by Market Overview:
Electrical steel is used for manufacturing cores for electric motors and transformers. It has high magnetic permeability and low hysteresis and eddy current losses. It is manufactured by cold rolling silicon steels sheets to achieve minimum thickness. Electrical steel is segmented into grain-oriented electrical steel and non-grain oriented electrical steel based on their orientation and magnetization properties.
Market Dynamics:
The Electrical Steel market is driven by growing investments in the power transmission and distribution infrastructure. Power utilities across the globe are focusing on upgrading their aging power grids to boost grid reliability and integration of renewable energy. For instance, in 2021, U.S. President Joe Biden announced plans to invest US$ 2 trillion over four years in infrastructure, including power grid modernization. This is expected to boost the demand for transformers and motors which in turn will drive the electrical steel market.
Another key driver is rapid industrialization in developing countries such as China, India, Brazil, and South Africa. Setting up of new manufacturing plants and factories requires installation of large number of electric motors and transformers which utilize electrical steel in their core construction. This is positively impacting the market growth.
The global Electrical Steel Market Share is estimated to be valued at US$ 38.16 Bn in 2023 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Segment Analysis
The electrical steel market can be segmented by application into transformers, motors, and inductors. Transformers dominated the market in 2022 and are expected to continue their dominance during the forecast period. Transformers form the backbone of power transmission and distribution systems. Thus, the steady growth in power infrastructure investment worldwide is expected to drive the demand for electrical steel in transformers.
PEST Analysis
Political: Governments across the globe are heavily investing in power infra projects to ensure reliable electricity access. This will boost demand for electrical steel. Stringent efficiency standards also promote use of better quality steel.
Economic: Growth in GDP and disposable incomes is increasing consumption of appliances and electric vehicles, thereby fuelling market growth. However, volatile steel prices can hamper profitability.
Social: Population growth and urbanization are driving needs for newer power infra and transportation, presenting opportunities. Environmental regulations promote energy efficient steel.
Technological: Developments in thinner gauges and non-oriented electrical steel help improve device efficiency. Use of electrical steel in renewable energy devices is opening new areas of growth.
Key Takeaways
The global Electrical Steel Market is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period of 2023 to 2030, due to increasing investment in renewable energy generation and expansion of electric vehicle market.
Regional analysis: Asia Pacific dominated the global market in 2022 accounting for over 50% share, led by China, Japan, and India. The region is expected to continue its dominance due to growing investments in transmission infrastructure, appliances, and EV segments. Europe and North America are also lucrative markets driven by renewable energy targets, grid modernization, and automotive electrification.
Key players: 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. The industry players are focusing on developing advanced non-oriented electrical steel grades with higher efficiency to tap the growth in motors and wind turbine applications.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
