Electrical Steel Market - Forecast(2023 - 2028)

According to the findings by International Energy Association (IEA), electricity accounts for 19% of the total final consumption of energy, and the share is poised to increase to 24% in 2040 owing to the increase in electrification across the globe^[1]. However, the world is also in dire need for the conservation of energy which is creating a demand for energy-saving materials like electrical steel which is one of the major reasons for the current boom in the electrical steel market. The electrical steel market size was at $22.24 billion as of 2018, according to IndustryARC’s market analyst. Furthermore, the analyst estimates the demand in the global electrical steel market to grow with a healthy CAGR of 6.6% during the forecast period of 2019 to 2025. 

There are a lot of developing economies in APAC that include China, India, Indonesia, and others that are observing constant electrification which is supporting the electrical steel market in the region. Moreover, APAC is progressing in the sustainable energy program of the World Bank which warrants conservation of electrical energy which again substantiates the APAC electrical steel marketplace. There is also a discernible growth in the industrial and automotive sector which is creating electrical steel revenue avenue for the vendors in the APAC region. As per the findings by the market analyst, APAC yielded more than 39% of the global electrical steel market demand share in 2018.  

Electrical steel or laminate steel or silicon steel is an iron alloy which has specific magnetic properties and small hysteresis area that results in low power-loss per cycle. Sometimes, 0.5% of manganese and aluminum are added in its composition. It finds applications in motors, generators, inductors, and some electrical appliances. The key application creating opportunities in the electrical steel market is its usage in transformers. 

“The advancement in transmission lines and the replacement of old transformers due to the burgeoning trend of smart transformers across the globe coupled with the rampant cross-border power transmission are creating a sustainable electrical steel marketplace in the transformers application segment,” remarks the market analyst in the market research report. Furthermore, the analyst also estimates the application CAGR of electrical steel in transformers to be around 6.8% through to 2025. 

The growing industrialization and the application of motors in the residential sector are driving the market growth of motors. Now, electrical steel is the heart of electric motors as it creates stronger magnetic flux which is key to the torque of an electric motor. Furthermore, it also leads to higher efficiency. Given that, the sustainable development program of the United Nations warrants incremented industrialization in the coming year, the vendors in the electrical steel market will be reaping a lot of benefit in terms of revenues. 

According to the International Energy Association (IEA), the global sales of electric cars was 1.1 million in 2017 with a 0.3% electric share of global passenger car stock. Furthermore, the organization estimates that the share will shoot up to 14% by 2030 in order to meet the United Nations SDE targets^[2]. Now, this remarkable progress of the electric vehicle market will lead to electrical steel market Revenue Avenue as its application significantly enhances the horsepower. 

According to IndustryARC’s market analyst, the demand for uninterruptible power supply is constantly growing, and its market size was valued to be $10.5 billion to $11.5 billion. Now, the demand for uninterruptible power supply has fostered the sales of generators, and electrical steel is an integral part of generators. The rise in the sales of generators is creating a humongous electrical steel marketplace for the vendors. 

The major challenge in the electrical steel market is balancing the supply and demand. Electrical steel production warrants investment in machineries and other infrastructure. So, the vendors need a sustainable clientele to expand their manufacturing facilities. The sudden surge in demand for electrical steel has put the manufacturers in a conundrum about the long-term demand for the same. So, the vendors dither to initiating an expansion project. However, considering that odds are in favor of the electrical steel market, the product will have sufficient demand for vendors to expand their manufacturing units.  

The key players crusading for the electrical steel market share are Nippon Steel & Sumitomo Metal Corporation Group, Shandong Iron and Steel Group Co Ltd, JFE Steel Corporation, SAIL, Shagang Group Inc., ArcelorMittal, and Ansteel Group.  

Latest Development – JFE Steel Corp. had initiated a low iron-loss technology of grain-oriented electrical steels long back in the 90s. In 2016, they reinvented their manufacturing strategies to improve the magnetic properties of grain-oriented electrical steel. 

In September 2016, ThyssenKrupp observed a great marketplace in the automotive industry owing to the requirement of electrical steel in the same. 

The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the electrical steel market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of electrical steel market, and their specific applications in transformers, motors, inductors, generators, and other products. 

The report analyses the product demands by the grade of product - on-Grain-Oriented Electrical Steel & Grain-Oriented Electrical Steel.

The electrical steel market report also analyzes the major geographic regions as well as the major countries in these regions. The regions and countries covered in the study include:

1. Is the market for Global Electrical steel growing? How long will it continue to grow and at what rate? 

2. Which type of paints presents the major growth opportunities? 

3. Is there a possibility for change in the market structure over time? 

4. Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands? 

5. Do the key vendors look for partnerships to expand their businesses with respect to geography or product? 

6. What is the current status of Global Electrical steel in different countries? 

7. Which are the major relevant product segments within Global Electrical steel? 

8. Which type of equipment will witness heavy adoption in the near future? 

9. What are the short-term, long-term, and medium-term growth drivers for the market? 

10. What are the short-term, medium-term, and long-term challenges for the market? 

11. What are the short-term, medium-term, and long-term opportunities for the market 

12. Who are the top players/companies of the market? 

13. What are the recent innovations in the market? 

14. How many patents have been filed by the leading players? 

15. What are the types of patents filed by the leading players? 

16. What is the futuristic scenario for the adoption of equipment in the Global Electrical steel?

17. What is our Vision 2030 Global Electrical steel Market?