Electrical Steel Market is segmented By Product Type (Grain Oriented Electrical Steel, Non-Grain Oriented Electrical Steel), By Application (Inductors, Motors, Transformers), By Thickness (0.23 mm, 0.27 mm, 0.30 mm, 0.35 mm, 0.5 mm, 0.65 mm, Others), By Core Losses (Less Than 0.9 w/kg, 90 w/kg to 0.99 w/kg, 1.00 w/kg to 1.29 w/kg, 1.30 w/kg to 1.39 w/kg and Above 1.39 w/kg), By Flux Density (Less Than 1.65 Tesla, 1.65 Tesla to 1.69 Tesla, 1.69 Tesla to 1.73 Tesla, 1.73 Tesla to 1.76 Tesla and Above 1.76 Tesla), By End User (Automotive, Manufacturing, Energy, Household Appliance, Construction, Fabrication) and By Region (North America, Europe, APAC, Latin America, Middle East & Africa)

Electrical Steel Market shall reach a value of $87.6 Billion in 2033, growing with a CAGR of 7.5% during the forecast period of 2023 to 2033.

The electrical steel market encompasses the global sector dedicated to manufacturing and delivering specialized steel materials tailored for application in electrical apparatus and power generation machinery. Electrical steel, also recognized as silicon steel or transformer steel, is meticulously engineered to exhibit characteristics of low electrical resistance and magnetic qualities, rendering it exceptionally suited for use in transformers, motors, generators, and assorted electrical devices. This market serves diverse domains, including energy generation, transmission, and distribution. Key drivers for its expansion encompass increasing demands for energy-efficient electrical equipment, the surge in renewable energy sources, and the proliferation of industrial automation. It stands as a pivotal component within the broader sphere of the electrical and electronics industry.

The burgeoning expansion of renewable energy sources, encompassing wind, solar, and hydroelectric power, plays a pivotal role in propelling the electrical steel market forward. This relentless shift toward cleaner and sustainable energy solutions has generated a soaring requirement for electrical steel. Renewable energy technologies heavily lean on electrical steel components, particularly within generators and transformers. The distinctive attributes of electrical steel, such as its low core loss and heightened magnetic permeability, stand as vital factors in optimizing the efficiency and functionality of these critical elements within renewable energy systems. Wind turbines, for instance, employ electrical steel extensively in their generators to adeptly convert wind energy into electricity. Similarly, solar inverters, tasked with the conversion of direct current (DC) from solar panels into alternating current (AC) for grid integration, necessitate electrical steel to minimize energy dissipation. In hydroelectric power installations, electrical steel finds its application in transformers responsible for voltage regulation, ensuring seamless power transmission. With the global transition toward renewable energy sources accelerating, the demand for electrical steel within these indispensable components is poised for sustained growth. This positions electrical steel as an integral cornerstone of the green energy revolution, underpinning the ongoing expansion of the electrical steel market.

However, high production costs are a significant restraint on the growth of the electrical steel market. The complex manufacturing processes required for electrical steel, including precision annealing and specialized coatings, result in elevated production expenses. These high costs are often passed on to consumers, rendering electrical steel less competitive, particularly in price-sensitive applications. As a result, industries and manufacturers may seek more cost-effective alternatives, hindering the widespread adoption of electrical steel. Additionally, high production costs can impede the market growth by limiting the accessibility of advanced electrical steel materials to a broader range of applications. This constraint becomes more pronounced in regions or sectors where budget constraints and cost-efficiency are paramount. Overcoming this challenge necessitates ongoing efforts to optimize production techniques, reduce material wastage, and explore innovative cost-saving measures to make electrical steel more economically viable and attractive to a wider array of end-users, ultimately driving market growth.

Impact of COVID-19

The COVID-19 pandemic had a mixed impact on the electrical steel market. Initially, disruptions in supply chains and manufacturing led to production delays and supply shortages, affecting the market negatively. However, as governments worldwide initiated economic recovery plans that included infrastructure development and investments in renewable energy, the demand for electrical steel rebounded. The need for energy-efficient transformers and electrical equipment in healthcare infrastructure and remote work solutions also contributed to market resilience. As the global economy continues to recover, the electrical steel market is expected to grow, driven by the ongoing expansion of renewable energy and infrastructure projects.

According to the type, the non-grain-oriented segment has held 69.8% revenue share in 2022. The non-grain-oriented (NGO) segment holds a major share in the electrical steel market due to its versatility and widespread applications. NGO electrical steel is ideal for motors, generators, and small transformers where directional magnetic properties are less critical. Its isotropic properties make it suitable for various electrical devices, from small appliances to electric vehicles, contributing to its broader demand. Moreover, the automotive industrys shift towards electric vehicles and the growing use of NGO steel in energy-efficient motors and generators have further propelled its dominance in the market, making it a preferred choice for manufacturers across diverse sectors.

Asia-Pacific has held largest revenue share 42% in 2022. Asia-Pacific commands a substantial share in the electrical steel market for various compelling reasons. The regions dynamic industrialization, rapid urban expansion, and extensive infrastructure development efforts have fostered a significant appetite for electrical steel, notably in transformers, motors, and power generation machinery. Moreover, Asia-Pacific boasts a robust manufacturing landscape, encompassing electrical appliances and automotive components, where electrical steel finds indispensable utility. The escalating embrace of renewable energy technologies in countries like China and India further amplifies the demand for electrical steel. Collectively, the regions economic prosperity and burgeoning energy sector solidify its preeminent position within the global electrical steel market.

Recent Strategic Developments

• In May of 2023, JFE Steel unveiled plans to expand its initial capacity for electric steel sheets and initiate a second-phase expansion at its Kurashiki steel plant within the West Works facility. This ambitious expansion endeavor will incorporate cutting-edge technologies and advanced steel product development, with a strong focus on reducing carbon dioxide emissions. The ultimate goal is to contribute significantly to global sustainability efforts.
• In April 2023, Posco and Honda forged a strategic partnership aimed at accelerating their collective journey towards carbon neutrality. This collaboration leverages the expertise of both companies to propel their sustainability initiatives forward. Additionally, the partnership seeks to explore further opportunities for collaboration in the realms of environmental and electric technology.
• In July 2022, JFE Steel Corporation successfully acquired EcoLeaf, a move that bolsters its portfolio with tinplate products, JFE Universal Brite, and tin-free steel, all under the SuMPO EPD program in Japan. This acquisition promises to enhance the transparency of JFEs product environmental attributes through the implementation of data visualization tools facilitated by EcoLeafs technology.

Years considered for this report
• Historical Years: 2021 - 2022
• Base Year: 2022
• Forecast Period: 2023-2033

Electrical Steel Research Report Analysis Highlights
• Historical data available (as per request)
• Estimation/ projections/ forecast for revenue and unit sales (2022 - 2033)
• Data breakdown for application Industries (2022 - 2033)
• Integration and collaboration analysis of companies
• Capacity analysis with application sector breakdown
• Business trend and expansion analysis
• Import and export analysis
• Competition analysis/market share
• Supply chain analysis
• Client list and case studies
• Market entry strategies adopted by emerging companies

Electrical Steel Segments
Product Type (Revenue, USD Million, 2022 - 2033)
• Grain Oriented Electrical Steel
• Non-Grain Oriented Electrical Steel
o Fully Processed
o Semi-Processed

Application (Revenue, USD Million, 2022 - 2033)
• Inductors
• Motors
o 1 HP – 100 HP
o 101 HP – 200 HP
o 201 HP – 500 HP
o 501 HP – 1000 HP
o Above 1000 HP
• Transformers
o Transmission
o Portable
o Distribution

Thickness (Revenue, USD Million, 2022 - 2033)
• 0.23 mm
• 0.27 mm
• 0.30 mm
• 0.35 mm
• 0.5 mm
• 0.65 mm
• Others

Core Losses (Revenue, USD Million, 2022 - 2033)
• Less Than 0.9 w/kg
• 90 w/kg to 0.99 w/kg
• w/kg to 1.29 w/kg
• 1.30 w/kg to 1.39 w/kg
• Above 1.39 w/kg

Flux Density (Revenue, USD Million, 2022 - 2033)
• Less Than 1.65 Tesla
• 1.65 Tesla to 1.69 Tesla
• 1.69 Tesla to 1.73 Tesla
• 1.73 Tesla to 1.76 Tesla
• Above 1.76 Tesla

End User (Revenue, USD Million, 2022 - 2033)
• Automotive
• Manufacturing
• Energy
• Household Appliance
• Construction
• Fabrication

By Region (Cities) (Revenue, USD Million, 2022 - 2033)
 North America
• United States
• Canada
• Mexico
 Europe
• France
• Germany
• Italy
• Spain
• United Kingdom
• Russia
• Rest of Europe
 APAC
• China
• Japan
• India
• Philippines
• Malaysia, Australia
• Austria
• South Korea
• Rest of APAC
 Latin America
 Middle East & Africa

Electrical Steel Companies
• Benxi Steel Group Co., Ltd (China)
• CSC Steel Sdn. Bhd. (Malaysia)
• Tata Steel (India)
• Nucor Corporation (U.S.)
• NLMK (Russia)
• ArcelorMittal S.A. (Luxembourg)
• Shougang Group (China)
• thyssenkrupp Steel (Germany)
• Baosteel Group Corporation (China)
• POSCO (South Korea)
• NIPPON STEEL CORPORATION (Japan)
• Voestalpine Group (Austria)
• Yieh Corporation (Taiwan)
• Aperam S.A. (Luxembourg)

Available Versions of Tradings Cards Market Report:
US Electrical Steel Research Report
Europe Electrical Steel Research Report
Middle East Electrical Steel Research Report
APAC Electrical Steel Research Report
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