Electrical steel is comprised of silicon steels ranging in purity from 97% iron to more than 99% iron. It is particularly suited for applications that require low core loss and high permeability which enable transformers and motors to operate efficiently. These steels are critical materials for clean power infrastructure and electrification of transportation.
Market key trends:
One of the key trends driving the electrical steel market growth is increasing investments toward strengthening and expansion of transmission and distribution infrastructure globally. Power utilities are investing heavily in the upgradation of aging grid infrastructure and the construction of new transmission lines to meet growing power demand. According to the International Energy Agency, global investment in electricity networks is expected to reach $342 billion annually by 2030 compared to $281 billion invested annually over the past decade. This bodes well for the demand of electrical steel in transformers and motors used in power transmission and distribution networks.
The global Electrical Steel Market Share is estimated to be valued at US$ 38.16 Bn in 2023 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Strength: Electrical steel has high permeability which makes it an ideal material for motors, transformers and other applications requiring magnetic properties. It also has lower core losses compared to regular silicon steels.
Weakness: Electrical steel requires an expensive manufacturing process which increases production costs. It is also susceptible to corrosion when exposed to moisture which can reduce its magnetic properties over time.
Opportunity: Growing adoption of electric vehicles provides significant opportunities for electrical steel manufacturers due to larger demand for traction motors and converters in EVs. Rising investments in renewable energy infrastructures also drive the demand.
Threats: Volatile raw material prices and availability issues pose serious threats. Substitutes such as soft magnetic composites also pose competition threats to established players. Trade disputes can impact supply chains and exports.
The global electrical steel market is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period, due to increasing investments in renewable energy generation and electric vehicles. Electrical steel finds wide usage in transformers, motors, and generators which see rising demand from these sectors.
Asia Pacific dominates the global electrical steel market with a share of over 50% due to presence of large manufacturing bases in China and other countries. China represents the largest consuming market globally. Europe is another major regional market supported by investments in renewable energy in countries like Germany. North America is anticipated to grow at a notable pace during the forecast period.
Key players operating in the electrical steel market are 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. Expansion of production capacities and new product development are key strategies adopted by these electrical steel manufacturers.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it