Electrical Steel Market By Type (Grain-Oriented Electrical Steel, Non-Grain-Oriented Electrical Steel) , By Application (Transformers, Motors, Inductors, Generators, Others) By End Use (Energy & Power Generation, Automotive, Manufacturing, Household Appliances, Others) : Global Opportunity Analysis and Industry Forecast, 2024-2033
Electrical Steel Market
The electrical steel market was valued at $18.1 billion in 2023 and is projected to reach $31.5 billion by 2033, growing at a CAGR of 5.7% from 2024 to 2033.
Electrical steel or silicon steel is a specialized alloy produced for the manufacturing of electrical machines and devices. It exhibits unique magnetic properties and facilitates the transmission, generation, & conversion of electrical energy. The composition of electrical steel comprises around 1-4% silicon mixed with low-carbon steel and various alloying components. The major applications that use electrical steel include transformers, inductors, reactors, generators, home appliances, and electric vehicles.
The energy-efficiency attribute of electrical steel is a key driver of the market as manufacturers have become significantly aware of the importance of enhancing the efficacy and reducing the energy consumption of appliances. Furthermore, rapid surge in urbanization has fueled the requirement for electrical connections and equipment, thereby propelling the growth of the electrical steel market. In addition, rise in the utility of electrical steel in renewable energy projects is augmenting the market development significantly. A notable trend anticipated to acquire traction in coming years is the manufacturing of electrical steel through additive manufacturing. This technique is expected to offer the flexibility of tailoring intricate designs cost-effectively.
However, volatility in the prices of raw materials essential for the manufacturing of electrical steel, including silicon & iron, leads to unstable profits and hampers the development of the market. Moreover, the production of electrical steel exhibits a major impact on the environment owing to high carbon emissions, restraining the market growth considerably. Contrarily, constant efforts to minimize the emissions associated with steel production are projected to open new avenues for the market in the future. For instance, ThyssenKrupp—a German steel producer—has made a notable investment in a direct reduction plant, which utilizes hydrogen as a reducing agent and possesses a capacity of 3.5 million metric tons for annual carbon dioxide savings. Therefore, the adoption of such innovative techniques is anticipated to help manufacturing companies in achieving their environmental targets and present lucrative opportunities for market expansion.
Segment ReviewThe electrical steel market is segmented into type, application, end use, and region. On the basis of type, the market is bifurcated into grain-oriented electrical steel and non-grain-oriented electrical steel. Depending on application, it is divided into transformers, motors, inductors, generators, and others. According to end use, it is classified into energy & power generation, automotive, manufacturing, household appliances, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key FindingsOn the basis of type, the non-grain-oriented electrical steel segment held a high share of the market in 2023.
Depending on application, the transformers segment acquired a high stake in the market in 2023.
According to end use, the energy & power generation segment dominated the market in 2023.
Region wise, Asia-Pacific was the highest revenue generator in 2023.
Competition AnalysisThe leading players operating in the global electrical steel market include POSCO, JFE Steel Corporation, Cleveland-Cliffs Inc., Baosteel Co., Ltd., NIPPON STEEL CORPORATION, Slovenian Steel Group, Aperam, Tata Steel, ArcelorMittal, and voestalpine Stahl GmbH. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships to strengthen their foothold in the competitive market.
Key Market SegmentsBy TypeGrain-Oriented Electrical Steel
Non-Grain-Oriented Electrical Steel
Fully Processed
Semi-Processed
By ApplicationTransformers
Motors
Inductors
Generators
Others
By End UseEnergy Power Generation
Automotive
Manufacturing
Household Appliances
Others
By RegionNorth America
U.S.
Canada
Mexico
Europe
France
Germany
Italy
Spain
UK
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
LAMEA
Brazil
South Africa
Saudi Arabia
Rest of LAMEA
Key Market PlayersPOSCO
JFE Steel Corporation
Cleveland-Cliffs Inc.
Baosteel Co.,Ltd.
NIPPON STEEL CORPORATION
Slovenian Steel Group
Aperam
Tata Steel
ArcelorMittal
voestalpine Stahl GmbH