According to a new report published by Allied Market Research titled, “Electrical Steel Market by Type and Application: Opportunity Analysis and Industry Forecast, 2020–2027,” 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 also known as silicon electrical steel, lamination steel, or transformer steel. It is produced by using iron that comprises varying amounts of silicon. The silicon ranges up to 6.5%. Electrical steel decreases the dissipation of heat.
The electrical steel market is driven, owing to rise in demand for efficient power transformers. This is attributed to rise in integration of renewable to the grid. In addition, industrial growth in countries such as India and Brazil is boosting the energy demand, which consequently boosts the adoption of electrical steel. However, volatile price of raw materials is hindering the electrical steel market growth. On the contrary, upcoming regulations and government support for electric vehicles in countries such as India, Australia, and others will create lucrative opportunities for electrical steel manufacturers.
The electrical steel market is segmented on the basis of type, application, and region. Based on type, the market is categorized into grain oriented electrical steel and non-grain oriented electrical steel.
Various application of electrical steel studied in the report are transformers, motors, generators, and others. On the basis of region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA (Latin America, the Middle East, and Africa). The electrical steel market share is analyzed across all segments and regions.
Based on type, the grain oriented electrical steel segment is expected to grow at a fastest growth rate in terms of revenue during the forecast period. The increase in demand for electrical transformers is consequently boosting the adoption of grain-oriented electrical steel.Factors contributing towardthe growth of electrical transformers are up-gradation of existing grid network, high demand and initiatives for smart grid development, and others.
Based on application, the transformer has garnered highest market share in 2019 in terms of volume and revenue. This is attributed to factors such as a development of renewable in developing countries, high replacement rates of equipment, increase in energy demand from emerging economies, and others.
Based on region, Asia-Pacific is expected to grow at a CAGR of 6.0% in terms of revenue. This is attributed topresence of key players in the region, rise in energy demand owing to industrialization, increase in electric vehicle trends, and others.
The electrical steel market analysis covers in-depth information of the major industry participants. The key players operating and profiled 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 are Union Electric Steel Corporation, Allengency Technologies, Electrosteel Limited, Angang Steel Company Limited, Thyssenkrupp AG, Wuhan Iron & Steel Corporation, JSW Steel, Essar Steel, and others.
Key Findings Of The Study
- The electrical steel market is analyzed from 2019 to 2027.
- On the basis of region, the Europe electrical steel market gained a share of 15.0% in terms of revenue in 2019.
- The transformer application garnered a share of 43.0% in terms of volume in 2019.
- On the basis of type, the non-grain-oriented electrical steel segment gained a share of 75.9% in terms of volume in 2019.
- On the basis of region, the LAMEAgained 12.0% share,in terms of volume in 2019.
- A comprehensive analysis of the factors that drive and restrain the market growth is provided in the report.
- The qualitative data in this report aims at the market dynamics, electrical steel market trends, and developments in the industry.
- The electrical steel market size is provided in terms of volume and revenue.
Impact Of Covid-19 On The Electrical Steel Market
- The manufacturing as well as supply regions or countries witnessed economic slowdown, owing to the lockdown. The downstream section of the value chain,that is, the end user has witnessed less demand, which impact the market growth.
- For instance, the automotive sector has been witnessing slow down, owing to decreased automobiles sales that resulted in decreased investment in electric vehicles sector consequently impacting the demand for electrical steels.