Electrical Steel Market Outlook -2027
The global electrical steel market was valued at $15.0 billion in 2019, and is projected to reach $21.0 billion by 2027, growing at a CAGR of 5.8% from 2020 to 2027.
Electrical steel is a soft magnetic material with improved electrical properties that is used across various applications such as electric motors, solenoids, small relays, generators, and others. It is also known as transformer steel or lamination steel or silicon steel. Electrical steel reduces the dissipation of heat. Presence of silicon in the electrical steel increases resistivity and enhances permeability.
Factors contributing toward the electrical steel market growth include increase in demand from energy generation & transmission industries and growth in deployment of renewable energy. However, a volatile price of raw materials is one of the major factors hindering the market growth. On the contrary, increase in usage of electrical vehicles is one of the factors expected to create lucrative opportunities during the forecast period.
The electrical steel market is segmented on the basis of type, application, and region. Based on type, the electrical steel market is divided into grain oriented electrical steel and non-grain oriented electrical steel. On the basis of application, the electrical steel market is divided into transformers, motors, generators, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The electrical steel market share is analyzed across all segments and regions.
The electrical steel market analysis covers in-depth information of the major industry participants. Some of the major players in the market include Aperam, ArcelorMittal, Baosteel Group Hu, Cleveland-Cliffs Inc., JFE Holdings, Inc, POSCO, Nippon Steel Corporation, Slovenian Steel Group, Tata Steel, and Voestalpine AG.
Other players in the value chain of the electrical steel market include Union Electric Steel Corporation, Allengency Technologies, Electrosteel Limited, Angang Steel Company Limited, Thyssenkrupp AG, Wuhan Iron & Steel Corporation, JSW Steel, Essar Steel, and others.
The key players are adopting numerous strategies such as product launch, business expansion, acquisition, partnership, collaboration, joint venture, and agreement to stay competitive in the electrical steel market.
For instance, ArcelorMittal launched the second generation of iCARe electrical steels. Its first electrical steel product was specifically meet the requirements of the electric vehicle. It was launched in June 2012. The beneficial characteristics of the second generation of iCARe electrical steels are the high strength, reduced use of electricity, less heat generation, and others. This product launch has not only reinforced company’s product portfolio of electrical steel but also improved its offering to automotive sector.
Grain Oriented Electrical Steel is projected as the most lucrative segment.
Electrical steel market, by type
By type, the grain oriented electrical steel segment is expected to grow at the fastest growth rate during the forecast period. Factors contributing toward the growth of electrical transformers are up-gradation of existing grid network, high demand and initiatives for smart grid development, and others. The increase in demand for electrical transformers will consequently boost the adoption of grain oriented electrical steel. In addition, non-grain oriented electrical steel garnered 75.9% in 2019 and expected to grow at a CAGR of 4.5%, in terms of volume during the forecast period. The rising electric vehicle trend is up-surging the demand for non-grain oriented electrical steel. As non-oriented electrical steels helps automotive manufacturers build more efficient hybrid electric vehicles for enhanced driving range and exceptional performance.
Motors is projected as the most lucrative segment.
Electrical steel market, by application
By application, the motor segment is anticipated to grow at the fastest growth rate during the projection period. It is expected to grow at a growth rate of 5.3% during the forecast period, in terms of volume. The demand for electric motors is expected to increase in the coming years, owing to rise in penetration of electric vehicles all round the world. This is expected to create lucrative opportunities for electrical steel manufacturers. North America and Europe have more electric vehicles on road as compared to developing economies. This is attributed to supporting policies for electric vehicles from governments.
Asia-Pacific holds a dominant position in 2019 and would continue to maintain the lead over the forecast period.
Electrical steel market, by region
Region wise, Asia-Pacific is expected to be the fastest growing region in terms of volume as well as revenue. This is attributed to factors such as presence of largest market for power transformers, owing to presence of countries such as China, India, and Indonesia. China is one of the largest manufacturers of power transformers. In addition, Asia-Pacific is one of the largest markets for wind generator. Moreover, India is also expected to grow at considerable rate this is attributed to factors such as growing renewable energy sector, rising energy demand owing to surge in population and urbanization, and other.
Key Benefits For Stakeholders
- The electrical steel market is studied from 2019 to 2027
- The report provides an in-depth analysis of the electrical steel market along with the current and future electrical steel market trends.
- This report highlights the key drivers, opportunities, and restraints of the market along with the impact analysis during the forecast period.
- Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- The qualitative data in this report aims on market dynamics, electrical steel market trends, and developments.
- A comprehensive analysis of the factors that drive and restrain the growth is provided.
- The electrical steel market size is provided in terms of volume and revenue.
Impact Of Covid-19 On The Electrical Steelmarket
- The outbreak of COVID-19 has affected the demand as well as the manufacturing in supply regions.
- The COVID-19 crisis has affected the chemical industry supply chain to a major extent; thus, having a major impact on raw material procurement.
- The above factors have impacted the growth of the electrical steel market.
- The automotive sector has witnessed decreased in sales which has resulted in decreased investment in electrical vehicle sector or may witness delay in investment, which is expected to affect demand for electrical steel
Electrical Steel Market Report Highlights
Key Market Players
Aperam, Baosteel Group Hu, Nippon Steel Corporation, POSCO, Voestalpine AG, JFE Holdings, Inc, Slovenian Steel Group, ArcelorMittal, Tata Steel, Cleveland-Cliffs Inc.
According to the perspectives of the CXOs of key participants in the market, the demand for electrical steel is expected to grow at considerable rate during the forecast period. This is attributed to rise in investment in renewable energy and electric vehicle sector, increase in favorable policies to adopt electric vehicles in many countries around the world, surge in energy demand from developing economies, and others. Rise in energy demand and growth of renewable energy sector will up surge the adoption of power generation and transmission equipments such as transformers, generators, power relays, and others. This will consequently increase the demand for electrical steel.