Electrical steel, also known as silicon steel, is composed of pure iron combined with silicon. It has high magnetic permeability and low power loss which makes it ideal for use in motors, generators, transformers and other electromagnetic applications. Its low electrical resistance and high tensile strength are well suited for the efficient transmission of electromagnetic fields.
Market key trends:
One of the key trends in the electrical steel market is the growing demand for high strength electrical steel from the automotive sector. With the adoption of electric and hybrid vehicles increasing worldwide, demand for high strength steel grades has increased significantly. These steel grades have better strength and heat treatability which allows for weight reduction in automotive components without compromising performance. The lightweight yet high strength properties helps OEMs achieve better fuel efficiency and emission reduction targets.
The global Electrical Steel Market Share is estimated to be valued at US$ 38.16 Bn in 2023 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
The global electrical steel market is segmented on the basis of type, application and geography. By type, the market is segmented into grain oriented electrical steel and non-grain oriented electrical steel. Non-grain oriented electrical steel dominates the market as it is cheaper than grain oriented and widely used in motors, transformers and other applications where its core loss characteristics are not a primary concern. By application, the market is segmented into transformers, motors, inductors and generators. Transformers hold the largest market share as electrical steel finds maximum use in power transformers where its magnetic properties facilitate efficient energy transfer.
The global electrical steel market is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period, due to increasing investments in renewable energy infrastructure and expansion of transmission & distribution networks.
The Asia Pacific region dominates the global electrical steel market owing to presence of robust manufacturing sectors in China, India, Japan and South Korea. China alone consumes more than 50% of global electrical steel due to large manufacturing base of transformers, motors and automobiles in the country. Europe and North America are other major markets for electrical steel driven by high demand from utilities and automotive industries.
Key players operating in the electrical steel market are NLMK, Voestalpine AG, POSCO, Nippon Steel & Sumitomo Metal Corporation, Thyssenkrupp AG, JFE Steel Corporation, ArcelorMittal, Cogent Power Limited, Aperam, Baosteel Group Corporation, AK Steel Corporation, ATI, Schneider Electric, and Nicore Electrical Manufactory Co., Ltd. Leading players are focused on expanding their production capacities and global footprint through mergers & acquisitions to leverage growth opportunities in emerging electrical steel markets.