India electrical steel
market is predicted to proliferate during the forecast period owing to various driving
factors such as growing demand for electrical steel from various industries and
high consumption of electrical steel in motors and transformers across the
country.
Electrical steel is also
called silicon electrical steel, silicon steel, relay steel, and transformer
steel. Electrical steel is a specialty steel that is used in the
cores of electromagnetic equipment including motors, generators, and transformers
that helps in minimizing 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, less than 2 mm 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 from residential, commercial, and industrial sectors is the
major driver that is propelling the market of electrical steel across the
country. 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 as a result 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 Demand for Electrical
Steel from the Automotive Industry
The rising demand for electrical
steel in the automotive industry results in the improvement of vehicle
performance. Additionally, 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 supportive government regulations
that encourage environmental conservation through vehicles across the nation.
Additionally, various market
players have invested in the automobile industry which is directly increasing the
demand for electrical steel across the country. For instance,
- In
January 2023, MG Motor India invested USD 100 million to
expand capacity across the nation.
- In
December 2022, Mahindra & Mahindra invested USD 1.2
billion in an EV manufacturing plant in Pune.
- As
of November 2022, Maruti Suzuki India had spent around USD
865.12 million on several projects, including building a new plant in
Haryana and launching new models.
- In
April 2022, Tata Motors invested USD 3.08 billion in its
passenger vehicle business over the next five years.
Thus, investment in the
automotive industry by the major market players of the automotive industry is
directly impacting the market of electrical steel. Therefore, the market for
electrical steel is expected to boost in the coming years.
Electric steel plays a
vital role in the automotive industry where electric motors are made up of electrical
steel & used to improve fuel economy. These systems convert electrical
energy into mechanical energy by energizing copper windings in a stator, which
creates a magnetic field then causes 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 years. Additionally, as the electric
vehicle market grows, the 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. Several manufacturers of
electric vehicles are focusing on improving their capacity to produce
electrical steel for EVs. For instance, on
February 21, 2023, Thyssenkrupp, the German engineering company with
interests in high-grade electrical steel manufacturing in India, explore
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 technological interventions, enough
to produce 1.2 million motors for EVs. Hence, due to all these factors, the
demand for electrical steel is expected to rise along with the expansion of the
automotive industry during the forecast period.
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Growth in the deployment
of Renewable Energy
Electrical steel is used
in onshore and offshore wind turbines. Almost every component of a wind turbine
is made of steel, from the foundation to the tower, gears, and casings.
Electrical steel provides the strength for taller and more efficient wind turbines.
That is why the Indian government is focusing on sustainable development and
trying to increase the share of renewable energy in total energy consumption
and generation across the nation. Presently, in the renewable energy sector,
the union government and major MNCs are planning to massive investments to meet
climate action goals. For instance,
- In
February 2023, the Indian government invested around USD 4.3 billion, in
clean energy. Through this investment, the government aimed to develop
solar projects in the Himalayas region of Ladakh.
- In
June 2021, the Prime Minister of India stated that renewable energy
capacity in India increased by 250% between 2014 and 2021.
- India
launched the Mission Innovation CleanTech Exchange, a global initiative
that is going to accelerate clean energy innovation.
- The
world’s largest renewable energy park of 30 GW capacity solar-wind hybrid
project is under installation in Gujarat.
- India
offered a great opportunity for investments in the renewables energy sector
worth USD 196.98 billion in projects underway in India.
Therefore, the
increasing investment in the renewable energy sector is for decreasing
dependence on coal for energy generation. This is resulting in increased
deployment of renewable energy and correspondingly increasing the demand for
electrical steel.
Challenges:
Silicon is a fundamental
alloying material used in the production of electrical steel. In India, 50%
demand of silicon is fulfilled by imports from countries like China, Malaysia,
United States, and others. Silicon prices increase owing to an increase in the
manufacturing cost due to surge in the price of raw materials such as silica,
carbon electrodes, and coal. Moreover, sometimes there is a disturbance in
carbon supplies, which affects silicon production.
Recent Developments:
- In
September 2022, JSW Steel is investing USD 1 billion
alongside its Japanese partner JFE Steel to establish a specialty steel
production facility in India. The initiative is anticipated to assist
India in lessening its dependency on imports for premium alloy.
- In
February 2023, the Indian government set objectives to boost
production, update the nation's electrical infrastructure, and offer
reasonably priced electricity nationwide. India utilizes over 1,200 kWh of
electricity per person annually. The global average is 2,700 kWh, which is
far less. But providing 1.4 billion people with the power they need while
maintaining a robust grid infrastructure is no easy undertaking. It
requires a substantial transformer investment.
- In
February 2023, the German industrial behemoth 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. Electrical
steel is imported by India in roughly 400,000 tonnes.
- India's
annual steel output is expected to surpass 300 million tonnes by the end
of 2030-2031.
Market Segmentation
The India electrical steel market is segmented based
on type, application, and vertical. Based on type, the market is further
segmented into grain-oriented electrical steel and non-grain-oriented
electrical steel. Based on application, the market is further 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 also studies the regional segmentation to devise
regional market segmentation, divided among North India, South India, West India, and East
India.
Company Profiles
Aperam Alloys India
Private Limited (AAIPL), ArcelorMittal India Private Ltd, TATA Steel Limited, POSCO
Electrical Steel India Private Limited, Steel Authority of India Limited, Nippon
Steel Engineering India Pvt. Ltd, Voestalpine High Performance Metals India
Pvt. Ltd., Thyssenkrupp Electrical Steel India Private Limited, and JSM Steel
India Private Limited are the major players that are driving the growth of the India
electrical steel market.
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Attribute
|
Details
|
|
Base
Year
|
2023
|
|
Historical Years
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2019 –
2022
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|
Estimated
Year
|
2024
|
|
Forecast Period
|
2025
– 2029
|
|
Quantitative
Units
|
Revenue
in USD Billion and CAGR for 2019-2023 and 2024E-2029F
|
|
Report Coverage
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Revenue
forecast, company share, competitive landscape, growth factors, and trends
|
|
Segments
Covered
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Type
Application
Vertical
Region
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|
Regional Scope
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North
India, South India, West India and East India
|
|
Key
Companies Profiled
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Aperam
Alloys India Private Limited (AAIPL), ArcelorMittal India Private Ltd, TATA
Steel Limited, POSCO Electrical Steel India Private Limited, Steel Authority
of India Limited, Nippon Steel Engineering India Pvt. Ltd, voestalpine High-Performance
Metals India Pvt. Ltd., Thyssenkrupp Electrical Steel India Private Limited,
JSM Steel India Private Limited.
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|
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)
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Report Scope:
In this report, the India electrical
steel market has been segmented into the following categories, in addition to
the industry trends which have also been detailed below:
- India Electrical Steel Market, By Type:
- Grain Oriented Electrical Steel
- Non-Grain Oriented Electrical Steel
- India Electrical Steel Market, By Application:
- Transformers
- Motors & Generators
- Inductors
- India Electrical Steel Market, By Vertical:
- Automotive
- Construction
- Manufacturing
- Energy & Power
- Others
- India Electrical Steel Market, By Region:
- North India
- South India
- West India
- East India
Competitive Landscape
Company Profiles: Detailed analysis of the
major companies present in the India 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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