The global Electrical Steel Market is estimated to be valued at US$ 35.7 billion in 2022 and is projected to exhibit a CAGR of 6.9% over the forecast period 2022 to 2030. Electrical steel is a special type of steel used specifically in electrical applications due to its magnetic properties and low electrical resistivity. This type of steel is commonly used in the manufacturing of transformers, generators, motors, and inductors. The advantages of electrical steel include high magnetic permeability and low core loss, making it ideal for efficient energy conversion. The growing need for electricity generation and transmission, along with the increasing demand for energy-efficient devices, is driving the demand for electrical steel in the market.
Market Key Trends:
One key trend in the electrical steel market is the growing demand for electric vehicles. The rising concerns regarding environmental pollution and the need to reduce carbon emissions have led to a surge in the adoption of electric vehicles worldwide. Electrical steel is an essential component in electric vehicle motors, as it helps in reducing energy losses and improving the overall efficiency of the motor. With the increasing sales of electric vehicles and the implementation of stringent regulations promoting their usage, the demand for electrical steel in the automotive sector is expected to witness significant growth in the coming years. This trend presents a lucrative opportunity for key players in the electrical steel market to expand their product offerings and cater to the growing demand from the electric vehicle industry.
The electrical steel market can be segmented based on type, application, and region. By type, the market can be divided into grain-oriented electrical steel and non-grain-oriented electrical steel. Grain-oriented electrical steel dominates this market segment due to its superior magnetic properties and high efficiency, making it ideal for power transformers and generators. Furthermore, the growing demand for renewable energy sources such as wind and solar power is driving the demand for grain-oriented electrical steel.
Based on application, the electrical steel market can be categorized into transformers, motors, inductors, and others. Transformers hold the largest market share in this segment, owing to the increasing infrastructure development and industrialization across the globe. The rapid expansion of the power sector, particularly in emerging economies, is further fueling the demand for transformers, thereby driving the market for electrical steel.
The global Electrical Steel Market is expected to witness high growth, exhibiting a CAGR of 6.9% over the forecast period. This growth can be attributed to several factors. Firstly, the increasing demand for electricity and the need to upgrade and expand the existing power infrastructure are driving the market. Moreover, the growing focus on energy efficiency and the shift towards renewable energy sources are creating opportunities for the electrical steel market.
In terms of regional analysis, Asia Pacific is the fastest-growing and dominating region in the electrical steel market. The region is witnessing rapid industrialization and urbanization, leading to increased power consumption. Countries like China, India, Japan, and South Korea are investing heavily in the power sector, driving the demand for electrical steel. Additionally, the presence of key market players in the region further contributes to its dominance.
Key players operating in the electrical steel market include NLMK, Voestalpine AG, POSCO, Nippon Steel & Sumitomo Metal Corporation, Thyssenkrupp AG, JFE Steel Corporation, ArcelorMittal, Cogent Power Limited, Aperam, Baosteel Group Corporation, AK Steel Corporation, ATI, Schneider Electric, and Nicore Electrical Manufactory Co., Ltd. These companies are focusing on product innovation, strategic partnerships, and mergers and acquisitions to strengthen their market position and gain a competitive edge.