The Electrical Steel market is steadily growing, supported by its critical role in energy-efficient technologies. Widely used in transformers, motors, and generators, electrical steel enhances the performance of electrical equipment by minimizing energy loss. As global efforts toward reducing carbon emissions intensify, and the adoption of electric vehicles and renewable energy solutions accelerates, the demand for electrical steel is expected to rise. Continued investments in smart grids and energy-efficient infrastructure are also contributing to the market’s expansion.
The Electrical Steel market is experiencing a dynamic shift driven by the growing demand for high-efficiency transformers and electric motors, particularly in renewable energy and electric vehicle (EV) applications. With the push toward electrification and energy conservation, electrical steel, known for its magnetic properties, is essential for reducing energy losses in power generation, distribution, and motor operation. This trend is encouraging manufacturers to develop advanced grades of electrical steel to meet the increasing efficiency standards across various industries.
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Electrical Steel Market Size Was Valued at USD 29.87 Billion in 2023, and is Projected to Reach USD 46.74 Billion by 2032, Growing at a CAGR of 5.1 % From 2024-2032.
Electrical steel, also known as silicon steel or transformer steel, is a specialized material crucial for electromagnetic devices such as motors, generators, and transformers. It is predominantly composed of iron with silicon content typically ranging from 1% to 6.5%. The addition of silicon enhances electrical resistivity, improves permeability, and reduces hysteresis loss, making it highly suitable for applications in electrical power distribution and automotive industries.
According to the global Electrical Steel market analysis, the market is divided by The Electrical Steel Market is segmented into Type, Application, End-User and region. By Type, the market is categorized into Non-grain-oriented, Grain-oriented. By Application, the market is categorized into Transformer, Motors, Inductors. By End-User, the market is categorized into Automotive, Energy, Manufacturing, Household Appliances. By geography, it includes North America, Europe, Asia-Pacific, and LAMEA markets. Further, the report also covers the strategies adopted by key market players to sustain a competitive environment and increase their market share.
Renewable energy initiatives, particularly in wind and solar power, are driving robust growth in the electrical steel market. As global efforts intensify to reduce carbon footprints, there is a heightened demand for electrical steel to enhance energy transmission efficiency and support sustainable energy goals. This demand extends to transformers, generators, and transmission lines in renewable energy projects worldwide. Concurrently, the proliferation of electric vehicles is adding to the market’s dynamism, requiring electrical steel for EV motors and charging stations. These trends underscore a promising outlook for the electrical steel market, encouraging manufacturers to ramp up production capabilities, improve product quality, and capitalize on emerging opportunities across global markets.
Global Electrical Steel Market, Segmentation
The Electrical Steel market is segmented based on Electrical Steel Market Segmented on the basis of Type, Application, End-users and region.
Application:
The Application segment is further classified into recyclable, reusable, and degradable. Among these, the Transformers sub-segment accounted for the highest market share in 2023. The widespread use of recyclable materials such as plastic, glass, metal, and paper has boosted the growth of this market. Electrical steel is crucial in transformers and motors due to its excellent magnetic properties, minimizing energy loss and maximizing efficiency. It’s also vital in inductors for circuit filters and signal processing. As global electricity demand rises, electrical steel plays a pivotal role in efficient power transmission. Its ongoing importance in advancing magnetic performance for modern electrical devices is clear as technology advances.
End-Users:
The End-User segment is further classified into the food & beverage industry, pharmaceuticals and healthcare, personal care, and others. Among these, the Manufacturing sub-segment is anticipated to show the fastest growth by 2032. The electrical steel market is pivotal in manufacturing, crucial for transformers, electric motors, and generators due to its magnetic properties. Global infrastructure growth and urbanization drive demand for electrical infrastructure like power networks and renewable energy systems, boosting transformer and device needs. Advanced manufacturing techniques, like continuous casting and improved annealing, enhance electrical steel quality, magnetic permeability, and energy efficiency, meeting industry demands. The automotive industry’s shift to electric vehicles further fuels market growth, prompting increased production capacity, particularly in leading EV markets such as Europe, North America, and Asia-Pacific.
Key Findings of the Study
- Manufacturing segment held the largest share of 42.45% in 2023 of the total Electrical Steel market.
- The APAC region is expected to continue to lead the market followed by North America during the forecast period.
- Electrical Steel Market Size Was Valued at USD 29.87 Billion in 2023, and is Projected to Reach USD 46.74 Billion by 2032, Growing at a CAGR of 5.1 % From 2024-2032.
Key Industry Developments
- In April 2024, S. Steel’s acquisition by Nippon Steel was approved by its stockholders. Nippon Steel is optimistic that this acquisition will safeguard and enhance U.S. Steel, benefiting stakeholders such as customers, employees, union workers, suppliers, communities, stockholders, and the American steel industry overall.
- In February 2024, JSW Steel and JFE Steel announced a joint venture in India, investing 55 billion rupees ($663 million) to establish a Karnataka-based plant. Production is set to begin in fiscal year 2026/2027, aimed at expanding capacity to meet India’s growing demand for grain steel, essential in applications such as transformer manufacturing.
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The Leading/Active Market Players Are-
- ArcelorMittal (Luxembourg)
- POSCO (South Korea)
- Voestalpine AG (Austria)
- China Baowu Steel Group (China)
- Nippon Steel Corporation (Japan)
- United States Steel Corporation (United States)
- Steel Authority Of India (India)
- TATA Steel Limited (India)
- Thyssenkrupp AG (Germany)
- JFE Steel Corporation (Japan) and Other Active Players
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