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Electrical Steel Market Projected to Obtain 45.8 Billion USD by 2026

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Electrical Steel Market Projected to Obtain 45.8 Billion USD by 2026

Global "Electrical Steel Market size is estimated at USD 33.8 billion in 2021 and is projected to reach USD 45.8 billion by 2026, at a CAGR of 6.3%, between 2021 and 2026. Electrical steel is a type of steel specialized in producing assured magnetic properties resulting in low core loss, along with high permeability. The unique properties of electrical steel are dependent on the proportion of silicon in it. Electrical steel is mainly manufactured in the form of cold-rolled strips, with a thickness of less than 2 mm. It is also known as transformer steel and silicon steel.


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Browse 252 market data Tables and 53 Figures spread through 214 Pages and in-depth TOC on "Electrical Steel Market”


Electrical steel Market Dynamics


Driver: High consumption rate of electrical steel in transformers and motors


The increasing global automobile production is a major factor driving the growth of the global electrical steel market. The production is rising year-on-year. The deployment of electrical steel in automotive cars increases a vehicle’s fuel efficiency, thus driving the consumption of electrical steel in the automotive industry. The increasing demand for electric and hybrid vehicles is expected to further boost the growth of the electrical steel market during the forecast period. 


Restraint: Volatile prices of raw material


The steel industry mainly relies on the supply of raw materials for the production and processing of steel products. Major raw materials required for steel production include iron ore, coal, industrial gases, and ferroalloys. If raw materials are reasonably priced, steel production and steel processing operations can be carried out smoothly. However, the prices of raw materials are highly volatile.


Opportunity: Upcoming regulations and government support


The rules and regulations in emerging economies, such as India, China, and Brazil, are not as stringent as compared to those in the US and Western European countries. The size of the automotive industry in these countries is not only huge but also growing at a significant rate. These countries will be major destinations for electrical steel market players with the regulations in place. 


https://www.prnewswire.com/news-releases/electrical-steel-market-worth-45-8-billion-by-2026--exclusive-report-by-marketsandmarkets-301470490.html


APAC is the largest market for the electrical steel market


The APAC region is projected to be the largest market and to grow at the highest CAGR during the forecast period. An increase in the demand for electrical steel can be attributed to the growing infrastructure & construction and automotive industries. The rise in applications is expected to drive the market in this region. These factors contribute to the rising demand for electrical steel in the industrial facilities in the APAC region. The presence of several electrical steel-producing companies in China and India is expected to play an important role in the revenue growth of the APAC market. As APAC is the most widely populated region in the world, it consequently witnesses a high demand for the consumption of electricity. The transmission & distribution infrastructure in the region is in the initial stage of grid restructuring. China, Japan, and India, among others, are investing in grid expansion projects to increase grid reliability, which is expected to drive the transformers market in the region, and, in turn, the electrical steel market as well.


The global electrical steel market comprises major manufacturers, such as ArcelorMittal (Luxembourg), POSCO (South Korea), Voestalpine AG (Austria), Baosteel (China), Nippon Steel & Sumitomo Metal Corporation (Japan), United States Steel Corporation (United States), SAIL (India), TATA Steel Limited (India), Thyssenkrupp AG (Germany), JFE Steel Corporation (Japan), amongst others.


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