Electrical Steel Global Market Opportunities and Strategies to 2032

This report describes and explains the electrical steel market and covers 2017-2022, termed the historic period, and 2022-2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and for the major economies within each region.

The electrical steel market reached a value of nearly $32,527.46 million in 2022, having grown at a compound annual growth rate (CAGR) of 7.07% since 2017. The market is expected to grow from $32,527.46 million in 2022 to $43,819.3 million in 2027 at a rate of 6.14%. The market is then expected to grow at a CAGR of 7.30% from 2027 and reach $62,335.29 million in 2032.

Growth in the historic period resulted from strong economic growth in emerging markets, growth in world population, government incentives to end-user industries, rise in power consumption and increasing use of household appliances.

Going forward, global population growth and urbanization, rising investment for renewable power generation, increasing demand for electricity and electric vehicles sales will drive the growth. Factors that could hinder the growth of the electrical steel market in the future include environmental regulations, skills shortages and the Russian-Ukrainian war.

The electrical steel market is segmented by type into grain-oriented and non-grain-oriented. The non-grain-oriented market was the largest segment of the electrical steel market segmented by type, accounting for 70.27% of the total in 2022. Going forward, the grain-oriented market is expected to be the fastest growing segment in the electrical steel market segmented by type, at a CAGR of 6.43% during 2022-2027.

The electrical steel market is segmented by industry into energy, automotive, household appliances, manufacturing and other industries. The energy market was the largest segment of the electrical steel market segmented by industry, accounting for 40.96% of the total in 2022 and is expected to be the fastest growing segment in the electrical steel market segmented by industry, at a CAGR of 6.45% during 2022-2027.

The electrical steel market is segmented by application into transformers, generators, motors and other applications. The transformers market was the largest segment of the electrical steel market segmented by application, accounting for 52.12% of the total in 2022. Going forward, the motors market is expected to be the fastest growing segment in the electrical steel market segmented by application, at a CAGR of 7.07% during 2022-2027.

Asia Pacific was the largest region in the electrical steel market, accounting for 46.38% of the total in 2022. It was followed by Western Europe, and then the other regions. Going forward, the fastest-growing regions in the electrical steel market will be Asia Pacific and Western Europe where growth will be at CAGRs of 7.58% and 5.76% respectively. These will be followed by Eastern Europe and North America where the markets are expected to grow at CAGRs of 4.70% and 4.32% respectively.

The electrical steel market is concentrated with a few large companies. The top ten competitors in the market made up to 47.83% of the total market in 2021. ArcelorMittal S.A. was the largest competitor with 10.96% share of the market, followed by POSCO with 8.40%, Baoshan Iron & Steel Co. Ltd with 7.37%, JFE Holdings, Inc. with 5.79%, ThyssenKrupp AG with 4.14%, Cleveland-Cliffs Corporation with 2.65%, Steel Authority of India Limited with 2.47%, Aperam SA with 2.37%, China Steel Corporation with 2.07%, and Tata Steel Limited with 1.62%.

The top opportunities in the electrical steel market segmented by type will arise in the non-grain-oriented segment, which will gain $7,754.51 million of global annual sales by 2027. The top opportunities in segment by industry will arise in the energy segment, which will gain $4,885.78 million of global annual sales by 2027. The top opportunities in segment by application will arise in the transformers segment, which will gain $5,610.92 million of global annual sales by 2027. The electrical steel market size will gain the most in China at $3,346.51 million.

Market-trend-based strategies for the electrical steel market include focusing on CO2-reduced electrical steel as a sustainable base material, developing new and innovative products, investing in manufacturing innovative electrical and environmentally friendly electrical steel, focusing on strategic partnerships and alliances and adopting new technologies, such as an argon oxygen decarburization converter.

Player-adopted strategies in the electrical steel market include strengthening business capabilities through strategic investments, enhancing production capabilities, expanding its presence in developing markets through partnerships and joint ventures and securing new contracts.

To take advantage of the opportunities, the publisher recommends the electrical steel companies to focus on CO2-reduced electrical steel, focus on innovative products, increase focus on electrical steel for electric vehicles, expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships and collaborations, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, continue to target fast-growing end-use industries.