Electrical Steel Global Market Report 2024

Electrical steel is a ferromagnetic material composed of iron with varying silicon content ranging from 1% to 6.5%. This soft magnetic material possesses enhanced electrical properties and finds wide application in small relays, solenoids, electric motors, generators, and various electromagnetic devices.

The primary types of electrical steel include grain-oriented and non-grain-oriented. Grain-oriented electrical steel is utilized in efficient transformers and large, high-performance generators. It consists of 3% silicon steel processed under controlled conditions for use in transformers and generators. Electrical steel is integral to diverse industries such as energy, automotive, household appliances, and manufacturing, serving applications in transformers, generators, motors, and other electromechanical devices.

The electrical steel market research report is one of a series of new reports from The Business Research Company that provides electrical steel market statistics, including the electrical steel industry global market size, regional shares, competitors with electrical steel market share, detailed electrical steel market segments, market trends and opportunities, and any further data you may need to thrive in the electrical steel industry. This electrical steel market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The electrical steel market size has grown strongly in recent years. It will grow from $34.12 billion in 2023 to $36.23 billion in 2024 at a compound annual growth rate (CAGR) of 6.2%. The historical growth in the electrical steel market can be attributed to several factors, including strong economic growth in emerging markets, global population growth, government incentives to end-user industries, an increase in power consumption, and the growing use of household appliances.

The electrical steel market size is expected to see strong growth in the next few years. It will grow to $46.65 billion in 2028 at a compound annual growth rate (CAGR) of 6.5%. Projected growth is driven by global population growth, urbanization, increased investment in renewable power generation, rising electricity demand, and growing electric vehicle sales. Key trends include a focus on sustainable CO2-reduced electrical steel, innovation in product development, investment in environmentally friendly manufacturing, strategic partnerships, and the adoption of advanced technologies such as argon oxygen decarburization converters.

The burgeoning demand for electric and hybrid vehicles stands as a pivotal driver propelling the expansion of the electrical steel market. Recognized for its high flux density and low iron loss properties, electrical steel finds widespread application in electric motors, enabling the realization of elevated motor efficiency. The International Energy Agency (IEA), an intergovernmental organization, reported in its annual Global Electric Vehicle Outlook 2022 that sales of electric cars, encompassing both fully electric and plug-in hybrids, witnessed a remarkable doubling in 2021, reaching an unprecedented 6.6 million units. Notably, China played a prominent role, with electric car sales nearly tripling to 3.3 million units in the same year, constituting approximately half of the global total. This surge in demand for electric and hybrid vehicles is poised to be a significant contributor to the growth trajectory of the electric vehicle market.

The electrical steel market is anticipated to experience substantial growth, driven by the rapid influx of investments in renewable power generation capacities. The robust expansion of renewable energy sources creates a consequential demand for electric transmission and distribution (T&D) equipment, particularly transformers. Noteworthy investments are being made by numerous power generation companies, notably in the USA and European countries, to harness the potential of renewable energy. The World Energy Investment Report 2021, published by the IEA, reveals that an estimated 70% of global energy investment in 2021 was directed towards renewable energy for new power generation capacity. This marked shift away from traditional fossil fuel production is expected to continue, with renewables forecasted to be the fastest-growing energy source. Additionally, the Government of India has set an ambitious target of installing 175 GW of renewable energy capacity by 2022, spanning thermal, hydro, nuclear, wind, and biomass power projects. The increasing investments in renewable power generation are poised to be a driving force for the electrical steel market in the forecast period.

A prominent trend gaining traction in the electric steel market is the increasing emphasis on the development of sustainable products. Market players are strategically directing their efforts towards the manufacturing of environmentally friendly electric steel with reduced greenhouse gas emissions. In a noteworthy example from 2022, ThyssenKrupp AG, a Germany-based steel manufacturer, introduced electric steel with a remarkable 50% reduction in CO2 emissions, specifically designed for application in power and distribution transformers. This low-emission electric steel not only exhibits minimal core losses but also achieves high current transport efficiencies. ThyssenKrupp's commitment to sustainability is exemplified by its supply of this eco-friendly electric steel for the production of transformers utilized in new digital E.ON medium-voltage stations in Germany.

Leading companies operating in the electrical steel market are actively engaged in the development of technologically advanced products, exemplified by innovations such as Spatially Optimized Diffusion Alloying (SODA) manufacturing technology. This cutting-edge technology seamlessly integrates into the existing infrastructure of most steel mills, offering versatility in application. SODA technology facilitates the enhancement of silicon and aluminum content in low-carbon steel or cold-rolled motor lamination steel. Its adaptability is highlighted by the fact that almost any gauge of steel can serve as the starting material for products manufactured using SODA technology, with the option to decrease the gauge post-alloying. In a recent development from October 2022, Liberty Steel UK, a prominent UK-based steel manufacturer, introduced a novel electric steelmaking method utilizing ecoke, a sustainable raw material capable of reducing steel's carbon footprint by up to 30%. This innovative process not only results in notable reductions in CO2 emissions but also offers substantial cost savings, contributing to the broader decarbonization efforts within the steel industry.

In November 2021, Worthington Industries, Inc., a US-based industrial metals manufacturer, completed the acquisition of Tempel Steel Company for $255 million. This strategic move positions Worthington Industries as a key player in the fast-growing electrical steel market, encompassing transformers, machine motors, and electric vehicle (EV) motors. Tempel Steel Company, the acquired entity, is a US-based steel company specializing in precision motors and transformer laminations for the electrical steel market.

Major companies operating in the electrical steel market report are ArcelorMittal S.A., POSCO, Baoshan Iron & Steel Co. Ltd., JFE Holdings, Inc., ThyssenKrupp AG, Cleveland-Cliffs Corporation, Steel Authority of India Limited, Bekaert SA, The Heico Companies, Ningbo BST Metal Products Co., Ltd., Nanjing Hengjie Industrial Co., Ltd., Suzuki Garphyttan Ab, SWR Group, ANCORA SCM, Valteknica Incom SRL, Vandor Industry SRL, Beloretsk Metallurgical Plant AO, Arnold Magnetic Technologies, Johnson Bros. Roll Forming Co, A-1 Alloys, AAA Metals Co, Aperam, Companhia Siderurgica Nacional, Siderca, Advanced Energy Industries, Inc., Sauereisen Inc., Mahindra Intertrade, Alsard Trading Agencies Co, Jebel Saka Company Ltd., Fadhil Trade Agencies Company, Azady Enterprises, Harsh Electrical Stampings, Iron Products Industries Ltd., Sevan Construction Nigeria Limited

Asia-Pacific was the largest region in the electrical steel market in 2023. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the electrical steel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the electrical steel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The electrical steel market consists of sales of silicon steel, transformer steel, or lamination steel. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Electrical Steel Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on electrical steel market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for electrical steel? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The electrical steel market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Type: Grain-Oriented; Non-Grain-Oriented
• 2) By Industry: Energy; Automotive; Household Appliances; Manufacturing; Other Industries
• 3) By Application: Transformers; Generators; Motors; Other Applications
• Companies Mentioned: ArcelorMittal S.A.; POSCO; Baoshan Iron & Steel Co. Ltd; JFE Holdings, Inc.; ThyssenKrupp AG
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: PDF, Word and Excel Data Dashboard.