is preferred when uniform quality and consistency are needed over long product lengths. Coils are also selected for their efficiency in automated processes, reducing labor costs. Electrical steel plates are used for heavy-duty applications that require larger cross-sectional areas, such as power generation equipment. Plates are typically chosen for applications where structural integrity and high magnetic permeability are essential. Electrical steel sheets are highly preferred for their versatility and are extensively used in smaller transformers, motors, generators, and other electrical applications. Electrical steel sheets can be cut and stamped to specific sizes and shapes, making them ideal for custom and precision applications. Electrical steel strips are commonly used to manufacture smaller transformers and are favored for high-precision and customization applications. The strips can be wound or stacked to form the cores of electrical components where space is at a premium. Wire rod electrical steel is specially designed for motors and generators in electromagnetic wire coils. Its applications are primarily found in intricate and particular industries, including automotive, aerospace, and defense.Application: Proliferating utilization of electric steel in transformers
Electrical steel, a passive component used to store energy in a magnetic domain when electric current flows through a coil, is crucial in the design of inductors. The core material enhances the coil’s inductance by providing a low resistance path for the magnetic flux, improving efficiency and reducing core losses. Electric motors use electrical steel in construction, especially within the rotor and the stator sections. The material’s properties increase the magnetic flux density, enabling the motor to produce more torque using less electrical energy. High-quality electrical steel is essential for reducing losses due to eddy currents and hysteresis, thereby improving the performance and efficiency of motors in applications ranging from household appliances to industrial machinery. Transformers are the devices that transfer electrical energy between circuits through electromagnetic induction, rely heavily on electrical steel for their core construction. Its excellent magnetic properties minimize energy losses during the transfer process. Current transformers are designed to measure or monitor the electrical currents in power lines, and electrical steel is fundamental to their cores. The steel provides a path for the magnetic field generated by the current-carrying conductor, allowing for the precise measurement of current without directly interrupting the high-power circuit. Distribution transformers, which lower electrical power voltage for safe distribution and consumption, incorporate electrical steel in their core design. This material helps maintain the transformer’s core integrity and optimizes the magnetic flux distribution within the core, which is crucial for the efficient distribution of electricity with minimal losses. Power transformers, used in power generation stations and substations to step up or down voltage levels, depend on electrical steel for their core construction. The superior magnetic properties of this material are critical for transporting high amounts of power over long distances with low energy losses.End-Use Industry: Evolving usage of electrical steel in automobiles for efficient motor design and performance
The automotive industry heavily relies on electrical steel for the construction of electric and hybrid vehicles. The material's magnetic properties are essential for efficient motor design and performance. High-grade non-grain-oriented (NGO) steel is typically preferred for rotating machines, including traction motors found in electric vehicles (EVs). On the other hand, grain-oriented (GO) electrical steel is used in energy-efficient transformers and inductors within automotive electrical systems. Construction integrates electrical steel in developing efficient power transformers, ensuring the reduction of electrical losses. Mainly, GO steel is preferred due to its excellent magnetic properties in the direction of grain alignment, which is suitable for transformers and large generators used in commercial constructions. In the energy sector, electrical steel is critical for the performance of transformers, generators, and large-scale energy storage systems. GO electrical steel is predominantly used to increase the efficiency of distribution systems and power transmission. Wind turbine generators and solar power inverters also utilize electrical steel to minimize energy loss during power generation. Fabrication industries operate electrical steel in machining and creating various components for industrial use. This includes the production of high-fidelity cores, stators, and armatures that demand specific magnetic properties. Household appliances, including refrigerators, air conditioners, and washing machines, use electrical steel in motors and compressors. NGO steel is often preferable due to its magnetic isotropy, which allows efficient function in various directions of the alternating current field present in these applications. The manufacturing industry consists of a broad range of applications for electrical steel, including heavy machinery, industrial motors, and automation systems. Both types of electrical steel can be found depending on the specific machinery or equipment being produced, where the efficiency and reliability of electromagnetic applications are crucial.Market Dynamics
The market dynamics represent an ever-changing landscape of the Electrical Steel Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.Market Disruption Analysis
The market disruption analysis delves into the core elements associated with market-influencing changes, including breakthrough technological advancements that introduce novel features, integration capabilities, regulatory shifts that could drive or restrain market growth, and the emergence of innovative market players challenging traditional paradigms. This analysis facilitates a competitive advantage by preparing players in the Electrical Steel Market to pre-emptively adapt to these market-influencing changes, enhances risk management by early identification of threats, informs calculated investment decisions, and drives innovation toward areas with the highest demand in the Electrical Steel Market.Porter’s Five Forces Analysis
The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Electrical Steel Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.Value Chain & Critical Path Analysis
The value chain of the Electrical Steel Market encompasses all intermediate value addition activities, including raw materials used, product inception, and final delivery, aiding in identifying competitive advantages and improvement areas. Critical path analysis of the <> market identifies task sequences crucial for timely project completion, aiding resource allocation and bottleneck identification. Value chain and critical path analysis methods optimize efficiency, improve quality, enhance competitiveness, and increase profitability. Value chain analysis targets production inefficiencies, and critical path analysis ensures project timeliness. These analyses facilitate businesses in making informed decisions, responding to market demands swiftly, and achieving sustainable growth by optimizing operations and maximizing resource utilization.Pricing Analysis
The pricing analysis comprehensively evaluates how a product or service is priced within the Electrical Steel Market. This evaluation encompasses various factors that impact the price of a product, including production costs, competition, demand, customer value perception, and changing margins. An essential aspect of this analysis is understanding price elasticity, which measures how sensitive the market for a product is to its price change. It provides insight into competitive pricing strategies, enabling businesses to position their products advantageously in the Electrical Steel Market.Technology Analysis
The technology analysis involves evaluating the current and emerging technologies relevant to a specific industry or market. This analysis includes breakthrough trends across the value chain that directly define the future course of long-term profitability and overall advancement in the Electrical Steel Market.Patent Analysis
The patent analysis involves evaluating patent filing trends, assessing patent ownership, analyzing the legal status and compliance, and collecting competitive intelligence from patents within the Electrical Steel Market and its parent industry. Analyzing the ownership of patents, assessing their legal status, and interpreting the patents to gather insights into competitors' technology strategies assist businesses in strategizing and optimizing product positioning and investment decisions.Trade Analysis
The trade analysis of the Electrical Steel Market explores the complex interplay of import and export activities, emphasizing the critical role played by key trading nations. This analysis identifies geographical discrepancies in trade flows, offering a deep insight into regional disparities to identify geographic areas suitable for market expansion. A detailed analysis of the regulatory landscape focuses on tariffs, taxes, and customs procedures that significantly determine international trade flows. This analysis is crucial for understanding the overarching legal framework that businesses must navigate.Regulatory Framework Analysis
The regulatory framework analysis for the Electrical Steel Market is essential for ensuring legal compliance, managing risks, shaping business strategies, fostering innovation, protecting consumers, accessing markets, maintaining reputation, and managing stakeholder relations. Regulatory frameworks shape business strategies and expansion initiatives, guiding informed decision-making processes. Furthermore, this analysis uncovers avenues for innovation within existing regulations or by advocating for regulatory changes to foster innovation.FPNV Positioning Matrix
The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Electrical Steel Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).Market Share Analysis
The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Electrical Steel Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.Recent Developments
Nippon Steel Corporation (NSC) to Acquire U. S. Steel, Moving Forward Together as the ‘Best Steelmaker with World-Leading Capabilities’
Nippon Steel Corporation (NSC), Japan's steel manufacturer and a global industry leader, agreed to acquire United States Steel Corporation (U. S. Steel), a key figure in the American steel sector with notable competitive edges, in a definitive all-cash transaction valued at about USD 14.9 billion including debt, offering a 40% premium over U. S. Steel's last closing price. Emphasizing a convergence of superior technologies, the deal aims to extend NSC’s worldwide presence, particularly in the U.S. and is expected to push its total steel production to 86 million tonnes annually. This strategic move aligns with NSC's ambitious target of reaching 100 million tonnes and underscores a shared commitment to technological advancement and sustainable industry practicesPosco to Invest USD 850 Million in Electrical Steel Plant For EVs
South Korean steel manufacturer POSCO has announced a substantial expansion of its production capabilities for non-grain-oriented electrical steel, a critical component in EV traction motors aimed at solidifying its position in the electric vehicle (EV) sector. Outlining an investment of nearly 1 trillion South Korean won (approximately USD 848.6 million) to construct new manufacturing facilities. These facilities, expected to become operational by 2025, will augment the company's output to 400,000 tons of steel sheets annually a fourfold increase from its current capacity. This capacity boost will support material requirements for up to 8 million electric cars and is projected to facilitate a reduction of 840,000 tons in greenhouse gas emissions per year, underscoring POSCO's commitment to environmental sustainability.JSW Steel, Japan's JFE Steel Ink Agreement to Manufacture Electrical Steel In India
JSW Steel announced its collaboration with JFE Steel of Japan to form a new joint venture, set on a 50:50 equity basis, aimed at producing cold-rolled grain-oriented (CRGO) electrical steel in India. With the adoption of JFE Steel's advanced, energy-efficient production technology, the venture is geared to meet India's burgeoning demand with high-quality Made in India CRGO materials, also marking a step towards sustainable steel practices and reduced CO2 emissions.Strategy Analysis & Recommendation
The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Electrical Steel Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.Key Company Profiles
The report delves into recent significant developments in the Electrical Steel Market, highlighting leading vendors and their innovative profiles. These include Ampco-Pittsburgh Corporation, Aperam SA, ArcelorMittal S.A., Arnold Magnetic Technologies Corporation, China Steel Corporation, Cleveland-Cliffs Inc., Foshan Shunge Steel Trading Co., Ltd., JFE Steel Corporation, JSW Steel Ltd., Keiko Shoji Co., Ltd., Laser Technologies, Inc., Leicong Industrial Co., Ltd., Mitsui & Co., Ltd., NikoMag, Nippon Steel Corporation, NLMK Group, Posco Holdings Inc., Shandong Haorui Metal Material Co.Ltd, Shanghai Walmay Metal Group, Steel Authority of India Limited, Suzhou Yogiant Holdings Co., Ltd., TATA Steel Limited, ThyssenKrupp AG, Voestalpine AG, and Wuxi Zhongxin Special Steel Co.,Ltd..Market Segmentation & Coverage
This research report categorizes the Electrical Steel Market to forecast the revenues and analyze trends in each of the following sub-markets:- Type
- Grain-Oriented Steel
- Fully Processed
- Semi-Processed
- Non Grain-Oriented Steel
- Grain-Oriented Steel
- Form
- Coil
- Plate
- Sheet
- Strips
- Wire Rod
- Application
- Inductors
- Motors
- Transformers
- Current Transformers
- Distribution Transformers
- Power Transformers
- End-Use Industry
- Automobiles
- Construction
- Energy
- Fabrication
- Household Appliances
- Manufacturing
- Region
- Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Illinois
- New York
- Ohio
- Pennsylvania
- Texas
- Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
- Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
- Americas
This research report offers invaluable insights into various crucial aspects of the Electrical Steel Market:
- Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
- Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
- Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
- Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
- Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.
Additionally, the report addresses key questions to assist stakeholders in making informed decisions:
- What is the current market size and projected growth?
- Which products, segments, applications, and regions offer promising investment opportunities?
- What are the prevailing technology trends and regulatory frameworks?
- What is the market share and positioning of the leading vendors?
- What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?
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Table of Contents
1. Preface
2. Research Methodology
5. Market Insights
6. Electrical Steel Market, by Type
7. Electrical Steel Market, by Form
8. Electrical Steel Market, by Application
9. Electrical Steel Market, by End-Use Industry
10. Americas Electrical Steel Market
11. Asia-Pacific Electrical Steel Market
12. Europe, Middle East & Africa Electrical Steel Market
13. Competitive Landscape
14. Competitive Portfolio
List of Figures
List of Tables
Companies Mentioned
- Ampco-Pittsburgh Corporation
- Aperam SA
- ArcelorMittal S.A.
- Arnold Magnetic Technologies Corporation
- China Steel Corporation
- Cleveland-Cliffs Inc.
- Foshan Shunge Steel Trading Co., Ltd.
- JFE Steel Corporation
- JSW Steel Ltd.
- Keiko Shoji Co., Ltd.
- Laser Technologies, Inc.
- Leicong Industrial Co., Ltd.
- Mitsui & Co., Ltd.
- NikoMag
- Nippon Steel Corporation
- NLMK Group
- Posco Holdings Inc.
- Shandong Haorui Metal Material Co.Ltd
- Shanghai Walmay Metal Group
- Steel Authority of India Limited
- Suzhou Yogiant Holdings Co., Ltd.
- TATA Steel Limited
- ThyssenKrupp AG
- Voestalpine AG
- Wuxi Zhongxin Special Steel Co.,Ltd.
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 184 |
| Published | May 2024 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value ( USD | $ 55.23 Billion |
| Forecasted Market Value ( USD | $ 82.05 Billion |
| Compound Annual Growth Rate | 6.8% |
| Regions Covered | Global |
| No. of Companies Mentioned | 25 |
