Global
Electrical Steel Market is predicted to proliferate during the forecast period
2024-2028F owing to the growing demand for electrical steel from numerous
industries, high consumption of electrical steel in motors and transformers,
and increasing energy demand from the growing economies across the globe.
Electrical
steel is also known as silicon electrical steel, silicon steel, relay steel,
and transformer steel. Electrical steel is a speciality steel that is
used in the cores of electromagnetic equipment including motors, generators,
and transformers that helps in minimising power loss. It is an iron
alloy with silicon as the primary adding component in place of carbon. Specific
magnetic qualities are produced by the precise formulation, including a tiny
hysteresis area that results in low power loss per cycle, a low core loss, and
high permeability. Cold-rolled strips that are less than 2mm thick are
typically used to produce electrical steel. The laminated cores of
transformers, as well as the stator and rotor of electric motors are made by
cutting these strips into certain shapes and then stacking them together.
Laminations can be finished-shaped by being cut using a punch and die, or, in
lesser numbers, by laser cutting or wire electrical discharge machining.
The
rising demand for electric motors in various end user sectors such as
residential, commercial, and industrial are the major driver propelling the
market of electrical steel globally. Electrical steel is widely used to create
power generators with enhanced electromagnetic properties and minimal carbon
dioxide emissions, as well as motors with increased magnetic flux and torque.
Additionally, the increased use of hybrid and electric vehicles (H/EVs) is
boosting market expansion. The usage of electric steel declined the weight of
vehicle parts while improving their appearance and safety. Accordingly, the
market is expanding because of the rising demand for electrical steel for
low-energy loss power transmission over long distances and infrastructure
development projects. The development of several products, such as
non-grain-oriented electrical steel with uniform magnetic properties, is
another factor that drives the market growth.
Increasing
Electrical Steel Demand from the Automotive Industry Helps to Expand the Market
in the Upcoming Years
The
rising demand for electrical steel in automotive industry that results in the
improvement of vehicle performance along with the reduction in vehicle weight
is attributed to the rapidly expanding automotive industry and the growing
popularity of hybrid cars. The market of electrical steel is boosted due to the
various developed countries such as United States, Australia, United Kingdom
who launch new products in the field of electrical steel for its end
user. For instance, on 24th March 2023, United States
Steel Corporation X announced the production of its new electrical steel
product that is “InduX”. InduX is a wide, ultra-thin, and light-weight
electrical steel, possessing all the magnetic properties necessary for electric
vehicles (EV), generators, and transformers. The company is introducing InduX
for the rapidly growing American electric vehicle market. Therefore, the market
for electrical steel is expected to boost in the upcoming years.
Furthermore,
one of the most important automotive applications of electric steel in
automotive is electric motors as the use of electrical steel in automobiles
improves fuel economy. These systems convert electrical energy into mechanical
energy by energizing copper windings in a stator, which creates a magnetic
field then causing the rotor to spin. Therefore, with the growing applications
of electrical steel in the automotive industry, the market is likely to
proliferate in the coming year. Additionally, as the global electric vehicle
market grows, demand for EV materials such as electrical steel is growing in
lockstep. Motors are essential for the effectiveness and overall performance of
EVs because they determine a vehicle's horsepower. As a result, automakers
aiming for the largest portion of the growing EV market are searching for
superior electrical steels. As a result, many manufacturers of electric
vehicles are focusing on improving their capacity to produce electrical steel
for EVs.
For instance, on 21st February 2023,
Thyssenkrupp, the German engineering company with interests in high-grade
electrical steel manufacturing in India explored possibilities for expanding
its production capacity. Currently, the company has an annual capacity
to produce electrical steel of 50,000 tonnes and plans to increase capacity to
65,000 tonnes through technology interventions, enough to produce 1.2 million
motors for EVs. The strategic move is in line with Thyssenkrupp commitment towards
expanding environment friendly businesses as well as its solution marketing
efforts to provide customized material solutions to its partners. Hence, due to
all these factors the demand for electrical steel rises along with the
expansion of the automotive industry during the forecast period.
Recent
Development:
- On 7th February
2023, a major producer of steel in Japan, JFE Steel, announced that it is
going to increase its output of the essential element for electric
vehicle (EV) motors due to increased demand globally. To strengthen
current manufacturing facilities at its steelworks in western Japan's
Okayama Prefecture, the business invested approximately USD 381 million.
Expanded production is expected to start in fiscal 2026.
- On 7th December
2022, JFH Holdings and Nippon Steel Corporation invested USD 1.25 billion
to increase the production of electrical steel used in electric vehicle
motors, and they plan to increase their investment as customer demand
grows as the switch to electric vehicles gathers momentum. Following a
capacity boost in 2024, the companies are aiming to grow outside of Japan.
While Nippon Steel claimed that its future investment is more likely to be
in Japan, JFE Holding specifically evaluated possibilities including
establishing a factory in North America, where electrical steel demand is
anticipated to be robust.
- In October 2021,
Under the bluemint brand, certified CO2-reduced steel was introduced by
ThyssenKrupp Steel. SGB-SMIT, a Regensburg-based transformer specialist,
is the first customer to get bluemint powercore, which has CO2 intensity
that is 50% lower.
- Additionally, in
September 2022, Nippon Steel announced the introduction of low-emission
steel products to reduce emissions and battle climate change. By 2030, the
corporation wants to cut its CO2 emissions by 30%.
- In January 2022,
PowerCore was introduced by ThyssenKrupp Steel. The high-tech core
material was used in laminated or twisted grain oriented electrical steel
applications, distribution transformers, and compact transformers is the
unique grain-oriented product.
- In December 2022, A
US-based mining company and flat-rolled steel manufacturer,
Cleveland-Cliffs Inc., announced the introduction of its Motor-Max range
of non-oriented electrical steels for high-frequency motors, aviation
generators, and electric cars.
- On 29th September
2022, JSW Steel is investing USD 1 billion alongside its Japanese
partner JFE Steel to establish a speciality steel production facility in
India. The initiative is anticipated to assist India in lessening its
dependency on imports for premium alloy.
- On 21st February
2023, Thyssenkrupp, which has investments in the production of high-grade
electrical steel in India, concentrated on increasing its production
capacity. A minor portion of the nation's need, about 50,000 tonnes per
year, can currently be met by the company's yearly capacity to make
electrical steel.
- By 2030–2031,
India's annual steel output is expected to surpass 300 million tonnes. A
10% yield loss or a 90% conversion ratio of raw steel to finished steel is
assumed for the projection that crude steel output would reach 255 million
tonnes by 2030–2021, producing 230 million tonnes of completed steel
production.
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Market
Segmentation
The
global electrical steel market is segmented based on type, application,
vertical, and region. Based on type, the market is segmented into
grain-oriented electrical steel and non-grain-oriented electrical steel. Based
on application, the market is segmented into transformers, motors &
generators, and inductors. Based on vertical, the market is divided into
automotive, construction, manufacturing, energy & power, and others. The
market analysis studies the regional segmentation divided among North America,
Europe, Asia-Pacific, South America, and Middle East & Africa.
Company
Profiles
Aperam
S.A, ArcelorMittal S.A, Baoshan Iron & Steel Co. Ltd, Cleveland-Cliffs Inc,
JFE Holdings Inc, Nippon Steel Corporation, Slovenian Steel Group, Tata Steel
Limited, Voestalpine AG, United States Steel Corporation are among the major
players that are driving the growth of the global electrical steel market.
Attribute
|
Details
|
Base Year
|
2022
|
Historical Years
|
2018 –
2021
|
Estimated Year
|
2023
|
Forecast Period
|
2024
– 2028
|
Quantitative Units
|
Revenue in USD Billion and CAGR for 2018-2022 and 2023E-2028F
|
Report Coverage
|
Revenue
forecast, company share, competitive landscape, growth factors, and trends
|
Segments Covered
|
Type
Application
Vertical
Region
|
Regional Scope
|
Asia-Pacific,
North America, Europe, Middle East & Africa, and South America
|
Country Scope
|
China, Japan, India,
Australia, Singapore, United States, Canada, Mexico, United Kingdom, Germany,
France, Spain, Italy, Israel, Qatar, Saudi Arabia, UAE, Brazil, Argentina,
Colombia
|
Key Companies Profiled
|
Aperam
S.A, ArcelorMittal S.A, Baoshan Iron & Steel Co. Ltd, Cleveland-Cliffs
Inc, JFE Holdings Inc, Nippon Steel Corporation, Slovenian Steel Group, Tata
Steel Limited, Voestalpine AG, United States Steel Corporation
|
Customization Scope
|
10% free report customization with purchase. Addition or
alteration to country, regional & segment scope.
|
Pricing and Purchase Options
|
Avail
of customized purchase options to meet your exact research needs. Explore purchase options
|
Delivery Format
|
PDF and Excel
through Email (We can also provide the editable version of the report in PPT/pdf
format on special request)
|
Report Scope:
In this report, the global electrical
steel market has been segmented into the following categories, in addition to
the industry trends which have also been detailed below:
- Global Electrical
Steel Market, By Type:
- Grain Oriented
Electrical Steel
- Non-Grain Oriented
Electrical Steel
- Global Electrical
Steel Market, By Application:
- Transformers
- Motors & Generators
- Inductors
- Global Electrical
Steel Market, By Vertical:
- Automotive
- Construction
- Manufacturing
- Energy & Power
- Others
- Global Electrical Steel Market, By Region:
- Asia-Pacific
- China
- Japan
- India
- Australia
- Singapore
- North America
- United States
- Canada
- Mexico
- Europe
- United Kingdom
- Germany
- France
- Spain
- Italy
- Middle East & Africa
- Israel
- Qatar
- Saudi Arabia
- UAE
- South America
- Brazil
- Argentina
- Colombia
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the global electrical steel market.
Available Customizations:
With the given market data, TechSci
Research offers customizations according to a company’s specific needs. The
following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to
five).
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