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
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.
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: |
|
||
Segments covered: |
|
||
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: |
|
||
Restraints & Challenges: |
|
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
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
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:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
View All Our Clients