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Electrical Steel Market To Reach USD 46.74 Billion By Year 2032

Electrical Steel Market Size Was Valued at USD 29.87 Billion in 2023, and is Projected to Reach USD 46.74 Billion by 2032, Growing at a CAGR of 5.1 % From 2024-2032.

08-07-2024
Vishal Panchmukh
Chemical and Materials
Pristine Intelligence LLP

According to a new report published by Pristine Intelligence, titled, “Electrical Steel Market by Application and End-User: Global Opportunity Analysis and Industry Forecast, 2024–2032,” the Electrical Steel Market Size Was Valued at USD 29.87 Billion in 2023, and is Projected to Reach USD 46.74 Billion by 2032, Growing at a CAGR of 5.1 % From 2024-2032.

Electrical steel, also known as silicon steel or transformer steel, is a specialized material crucial for electromagnetic devices such as motors, generators, and transformers. It is predominantly composed of iron with silicon content typically ranging from 1% to 6.5%. The addition of silicon enhances electrical resistivity, improves permeability, and reduces hysteresis loss, making it highly suitable for applications in electrical power distribution and automotive industries.

The development of electrical steels arose from the necessity to minimize heat dissipation in electrical devices, thereby enhancing energy efficiency. Initially chosen for cost-effectiveness, iron's impurities posed challenges, leading to the adoption of silicon-enriched compositions. Commercial electrical steels usually contain around 3.25% silicon, striking a balance between improved magnetic properties and practical manufacturability. While higher silicon content up to 6.5% optimizes magnetic characteristics, it necessitates careful thermomechanical processing due to increased brittleness. Ongoing refinement ensures that electrical steel meets stringent demands for energy-efficient performance in modern industrial applications.

According to the global Electrical Steel market analysis, the market is divided by The Electrical Steel Market is segmented into Type, Application, End-User and region. By Type, the market is categorized into Non-grain-oriented, Grain-oriented. By Application, the market is categorized into Transformer, Motors, Inductors. By End-User, the market is categorized into Automotive, Energy, Manufacturing, Household Appliances. By geography, it includes North America, Europe, Asia-Pacific, and LAMEA markets. Further, the report also covers the strategies adopted by key market players to sustain a competitive environment and increase their market share.

The demand for electrical steel is surging globally, driven by increasing electricity needs and advancements in renewable energy. Essential for transformers and generators due to its magnetic properties and low core loss, electrical steel plays a crucial role in efficient power conversion, particularly in wind and solar energy projects. Developing countries like China and India are significantly investing in upgrading their power infrastructures, presenting substantial opportunities for electrical steel producers. Innovations in alloy development and production techniques are further enhancing the performance and sustainability of electrical steel, catering to the demands of future power systems and smart grids. The market's growth is also bolstered by the expanding electric vehicle sector, where electrical steel is vital for motors and charging infrastructure, positioning the industry for continued innovation and expansion.

Renewable energy initiatives, particularly in wind and solar power, are driving robust growth in the electrical steel market. As global efforts intensify to reduce carbon footprints, there is a heightened demand for electrical steel to enhance energy transmission efficiency and support sustainable energy goals. This demand extends to transformers, generators, and transmission lines in renewable energy projects worldwide. Concurrently, the proliferation of electric vehicles is adding to the market's dynamism, requiring electrical steel for EV motors and charging stations. These trends underscore a promising outlook for the electrical steel market, encouraging manufacturers to ramp up production capabilities, improve product quality, and capitalize on emerging opportunities across global markets.

Global Electrical Steel Market, Segmentation

The Electrical Steel market is segmented based on Electrical Steel Market Segmented on the basis of Type, Application, End-users and region.

Application:

The Application segment is further classified into recyclable, reusable, and degradable. Among these, the Transformers sub-segment accounted for the highest market share in 2023. The widespread use of recyclable materials such as plastic, glass, metal, and paper has boosted the growth of this market. Electrical steel is crucial in transformers and motors due to its excellent magnetic properties, minimizing energy loss and maximizing efficiency. It's also vital in inductors for circuit filters and signal processing. As global electricity demand rises, electrical steel plays a pivotal role in efficient power transmission. Its ongoing importance in advancing magnetic performance for modern electrical devices is clear as technology advances.

End-Users:

The End-User segment is further classified into the food & beverage industry, pharmaceuticals and healthcare, personal care, and others. Among these, the Manufacturing sub-segment is anticipated to show the fastest growth by 2032. The electrical steel market is pivotal in manufacturing, crucial for transformers, electric motors, and generators due to its magnetic properties. Global infrastructure growth and urbanization drive demand for electrical infrastructure like power networks and renewable energy systems, boosting transformer and device needs. Advanced manufacturing techniques, like continuous casting and improved annealing, enhance electrical steel quality, magnetic permeability, and energy efficiency, meeting industry demands. The automotive industry's shift to electric vehicles further fuels market growth, prompting increased production capacity, particularly in leading EV markets such as Europe, North America, and Asia-Pacific.

Region:

The Electrical Steel market in Asia-Pacific is projected to show the fastest growth by 2032. The Asia-Pacific (APAC) region leads the global Electrical Steel Market due to rapid industrialization, urbanization, and infrastructure development in countries like China, India, Japan, and South Korea. These nations, known for robust manufacturing sectors and growing energy demands, drive significant demand for electrical steel used in transformers and motors. Japan and South Korea contribute with advanced electrical steel products for high-performance applications in electronics and automotive sectors, reflecting APAC's pivotal role in shaping global electrical steel demand and innovation.

Some of The Leading/Active Market Players Are-

  • ArcelorMittal (Luxembourg)
  • POSCO (South Korea)
  • Voestalpine AG (Austria)
  • China Baowu Steel Group (China)
  • Nippon Steel Corporation (Japan)
  • United States Steel Corporation (United States)
  • Steel Authority Of India (India)
  • TATA Steel Limited (India)
  • Thyssenkrupp AG (Germany)
  • JFE Steel Corporation (Japan) and Other Active Players

Key Industry Developments

  • In April 2024, S. Steel's acquisition by Nippon Steel was approved by its stockholders. Nippon Steel is optimistic that this acquisition will safeguard and enhance U.S. Steel, benefiting stakeholders such as customers, employees, union workers, suppliers, communities, stockholders, and the American steel industry overall.
  • In February 2024, JSW Steel and JFE Steel announced a joint venture in India, investing 55 billion rupees ($663 million) to establish a Karnataka-based plant. Production is set to begin in fiscal year 2026/2027, aimed at expanding capacity to meet India's growing demand for grain steel, essential in applications such as transformer manufacturing.

Key Findings of the Study 

  • Manufacturing segment held the largest share of 42.45% in 2023 of the total Electrical Steel market.   
  • The APAC region is expected to continue to lead the market followed by North America during the forecast period.
  • Electrical Steel Market Size Was Valued at USD 29.87 Billion in 2023, and is Projected to Reach USD 46.74 Billion by 2032, Growing at a CAGR of 5.1 % From 2024-2032.
Pristine Intelligence LLP

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