Global Electrical Steel Market Size, Share & Trends Analysis Report By Product (Grain Oriented Electrical Steel, Non-grain Oriented Electrical Steel), By Application (Transformer, Motor, Inductor, Generators, Other), By Thickness (0.23 mm, 0.27 mm, 0.30 mm, Others), By End-Use Industry (Automotive, Energy and Power, Household Appliances, Manufacturing, Others) and Geography (North America, Europe, Asia-Pacific, Middle East and Africa, and South America) - Forecast (2024-2032).

Market Overview

Global Electrical Steel Market size was valued at USD 29.60 Billion in 2023 and is poised to grow from USD 30.89 Billion in 2024 to USD 43.42 Billion by 2032, growing at a CAGR of 4.4% in the forecast period (2024-2032).

The Global Market for Electrical Steel has grown due to the demand for energy-efficient electrical systems, the growth of the power generation and automotive sectors, and other factors. Electrical steel, often referred to as silicon steel, is an important component used in the manufacture of transformers, motors, and generators.

It is essential for improving the energy efficiency of electrical equipment and lowering power loss because of its high magnetic permeability, low core loss, and potential to decrease energy waste. Electrical steel is now largely used in many industries because of the rising emphasis on reducing carbon emissions and enhancing energy efficiency.

The demand for electrical steel has increased as a result of strict laws and policies being implemented by governments and organizations throughout the world to increase energy efficiency. The requirement for electrical steel in transformers and generators has increased due to the spike in power infrastructure building brought on by urbanization and the rising demand for energy.

The switch to electric vehicles (EVs) has significantly increased the need for electrical steel in the automotive industry. EVs require electrical steel-based high-performance motors and generators to enhance performance and optimize energy efficiency. The need for electrical steel in this sector will rise dramatically as countries promote EV adoption to reduce their dependency on fossil fuels.

Technological advancements in the production of electrical steel, such as the development of high-grade, non-grain-oriented (NGO) electrical steel, are enhancing the material's performance and broadening its applications. Manufacturers are focusing on producing thinner and more efficient electrical steel sheets to meet the growing requirements of modern electrical systems.

Market Drivers

High Electrical Steel Consumption in Motors and Transformers

• The global market for electrical steel is being driven by The rising need for energy-efficient automobiles, used in electric and hybrid models, owing to the use of electrical steel in the automotive sector. The increasing need for transformers in the power sector, which is being fueled by the need for energy conservation, is also helping the market. High magnetic permeability, electrical steel is an essential material for applications that need efficient electrical energy conversion, transmission, and consumption. Grain-oriented electrical steel, such as ThyssenKrupp's powercore, is essential for converting voltage in distribution and power transformers. Steel products like Powercore, which increase magnetic flux also generator efficiency in wind turbines and hydropower facilities are driving the energy revolution.

Growing Demand for Electric Vehicles (EVs)

• The growing demand for electric vehicles (EVs) is one of the primary reasons propelling the worldwide electrical steel industry. In an attempt to reduce carbon emissions and transition to sustainable modes of transportation, some countries are promoting the use of EVs through incentives, subsidies, and stringent emission regulations. Electrical steel plays a key role in the development of electric vehicle motors, which require high-performance, energy-efficient materials to maximize power generation while minimizing energy loss. Electrical steel is used in the manufacturing of electric motors, transformers, and generators, all of which have increased significantly as a result of the automobile industry's increased emphasis on electrification. The requirement for advanced electrical steel, in particular non-grain-oriented (NGO) steel, is expected to increase dramatically as automakers continue to improve the performance and efficiency of EVs.

Market Opportunities

Future Rules and Government Assistance

• Future laws and government assistance in developing nations like China, Brazil, and India offer a big chance for companies in the electrical steel sector. Due to the rapidly expanding automotive industry in these nations, the enactment of less restrictive laws and regulations creates an atmosphere that is conducive to market participants expanding their businesses. Countries all around the globe are highlighting the need to reduce carbon emissions from automobiles and promoting the use of electrical steel in a variety of applications. The US government has lately made investments in the production of cleaner materials, including as concrete, steel, and aluminum, that are used to build sustainable infrastructure in an effort to improve the evolution and competitiveness of the US industrial sector. The need for electrical steel goods, particularly for solar farms, wind turbines, and electric cars, may be driven by the infrastructure industry. Legislation and government support will provide the electrical steel sector a tremendous chance to grow and prosper.

Development of High-Grade Electrical Steel

• The development of high-grade electrical steel presents a significant opportunity for the market. To satisfy the increasing demand for energy-efficient materials, manufacturers are concentrating on developing the newest electrical steel with improved qualities, such as increased magnetic permeability and reduced core losses. High-grade electrical steel is essential for the efficient operation of transformers, electric motors, and generators, particularly in sectors like electric vehicles and renewable energy systems. As industries attempt to enhance the efficiency and sustainability of their operations, the demand for superior quality electrical steel is rising. Companies that invest in the research and development of innovative electrical steel grades stand to benefit from increased demand, particularly as global energy efficiency regulations become more stringent.

Market Restraining Factors

Raw Material Prices that Fluctuate

• A constant supply of raw materials is crucial to the steel market’s ability to produce and process steel products, especially electrical steel. The main raw materials required to produce steel are silicon, ferroalloys, coal, iron ore, and industrial gases. Raw material costs are extremely erratic, which has a big influence on how steel is made and processed. Steel manufacturing and processing may go without any problems since raw material prices are steady. Unfortunately, raw material prices fluctuate a lot, which makes it difficult for steel businesses to control manufacturing costs. The cost of producing steel rises in tandem with the cost of raw materials, which raises the cost of finished steel products, such as electrical steel that is grain-oriented and non-grain-oriented. The steel industry may face major difficulties in controlling production costs and sustaining profitability due to the volatility of raw material prices.

Segmentation Analysis

The market scope is segmented because of by Product, by Application, by Thickness, by End-Use Industry.

• By Product

Based on the Product of the market is segmented into Grain Oriented Electrical Steel, Non-grain Oriented Electrical Steel.

The Non-grain Oriented Electrical Steel (NGOES) Market held the largest market share, accounting for almost 62.2% of total sales. NGOs are utilized across the energy value chain, from generators to electric motors and appliances. Depending on its composition, characteristics, and uses, it comes in a variety of grades. The uses of grain-oriented electrical steel (GDES) are in EV charging infrastructure and transformers. GDES's high collecting factor and magnetic induction enable it to wind the core using less material. Due to their magnetic properties, transformers can reduce core losses and offer economical solutions.

A wide range of transformers use GOES, which is available in several grades. They are graded as claimed by their thickness. It is expected that the product category will grow more quickly than NGOES during the course of the projection period. The increased manufacture of transformers is driving the segment's growth. Its market share is lower than that of NGOES since it is more costly.

Key Findings:

In October 2023, United States Steel Corporation opening of its new, non-grain oriented (“NGO”) electrical steel line at its Big River Steel facility in Osceola, Arkansas. The successful startup of the line marks a significant milestone for U. S. Steel, as the line has the capacity to produce more tons of NGO electrical steel per year in the United States than any other domestic steelmaker, while supplying sustainable steel solutions that are best for people and the planet.

• By Application

Based on the Application of the market is segmented into Transformer, Motor, Inductor, Generators, Other.

The transformer category, which accounted for more than 48% of the market, had the largest revenue share. The need for transformers has surged due to the complexity of electrical systems, expanding decentralized generation, EV adoption, and digital demands. For instance, the IEA estimates that between 2014 and 2035, a total of USD 24,234 billion will be invested in order to install 24.2 million kilometers of net electricity distribution lines.

Companies have been forced to increase their production capacity due to the growing demand for transformers. For example, a new power transformer plant in Kerala, India, was put into service in February 2021. The establishment of this new factory cost ₹12.5 crores, or about USD 1.7 million. It is anticipated that the factory will have an annual production capacity of 1,500 MVA for the fabrication of power transformers up to 25 MVA, 132kV class.

Over the course of the forecast period, the motor segment is expected to increase at the fastest rate. Electrical steel is preferred by electric motors due to its excellent magnetic properties, high frequency, and high permeability. The increasing focus on EV manufacturing, which is eventually expected to promote market development, is driving the need for electric motors.

Electric motors offer four times the speed of motors found in industrial gear. A vehicle's performance may be impacted by significant heat production from high speed since it increases core losses and puts a lot of mechanical strain on motor elements. Electrical steel overcomes this situation due to its properties, which increase the motor's lifetime and reliability.

• Regional Snapshots

By region, Insights into the markets in North America, Europe, Asia-Pacific, Latin America and MEA are provided by the study. In terms of revenue, North America accounted for over 11.7% of the global market in 2023. The region's growing focus on EV production and power generation has increased demand for electric motors and charging stations, which is fueling the electrical steel industry. For example, a year after declaring in 2020 that it will produce EVs in North America, Foxconn unveiled three EV models. In October 2023, the company unveiled a new model of N electric freight truck and announced ambitions to further its partnership with NVIDIA and ZF Group.

In April 2021, for example, Exro Technologies Inc. declared plans to build a 37,000-square-foot manufacturing facility in Calgary, Canada. The business announced its official launch. 100,000 coil drivers will be produced here in tendering with European vehicle standards. HB4 Group and Vicinity Motor are two of its present clients.

Europe was the second-largest geographic market for electrical steel. The EV industry is one of the primary drivers of the increase in electrical steel demand in Europe. The number of EVs registered in the EU increased from 1.74 million in 2021 to about 2 million in 2022. The growing EV industry attracted foreign companies to the region.

In November 2020, Nidec announced plans to build an EV manufacturing factory in Serbia in order to expand its footprint in Europe and compete with Chinese companies. In May 2023, Two further factories had been developed by the corporation in Serbia. Auto motors will be manufactured by Nidec Electric Motor Serbia, while inverters and electronic control units will be manufactured by Nidec Elesys Europe. Because of its close proximity to EV and linked component production facilities, Serbia is becoming prominent in the EV market. Companies having headquarters in the nation include Bosch, Magna, ZF, Lear, Continental, Stellantis, and Yanfeng Automotive Interiors.

List of Companies Profiled

• Angang Steel Company Limited
• Aperam S.A
• Allegheny Technologies
• ArcelorMittal
• POSCO
• Voestalpine AG
• China Baowu Steel Group Corporation
• Nippon Steel Corporation
• United States Steel Corporation
• Steel Authority of India
• TATA Steel Limited
• Thyssenkrupp AG
• JFE Steel Corporation
• Cleveland-Cliffs Inc
• Hebei Puyang Iron And Steel Group
• Jiangsu Shagang International Trade Co. Ltd
• China Steel Corporation
• Jsw Steel
• Leicong Industrial Co. Ltd
• Union Electric Steel Corporation
• Euro-Mit Staal B.V
• Tc Metal
• Vesuvius Plc
• Ferric Srl
• Waelzholz Gmbh & Co.

Key Industry Developments

• In October 2024, ArcelorMittal - announces it has entered into a definitive Equity Purchase Agreement (the “Agreement”) with Nippon Steel Corporation (“NSC”) pursuant to which ArcelorMittal will purchase NSC’s 50% equity interest in the AM/NS Calvert Joint Venture (the “Transaction”).
• In October 2023, United States Steel Corporation announcement, the opening of its new, non-grain oriented (“NGO”) electrical steel line at its Big River Steel facility in Osceola, Arkansas. The successful startup of the line marks a significant milestone for U. S. Steel, as the line has the capacity to produce more tons of NGO electrical steel per year in the United States than any other domestic steelmaker, while supplying sustainable steel solutions that are best for people and the planet.

Report Coverage

The report will cover the qualitative and quantitative data on the global Electrical Steel Market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.

Report Scope and Segmentations

Global Electrical Steel Market Regional Analysis

North America accounted for the highest xx% market share in terms of revenue in the Electrical Steel market and is expected to expand at a CAGR of xx% during the forecast period. This growth can be attributed to the growing adoption of Electrical Steel. The market in APAC is expected to witness significant growth and is expected to register a CAGR of xx% over upcoming years, because of the presence of key Electrical Steel companies in economies such as Japan and China.

The objective of the report is to present comprehensive analysis of Global Electrical Steel Market including all the stakeholders of the industry. The past and current status of the industry with forecasted market size and trends are presented in the report with the analysis of complicated data in simple language.

Electrical Steel Market Report is also available for below Regions and Country Please Ask for that

North America

• U.S.
• Canada

Europe

• Switzerland
• Belgium
• Germany
• France
• U.K.
• Italy
• Spain
• Sweden
• Netherland
• Turkey
• Rest of Europe

Asia-Pacific

• India
• Australia
• Philippines
• Singapore
• South Korea
• Japan
• China
• Malaysia
• Thailand
• Indonesia
• Rest Of APAC

Latin America

• Mexico
• Argentina
• Peru
• Colombia
• Brazil
• Rest of South America

Middle East and Africa

• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest Of MEA

Points Covered in the Report

• The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.
• The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 12 years data history and forecast.
• The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.
• Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.
• The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.

Key Reasons to Purchase

• To gain insightful analyses of the Electrical Steel market and have comprehensive understanding of the global market and its commercial landscape.
• Assess the production processes, major issues, and solutions to mitigate the development risk.
• To understand the most affecting driving and restraining forces in the market and its impact in the global market.
• Learn about the Electrical Steel market strategies that are being adopted by leading respective organizations.
• To understand the outlook and prospects for the Electrical Steel market. Besides the standard structure reports, we also provide custom research according to specific requirements.

Research Scope of Electrical Steel Market

• Historic year: 2016- 2022
• Base year: 2023
• Forecast: 2024 to 2032
• Representation of Market revenue in USD Billion