The Global Electrical Steel Market was valuedat USD 25.32 billion in 2019, and it is expected to reach USD 45.77 billion by 2028, growing at a CAGR of 6.8% during the forecast period.Increased availability of electricity in developing countries and the growing urban population worldwide areanticipated to drive the market during the forecast period.
According to the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), by 2050, the total population in the Asia-Pacific region is projected to reach 5.1 billion, of which the urban population is estimated to be around 64%.
The factors that have led to the development of electrical steel market are a positive shift in individual buying behavior, increasing disposable income of consumers,growth in population density in urban regions, and rising construction activities.
Electrical steel is used in producing guaranteed magnetic characteristics that result in high permeabilityand small core loss,as it is a distinctive form of specialized steel. Electrical steel hasapplications intransformers,motors, inductors welding equipment, and in batteries.
Global Electrical Steel Market, by Type
During the forecast period, the non-grain-oriented steel segment is anticipated to grow at a rapidpace. Non-grain-oriented steel is used to reduce magnetic loss by increasing silicon and aluminum content in sheets of electrical steel. An increase in automobile production is expected to give a major boost to the market, as electrical steel is used as the main material in engine parts to develop power performance, automotive comfort, and for fuel economy.This isanticipated to increase the demand for non-grain-oriented electrical steel products.
Global Electrical Steel Market, by End-user
Anincrease in disposable income contributes towards raising the demand for cars and electric hybrid vehicles. These automobiles have components such as electrical power steering, the fuel pump, and other electronic equipment used to produce electromagnetic interference. The growth of the electrical steel market will be driven by the increase in demand for vehicles and vehicle parts.
Electrical steel has applications in functioning automotive parts such as fuel pumps and electric power steering. Electrical steel is also used to improve power performance in automobiles as a core material and for developing precision motor part for actuators and motors. Electrical steel sheets have applications in hybrid electric vehicles and electric vehicle traction motor parts as well.
The use of electric steel in engines allows them to be brief, small, effective, and strong. As a result, the demand for electrical sheets is increasing in the automotive industry. Electrical steel is widely used in the renewable energy sector as well.
Global Electrical Steel Market, by Application
Electric steel contributesmainly in the manufacture of transformers that are mainlyused to transmit,generate, and distribute electricity to end-users. The gain-oriented electrical steel isused for producing energy-efficient and high-performancetransformers. In the manufacturing of small transformers, non-gain-oriented steel plays a vital role. The growth in the power sector is expected to augment with the ongoing development in the infrastructure industry, which will eventually fuel the electrical steel market as well.
Global Electrical Steel Market, by Region
During the estimated period, the Asia Pacific electric steel market is anticipated to grow at the highest pace. Asia-Pacific is predicted to grow faster than any other region,as it is witnessing a high demand for electricityas the world's most populated region. The region's distribution and transmission grid is still at the initial stages of development.
Among other countries, Japan, China, and India are engaging in grid extension initiatives to enhance network efficiency, which is increasing the requirement for transformers.This willfacilitate the electric steel market. The Middle East is emerging as a new player inthe electrical steel market.
Major Developments in the Global Electrical Steel Market
Some Key Findings of the Global Electrical Steel Market Report Include:
By End-Use Industry:
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