Electrical Steel Market by Type, Form, Application, End-Use Industry

List of Tables

[189 Pages Report] The Electrical Steel Market size was estimated at USD 51.76 billion in 2023 and expected to reach USD 55.23 billion in 2024, at a CAGR 6.80% to reach USD 82.05 billion by 2030.

Electrical steel is a specialized form of steel tailored to produce specific magnetic properties. It has a low carbon content and contains varying levels of silicon, typically ranging from 0.5% to 5.0%, which significantly increases the electrical resistivity of the steel. This specialized material is designed to minimize energy loss by generating eddy currents. Electrical steel is predominantly used to manufacture transformers, inductors, electric motors, generators, and other applications where efficient energy conversion is essential. The shift towards electric vehicles (EVs) and hybrid electric vehicles (HEVs) and the expansion of renewable energy installations, requiring transformers and various generators, further boost the need for electrical steel. However, the high costs of producing high-grade electrical steel due to complex processing and materials may impede market growth. Nevertheless, improvements in material science and manufacturing processes enable higher efficiency and performance of electrical steel, creating lucrative prospects for the electrical steel market.

KEY MARKET STATISTICS
Base Year [2023]	USD 51.76 billion
Estimated Year [2024]	USD 55.23 billion
Forecast Year [2030]	USD 82.05 billion
CAGR (%)	6.80%

Type: Burgeoning usage of non-grain-oriented electrical steel as a cost-effective choice for a vast array of applications

Grain-oriented electrical steel is silicon steel designed to provide superior magnetic properties in the rolling direction. This type of steel undergoes a complex manufacturing process that aligns the crystal lattice of the silicon steel so that the magnetic flux density is enhanced in the direction in which the steel has been rolled. Fully processed electrical steel refers to grain or non-grain-oriented steel undergoing a complete thermal treatment during production. This annealing process improves the steel's magnetic properties by promoting uniform grain structure and relieving internal stresses. Semi-processed electrical steel is provided to the end user in an annealed but not fully decarburized state and requires additional processing to optimize its magnetic properties. This is generally less expensive than fully processed steel and is often chosen when the material cost is a critical factor, and some degree of compromise on the magnetic performance can be tolerated. Non-grain-oriented electrical steel is a silicon steel designed to have identical magnetic properties in all directions of the sheet. Unlike grain-oriented steel, the crystalline structure is not directionally aligned, allowing for consistent magnetic properties regardless of the direction of current flow. NGOES is widely used in rotating machinery, including motors and generators, as well as inductors and transformers, where uniform magnetic performance is required across varying directions.

Form: Growing preference for electrical steel sheets cater to precision and custom-shaped requirements

Electrical steel coils are one of the primary forms used in manufacturing transformers, motors, and inductors, offering ease of manufacturing for large-scale production as they can be wound into the desired shape and then cut to specification. This form is preferred when uniform quality and consistency are needed over long product lengths. Coils are also selected for their efficiency in automated processes, reducing labor costs. Electrical steel plates are used for heavy-duty applications that require larger cross-sectional areas, such as power generation equipment. Plates are typically chosen for applications where structural integrity and high magnetic permeability are essential. Electrical steel sheets are highly preferred for their versatility and are extensively used in smaller transformers, motors, generators, and other electrical applications. Electrical steel sheets can be cut and stamped to specific sizes and shapes, making them ideal for custom and precision applications. Electrical steel strips are commonly used to manufacture smaller transformers and are favored for high-precision and customization applications. The strips can be wound or stacked to form the cores of electrical components where space is at a premium. Wire rod electrical steel is specially designed for motors and generators in electromagnetic wire coils. Its applications are primarily found in intricate and particular industries, including automotive, aerospace, and defense.

Application: Proliferating utilization of electric steel in transformers

Electrical steel, a passive component used to store energy in a magnetic domain when electric current flows through a coil, is crucial in the design of inductors. The core material enhances the coil's inductance by providing a low resistance path for the magnetic flux, improving efficiency and reducing core losses. Electric motors use electrical steel in construction, especially within the rotor and the stator sections. The material's properties increase the magnetic flux density, enabling the motor to produce more torque using less electrical energy. High-quality electrical steel is essential for reducing losses due to eddy currents and hysteresis, thereby improving the performance and efficiency of motors in applications ranging from household appliances to industrial machinery. Transformers are the devices that transfer electrical energy between circuits through electromagnetic induction, rely heavily on electrical steel for their core construction. Its excellent magnetic properties minimize energy losses during the transfer process. Current transformers are designed to measure or monitor the electrical currents in power lines, and electrical steel is fundamental to their cores. The steel provides a path for the magnetic field generated by the current-carrying conductor, allowing for the precise measurement of current without directly interrupting the high-power circuit. Distribution transformers, which lower electrical power voltage for safe distribution and consumption, incorporate electrical steel in their core design. This material helps maintain the transformer's core integrity and optimizes the magnetic flux distribution within the core, which is crucial for the efficient distribution of electricity with minimal losses. Power transformers, used in power generation stations and substations to step up or down voltage levels, depend on electrical steel for their core construction. The superior magnetic properties of this material are critical for transporting high amounts of power over long distances with low energy losses.

End-Use Industry: Evolving usage of electrical steel in automobiles for efficient motor design and performance

The automotive industry heavily relies on electrical steel for the construction of electric and hybrid vehicles. The material's magnetic properties are essential for efficient motor design and performance. High-grade non-grain-oriented (NGO) steel is typically preferred for rotating machines, including traction motors found in electric vehicles (EVs). On the other hand, grain-oriented (GO) electrical steel is used in energy-efficient transformers and inductors within automotive electrical systems. Construction integrates electrical steel in developing efficient power transformers, ensuring the reduction of electrical losses. Mainly, GO steel is preferred due to its excellent magnetic properties in the direction of grain alignment, which is suitable for transformers and large generators used in commercial constructions. In the energy sector, electrical steel is critical for the performance of transformers, generators, and large-scale energy storage systems. GO electrical steel is predominantly used to increase the efficiency of distribution systems and power transmission. Wind turbine generators and solar power inverters also utilize electrical steel to minimize energy loss during power generation. Fabrication industries operate electrical steel in machining and creating various components for industrial use. This includes the production of high-fidelity cores, stators, and armatures that demand specific magnetic properties. Household appliances, including refrigerators, air conditioners, and washing machines, use electrical steel in motors and compressors. NGO steel is often preferable due to its magnetic isotropy, which allows efficient function in various directions of the alternating current field present in these applications. The manufacturing industry consists of a broad range of applications for electrical steel, including heavy machinery, industrial motors, and automation systems. Both types of electrical steel can be found depending on the specific machinery or equipment being produced, where the efficiency and reliability of electromagnetic applications are crucial.

Regional Insights

Asia Pacific region's demand for electrical steel is growing due to rapid urbanization, expansion of its power sector, and investments in renewable energy infrastructure. Recent policies focusing on energy efficiency in electrical applications also contribute to the evolving consumer needs and purchasing behaviors in the market. In addition, countries in this APAC region are renowned for their high-technology industries, and the demand for high-performance grades characterizes its electrical steel market. Companies focus on innovative products for competitive differentiation, reflected in their consistent patent filings that often lead to cutting-edge products in the electrical steel market. In the Americas, the electrical steel market is influenced by the transformation of energy systems, including the shift towards renewable energies and the modernization of the grid. Heavy R&D investments in energy and automotive sectors correlate with the sophisticated needs of US consumers, who often require high-grade electrical steel for efficiency and performance. The EU's strict environmental standards and the push for energy-efficient products have influenced the electrical steel industry in the EMEA region. High-quality, non-grain-oriented (NGO) steels are in demand for reducing energy loss in high-efficiency motors. Investment in green technologies and sustainable products, often backed by government incentives, is a considerable trend in the region. On the other hand, investments in infrastructure and the diversification of oil-based economies into power and utility sectors are driving the growth in the electrical steel market in the Middle East. Moreover, Africa's electrical steel market is emerging, with the continent's vast natural resources and expanding power infrastructure leading to gradual growth. There is increased interest in establishing local industries to reduce import dependency, leading to potential investment opportunities in electrical steel production and processing.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Electrical Steel Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Electrical Steel Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Electrical Steel Market, highlighting leading vendors and their innovative profiles. These include Ampco-Pittsburgh Corporation, Aperam SA, ArcelorMittal S.A., Arnold Magnetic Technologies Corporation, China Steel Corporation, Cleveland-Cliffs Inc., Foshan Shunge Steel Trading Co., Ltd., JFE Steel Corporation, JSW Steel Ltd., Keiko Shoji Co., Ltd., Laser Technologies, Inc., Leicong Industrial Co., Ltd., Mitsui & Co., Ltd., NikoMag, Nippon Steel Corporation, NLMK Group, Posco Holdings Inc., Shandong Haorui Metal Material Co.Ltd, Shanghai Walmay Metal Group, Steel Authority of India Limited, Suzhou Yogiant Holdings Co., Ltd., TATA Steel Limited, ThyssenKrupp AG, Voestalpine AG, and Wuxi Zhongxin Special Steel Co.,Ltd..

Market Segmentation & Coverage

This research report categorizes the Electrical Steel Market to forecast the revenues and analyze trends in each of the following sub-markets:

Type
- Grain-Oriented Steel
  - Fully Processed
  - Semi-Processed

Non Grain-Oriented Steel

Form
- Coil
- Plate
- Sheet
- Strips
- Wire Rod

Application
- Inductors
- Motors
- Transformers
  - Current Transformers
  - Distribution Transformers
  - Power Transformers
End-Use Industry
- Automobiles
- Construction
- Energy
- Fabrication
- Household Appliances
- Manufacturing

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Electrical Steel Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Electrical Steel Market?

3. What are the technology trends and regulatory frameworks in the Electrical Steel Market?

4. What is the market share of the leading vendors in the Electrical Steel Market?

5. Which modes and strategic moves are suitable for entering the Electrical Steel Market?

Product Code: MRR-436BDB26AF59

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Rising Demand for Electric Steel From Automotive Sector
  - 5.1.1.2. Consumer's Significant Adoption of Household Appliances
- 5.1.2. Restraints
  - 5.1.2.1. Fluctuations in Raw Material Prices
- 5.1.3. Opportunities
  - 5.1.3.1. Increasing Investment in Electrical Steel
  - 5.1.3.2. Growing Development in Energy Infrastructure Worldwide
- 5.1.4. Challenges
  - 5.1.4.1. Issues Related to Safety and Design Limitations of Electrical Steel
5.2. Market Segmentation Analysis
- 5.2.1. Type: Burgeoning usage of non-grain-oriented electrical steel as a cost-effective choice for a vast array of applications
- 5.2.2. Form: Growing preference for electrical steel sheets cater to precision and custom-shaped requirements
- 5.2.3. Application: Proliferating utilization of electric steel in transformers
- 5.2.4. End-Use Industry: Evolving usage of electrical steel in automobiles for efficient motor design and performance
5.3. Market Trend Analysis
5.4. Cumulative Impact of Russia-Ukraine Conflict
5.5. Cumulative Impact of High Inflation
5.6. Porter's Five Forces Analysis
- 5.6.1. Threat of New Entrants
- 5.6.2. Threat of Substitutes
- 5.6.3. Bargaining Power of Customers
- 5.6.4. Bargaining Power of Suppliers
- 5.6.5. Industry Rivalry
5.7. Value Chain & Critical Path Analysis
5.8. Regulatory Framework Analysis
5.9. Client Customization

6. Electrical Steel Market, by Type

6.1. Introduction
6.2. Grain-Oriented Steel
6.3. Non Grain-Oriented Steel

7. Electrical Steel Market, by Form

7.1. Introduction
7.2. Coil
7.3. Plate
7.4. Sheet
7.5. Strips
7.6. Wire Rod

8. Electrical Steel Market, by Application

8.1. Introduction
8.2. Inductors
8.3. Motors
8.4. Transformers

9. Electrical Steel Market, by End-Use Industry

9.1. Introduction
9.2. Automobiles
9.3. Construction
9.4. Energy
9.5. Fabrication
9.6. Household Appliances
9.7. Manufacturing

10. Americas Electrical Steel Market

10.1. Introduction
10.2. Argentina
10.3. Brazil
10.4. Canada
10.5. Mexico
10.6. United States

11. Asia-Pacific Electrical Steel Market

11.1. Introduction
11.2. Australia
11.3. China
11.4. India
11.5. Indonesia
11.6. Japan
11.7. Malaysia
11.8. Philippines
11.9. Singapore
11.10. South Korea
11.11. Taiwan
11.12. Thailand
11.13. Vietnam

12. Europe, Middle East & Africa Electrical Steel Market

12.1. Introduction
12.2. Denmark
12.3. Egypt
12.4. Finland
12.5. France
12.6. Germany
12.7. Israel
12.8. Italy
12.9. Netherlands
12.10. Nigeria
12.11. Norway
12.12. Poland
12.13. Qatar
12.14. Russia
12.15. Saudi Arabia
12.16. South Africa
12.17. Spain
12.18. Sweden
12.19. Switzerland
12.20. Turkey
12.21. United Arab Emirates
12.22. United Kingdom

13. Competitive Landscape

13.1. Market Share Analysis, 2023
13.2. FPNV Positioning Matrix, 2023
13.3. Competitive Scenario Analysis
- 13.3.1. Nippon Steel Corporation (NSC) to Acquire U. S. Steel, Moving Forward Together as the 'Best Steelmaker with World-Leading Capabilities'
- 13.3.2. Posco to Invest USD 850 Million in Electrical Steel Plant For EVs
- 13.3.3. JSW Steel, Japan's JFE Steel Ink Agreement to Manufacture Electrical Steel In India

14. Competitive Portfolio

14.1. Key Company Profiles
14.2. Key Product Portfolio