Global Electrical Steel Market to Reach USD 45.77 Billion by 2028

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

  1. 15 May 2020 - Grand Rapids Michigan-based Arcanum Alloys Inc.declared the launch of a new electrical steel under the trade name Opticore. This product has been designed specifically to meet the amplified demand for high-quality electrical steels, brought about by the infrastructure developmentsand the electrification of the transportation sector needed to supply the corresponding demand for electric power.
  2. In May 2019, POSCO signed an MOU with Ministry of SMEs and Startups (MSS) and the Korean Venture Capital Association (KVCA). Under the agreement, POSCO invested in R&D projects and startups for initiating the POSCO Venture Platform.
  3. In May 2019, Voestalpine AG opened a high-tech steel research capability in Donawitz, Austria. It comprehensivelyexpanded the company’s technological leadership in sophisticated product solutions in steel.
  4. In March 2019, Sumitomo Metal Corp and Nippon Steel acquired a 51% stake in Sanyo Special Steel Co. Ltd.
  5. May 31, 2018 - West Chester, Ohio-headquartered AK Steel declared the launch of a new category of electrical steels for use in ultra-voltage and high-voltage power transformers. The new range of products is anticipated to support power transformer manufacturers to bring about noteworthydevelopments in the overall efficiencyof their products.

Some Key Findings of the Global Electrical Steel Market Report Include:

  • Major global Electrical Steel Market analysis, trends, forecasts, along with a country-specific market analysis
  • An in-depth analysis of the global Electrical Steel Market, which includes analysis by Type, By Application, by End-user, and by Regions, with an analysis of trend-based insights and factors.
  • Product offering details, competitive benchmarking, and development approaches adopted by the important industry players, along with their investments in the last five years in the global Electrical Steel Market.
  • The market study includes the macro and micro analysis of the drivers, regions,restraints, challenges, opportunities, guidelines, and regulations that are propelling the global Electrical Steel Market.
  • Some of the major industry players functional in the global Electrical Steel Market include ArcelorMittal, POSCO, Voestalpine Group, Essar Steel,Baosteel, Nippon Steel & Sumitomo Metal Corporation, United States Steel Corporation, Tata Steel, JFE Steel Corporation, and Steel Authority of India Limited.

Market Segmentation:

By Type:

  • Grain-Oriented
  • Non Grain-Oriented

By Application:

  • Transformers
  • Motors
  • Inductors

By End-Use Industry:

  • Energy
  • Automobile
  • Manufacturing
  • Consumer Goods
  • Others

By Region:

  • North America
  • Western Europe
  • Eastern Europe
  • Asia Pacific
  • Middle East
  • Rest of the world
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