The report “Electrical Steel Market by Type (Non-grain-oriented, and Grain-oriented), Application (Transformer, Motors, Inductors), End-user Industry (Automotive, Energy, Manufacturing, Household Appliances), and Region – Global Forecast to 2028”, is approximated to be USD 40.6 billion in 2023, and it is projected to reach USD 60.7 billion by 2028, at a CAGR of 8.4%.
Some of the prominent key players are:
· ArcelorMittal (Luxembourg)
· POSCO (South Korea)
· Voestalpine AG (Austria)
· China Baowu Steel Group Corporation (China)
· Nippon Steel Corporation (Japan)
· United States Steel Corporation (United States)
· Steel Authority of India (India)
· TATA Steel Limited (India)
Opportunities: Upcoming regulations and government support
The upcoming regulations and government support in emerging economies such as India, China, and Brazil present a significant opportunity for the electrical steel market players. As the automotive industry in these countries continues to grow rapidly, the implementation of less stringent rules and regulations provides a favorable environment for market players to expand their operations. Furthermore, governments across the globe are emphasizing the reduction of carbon emissions from vehicles and supporting the use of electrical steel in various applications. For instance, the US government's recent measures to support the growth and competitiveness of the American manufacturing industry include investments in the production of cleaner materials such as steel, aluminum, and concrete, which can be used to build sustainable infrastructure. This creates a market for sustainable infrastructure that can drive the demand for electrical steel products, especially for electric vehicles, wind turbines, and solar farms. Therefore, the governmental support and upcoming regulations present a significant opportunity for the electrical steel market to grow and expand its operations.
By End-use industries, energy accounted for the 2nd largest share in 2022
The use of electrical steel is widespread in the power sector, playing a vital role in the generation, transmission, and distribution of electricity. Additionally, it is also a crucial component in renewable energy technologies. The production of transformers, which are essential in the transmission and distribution of electricity to end-users, heavily relies on electrical steel as a key input. Grain-oriented electrical steel is especially important for the manufacturing of high-performance generators and energy-efficient transformers. Meanwhile, non-grain-oriented steel is critical in the production of smaller transformers. Given the ongoing growth in the public infrastructure industry, it is expected that the power sector will expand, driving demand for electrical steel. As a result, the electrical steel market is poised for growth.
North America accounted for the largest share of the electrical steel market in 2022
The US and Canada are the most developed countries in North America, followed by Mexico. The automotive, energy & power, and consumer appliances industries are seeing upward trends in North America, leading to the construction of additional industrial facilities in the region, thus creating demand for electrical steel. Rising demand from the energy generation & transmission industries is driving the market in the region. Some of the main electrical steel companies operating in this region include United States Steel Corporation (US), Cleveland-Cliffs Inc. (US), and Silicon Steel (US). The automotive and locomotive industry in North America has seen a major shift in recent years with the development and implementation of electric vehicles and battery-powered trains. As electric cars become increasingly popular, demand for electrical steel is set to increase further, creating opportunities for the North American market.
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