PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1397108
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1397108
Electrical Steel Market size was valued at USD 32,312 Million in 2022, expanding at a CAGR of 5.1% from 2023 to 2030.
Lamination steel, often known as electrical steel, is a soft ferromagnetic substance with different proportions of silicon and iron. It is frequently offered in grain-oriented, completely processed, and semi-processed non-oriented forms. Typically, electrical steel is melted or cast in oxygen furnaces, hot rolled to remove impurities, and then chilled to the proper thickness and form.
The electrical steel market is primarily driven by the automotive industry's increasing demand for electric vehicles. Electric steel is used in hybrid electric vehicles' traction motors to power both high-speed electric motors and high-frequency transformers. Additionally, because steel sheets are widely utilized as the iron core materials for motors and are good at transmitting magnetic energy, they play a significant role in deciding how successful motors are. According to the International Energy Agency, in just three years, the percentage of electric vehicles in overall sales has more than quadrupled, rising from 4% in 2020 to 14% in 2022. It is anticipated that EV sales will rise significantly until 2023. In comparison to the same period last year, almost 2.3 million electric cars were sold in the first quarter. This represents a 25% increase.
The Global Electrical Steel Market is segmented based on Product, Application, and Region.
Based on the product, the market is bifurcated into Grain Oriented Electrical Steel and Non-grain Oriented Electrical Steel. The Non-grain Oriented Electrical Steel segment is expected to dominate the market during the forecast period. An electrical steel variety known as NGOES lacks a material's preferred direction of magnetization or grain orientation. Because of its lack of orientation, NGOES may be used in transformers, generators, and electric motors, among other devices where the direction of the magnetic field fluctuates. it is a widely utilized electrical component in many different types of equipment, such as electric motors, distribution transformers, and power generators. Thereby, driving the market growth.
Based on the application, the industry is segmented into Motor, Transformer, Inductor and Others. The Transformer segment is expected to capture a substantial market share during the forecast period. Transformers are becoming more and more necessary due to the growing decentralized generation, rising digital loads, increasing electrical grid complexity, and the increasing use of electric vehicles. For instance, according to IEA statistics, investments of USD 24,234 billion are anticipated to be made between 2014 and 2035 to install 24.2 million kilometers of electricity distribution lines.
Geographically, this market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business. The Asia Pacific is expected to dominate the market during the forecast period. The biggest market for power transformers is among the factors driving this region's electrical steel industry's growth. In the Asia Pacific area, power transformers are very necessary in several countries, such as China, India, and Indonesia. One of the biggest producers of power transformers worldwide is China. India is also expected to develop at a significant rate because of several variables, such as rising energy needs, rising interest in renewable energy sources, and rising urbanization and population.
Electrical steel is a highly competitive industry since there are several large competitors in the market. Due to their substantial research efforts, cutting-edge technology, and solid presence in local markets, the major firms have a competitive advantage. Key manufacturers are using a variety of tactics to compete in the market, such as modernizing their operations to provide clients with high-quality products.
In April 2023, Beijing Shougang, a division of the sixth-largest integrated steelmaker in China, revealed the launch of two new GO electrical steel products at its product launch event, which was held on April 19 in Qian'an, North China's Hebei province. The new grain-oriented (GO) electrical steel production line is also the first specialized production line of 100% thin gauge and high magnetic induction GO electrical steel line in the world.