Electrical steel market size to grow by USD 18.27 billion from 2022 to 2027, Increasing demand for electrical steel in the automotive industry drives growth, Technavio
NEW YORK, March 11, 2024 /PRNewswire/ -- The global electrical steel market size is estimated to increase by USD 18,273.08 million from 2022 to 2027. The market's growth momentum will progress at a CAGR of 9.56% during the forecast period. The surge in demand within the automotive sector emerges as a pivotal force propelling market expansion. Worldwide automotive manufacturers prioritize the development of lightweight, fuel-efficient, and environmentally conscious vehicles to comply with stringent regulatory standards. Leveraging plastic and polymer components aids in emission reduction and enhances fuel efficiency. Despite this trend, critical automotive elements such as engines, chassis, gearboxes, and exhaust systems predominantly rely on metals for superior durability and strength. Anticipated growth in global automotive production during the forecast period will underpin market demand. Furthermore, the swift embrace of electric vehicles across Europe and Asia is poised to amplify automotive output, thereby bolstering global demand.
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Key Companies
The global electrical steel market is fragmented, with the presence of several global as well as regional vendors. A few prominent vendors that offer electrical steel in the market are Ansteel Group Corp. Ltd., Aperam SA, ArcelorMittal, Arnold Magnetic Technologies Corp., Beijing Shougang Co. Ltd., China BaoWu Steel Group Corp. Ltd., China Steel Corp., Cleveland Cliffs Inc., JFE Holdings Inc., JSW STEEL LTD., Nippon Steel Corp., NLMK Group, Nucor Corp., POSCO holdings Inc., Steel Authority of India Ltd., Tata Sons Pvt. Ltd., thyssenkrupp AG, United States Steel Corp., voestalpine AG, and Yieh Corp. and others.
- Ansteel Group Corp. Ltd. - The company offers electrical steels such as grain-oriented electrical steel.
- ArcelorMittal - The company offers electrical steels such as icare save, icare torque, and icare speed.
- China BaoWu Steel Group Corp. Ltd. - The company offers electrical steels such as grain-oriented and non-oriented electrical steel.
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Segment Overview
Technavio has segmented the market based on Type (Grain-oriented electrical steel and Non-grain oriented electrical steel), End-user (Automobiles, Manufacturing, and Energy generation), and Geography (APAC, Europe, North America, Middle East and Africa, and South America).
- The market share growth by the grain-oriented electrical steel segment will be significant during the forecast period. Grain-oriented electrical steel is becoming the material of choice for high-efficiency transformers because of its higher permeability and better energy efficiency. They are in line with the increasing focus on products that achieve lower electricity consumption. Hence, due to such factors, the grain-oriented electrical steel segment of the electrical steel market experiences growth during the forecast period.
Geography Overview
By geography, the global electrical steel market is segmented into APAC, Europe, North America, Middle East and Africa, and South America. The report provides actionable insights and estimates the contribution of all regions to the growth of the global electrical steel market.
- APAC will contribute 74% to the growth of the global market during the forecast period. The growth of the market in the region can be attributed to the presence of major players like Tata Sons Pvt. Ltd. and China BaoWu Steel Group Corp. Ltd. Tata Sons Pvt. Ltd.'s Steel Recycling Business launched FerroHaat, a groundbreaking mobile app in August 2022. This app facilitates sourcing steel scrap from traders, thus providing a reliable source of scrap metal for the steel industry and organizing India's scrap market. Hence, such factors drive the regional growth of the electrical steel market in APAC during the forecast period.
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Increasing demand for electrical steel in the automotive industry drives the growth of the electrical steel market.
Global automakers prioritize lightweight, fuel-efficient, and eco-friendly vehicles to meet stringent environmental regulations, utilizing plastic or polymer components to reduce emissions and improve fuel efficiency.
Furthermore, factors such as the growing global production of automotive vehicles drive the demand for electrical steel during the forecast period. Hence, owing to such factors, the electrical steel market is estimated to grow during the forecast period.
- Expansion of production capacity by vendors is an emerging electrical steel market trend.
- Excess production capacity in steel manufacturing plants challenges the growth of the electrical steel market.
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Analyst Review
The electrical steel market stands as a cornerstone in the realm of sustainable energy solutions, particularly amid escalating concerns regarding environmental degradation and the imperative for adopting green technologies. This market thrives on its indispensable role in powering various sectors, including applications related to electricity consumption, distribution, and generation. As the global economy experiences fluctuations influenced by factors like exchange rates and global economic conditions, the demand for electrical steel remains resilient, driven by the escalating penetration of electric vehicles (EVs), particularly in regions like Kerala, India.
JFE Steel Corporation, among other key manufacturers, plays a pivotal role in shaping this market landscape. Their expertise in producing silicon steel and specialty steel caters to the burgeoning requirements of the electric car sector, where excellent magnetic properties and low hysteresis loss are paramount for enhancing vehicle's performance and range.
One of the critical components driving this market is motor efficiency, which underscores the necessity for high electrical resistivity and low core losses in electric motors and generators. This quest for efficiency is further fueled by the rising demand for decentralized generation and the quest for energy cost optimization amidst fluctuations in raw material prices.
Moreover, stringent environmental regulations are reshaping the landscape, compelling manufacturers to embrace sustainable practices and adopt sustainable energy solutions. Consequently, the market is witnessing a surge in the adoption of electrical components and electrical equipment fabricated from electrical steel with low magnetostriction and high permeability.
However, navigating this market isn't devoid of challenges. Trade disparity and regional opportunities influence supply-demand dynamics, while mechanical stress and maintenance remain pivotal for ensuring the longevity of transformers, relays, and power distribution systems.
In conclusion, the global electrical steel market thrives on innovation, propelled by historical data & forecasts and the relentless pursuit of quality and grade enhancements. As EV sales surge and power distribution lines expand, the market is poised for unprecedented growth, offering opportunities for stakeholders to capitalize on the electrifying potential of electrical steel.
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Market Overview
In the dynamic landscape of electrical steel market, annual production capacity plays a pivotal role, reflecting industry's readiness to meet growing demands. With applications spanning across electricity consumption, distribution, and generation, the market thrives on innovation and efficiency. Understanding core energy losses and core losses becomes imperative for companies aiming at competitive benchmarking and enhancing revenue shares. Additionally, the trend towards decentralized generation reshapes market dynamics, driving focus towards flexible solutions. As stakeholders navigate through evolving technologies and regulations, seizing opportunities in this sector requires a nuanced understanding of market trends and consumer demands.
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Table of Contents
1 Executive Summary
2 Landscape
3 Sizing
4 Historic Size
5 Five Forces Analysis
6 Segmentations
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
About US
Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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Email: [email protected]
Website: www.technavio.com
SOURCE Technavio
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