The global electrical steel market size was US$ 15.7 billion in 2021. The global electrical steel market is forecast to grow to US$ 24.1 billion by 2030 by growing at a compound annual growth rate (CAGR) of 5.9% during the forecast period from 2022 to 2030.
Electrical steel contains 6.5% silicon content, which reduces heat dissipation. The silicon content in the electric steel increases resistivity and minimizes hysteresis loss.
Factors Influencing the Market
The wide applications of electrical steel in generators, solenoid, electric motors, relay, etc., will drive the growth of the global electrical steel industry. In addition, the rising adoption of electric vehicles (EVs) will contribute to the growth of the market during the forecast period. Electrical steel contains specific magnetic properties which are highly efficient for rotors and stators in the motor. In addition, it improves the efficiency of the motor by reducing the core energy loss. Such benefits are forecast to propel the electrical steel market forward during the forecast period.
The growing demand for efficient power transformers may offer ample growth opportunities for the electrical steel market. On the contrary, the volatile price of raw materials may limit the market growth during the analysis period.
The rising demand for efficient transformers has also forced the companies to expand their production capacity, which will benefit the overall electrical steel market.
COVID-19 Impact Analysis
The global electrical steel market witnessed various repercussions on supply-chain activities and sales due to the COVID-19 outbreak. The pandemic caused a significant loss in revenue due to a halt on manufacturing activities. However, market players are focusing on innovative strategies to overcome these losses and expand their production capacity. For instance, Shougang Qian’an Electric Vehicle Electrical Steel Co., Ltd. ordered a 6-stand Hyper Universal Crown Control mill in April 2020. The aim of this initiative is to produce high-grade electrical steels from Primetals Technologies.
Regional Analysis
The Asia-Pacific electrical steel market is forecast to emerge as the largest electrical steel market. It is owing to the rising emphasis on power generation and EV production in the countries like China and Japan. As a result, it may upsurge the demand for efficient electric motors and charging stations, which will benefit the electrical steel industry. Europe is forecast to emerge as the second-largest market for electrical steel. It is due to the growing consumption of electrical steel by end-users in the region.
Competitors in the Market
Market Segmentation
The global electrical steel market segmentation focuses on Type, Application, and Region.
By Type Outlook
By Application Outlook
By Regional Outlook
