Electrical Steel Market Key Insights:

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The Electrical Steel Market size was valued at USD 40.0 Billion in 2023 and is projected to reach USD 84.04 Billion by 2032, growing at a compound annual growth rate (CAGR) of 8.6% from 2024 to 2032.

Electrical steel, commonly referred to as E-steel, lamination steel, silicon electrical steel, silicon steel, relay steel, or transformer steel, is a specialized type of steel that is purposefully designed for utilization in the cores of electromagnetic devices. This type of steel is highly in demand due to its ability to reduce power loss, making it an essential component in motors, generators, and transformers.The unique properties of electrical steel are derived from its ferromagnetic properties, which allow it to magnify the magnetic effects of current-carrying coils. This makes it an ideal material for use in the cores of electromagnetic devices, where it can help to increase efficiency and reduce energy consumption.

The electrical steel market is a rapidly growing industry that is expected to continue its upward trajectory in the coming years. With the increasing demand for energy-efficient products and the growing adoption of renewable energy sources, the demand for electrical steel is expected to rise significantly.Furthermore, the development of new technologies and the increasing investments in research and development are expected to drive the growth of the electrical steel market. The market is also expected to benefit from the increasing demand for electric vehicles and the growing trend towards electrification.

Market Dynamics

Drivers

• Increasing adoption of electrical steel in transformers and motors

• Rising demand for electric vehicles

• Growing adoption of electrical steel in the automotive industry

• Increasing need for energy-efficient electrical equipment

Electrical steel is generally designed for use in electrical applications. It has a high magnetic permeability, which makes it ideal for use in transformers and motors. As the demand for these products increases, so too does the demand for electrical steel.In addition to this, the demand for electric vehicles is also on the rise. Electric vehicles use electrical steel in their motors and generators. As more people switch to electric vehicles, the demand for electrical steel will continue to grow.As the world becomes more electrified, the demand for electrical steel will only continue to increase.

Restrain

• Fluctuation in the raw material prices

Opportunities

• Increasing government support with favorable regulations

Challenges

• Increasing environmental challenges due to the carbon gas emission

The steel industry is a significant contributor to pollution and carbon dioxide emissions, which have a detrimental impact on the environment and contribute to climate change. As a result, the electrical steel market faces a significant challenge in addressing these issues.

Impact of COVID-19

The COVID-19 pandemic has disrupted the supply chain, production, and demand for electrical steel, leading to a shift in the market dynamics.The pandemic has caused a decline in the demand for electrical steel due to the slowdown in the manufacturing sector. The lockdowns and restrictions on movement have led to a decrease in the production of electrical equipment, resulting in reduced demand for electrical steel. Additionally, the closure of borders and restrictions on international trade has disrupted the supply chain, leading to a shortage of raw materials and finished products.The pandemic has also led to a shift in the market dynamics, with some companies experiencing a decline in revenue, while others have seen an increase. Companies that produce electrical equipment for the healthcare sector, such as ventilators and medical imaging equipment, have experienced an increase in demand for their products, leading to a surge in the demand for electrical steel.

Impact of Russia-Ukraine War:

The Russia and Ukraine war has had a significant impact on the global electrical steel market. The Russia-Ukraine war has disrupted the supply chain of electrical steel, causing a shortage in the market. Ukraine is one of the largest producers of electrical steel in the world, and the conflict has severely affected its production capacity. The sanctions imposed on Russia by the international community have also impacted the market, as Russia is a major exporter of electrical steel.The shortage of electrical steel has led to an increase in prices, making it difficult for manufacturers to maintain their profit margins. This has resulted in a slowdown in the production of electrical equipment, which has further affected the demand for electrical steel.

Impact of Recession:

The recession has had a significant impact on the electrical steel market. The demand for electrical steel has decreased due to the economic downturn, resulting in a decline in the market.The recession has caused a decrease in the production of electrical equipment, which has led to a decrease in the demand for electrical steel. This has resulted in a decrease in the price of electrical steel, which has affected the profitability of companies that produce and sell it.

Key Market segmentation

By Type:

• Grain Oriented Electrical Steel

• Non-Grain Oriented Electrical Steel

By Application:

• Transformers

• Motors

• Inductors

• Others

Regional Analysis

In 2022, the Asia-Pacific region dominated the electrical steel market and is expected to continue its growth trajectory with a significant CAGR during the forecast period. The rapid expansion of manufacturing sectors in this region is the primary factor driving this growth. With leading players in the production sector such as China, Indonesia, South Korea, and India, the market for electrical steel is set to soar.

Meanwhile, North America is projected to experience the highest CAGR during the forecast period of 2024-2031. This growth can be attributed to the region's strong economy, the availability of raw materials, and increasing investment in the EV industry. As the demand for electrical steel continues to rise, North America is poised to become a major player in the market.

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REGIONAL COVERAGE:

• North America

  • USA

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

  • Italy

  • Spain

  • The Netherlands

  • Rest of Europe

• Asia-Pacific

  • Japan

  • South Korea

  • China

  • India

  • Australia

  • Rest of Asia-Pacific

• The Middle East & Africa

  • Israel

  • UAE

  • South Africa

  • Rest of the Middle East & Africa

• Latin America

  • Brazil

  • Argentina

  • Rest of Latin America

Key Players

The major players are ArcelorMittal, Cleveland-Cliffs Corporation, Nippon Steel Corporation, Baosteel Group Hu, Voestalpine AG, JFE Holdings, Inc,Tata Steel, POSCO, Slovenian Steel Group, ThyssenKrupp AG and Other Players