Electrical Steel Market by Type (non-grain-oriented and grain-oriented), Application (Transformers, Motors, Inductors), End-use Industry (Energy, Automotive, Manufacturing, Household Appliances) and Region - Global Forecasts to 2026

Electrical Steel Market by Type (non-grain-oriented and grain-oriented), Application (Transformers, Motors, Inductors), End-use Industry (Energy, Automotive, Manufacturing, Household Appliances) and Region - Global Forecasts to 2026

The 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%. The global electrical steel industry has witnessed high growth primarily because 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 and addition of silicon increases resistivity, improves permeability, and decreases hysteresis loss. However, factors such as high production cost and capital investment of electrical steel may inhibit the growth of the market.

“In terms of both value and volume, non-grain-oriented segment to be the fastest-growing segment by 2026.”

The non-grain-oriented segment is projected to grow at the highest CAGR from 2021 to 2026. The use of non-grain-oriented steel reduces magnetic losses by increasing the concentration of silicon and aluminium in electrical steel sheets. An increase in the production of automobiles, where electrical steel is used as a core material in motor parts to improve the comfort, power performance, and fuel economy of automobiles, is expected to increase the demand for non-grain-oriented electrical steel products.

“In terms of both value and volume, manufacturing is projected to be the fastest-growing segment from 2021 to 2026, for electrical steel.”

Manufacturing is projected to be the fastest-growing segment in the electrical steel market. The demand for electrical steel is mainly attributed since the growth of economies across the globe, which is directly linked to the growth of the manufacturing sector. In addition, the growing industrialization in developed & developing economies is also expected to further drive the market for electrical steel.

“In terms of both value and volume, transformers is projected to be the fastest-growing segment from 2021 to 2026, for electrical steel.”

Transformers is projected to be the fastest-growing segment in the electrical steel market. The growth of this segment is mainly attributed to the high demand for electrical steel as it is used in power generation, transmission, and distribution industries. Electrical steel is used in electrical transformer cores and other electrical devices owing to the low hysteresis loss, high permeability, and high resistance it offers. It is used to make iron cores of motors. These cores concentrate the magnetic field and make the electromagnet stronger. Electrical steel is also used in the manufacturing of cores of inductors that are used extensively with capacitors and resistors to create filters for analog circuits and in signal processing.

“In terms of both value and volume, the APAC electrical steel market is projected to grow at the highest CAGR during the forecast period.”

In terms of value and volume, the APAC region is projected to grow at the highest CAGR from 2020 to 2026. Emerging economies in APAC are expected to experience significant demand for electrical steel as a result of rapid economic development and urbanization. The growth of the electrical steel market in this region is attributed by the flourishing automotive and energy industry.

In-depth interviews were conducted with Chief Executive Officers (CEOs), marketing directors, other innovation and technology directors, and executives from various key organizations operating in the electrical steel market.
By Company Type: Tier 1: 35%, Tier 2: 40%, and Tier 3: 25%
By Designation: C-level: 40%, D-level: 35%, and Others: 25%
By Region: North America: 20%, Europe: 35%, APAC: 25%, Middle East & Africa: 15%, and South America: 5%

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.

Research Coverage

The market study covers the electrical steel market across various segments. It aims at estimating the market size and the growth potential of this market across different segments based on type, end use industry, application and region. The study also includes an in-depth competitive analysis of key players in the market, along with their company profiles, key observations related to their products and business offerings, recent developments undertaken by them, and key growth strategies adopted by them to enhance their position in the electrical steel market.

Key Benefits of Buying the Report

The report is projected to help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers of the overall electrical steel market and its segments and sub-segments. This report is projected to help stakeholders understand the competitive landscape of the market and gain insights to improve the position of their businesses and plan suitable go-to-market strategies. The report also aims at helping stakeholders understand the pulse of the market and provides them with information on the key market drivers, challenges, and opportunities.