Electrical Steel Market Size
The electrical steel market is expected to grow at a compound annual growth rate (CAGR) of 6.5% between 2024 and 2032, from its 2023 valuation of USD 38.18 billion. One of the main drivers of market expansion is the growing use of smart grids. Smart grids are being used more frequently as nations throughout the world update their electrical infrastructure in an effort to increase grid sustainability, dependability, and efficiency.To get key market trends
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Smart grids use advanced digital communications and control technologies to optimize energy distribution, enable real-time monitoring, and more efficiently integrate renewable energy sources. Electrical steel is crucial in manufacturing key smart grid components, including transformers, sensors, and meters. These components require high-quality electrical steel for optimal performance and efficiency. As smart grids become more common to solve energy challenges and improve grid sustainability, the demand for electrical steel will increase significantly, stimulating market expansion and innovation in the coming years.
| Report Attribute | Details |
|---|---|
| Base Year | 2023 |
| Electrical Steel Market Size in 2023 | USD 38.18 Billion |
| Forecast Period | 2024 to 2032 |
| Forecast Period 2024 to 2032 CAGR | 6.5% |
| 2032 Value Projection | USD 67.97 Billion |
| Historical Data for | 2021 - 2023 |
| No. of Pages | 335 |
| Tables, Charts & Figures | 458 |
| Segments covered | By Product, By Application, End User |
| Growth Drivers |
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| Pitfalls & Challenges |
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In addition, technological advances in electrical steel production are another important growth factor.
Ongoing innovations in production technology and material structure result in the creation of high-performance electrical steels with enhanced magnetic properties and reduced energy losses. Such developments allow manufacturers to make electrical steels that fulfill the growing performance demands of various applications, such as transformers, motors, and generators. Advanced manufacturing methods like enhanced annealing processes, grain orientation control, and alloy optimization play a part in making better magnetic and mechanical properties electrical steels. Along with that, R&D efforts on nanotechnology and materials science will further develop electrical steel making, opening the door to next-generation materials.
You work in a factory that produces steel for electrical devices. One of your greatest challenges is that the prices of the raw materials you require, such as iron ore and alloys, are constantly fluctuating. This is due to instances where there's excess demand for these items compared to what's available or instances such as wars or fluctuations in currency rates influencing the prices. When the prices of these raw materials fluctuate upwards and downwards, it disrupts your production strategy and erodes your margins. It also makes it difficult to know how much you'll have to pay and make in the future. And if the prices get too high, it can drive your electrical steel products up in price and less attractive to customers. It's all uncertainty that makes it difficult for everyone in the industry, from the manufacturers of the steel to the consumers who purchase it to use in appliances. That is why minimizing and mitigating these risks takes top priority for all stakeholders in the electrical steel industry.
Electrical Steel Market Trends
Hello! Do you know how we're all trying to conserve energy and live greener these days? Well, guess what? There's this one type of steel known as "electrical steel" that's really helping out! Think about your car, your home, even those windmills that you see producing clean energy. They all depend on electrical machines that utilize this special steel. It's like a superpower that makes these machines more efficient, conserving energy and minimizing toxic emissions. That's why most industries are embracing electrical steel. From automakers who want to make cleaner cars to manufacturers who make greener appliances, they're all finding out that this steel is the key to saving money and the planet. While we all continue to search for methods to utilize energy more intelligently, electrical steel will certainly play an increasingly dominant role in the years to come.
In addition, the enforcement of strict environmental regulations has become another important market trend, having a strong influence on electrical steel demand. Governments globally are mandating rules, seeking to curb carbon emissions and optimize energy efficiency across sectors.
Following these regulations, industries are forced to invest in energy-saving equipment and technologies to satisfy environmental demands and minimize their carbon footprint. Electrical steel, which is famed for its capacity to improve the efficiency of electric equipment and systems, has gained more popularity as industries look to satisfy regulatory demands while maximizing operating efficiency. This increased demand for energy-efficient solutions, which is motivated by regulatory needs, is fueling the expansion of the market as sectors in various industries focus on sustainability and environmental responsibility.
Electrical Steel Market Analysis
Learn more about the key segments shaping this market
When it comes to electric steel, there are two main typesgrain-oriented and non-grain-oriented. In 2023, non-grain electric steel was the king of the market, with a huge chunk of the pie—$24.4 billion to be exact. And it's expected to keep growing by 6.4% each year until 2032. Why is non-grain electric steel so popular? It's a versatile stuff, used in all sorts of electrical gadgets. Unlike grain-oriented steel, non-grain has magnetic powers that are spread out evenly, making it perfect for things like motors and generators that spin around and around. With electric vehicles (EVs) becoming the new hotness, non-grain electric steel is getting a big boost. That's because it's a key ingredient in making EV motors work their magic.
Additionally, NGO electric steel is extensively used in household appliances, power tools, and industrial machinery, further broadening its market scope. The ongoing advancements in manufacturing processes are improving the quality and performance of NGO electric steel, making it a preferred choice for high-efficiency applications. As industries continue to prioritize energy efficiency and performance, the demand for NGO electric steel is expected to rise significantly.
Learn more about the key segments shaping this market
Based on application, the market is categorized into large power transformers, distribution transformers, small transformers, power generators, audio transformers, and others. Large transformers accounted for USD 6.2 billion in 2023 and is projected to grow at 7% CAGR through 2032. Large power transformers, essential for high-voltage power transmission, rely on high-quality electric steel to minimize energy losses and ensure efficient performance.
Hang on tight, because the energy world is buzzing with excitement! Green energy sources like wind and solar are on the rise, and they need special transformers to get their power into our homes and businesses. These transformers are like the bridges that connect the energy highways to our devices. But that's not all. As cities grow and industries thrive, we need to make sure our power grids can handle the extra juice. That means upgrading the old stuff and adding new wires. And guess what? That also means more transformers and a bigger demand for the steel that makes them possible. So buckle up, because the demand for electric steel is going to keep soaring as we get greener, smarter, and more connected!
By end user, the energy segment emerges as the fastest-growing category within the electric steel market, fueled by several pivotal growth drivers. As the world transitions towards a more sustainable energy landscape, there's an increasing need for efficient energy storage solutions to address the intermittency of renewable energy sources like wind and solar power. Energy storage systems serve as vital components in managing the variability of renewable energy generation, ensuring grid stability, and meeting fluctuating energy demands. Electric steel plays a crucial role in the manufacturing of key components within these energy storage systems, including transformers and inverters.
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Imagine a vital part of our energy system called transformers. They're like the bouncers of the electrical world, controlling the flow of voltage, making sure it's right for different parts of the system. And there's another key playerinverters. They're the magicians who transform electricity from batteries (the DC type) into the AC type that lights up our homes and businesses. These transformers and inverters need a special ingredient to work their besthigh-quality electric steel. It's like the superhero of magnetic materials, with its amazing ability to store magnetic energy and minimize energy loss. This makes for efficient and reliable energy storage systems. With the rise of clean energy sources like solar and wind, and the increasing use of energy storage solutions like batteries, the demand for electric steel in this field is skyrocketing. Governments are encouraging it, and companies are embracing it to make our energy systems stronger and more reliable. So, get ready to see electric steel playing an even bigger role in powering our future!
In addition, electrical steel supports the development of smart grid technologies, which is another emerging segment in the electrical steel market. Smart grids use advanced digital communication and control technologies to improve the efficiency, reliability, and sustainability of electricity supply. Electrical steel is used to make components such as sensors, relays, and smart meters that are integral to the operation and monitoring of smart grid networks.
These components enable real-time monitoring of power consumption, facilitate dynamic pricing models, and improve fault and outage management, ultimately optimizing network performance and increasing energy efficiency. As the global drive to modernize and digitize the grid accelerates due to increasing energy demand, aging infrastructure, and the need for grid resilience due to climate change, the demand for electrical steel in the smart grid segment is set to grow notably.
Looking for region specific data?
North America dominated the electrical steel market in 2023. It generated a revenue of USD 9.3 billion in 2023 and will grow at 6.2% CAGR during the forecast period. In North America, the market is experiencing robust growth, driven by several factors unique to the region. The United States and Canada are at the forefront of renewable energy adoption, with significant investments in wind, solar, and hydroelectric power projects.
The world is going green! As we shift towards renewable energy to protect our planet, we're seeing a huge spike in the demand for electric steel. This special type of steel is crucial for making super-efficient transformers and generators, which are the powerhouses behind renewable energy systems. In North America, we're not just embracing renewable energy, but we're also building like crazy! We're modernizing our electrical grids, expanding cities, and getting our automotive industry ready for the electric vehicle revolution. All these things need electric steel. But that's not all! Governments are stepping up to protect the environment by demanding better and more efficient electrical materials. And electric steel is one of the best materials out there for this purpose. With its top-notch technology, thriving industries, and commitment to going green, North America is set to be a leader in the global electric steel market.
Hey there! Let's talk about the electrical steel market in North America. Guess who's shining like a star? It's the USA! Why is the USA such a big deal in this industry? Well, they're all over renewable energy. They've put a ton of money into wind, solar, and hydroelectric power projects. As we shift towards these clean energy sources, we need more electric steel to make those energy-efficient transformers and generators that keep the grid running smoothly. Plus, North America is building a lot of new stuff these days, like updating electrical grids and expanding cities. That means we need more electric steel to make sure the power flows where it's supposed to. And let's not forget the car industry. With all these electric vehicles hitting the roads, there's a huge demand for high-efficiency motors. Guess what? Electric steel is like the secret ingredient in those motors. Oh, and the government is getting tough on energy efficiency and pollution. That's driving people to use better electrical materials, like top-notch electric steel. So, with all this going on, North America, and especially the USA, is going to keep being a major player in the electrical steel market for a long time to come. They've got the tech, the industry, and the drive to stay on top.
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Electrical Steel Market Share
The steel industry is a bustling hub of innovation, driven by the likes of POSCO, Tata Steel, and Arcelor Mittal. These heavyweights are constantly pushing the envelope to stay ahead of the curve. ArcelorMittal and Nippon Steel Corporation are tech-savvy giants, always on the lookout for ways to improve their products. They've got their eyes set on efficiency and quality, and they're not afraid to team up with others to make it happen. POSCO and Baosteel are all about??, pouring money into creating better and better steel grades. Voestalpine, on the other hand, is focused on making steel the green way. Tata Steel and JFE Steel aren't content to just sit at home. They're expanding their reach around the world through smart acquisitions and partnerships. ThyssenKrupp and AK Steel (now part of Cleveland-Cliffs Inc.) are masters of distribution. They've got their networks set up to reach even the most far-flung corners of the market. Last but not least, Aperam is all about optimizing its processes and expanding its product line. They've got their sights set on meeting the growing demand for high-quality electrical steels.
Electrical Steel Market Companies
Major players operating in the electrical steel industry include
- AK Steel (a subsidiary of Cleveland-Cliffs Inc.)
- Aperam
- ArcelorMittal
- Baosteel Group Corporation
- JFE Steel Corporation
- Nippon Steel Corporation
- POSCO
- Tata Steel
- ThyssenKrupp
- Voestalpine AG
Electrical Steel Industry News
- In April 2024, Tata Steel teamed up with National Grid Plc's Electricity System Operator to spearhead the development of power infrastructure crucial for its green steel initiative at the Port Talbot site. Under this partnership, the British grid operator is slated to construct a new electrical system to assist Tata Steel's 3.2-million-ton electric arc furnace, set to be functional by the conclusion of 2027.
- In December 2023, Nippon Steel Corporation, Japan’s largest steelmaker, and United States Steel Corporation, a leading U.S. steel producer, announced a definitive agreement for NSC to acquire U.S. Steel in an all-cash transaction. This acquisition will enhance NSC’s manufacturing and technology capabilities and expand its geographic reach, allowing it to better serve its customers and society at large.
The electrical steel market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue and volume (USD Million) (Kilo Tons) from 2021 to 2032, for the following segments
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Market, By Application
- Grain oriented electrical steel
- By application
- Large power transformers
- Distribution transformers
- Small transformers
- Power generators
- Audio transformers
- Others
- By end use
- Energy
- Automotive
- Manufacturing
- Household appliances
- By application
- Non-grain oriented electrical steel
- By product
- Fully processed
- Semi-processed
- By application
- Power generators
- Motors
- Ballasts
- Rotating machines
- Small transformers
- Audio transformers
- Others
- By end use
- Energy
- Automotive
- Manufacturing
- Household appliances
- By product
The above information is provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- MEA
- Saudi Arabia
- UAE
- South Africa
- Rest of MEA
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