Non-Grain Oriented Electrical Steel Market Forecasts to 2028 – Global Analysis By Type (Semi Processed and Fully Processed), Thickness (0.35 mm, 0.5 mm, 0.65 mm and Other Thicknesses), Application (Automotive, Aviation, Filters, Home Appliances and Other

Non-Grain Oriented Electrical Steel Market Forecasts to 2028 – Global Analysis By Type (Semi Processed and Fully Processed), Thickness (0.35 mm, 0.5 mm, 0.65 mm and Other Thicknesses), Application (Automotive, Aviation, Filters, Home Appliances and Other Applications) and By Geography

According to Stratistics MRC, the Global Non-Grain Oriented Electrical Steel Market is accounted for $17.5 billion in 2022 and is expected to reach $26.4 billion by 2028 growing at a CAGR of 7.1% during the forecast period. The fully processed steel, also referred to as non-grain oriented electrical steel, uses an iron-silicon alloy with varying silicon concentrations and the same magnetic properties in all directions of the sheet's plan. Due to its strong magnetic properties and ability to produce strong magnetic fields, it makes a great material for electrical energy transfer machinery. Non-grain-oriented electric steel is used to manufacture electrical equipments and electromechanical components.

According to the World Steel Association, there are over 3,500 different grades of steel, encompassing unique physical, chemical, and environmental properties.

Market Dynamics

Driver

Growing demand from several industries

Non-grain-oriented steel, which provides a stronger magnetic flux, high efficiency, and excellent punching workability, is a crucial magnetic and structural material. This qualifies it for use in the production of electrical instruments such as power generation motors, rotors, and appliances. As a result, there is a huge demand for electrical steel due to the ongoing demand for power generation motors and rotors. Additionally, non-oriented grain electrical steel is superior to grain-oriented steel in that it offers improved punching performance and serves as a lubricant during stamping, making it suitable for large rotating equipment like AC alternators and power generators.

Restraint

Application area restrictions

Not all electrical applications are suitable for non-grain-oriented electric steel. Its magnetic characteristics make it less suitable for devices requiring precise magnetic control or applications requiring high efficiency, low core losses, and excellent magnetic performance, such as power transformers operating at higher frequencies. In addition, hysteresis losses in non-grain-oriented electric steel are greater than in grain-oriented electric steel. This lowers the overall effectiveness of devices made with non-grain-oriented electric steel by increasing the amount of energy lost as heat during the magnetization and demagnetization cycles.

Opportunity

Use of electric steel in HEVs is propelling

The expansion of the market is mainly driven by rising global automobile manufacturing. Cars are constructed using a wide range of materials. The increase in the use of hybrid electric vehicles (HEVs) globally is one of the main factors driving the global non-grain-oriented electrical steel market. The two main uses of non-grain-oriented electric steel are in high-frequency transformers and fast electric motors. Traction motors for HEVs also use it. HEVs are a trend that is gaining traction in the automotive sector.

Threat

Higher manufacturing costs

When compared to grain-oriented electric steel, the manufacturing process for non-grain oriented electric steel entails more steps, including steps with a higher silicon content and more difficult annealing procedures. These extra steps may increase the cost of production, which could reduce the overall cost-effectiveness of using non-grain oriented electric steel in some applications and limit market growth.

Covid-19 Impact

The non-grain-oriented electrical steel market has been significantly impacted by the suspension of the steel industry as a result of limitations imposed by governments during the COVID-19 pandemic. The government also released new regulations for the factories affected by COVID-19. As a result, mining activities decreased which further disrupted the production of steel and had an effect on the end-use industries. The use of power generators was also reduced as a result of the limitations placed on business operations and the consequent decline in the demand for electrical power generation from commercial consumers. To further stop the spread of the virus, electrical steel producers decided to reduce production or temporarily shut down the manufacturing facilities.

The semi processed segment is expected to be the largest during the forecast period

Over the anticipated period, the semi-processed segment held the largest market share. The semi-processed type must be heat treated at the ideal temperature in order to achieve the desired microstructure. According to the steel's final use, this temperature may change. Manufacturers of electrical equipment are able to enhance the performance of electrical devices by modifying the final properties of electrical steel through heat treatment. Furthermore, the semi-processed type is also a preferred option for electrical device manufacturers who use it to create the stators and rotors of electric motors due to the high customization ability it offers.

The power generation segment is expected to have the highest CAGR during the forecast period

During the forecast period, the segment for power generation is expected to grow at the highest CAGR. In power transformers, small transformers, and distribution transformers, the product is primarily used in wound, punched sheets, and laminated forms. Due to high energy consumption, the demand for transformers is increasing, which is fueling the segment's expansion.

Region with largest share

Asia-Pacific is predicted to hold the largest market share during the projection period. With major contributors like China and India, the Asia-Pacific region is home to a number of developing economies. Infrastructure is expected to be more in demand as these nations continue to grow economically. This includes the equipment needed for the production, transmission, and distribution of electricity. All of these different kinds of electrical equipment used in the electrical power infrastructure rely heavily on non-grain-oriented electrical steel.

Region with highest CAGR

During the projection period, North America is expected to experience the highest growth rate. The demand for energy is high in the highly industrialized region of North America. The area's mature power generation and transmission infrastructure needs regular maintenance and improvement. Additionally, major industrial countries in the region pivot toward renewable energy, and the demand for non-grain-oriented electrical steel is anticipated to rise, creating new market growth opportunities.

Key players in the market

Some of the key players profiled in the Non-Grain Oriented Electrical Steel Market include AK Steel, Ansteel, Aperam S.A. , ArcelorMittal S.A. , Arnold Magnetic Technologie, Baosteel Group Corporation, Baowu, Benxi Steel Group Co., Ltd , CSC Steel Sdn. Bhd., Essar Steel, JFE Steel Corporation, Malaysia Steel Works Kl, Nippon Steel Corporation, Novolipetsk Steel, Nucor Corporation, Posco, Shougang Group, Steel Authority of India Limited, Tata Steel Ltd, Thyssen Krupp, United States Steel Corporation, Voestalpine AG and Yieh Corporation.

Key Developments

In April 2023, Nippon Steel Obtained EcoLeaf Environmental Product Declaration for Steel Sheet Pile Products, EcoLeaf is an EPD(*) certification system that uses the Life Cycle Assessment (LCA) methodology to show quantitative environmental information covering the entire life cycle of a product, from the raw material supply, transportation, manufacturing, assembly, use, waste processing and recycling. This allows our customers to assess the environmental impact throughout the life cycles of the steel sheet pile products

In April 2023, Tata Steel has signed a business cooperation agreement with MN Dastur & Company Pvt. Ltd. to compliment capabilities in delivering end to end services from exploration of mineral reserves to Bankable Feasibility studies and detailed project reports with support in the area of engineering and infrastructure. MN Dastur shall also work with Tata Steel to deliver integrated projects spanning various minerals and geographies.

In March 2022, ArcelorMittal S.A. invested USD 317.90 million to establish the production plant for electrical steel at the Mardyck site located in northern France. The purpose of the investment is to increase production capacity to maximize revenue.

Types Covered
• Semi Processed
• Fully Processed

Thicknesses Covered
• 0.35 mm
• 0.5 mm
• 0.65 mm
• Other Thicknesses

Applications Covered
• Automotive
• Aviation
• Filters
• Home Appliances
• Inductors
• Magnetic Bearings
• Motor
• Power generation
• Other Applications

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities,Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements