Electrical Steel Market Synopsis

The Electrical Steel Market Size Was Valued at USD 28.53 Billion in 2023, and is Projected to Reach USD 36.97 Billion by 2030, Growing at a CAGR of 4.7% from 2024-2030.

Electrical steel, also known as silicon steel or transformer steel, is a specialized type of steel that is designed to exhibit specific magnetic properties essential for electrical applications. This type of steel is manufactured with carefully controlled compositions and processing techniques to optimize its magnetic properties, such as high magnetic permeability and low core loss.

• Electrical steel is in the production of electrical transformers, motors, and generators, where its magnetic characteristics are crucial for efficient energy conversion. It is particularly valued for its ability to reduce energy losses during the conversion process, making electrical equipment more energy-efficient and cost-effective.
• The electrical steel market is driven by the growing demand for electricity worldwide, leading to increased investments in infrastructure development, renewable energy projects, and industrial automation. As countries focus on enhancing their power transmission and distribution networks, the demand for high-quality electrical steel continues to rise.
• Advancements in material science and manufacturing technologies have contributed to the development of new grades of electrical steel with improved performance characteristics, further expanding the market's potential for applications in emerging sectors such as electric vehicles and renewable energy systems.

Electrical Steel Market Trend Analysis

High Consumption of Electrical Steel in Transformers and Motors

• The surge in global demand for energy-efficient vehicles, particularly electric and hybrid cars, is a major driver propelling the growth of the electrical steel market. This demand surge is due to the widespread adoption of electrical steel in the automotive industry. Furthermore, the market is buoyed by an escalating need for energy conservation, fueling the demand for transformers within the power sector. Electrical steel's exceptional magnetic permeability renders it indispensable in scenarios requiring efficient conversion, transmission, and utilization of electrical energy.
• ThyssenKrupp's power core, a type of grain-oriented electrical steel, plays a pivotal role in distribution and power transformers. Its deployment aids in the seamless conversion and transmission of voltage. Moreover, such steel varieties are instrumental in augmenting magnetic flux and optimizing the performance of generators in renewable energy installations like wind turbines and hydroelectric plants. This multifaceted utility underscores the critical role played by electrical steel in driving forward the global energy transition.

Growth in Electric Vehicles

• The automotive industry shifts towards electrification to reduce emissions and reliance on fossil fuels, the demand for electrical steel used in EV components such as motors, transformers, and power electronics is on the rise. Electrical steel's unique magnetic properties, including high permeability and low core loss, make it essential for efficient energy conversion in EV drivetrains and charging infrastructure.
• Electrical steel is crucial in the construction of high-efficiency electric motors that power EVs. These motors require materials like grain-oriented electrical steel to minimize energy losses and maximize performance. Similarly, transformers and inductors used in EV charging stations also rely on electrical steel to ensure optimal energy transfer and conversion, contributing to the overall efficiency and sustainability of electric transportation.

Electrical Steel Market Segment Analysis:

Electrical Steel Market is Segmented on the basis of Product, Application, and End-user Industry.

By Product, Grain Oriented Electrical Steel Segment is expected to dominate the market during the forecast period

• The oriented electrical steel segment in the electrical steel market can be attributed to several key factors. One of the primary reasons is the increasing demand for efficient energy transmission and distribution systems globally. Oriented electrical steel, characterized by its superior magnetic properties and low core loss, is extensively used in transformers, motors, and generators.
• In the renewable energy sector, where the focus is on enhancing energy efficiency, oriented electrical steel plays a crucial role in optimizing the performance of electrical equipment. Its ability to minimize energy loss during power transmission makes it a preferred choice in modern electrical infrastructure projects.
• The oriented electrical steel segment is continuous technological advancements and industry innovation. Manufacturers are constantly developing new grades and formulations of oriented electrical steel to meet the evolving requirements of the market. These innovations lead to improved magnetic properties, reduced core losses, and enhanced overall performance of electrical components.

By Application, Transformer segment held the largest share of 45.4% in 2023

• The transformer segment in the electrical steel market stems from its critical role in power distribution infrastructure. Transformers are indispensable components in electrical systems, responsible for voltage regulation and efficient energy transmission. Electrical steel, particularly oriented and non-oriented grades, forms the core of transformers due to its high magnetic permeability and low core loss characteristics. For instance, in power substations, large power transformers rely on high-quality electrical steel cores to minimize energy losses and ensure stable voltage transformation. This reliability and efficiency make transformers a cornerstone of the electrical grid, driving the demand for electrical steel in this segment.
• The transformer segment's largest share is supported by its diverse applications across various industries. Apart from the power sector, transformers are extensively used in industrial, commercial, and residential settings for voltage conversion and distribution. For example, distribution transformers in residential areas rely on electrical steel cores to step down high voltage from the grid to safer levels for household use. Similarly, industrial transformers in manufacturing facilities play a crucial role in powering machinery and equipment.

Electrical Steel Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast period

• North America's substantial contribution to the global revenue in the Electrical Steel Market reflects the region's growing emphasis on power production and electric vehicle (EV) manufacturing. As the region shifts towards sustainable energy solutions and electric mobility, there has been a notable surge in demand for charging stations and electric motors. This trend is exemplified by companies like Foxconn, which announced its entry into electric vehicle production in North America. The unveiling of multiple electric car models and the promise to enhance partnerships with key players like NVIDIA and ZF Group highlight the region's strategic focus on advancing electric mobility infrastructure.
• With The rise of EVs and substantial investments in the sector, companies are increasingly prioritizing electric motors, a crucial component where electrical steel plays a vital role. For instance, Exro Technologies Inc.'s initiative to establish a manufacturing facility in Calgary, Canada, for producing CEC actuators indicates the region's commitment to developing advanced electric motor technologies. These actuators, meeting European automobile standards, are essential for efficient and high-performance electric motors used in EVs. The acquisition of customers such as HB4 Group and Vicinity Motor underscores North America's dominance in driving innovations in electric motor production, thereby influencing the demand for electrical steel in the region's burgeoning EV market.

Active Key Players in the Electrical Steel Market

• Allegheny Technologies, Inc. (United States)
• United States Steel Corporation (United States)
• Cleveland-Cliffs Corporation (United States)
• Carpenter Technology Corporation (United States)
• Nucor Corporation (United States)
• Reliance Steel & Aluminum Co. (United States)
• Steel Dynamics, Inc. (United States)
• ArcelorMittal SA (Luxembourg)
• Aperam SA (Luxembourg)
• Voestalpine Stahl GmbH (Austria)
• Novolipetsk Steel (Russia)
• Phoenix Mecano AG (Switzerland)
• Steel Authority of India Limited (India)
• ThyssenKrupp AG (Germany)
• Baosteel Group (China)
• Cogent Power (United Kingdom)
• JFE Steel Corporation (Japan)
• Nicore Electrical Manufactory Co., LTD. (China)
• Nippon Steel & Sumitomo Metal Corporation (Japan)
• POSCO (South Korea)
• Leicong Industrial Co., Ltd. (China), and Other Active Players.

Key Industry Developments in the Electrical Steel Market:

• In May 2022, JSW Steel Limited and JFE Steel Corporation signed an MOU for feasibility study purposes. This memorandum of understanding will establish a grain-oriented electrical steel sheet sales and manufacturing joint venture in India.
• In November 2022, Nippon Steel announced plans to invest about a billion yen each for the expansion of its electrical sheet steel plants in Japan.It is expected to be completed by 2023, after which production capacity is projected to rise by approximately 40%.

1. INTRODUCTION
   1. RESEARCH OBJECTIVES
   2. RESEARCH METHODOLOGY
   3. RESEARCH PROCESS
   4. SCOPE AND COVERAGE
      1. Market Definition
      2. Key Questions Answered
   5. MARKET SEGMENTATION
2. EXECUTIVE SUMMARY
3. MARKET OVERVIEW
4. GROWTH OPPORTUNITIES BY SEGMENT
5. MARKET LANDSCAPE
   1. PORTER’S FIVE FORCES ANALYSIS
      1. Bargaining Power Of Supplier
      2. Threat Of New Entrants
      3. Threat Of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power Among Buyers
   2. INDUSTRY VALUE CHAIN ANALYSIS
   3. MARKET DYNAMICS
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   4. MARKET TREND ANALYSIS
   5. REGULATORY LANDSCAPE
   6. PESTLE ANALYSIS
   7. PRICE TREND ANALYSIS
   8. PATENT ANALYSIS
   9. TECHNOLOGY EVALUATION
   10. MARKET IMPACT OF THE RUSSIA-UKRAINE WAR
       1. Geopolitical Market Disruptions
       2. Supply Chain Disruptions
       3. Instability in Emerging Markets
   11. ECOSYSTEM
6. ELECTRICAL STEEL MARKET BY  PRODUCT (2017-2030)
   1. ELECTRICAL STEEL MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3.  GRAIN ORIENTED ELECTRICAL STEEL
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2030F)
      3. Historic And Forecasted Market Size in Volume (2017-2030F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4.  NON-GRAIN ORIENTED ELECTRICAL STEEL
7. ELECTRICAL STEEL MARKET BY APPLICATION (2017-2030)
   1. ELECTRICAL STEEL MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. TRANSFORMER
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2030F)
      3. Historic And Forecasted Market Size in Volume (2017-2030F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. MOTORS
   5. INDUCTORS
8. ELECTRICAL STEEL MARKET BY END-USER INDUSTRY (2017-2030)
   1. ELECTRICAL STEEL MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. AUTOMOTIVE
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2030F)
      3. Historic And Forecasted Market Size in Volume (2017-2030F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. ENERGY
   5. MANUFACTURING
   6. HOUSEHOLD APPLIANCES
9. COMPANY PROFILES AND COMPETITIVE ANALYSIS
   1. COMPETITIVE LANDSCAPE
      1. Competitive Benchmarking
      2. ELECTRICAL STEEL Market Share By Manufacturer (2023)
      3. Industry BCG Matrix
      4. Heat Map Analysis
      5. Mergers & Acquisitions
   2. ALLEGHENY TECHNOLOGIES, INC.
      1. Company Overview
      2. Key Executives
      3. Company Snapshot
      4. Role of the Company in the Market
      5. Sustainability and Social Responsibility
      6. Operating Business Segments
      7. Product Portfolio
      8. Business Performance (Production Volume, Sales Volume, Sales Margin, Production Capacity, Capacity Utilization Rate)
      9. Key Strategic Moves And Recent Developments
      10. SWOT Analysis
   3. UNITED STATES STEEL CORPORATION
   4. CLEVELAND-CLIFFS CORPORATION
   5. CARPENTER TECHNOLOGY CORPORATION
   6. NUCOR CORPORATION
   7. RELIANCE STEEL & ALUMINUM CO.
   8. STEEL DYNAMICS, INC.
   9. ARCELORMITTAL SA
   10. APERAM SA
   11. VOESTALPINE STAHL GMBH
   12. NOVOLIPETSK STEEL
   13. PHOENIX MECANO AG
   14. STEEL AUTHORITY OF INDIA LIMITED
   15. THYSSENKRUPP AG
   16. BAOSTEEL GROUP
   17. COGENT POWER
   18. JFE STEEL CORPORATION
   19. NICORE ELECTRICAL MANUFACTORY CO., LTD.
   20. NIPPON STEEL & SUMITOMO METAL CORPORATION
   21. POSCO
   22. LEICONG INDUSTRIAL CO., LTD.
10. GLOBAL ELECTRICAL STEEL MARKET BY REGION
    1. OVERVIEW
    2. NORTH AMERICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By  Product
       4. Historic And Forecasted Market Size By Application
       5. Historic And Forecasted Market Size By End-user Industry
       6. Historic And Forecasted Market Size By Country
          1. USA
          2. Canada
          3. Mexico
    3. EASTERN EUROPE
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Russia
          2. Bulgaria
          3. The Czech Republic
          4. Hungary
          5. Poland
          6. Romania
          7. Rest Of Eastern Europe
    4. WESTERN EUROPE
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Germany
          2. United Kingdom
          3. France
          4. The Netherlands
          5. Italy
          6. Spain
          7. Rest Of Western Europe
    5. ASIA PACIFIC
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. China
          2. India
          3. Japan
          4. South Korea
          5. Malaysia
          6. Thailand
          7. Vietnam
          8. The Philippines
          9. Australia
          10. New-Zealand
          11. Rest Of APAC
    6. MIDDLE EAST & AFRICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Turkey
          2. Bahrain
          3. Kuwait
          4. Saudi Arabia
          5. Qatar
          6. UAE
          7. Israel
          8. South Africa
    7. SOUTH AMERICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Brazil
          2. Argentina
          3. Rest of South America
11. INVESTMENT ANALYSIS
12. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies