Emphasis on Type (Non-grain Oriented and Grain Oriented); Application (Transformer, Motors, Inductors, and Others); Region/Country.
The Electrical Steel Market was valued at USD 33.4 Billion in 2023 and is expected to grow at a strong CAGR of around 6.4% during the forecast period (2024-2032) owing to rising demand for energy-efficient transformers and motors, driven by global efforts in energy conservation, renewable energy expansion, and electric vehicle growth.
The electrical steel market, also called silicon steel or transformer steel, is growing steadily because energy-efficient material is needed in transformers, motors, and generators. The use of electrical steel, designed for its magnetic behavior, is indispensable to reduce energy loss and improve electrical equipment performance. Market drivers include a global push for energy efficiency, the swift adoption of electric vehicles (EVs), and increased investments in renewable energy infrastructure. With industries and governments placing more and more emphasis on sustainable development, demand for high-performance electrical steel products remains strong.
Looking ahead, markets across Asia including China and India are likely to become key electrical steel growth markets. Demand is also accelerated as China's government policies encourage the development of renewable energy and contribute to the upgrading of the national power grid. China's 'Made in China 2025' initiative and recent five-year plans outline the modernization of infrastructure and increasing domestic manufacturing of high-efficiency products, such as electrical steel for the manufacture of power transformers and EV motors. Similarly, in India, the "National Electric Mobility Mission Plan" and increased spending on infrastructure by way of "Power for All" are also increasing the demand for electrical steel. Additionally, these policies not only help integrate renewable energy but also enhance the efficiency of power distribution networks, thus supporting the buoyant growth rate of the global electrical steel market.
This section discusses the key market trends that are influencing the various segments of the Electrical Steel market as identified by our team of research experts.
With an increased tour of focus on minimizing energy losses in the entire industries, particularly in power production and dissemination, energy efficiency has turned into an international focus. Transformers and electric motors are manufactured using that fall prime importance in reducing the energy losses using electrical steel, which is a unique material for connecting the coils to the magnetizer. With increasing demands for energy conservation in countries, the adoption of stricter energy conservation policies and industries trying to minimize cost burden of operation through minimizing energy waste, electrical steel of high quality has become extremely important. Specifically, industries such as industrial automation, commercial buildings and utilities have particularly strong demand for improved energy efficiency. Therefore, the electrical steel market is a central driver for the push towards sustainable and efficient solutions.
As electric vehicle production surges, assuming we continue on this path, a major demand for non-grain-oriented steel for the electric motors powering these vehicles has arisen. Automotive manufacturers and governments around the world are setting out on their own to achieve the same ambitious targets for EV growth by cutting slivers of carbon emissions. Take, for example, China, the U.S. and other European countries that are offering incentives for and enacting stricter emissions regulations aimed at helping EV production. Non-grain oriented electrical steel is a critical component for high performance electric motors used in EVs, where the electric motor demand for efficiency shall be sustained over time. The electrical steel market is projected to earn solid revenues due to this growing trend in the automotive industry in the forthcoming years.
In acquiring public contracts for wind and solar power projects and building the hydrogen production facility, much of the demand for the electrical steel transformer and generator was driven by the public to build and ensure its success. In this context, grain oriented electrical steel is of the greatest importance because it needs to be in transformers which are key to distribution of power from renewable sources. Thus, countries all over the world start taking policy support for renewable energy through the European green deal and China’s plan to peak the carbon emissions by 2030. The requirement for integration of renewable energy into the grid while minimizing loss of energy provision makes the use of electrical steel the crux for these energy transformations with expansion of renewable energy being a major market driver.
The Asia Pacific (APAC) holds a significant share of the electrical steel market because of a growing focus on rapid industrialization and urbanization together with the booming infrastructural development in the countries like China, India, Japan, and South Korea. With its robust manufacturing base and large investments in renewable energy, electric vehicles and smart grid infrastructure, strong demand for electrical steel exists in transformers, motors and generators, which drives electrical steel demand in APAC. China, as the largest producer and consumer of electrical steel, is a significant player in the market due to its large investment in renewing the country’s power grid and the development of renewables with the help of its five year plans. India's "Make in India" and its "National Electric Mobility Mission Plan" also boost demand for electrical steel for making infrastructure greener by enhancing the country's effort to shift to sustainable energy solutions.
Government policy across APAC has been a big driver of the electrical steel market. For example, The Green Growth Strategy in Japan, South Korea’s Green New Deal, both stressing carbon neutrality and energy efficiency, spur demand for high performance electrical steel products in the power generation and automotive sectors. In addition to the incentives and regulatory framework for adopting EVs across the region, growth of the non grain oriented electrical steel segment, particularly used in the production of electric motors, is further supported. The electrical steel industry is set for growth, innovation, and technological advancement as APAC economies continue to grow increasingly focused on cleaner energy and more efficient power distribution.
The Electrical Steel market is competitive and fragmented, with the presence of several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market include Tata Steel, JFE Steel Corporation, Benxi Steel Group Co., Ltd., Nucor Corporation, NLMK Group, ArcelorMittal S.A., Shougang Group, thyssenkrupp Steel, China Baowu Steel Group Corp., Ltd., and POSCO.
On October 18, 2024, JSW Steel’s joint venture with JFE Steel Corp. bought out thyssenkrupp Electrical Steel India for $482.1 Mn. JSW’s acquisition procures grain-oriented electrical steel production capacity to support growing domestic and global demand.
On October 17, 2024, Aperam bought Universal Stainless & Alloy Products, Inc., adding Universal's products to Aperam's portfolio, which provides products for high-growth sectors. These strategic moves by key players show that the electrical steel market is competitive as companies make use of the growing demand for energy-saving solutions.
Report Attribute | Details |
Base year | 2023 |
Forecast period | 2024-2032 |
Growth momentum | Accelerate at a CAGR of 6.4% |
Market size 2023 | USD 33.4 Billion |
Regional analysis | North America, Europe, APAC, Rest of the World |
Major contributing region | Asia-Pacific is expected to grow at the highest CAGR during the forecasted period |
Key countries covered | U.S., Canada, Germany, Spain, Italy, France, United Kingdom, China, Japan, Australia, and India |
Companies profiled | Tata Steel, JFE Steel Corporation, Benxi Steel Group Co., Ltd., Nucor Corporation, NLMK Group, ArcelorMittal S.A., Shougang Group, thyssenkrupp Steel, China Baowu Steel Group Corp., Ltd., and POSCO. |
Report Scope | Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Demand and Supply Side Analysis; Competitive Landscape; Company Profiling |
Segments Covered | By Type; By Application; By Region/Country |
The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
The report presents a quick review of overall industry performance at one glance.
The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
The study comprehensively covers the market across different segments.
Deep dive regional level analysis of the industry.
The global Electrical Steel market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to contact us to get a report that completely suits your requirements.
1. Market Introduction
2. Research Methodology or Assumption
3. Executive Summary
4. Market Dynamics
5. Pricing Analysis
6. Global Electrical Steel Market Revenue (USD Bn), 2022-2032F
7. Market Insights By Type
8. Market Insights By Application
9. Market Insights By Region
10. Value Chain Analysis
11. Competitive Landscape
12. Company Profiled
13. Acronyms & Assumption
14. Annexure
Analyzing the historical market, estimating the current market, and forecasting the future market of global Electrical Steel were the three major steps undertaken to create and explore the adoption of Electrical Steel in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, numerous findings and assumptions were taken into consideration to validate these insights. Moreover, exhaustive primary interviews were also conducted with industry experts across the value chain of the global Electrical Steel market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of Electrical Steel through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of Electrical Steel, we conducted a detailed secondary analysis to gather historical market insights and share for different segments and sub-segments for major regions. Major segments are included in the report, such as Type and Application. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of Electrical Steel. Further, we conducted factor analysis using dependent and independent variables such as Type and Application of Electrical Steel market. A thorough analysis was conducted of demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Electrical Steel sector across the globe.
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global Electrical Steel market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
The industry’s market size, in terms of revenue (USD) and the adoption rate of the Electrical Steel across the major markets domestically
All percentage shares, splits, and breakdowns of market segments and sub-segments
Key players in the global Electrical Steel market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global Electrical Steel market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of Type and Application in the global Electrical Steel market.
The current & future market trends of the global Electrical Steel market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
Analyze the current and forecast market size of Electrical Steel industry in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
Segments in the study include areas of Type and Application
Define and analysis of the regulatory framework for the Electrical Steel industry
Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
Analyze the current and forecast market size of the Electrical Steel market for the major region
Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
Company profiles of the Electrical Steel market and the growth strategies adopted by the market players to sustain in the fast-growing market
Deep dive regional level analysis of the industry
Q1: What is the current market size and growth potential of the Electrical Steel market?
The Electrical Steel Market was valued at USD 33.4 Billion and is expected to grow at a strong CAGR of around 6.4% during the forecast period (2024-2032).
Q2: What are the driving factors for the growth of the Electrical Steel market?
The primary driver of the electrical steel market is the rising demand for energy-efficient transformers and motors, driven by global efforts in energy conservation, renewable energy expansion, and electric vehicle growth.
Q3: Which segment has the largest share of the Electrical Steel market by Application?
The Motors segment has the largest share of the Electrical Steel market by Application.
Q4: What are the emerging technologies and trends in the Electrical Steel market?
Emerging technologies and trends in the electrical steel market include the development of high-efficiency, thin-gauge steels for electric vehicles and advancements in production processes to reduce carbon emissions.
Q5: Which region will dominate in the Electrical Steel market?
APAC is expected to dominate the market during the forecast period.
Customers who bought this item also bought
Rail Saw Market: Current Analysis and Forecast (2024-2032)
Emphasis on By Type (Electric, Manual), By Application (Train Rail, Tram Rail, Others), and Regions (North America (The US, Canada, Rest of North America), Europe (Germany, The UK, France, Italy, Spain, Rest of the Europe), Asia-pacific (China, Japan, India, Rest of the Asia-pacific), Rest of the World)
June 28, 2024
