We have an updated report [Version - 2023] available. Kindly sign up to get the sample of the report.
all report title image
  • Published On : Oct 2022
  • Code : CMI3961
  • Industry : Advanced Materials
  • Pages : 150
  • Formats :

Electrical steel is also referred to as transformer steel or silicon steel. It has modified magnetic properties and is widely used in the manufacturing of motors, inductors, transformer, battery, and welding equipment. It is also used for lamination methods in the cores of electrical products since they can reduce the energy loss, emit a low level of carbon dioxide, and improve the efficiency of the electric motors.

Global electrical steel market was valued at US$ 33.5 Billion in 2021 in terms of revenue, exhibiting a CAGR of  6.2% during the forecast period (2022 to 2030).

Drivers

Increasing demand for electrical steel from consumer appliances such as refrigerators, air conditioners, and high power coolers is projected to foster market growth. Consumer appliances produced by using electrical steel is environmentally friendly and saves energy up to 15% to 30%. Compressor motors and relays are appliances that can be produced by using electrical steel and can be installed in cabins and rooms.

Growing demand for electric steel from the automotive industry to produce various automobile components is primarily fueling market growth. It is used to manufacture electrical power steering system motors, core material for motors, and actuators. Moreover, the use of electrical steel also improves the fuel efficiency of vehicles. Therefore, the growing demand for electrical steel from the automotive industry is projected to augment market growth.

The COVID-19 pandemic has immensely affected electrical steel market, owing to decreasing demand for electrical steel from various end-use industries such as energy and automotive industries. For instance, according to the European Automobile Manufacturers’ Association (ACEA), in the European Union (EU), the total sales of new vehicles in the first two months of 2020 were 7.4% less than the same period in 2019. The major countries in the EU, which faced a decline in demand of electrical steel in 2020 were Germany, France, Italy, and Spain.

Figure 1. Global Electrical Steel Market Value Share (%), By Region, 2021

Electrical Steel  | Coherent Market Insights

Market Restraints

The growing importance of nickel-iron alloys which are more innovative and advanced as compared to electrical steel is expected to hinder the market growth. The magnetic properties of electrical steel are insufficient for the critical requirement of efficiency and precision. Moreover, nickel-iron alloys are widely used in sensors, relays, and motor laminations in place of electrical steel. Issues associated with the production of electrical steel are expected to hamper the market growth of electrical steel. Mechanical stress and strain are developed during the production process of electrical steel which weakens the magnetic property of electrical steel. This factor is expected to hamper the market growth of electrical steel.

CMI table icon

Electrical Steel Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: US$ 33.5 Bn
Historical Data for: 2017-2020 Estimated Year: 2022
Forecast Period 2022 to 2030 CAGR: 6.2% Forecast Period: 2022-2030
Geographies covered:
  • Region: North America, Latin America, Europe, Asia Pacific, Middle East & Africa
Segments covered:
  • By Type: Grain-oriented (Hi-Permeability (HiB), Conventional GOES, Laser magnetic domain refinement (LMDR)), Non-grain oriented (Fully Processed, Semi Processed)
  • By Application: Transformer (Distribution, Transmission, Portable), Motors (1hp - 100hp, 101hp – 200hp, 201hp – 500hp, 501hp-1000hp), Above 1001hp, Inductors 
Companies covered:

NLMK, Voestalpine AG, POSCO, Nippon Steel & Sumitomo Metal Corporation, Thyssenkrupp AG, JFE Steel Corporation, ArcelorMittal, Cogent Power Limited, Aperam, Baosteel Group Corporation, AK Steel Corporation, ATI, Schneider Electric, and Nicore Electrical Manufactory Co., Ltd 

Growth Drivers:
  • Increasing demand for electrical steel from consumer appliances such as refrigerators, air conditioners, and high power coolers is projected to foster market growth.
Restraints & Challenges:
  • The growing importance of nickel-iron alloys which are more innovative and advanced solutions as compared to electrical steel is expected to hinder the market growth

Market Trends

Increasing electrical resistivity which can be achieved by increasing the concentration of the silicon and aluminum on the electrical sheet is a major trend in market. Many manufacturers of electrical steel are adopting this technology to improve the concentration of silicon and aluminum by a surface deposition method. Therefore, the growing need for improving electrical resistivity for improving the microstructural properties of the metal (Copper, etc.) is expected to augment the market growth. Rising consumption of steel products across various end-user industries is a major trend in market. Electrical Steel is widely used across various industries such as electrical, automotive, etc., for producing consumer goods.

Figure 2. Global  Electrical Steel Market Value Share (%), By Application, 2021

Electrical Steel  | Coherent Market Insights

Among applications, motors dominated the global electrical steel market in 2021 and accounted for 67.0% of market share in terms of value, followed by transformers and inductors, respectively.

Recent Developments

  • In July 2019, NLMK Group, a steel company, had signed a long-term strategic partnership agreement with LTC Group, a manufacturer of components for transformers and power generation devices. Under this agreement, NLMK Group companies in Lipetsk and Yekaterinburg are going to supply grain-oriented and non-grain-oriented electrical steel and provide technical support to LTC Group.
  • In September 2022, NLMK Group, a steel company, had reached an agreement with NLMK Belgium Holdings (NBH), the Belgium based joint venture with SOGEPA (a Belgium based investment fund owned by the Walloon region) to integrate NLMK Dansteel into NBH.
  • In July 2022, NLMK Group, a steel company, had implemented a new real-time system for air quality monitoring at NLMK Lipetsk (steel company) and Stoilensky (Mining company). The new equipment collects data for a more granular and reliable tracking of the sites’ environmental impact.

Competitive Section

Major players operating in the global electrical steel market include NLMK, Voestalpine AG, POSCO, Nippon Steel & Sumitomo Metal Corporation, Thyssenkrupp AG, JFE Steel Corporation, ArcelorMittal, Cogent Power Limited, Aperam, Baosteel Group Corporation, AK Steel Corporation, ATI, Schneider Electric, and Nicore Electrical Manufactory Co., Ltd 

Electrical steel sheets are used in the electromagnetic devices such as generators, transformer, and motors. It is also referred as silicon steel, lamination steel or transformer steel, and is mainly used in automotive industries and electrical power distribution systems.

Market Dynamics

Global electrical steel market is growing at a substantial rate, owing to rise in consumption rate of electrical steel in motors and transformers. Furthermore, increasing sales of automotive vehicles is the key underlying factor supporting market growth. This scenario is expected to provide lucrative growth to the global electrical steel market over the forecast period.

Major players in the global electrical steel market are increasing their investment on innovative product launches, research & development, and marketing & promotional activities to capitalize on emerging trends in various end-use energy, household appliances and automobile industry. For instance, in 2018, AK Steel (steelmaking company), launched electrical steel for use in high voltage and ultra-voltage power transformers, TRAN-COR X, belongs to high permeability grain oriented electrical steel (GOES) type. This scenario is expected to fuel the market growth during the forecast period.

Based on application, the transformers segment is projected to be the largest segment in the electrical steel market. Growth of this segment is mainly attributed to the high demand for electrical steel as it is used in power generation, transmission, and distribution industries. Electrical steel is used in electrical transformer cores and other electrical devices, owing to the low hysteresis loss, high permeability, and high resistance it offers. It is used to make iron cores of motors. These cores concentrate the magnetic field and make the electromagnet stronger. Electrical steel is also used in the manufacturing of cores of inductors that are used extensively with capacitors and resistors to create filters for analog circuits and in signal processing.

Key features of the study:

  • This report provides an in-depth analysis of the global electrical steel market, and provides market size (US$ Billion) and compound annual growth rate (CAGR %) for the forecast period (2022-2030), considering 2021 as the base year.
  • It elucidates potential revenue opportunity across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global electrical steel market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered as a part of this study include NLMK, Voestalpine AG, POSCO, Nippon Steel & Sumitomo Metal Corporation, Thyssenkrupp AG, JFE Steel Corporation, ArcelorMittal, Cogent Power Limited, Aperam, Baosteel Group Corporation, AK Steel Corporation, ATI, Schneider Electric, and Nicore Electrical Manufactory Co., Ltd.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology up gradation, market expansion, and marketing tactics.
  • The global electrical steel market report caters to various stakeholders in this industry including investors, suppliers, electrical steel manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global electrical steel market

Detailed Segmentation:

  • Global Electrical Steel Market, By Type:
    • Grain-oriented
      • Hi-Permeability (HiB)
      • Conventional GOES
      • Laser magnetic domain refinement (LMDR)
    • Non-grain oriented
      • Fully Processed
      • Semi Processed
  • Global Electrical Steel Market, By Application :
    • Transformer
      • Distribution
      • Transmission
      • Portable
    • Motors
      • 1hp - 100hp
      • 101hp – 200hp
      • 201hp – 500hp
      • 501hp-1000hp
      • Above 1001hp
    • Inductors
  •  Global Electrical Steel Market, By Region:
    • North America
      • By Country:
        • U.S.
        • Canada
    • Latin America
      • By Country:
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Europe
      • By Country:
        • France
        • Germany
        • Italy
        • Spain
        • U.K.
        • Nordic
        • Benelux
        • Russia
        • Poland
        • Rest of Europe
    • Asia Pacific
      • By Country:
        • China
        • India
        • Japan
        • ASEAN
        • Oceania
        • Rest of Asia Pacific
    • Middle East & Africa
      • By Country:
        • GCC
        • South Africa
        • Rest of Middle East & Africa
  • Company Profiles
    • NLMK*
      • Company Overview
      • Product Portfolio
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Voestalpine AG
    • POSCO
    • Nippon Steel & Sumitomo Metal Corporation
    • ThyssenKrupp AG
    • JFE Steel Corporation
    • ArcelorMittal
    • Cogent Power Limited
    • Aperam
    • Baosteel Group Corporation
    • AK Steel Corporation
    • ATI
    • Schneider Electric
    • Nicore Electrical Manufactory Co., Ltd

“*” marked represents similar segmentation in other categories in the respective section

Frequently Asked Questions

Global electrical steel market was valued at around US$ 33.5 Billion in 2021.
Increasing demand for electrical steel from consumer appliances such as refrigerators, air conditioners, and high power coolers is projected to foster market growth
Increasing electrical resistivity which can be achieved by increasing the concentration of the silicon and aluminum on the electrical sheet is a major trend in market. 
The growing importance of nickel-iron alloys which are more innovative and advanced solutions as compared to electrical steel is expected to hinder the market growth.
Major players operating in the market include NLMK, Voestalpine AG, POSCO, Nippon Steel & Sumitomo Metal Corporation, Thyssenkrupp AG, JFE Steel Corporation, ArcelorMittal, Cogent Power Limited, Aperam, Baosteel Group Corporation, AK Steel Corporation, ATI, Schneider Electric, and Nicore Electrical Manufactory Co., Ltd 
The market is estimated to grow at around 6.2% CAGR in the forecast period (2022-2030).

Related Reports

EXISTING CLIENTELE

Joining thousands of companies around the world committed to making the Excellent Business Solutions.

View All Our Clients
trusted clients logo