Electrical Steel Market - By Product (Grain Oriented, Non-Grain-Oriented), By Application (Large Power Transformers, Distribution Transformers, Small Transformers, Power Generators, Audio Transformers), By End User & Forecast, 2024 - 2032

Global Electrical Steel Market will witness 6.5% CAGR between 2024 and 2032 due to rising investments from leading companies. Electrical steel, essential for manufacturing transformers, motors, and generators, is crucial for efficient energy transmission and conversion. As global demand for energy-efficient and renewable technologies increases, companies are heavily investing in the development and production of high-quality electrical steel to meet evolving industry standards. For instance, in February 2024, JSW Steel revealed plans for a joint venture with JFE Steel Corporation to help establish an electrical steel manufacturing plant that is grain-oriented, with an estimated investment of ₹5,500 crore.

Leading manufacturers are enhancing their capabilities through advanced research and innovation, focusing on improving the magnetic properties and performance of electrical steel. This includes investments in new production technologies and materials to reduce energy losses and increase efficiency. The push towards modernization and infrastructure upgrades in both developed and emerging economies further drives the demand for electrical steel. Consequently, substantial investments by major players are propelling market growth, fostering technological advancements, and supporting the transition to more sustainable energy solutions.

The overall Electrical Steel Industry is classified based on the product, application, end-user, and region.

Based on product, the electrical steel market revenue from the grain oriented electric steel segment will register a commendable CAGR from 2024 to 2032. Grain-oriented steel is designed with a specific crystalline structure that enhances its magnetic properties, reducing energy losses and improving performance in power transmission and distribution systems. As the global emphasis on energy efficiency and renewable energy sources intensifies, the need for high-quality, grain-oriented electrical steel is rising. This steel type supports the development of more efficient electrical grids and advanced power systems, driving market expansion. Investments in manufacturing technology and innovations in steel processing further contribute to the growing demand for grain-oriented electrical steel.

In terms of application, the distribution transformers segment will witness appreciable growth from 2024 to 2032. Electrical steel is crucial in the core of distribution transformers, as it enhances magnetic performance and reduces energy losses during power distribution. With the global push towards upgrading and expanding electrical grids to accommodate growing energy needs and incorporate renewable sources, the need for efficient distribution transformers is increasing. This drives demand for advanced electrical steel, which improves transformer efficiency and reliability. Investments in infrastructure and the development of new steel technologies further support the market's growth, ensuring enhanced performance in power distribution systems.

Europe electrical steel market will exhibit a notable CAGR from 2024 to 2032. European countries are investing heavily in modernizing their electrical grids and incorporating renewable energy sources, which increases the demand for high-performance electrical steel used in transformers and motors. This steel enhances energy efficiency and reduces losses in power transmission and distribution systems. Additionally, stringent environmental regulations and a push towards greener technologies further boost the market. As European industries and utilities strive to meet ambitious energy goals, the demand for advanced electrical steel continues to rise, supporting market expansion across the continent.