Electrical Steel Market Size & Share, By Product (Grain Oriented Electrical Steel, Non-grain Oriented Electrical Steel), Application (Transformer, Motor, Inductor), Region (North America, Europe), Regional Forecast, Industry Players, Growth Statistics Report 2024-2032

Market Outlook:

Electrical Steel Market exceeded USD 29.1 Billion in 2023 and is predicted to cross USD 41.54 Billion by end of the year 2032, observing around 4.8% CAGR between 2024 and 2032.

• Base Year Value (2023): USD 29.1 Billion
• CAGR (2024-2032): 4.8%
• Forecast Year Value (2032): USD 41.54 Billion
• Historical Data Period: 2019-2023
• Largest Region: North America
• Forecast Period: 2024-2032

Market Dynamics:

Growth Drivers & Opportunity:

One major growth driver for the Electrical Steel Market is the increasing demand for energy-efficient electrical equipment in various industries. As the focus on sustainability and reducing energy consumption continues to grow, there is a rising need for materials like electrical steel that can help improve the efficiency of electrical systems. This trend is expected to drive the demand for electrical steel in the coming years.

Another growth driver for the Electrical Steel Market is the growing demand for electric vehicles (EVs) and renewable energy sources. With the increasing emphasis on reducing carbon emissions and transitioning to a cleaner energy future, the adoption of EVs and renewable energy technologies is expected to rise significantly. Electrical steel is a key component in motors and generators used in EVs and renewable energy systems, which is likely to boost the demand for the material.

In addition, the rapid urbanization and industrialization in emerging economies is expected to fuel the growth of the Electrical Steel Market. As these countries continue to develop their infrastructure and expand their industrial base, there will be a growing need for electrical steel for various applications such as transformers, motors, and generators. This expanding market potential in emerging economies presents a significant growth opportunity for players in the electrical steel industry.

Report Scope

Report Coverage	Details
Segments Covered	Product, Application
Regions Covered	• North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	ArcelorMittal, Cleveland-Cliffs, Nippon Steel, Tata Steel, POSCO, thyssenkrupp AG

Industry Restraints:

One major restraint for the Electrical Steel Market is the volatility in raw material prices. Electrical steel is primarily made from iron ore and other alloying elements, the prices of which can fluctuate significantly due to factors such as supply chain disruptions, geopolitical tensions, and economic uncertainties. These fluctuations in raw material costs can impact the profitability of electrical steel manufacturers and create challenges for price stability in the market.

Another restraint for the Electrical Steel Market is the increasing competition from alternative materials. With advancements in material science and engineering, there are now alternative materials that can offer similar or even better performance than electrical steel in certain applications. This increased competition from substitutes poses a threat to the demand for electrical steel, especially in industries where cost and performance are critical factors. In order to maintain their market position, electrical steel manufacturers need to continue innovating and offering value-added solutions to meet the evolving needs of customers.

Regional Forecast:

North America:

The electrical steel market in North America is primarily driven by the increasing demand for energy-efficient electrical equipment and infrastructure in the region. The United States and Canada are major contributors to the growth of the market in North America. The U.S. is witnessing a significant surge in the adoption of electric vehicles, which is expected to boost the demand for electrical steel in the coming years. Additionally, the ongoing modernization of the power grid in the region is also expected to drive the growth of the electrical steel market.

Asia Pacific:

In Asia Pacific, countries like China, Japan, and South Korea are experiencing rapid industrialization and urbanization, leading to a growing demand for electrical steel. China is the largest consumer of electrical steel in the region, thanks to the robust growth of the automotive and construction industries. Japan is known for its technological advancements in the electrical equipment sector, which is driving the demand for high-quality electrical steel. South Korea, on the other hand, is witnessing a rise in the production of electrical appliances, which is further fueling the demand for electrical steel in the region.

Europe:

In Europe, countries like the United Kingdom, Germany, and France are key players in the electrical steel market. The United Kingdom is investing heavily in renewable energy projects, which is driving the demand for electrical steel in the region. Germany is known for its strong manufacturing base and technological expertise, making it a prominent market for electrical steel. France, on the other hand, is witnessing a steady growth in the automotive sector, which is boosting the demand for electrical steel in the country

Segmentation Analysis:

In terms of segmentation, the global electrical steel market is analyzed on the basis of Product, Application.

Grain Oriented Electrical Steel Segment Analysis:

The grain oriented electrical steel segment holds a significant share in the electrical steel market. This type of electrical steel is specifically designed for use in transformers where magnetic properties are crucial. The demand for grain oriented electrical steel is driven by the increasing need for energy-efficient transformers in various industries. Additionally, the rising emphasis on renewable energy sources such as wind and solar power generation has contributed to the growth of this segment. The increasing investments in the development of smart grids and electric vehicles are expected to further boost the demand for grain oriented electrical steel in the coming years.

Non-Grain Oriented Electrical Steel Segment Analysis:

The non-grain oriented electrical steel segment also holds a considerable share in the electrical steel market. This type of electrical steel is used in applications such as motors, inductors, and small transformers. The demand for non-grain oriented electrical steel is driven by the growing automotive industry, where it is used in the production of electric and hybrid vehicles. The rise in demand for consumer electronics and industrial machinery has also contributed to the growth of this segment. The increasing focus on energy efficiency and sustainability is expected to further drive the demand for non-grain oriented electrical steel in various applications.

Transformer Application Analysis:

The transformer application segment is a key driving factor for the electrical steel market. Transformers are essential components in the transmission and distribution of electricity, and they rely on high-quality electrical steel for efficient performance. The increasing investment in power infrastructure development and the expansion of smart grid systems are driving the demand for transformers, thereby boosting the market for electrical steel. The adoption of renewable energy sources and the need for energy-efficient solutions are also driving the growth of this segment.

Motor Application Analysis:

The motor application segment is another significant contributor to the electrical steel market. Motors are used in various industries for driving machinery and equipment, and they require high-quality electrical steel for optimal performance. The increasing adoption of electric vehicles, industrial automation, and consumer electronics is driving the demand for motors, thereby fueling the demand for electrical steel. The emphasis on energy efficiency and the implementation of strict regulations regarding emissions are also driving the growth of this segment.

Inductor Application Analysis:

The inductor application segment is also experiencing growth in the electrical steel market. Inductors are passive electronic components that store energy in the form of a magnetic field, and they are used in a wide range of applications including power supplies, filters, and amplifiers. The increasing demand for inductors in various industries such as automotive, telecommunications, and industrial automation is driving the demand for electrical steel. The development of advanced inductor technologies for high-frequency applications and the increasing adoption of wireless charging solutions are further fueling the growth of this segment.

Competitive Landscape:

The competitive landscape in the Electrical Steel Market is characterized by intense rivalry among key players striving to gain a competitive edge in the industry. Companies in the market are constantly seeking to enhance their product offerings, expand their geographical presence, and invest in research and development activities to stay ahead of the competition. Factors such as technological advancements, product innovation, efficient supply chain management, and strategic collaborations play a crucial role in determining the market position of companies operating in the Electrical Steel Market.

Top Market Players in the Electrical Steel Market:

1. Nippon Steel Corporation

2. AK Steel Holding Corporation

3. POSCO

4. voestalpine AG

5. Baosteel Group Corporation

6. Thyssenkrupp AG

7. JFE Steel Corporation

8. ArcelorMittal

9. Tata Steel Limited

10. Cogent Power Inc.