Global Electrical Steel Market Forecast and Trends

The global electrical steel market reached USD 32.95 Billion in 2019 and expected to reach USD 48.9 Billion by 2026 market growth with a significant CAGR of 6.8% during forecast period of 2020-2026. Growing demand for motors in electric vehicles is estimated to remain a major driving factor during the forecast period.

There is the presence of a large number of players in the global electrical steel market. Major players in the global electrical steel market are focusing on developing new technologies to promote low-time and low-cost technologies for the industry. In recent years, there have been many up-gradation in technology, which is in concerning the Global Electrical Steel Industry, which in turn will help the industry to grow, which will simultaneously improve competition.

Global Electrical Steel Market Overview:

Electrical steel also known as silicon steel or laminate steel. Electrical steel is made up of silicon and iron. Electrical steel is of two types which are grain-oriented electrical steel and non-grain oriented electrical steel. Electrical steel is high-power steel, which is used in appliances such as refrigerators, air conditioners, and high-power coolers. Electrical steel is used by consumer appliance manufacturers because it is environment-friendly as compared to the regular steel. Electrical steel is used in the core manufacturing of transformers, motors and inductors. Electrical steel is used in compressor motors, switches, relays, etc. Global electrical steel market is the market of special steel having the capability to produce the magnetic properties that have a small hysteresis area, which results in high permeability, low power loss and low core loss per cycle. Electrical steel helps in minimizing the eddy current losses and improves the efficiency of the EV/HEV.

Growth drivers

The Increasing Sustainable Demand for Motors

The growth in significant demand for motors across the globe is estimated to increase the demand for electrical steel market. The increasing industrialization and the application of motors in residential sector are driving the growth of motors market across the globe. Electrical steel is the soul of electric motors as it creates stronger magnetic flux which is essential to the torque of an electric motor. Moreover, it also leads to the higher efficiency. The sustainable development program of the UN (United Nations) warrants increasing industrialization in the coming year. Dealers in the electrical steel market will be gathering a lot of benefits in terms of revenues.

The Increasing Infrastructural Demand

Growing infrastructure demand has led to increase per capita consumption of electricity, thereby promoting the growth in the electrical steel market demand. Government norms in several countries aim to minimize carbon dioxide emission and have enacted regulations for the usage of transformers which has increased productivity with improved properties to manufacture efficient cores.

Restraints

Pricing Fluctuations

The fluctuation in pricing acts as an obstacle in the growth of the electrical steel market across the globe. The extreme price volatility of raw materials has become a real challenge for companies to stay competitive. The raw materials market remains unstable in across the globe. Companies are worried about the fluctuation of pricing. It means to manage risks related to the raw materials market must be set up to avoid losing the market share or even bankruptcy.

Global Electrical Steel Market: Type

Based on type, the electrical steel market segmented into Grain-Oriented Steel, Non Grain-Oriented Steel. Among various product types, Grain-Oriented market is estimated to dominate the market during the forecast period of 2026 due to its rising demand from transformers cores used in transformers and large generators. It is an iron-silicon alloy with silicon level of 3%. It is used in various forms, such as wound, laminated, and punched sheets. Properties of it are low core loss and high permeability which make them suitable in enhancing the performance and efficiency of transformers and generators.

Global Electrical Steel Market: Application

Based on Application, the electrical steel market segmented into Transformers, Motors, Inductors, Others. The transformer segment is estimated to dominate the market during the forecast period of 2026. The increase in the transformer segment is due to rising renewable energy demand. The transformer core is made using electrical steel to improve iron's electrical resistivity, which helps reduce losses from eddy current. Increasing demand for wind turbines, electric vehicles, and compressors make motors the fastest-growing segment. Motor product is used to manufacture laminated iron cores of stator and rotor. Its properties like high punch ability, high flux density, and low iron loss which make it suitable in brushless DC motors.

Global Electrical Steel Market: End-User

Based on End-User, the electrical steel market segmented into Energy, Auto Mobiles, Manufacturing, Household Appliances, Others. Auto Mobiles end-user segment estimated to dominate the market during the forecast period from 2020-2026. The growth in the auto mobiles market is due to the assembly line and mass production techniques which are used across the globe.

Global Electrical Steel Market: Regional insights

Based on the region, the electrical steel market is segmented into North America, Europe, the Asia Pacific, Latin America, and Middle East & Africa. The North America market is expected to dominate the global electrical steel market during the forecast period due to the increasing highest electrical steel production across the region. Asia Pacific market is estimated to have a fastest growth in the global electrical steel market owing to high requirement and consumption of electricity in the countries during the forecast period of 2026.

Electrical Steel Market: Competitive Landscape

The major market players in the electrical steel are Nippon Steel & Sumitomo Metal Corporation (NSSMC) Group, Shandong Iron and Steel Group Co Ltd, Tata Steel Limited, JFE Steel Corporation, Essar Steel India Ltd., SAIL (Steel Authority of India Limited), Shagang Group Inc., ArcelorMittal, United States Steel, Ansteel Group Corporation, Union Electric Steel Corporation, Baosteel Group, POSCO, Voestalpine Group, United States Steel Corporation, Jindal Steel and Power Limited, HBIS Group, ThyssenKrupp AG, Wuhan Iron & Steel, AK steel Corporation and Other Prominent Players are expanding their presence in the market by implementing various innovations and technology.

Recent Developments:

In April 2019, ThyssenKrupp AG announced that it is set to produce cold rolled grain-oriented electrical steel in India. The company is planning to expand the manufacturing capacity of its facility located in Nashik, India to 35,000 tonnes per year.

In May 2018, AK Steel Corporation introduced a new grain-oriented electrical steel under the brand name TRAN-COR® X for applications in the power transformer.

The objective of the Study:

To analyze and forecast the Global Electrical Steel market size of the market, in terms of value.

To examine the careful market segmentation and forecast the market size, in terms value, based on the region by segmenting the Global Electrical Steel market into five regions, namely, North America, Europe, Asia Pacific, Latin America, Middle East & Africa and their leading countries.

To outline, categorized and forecast the Global Electrical Steel market based on the type, application, end-user, and region.

To examine competitive developments like technological advancement, services, and regulative framework within the global electrical steel market.

To highlight the impact analysis of the factors, affecting the market dynamics such as drivers, restraints, opportunities, and challenges.

To strategically profile the key players and comprehensively analyze their market shares along with detailing the competitive landscape for market leaders.

Scope of the Report

By Type

·         Grain-Oriented Steel

·         Non Grain-Oriented Steel

By Application

·         Transformers

·         Motors

·         Inductors

·         Others

By End-User

·         Energy

·         Auto Mobiles

·         Manufacturing

·         Household Appliances

·         Other

By Region

·         North America

·         Europe

·         Asia Pacific

·         Latin America

·         Middle East & Africa