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Electrical Steel Market Sales to Capture US$ 55.1 Billion by 2032


Electrical Steel Market Sales to Capture US$ 55.1 Billion by 2032

The global electrical steel market is valued at US$ 25.9 billion in 2022 and further expand at a CAGR of 8.5% to reach US$ 55.1 billion by the end of 2032. Sales of electrical steel accounted for nearly 12.3% of the global specialty steel market at the end of 2021. Industrial growth plays a crucial part in market’s growth over the forecast period.

It is a soft magnetic material with enhanced electric properties having multivariate usage across small relays, electric motors, and generator devices. Electric steel is also referred to as transformer steel, lamination, and silicon steel. It is dominantly used in electrical and power distribution systems.

Eminent players includes Novolipetsk Steel, Voestalpine Stahl GmbH, POSCO, Nippon Steel, Sumitomo Metal Corporation, ThyssenKrupp AG, JFE Steel Corporation, among others.

This material is having high permeability which is increasing capacity to support magnetic applications. The higher electrical resistivity and decreased loss of hysteresis are other qualities for preference of electric steel.

Get Crucial Business Analysis (PDF):

Why Germany has High Demand for the Electrical Steel?

Europe led by Germany has a high demand for the electrical steel market as increased demand for electric vehicles. Germany has a deeply rooted and evolving market for electric vehicles, and data centers also increase the demand for the market. As for the production of electric vehicle components and motors, electrical steel is preferred due to its specific properties.

Further, the data centers require high connectivity coupled with numerous transformers for enhanced operations, thus, resulting in the high adoption of product to meet the specific requirements.

Key Takeaways from Market Study

  • The global electrical steel market is valued at US$ 25.9 billion in 2022 and is estimated to grow at a CAGR of 8.5%.
  • Electrical steel market to reach US$ 55.1 billion by the end of 2032
  • East Asia tops the global market accounting for 44.5% market share.
  • During 2017-2021, sales of the market increased at 5.9% CAGR.
  • Motors accounts for the highest CAGR growth of 7.0%, over the projection period.
  • Energy sub-segment dominates with 40.7% electrical steel market share in 2022
  • Motors account for the highest CAGR growth of 7.0%, over the projection period

Recent Market Developments

Major key electrical steel market players are focusing on safe and environment-friendly materials. The companies are focusing on developing products that comply with the safety norms of local markets. With effective research, development, and innovation, global manufacturers are working on the development of new products.

Further, the companies focus on cost reduction, improvement of existing products, process improvement, development of new manufacturing methods, quality assurance, and improvement of existing manufacturing methods to gain high-profit margins.

  • In April 2022, POSCO started the construction of an electrical steel production facility. The steel manufacturer in South Korea plans to invest US$ 805 million in the construction of the plant. The facility will have an annual production capacity of 300,000 tons of NOES.
  • In May 2021, JSW Steel and JFE Steel Corporation inked a memorandum of understanding (MoU) to carry out a feasibility study for the establishment of a GOES sheet manufacturing and sales joint-venture company in India.
turkey earthquake steel

Turkey’s Earthquakes Paralyze Third of Steel Output Capacity

Large steel mills in southern Turkey are expected to remain shut for weeks, with production lines idle and workers trying to cope with the impact of the massive twin earthquakes that shook the region.

About a dozen facilities in Iskenderun and Osmaniye — close to the epicenter of the Feb. 6 temblors — account for a third of national steel output, according to Veysel Yayan, secretary-general of the Turkish Steel Producers Association.

Although plants in the area suffered no physical damage, many workers or their family members had died, while survivors struggle to get by in makeshift conditions, he  said.

“All steelmakers in the area are closed,” he said by phone on Monday. “The plants may remain shut at least until the end of this month, or possibly until mid-March.”

Turkey is a top 10 global producer and exporter of steel, and the industry is among the first to provide an assessment of the toll from the deadliest temblors to hit the country in almost a century.

Although their impact on regional activity isn’t yet fully clear, Bloomberg Economics has estimated that addressing the aftermath may require the equivalent of 5.5% of gross domestic product in public spending.

A business group has put the economic cost of the earthquakes at over $84 billion — including damage to buildings and loss in national income. Declines in the labor force would cost another $2.9 billion, the Turkish Enterprise and Business Confederation said in a Feb. 10 report.

‘Need Calibrating’

The steel mills are facing another disruption after having to dispatch machinery and equipment to help out the rescue effort. “Cranes and some other key equipment will need calibrating” after the work ends, Yayan said.

Iskenderun Demir ve Celik AS, a unit of Turkey’s biggest steel group Erdemir, Tosyali Group’s Toscelik, Tosyali Demir Celik AS and Tosyali Toyo Celik AS, a joint venture with Japan’s Toyo Kohan Co. Ltd., MMK Metalurji, a unit of Russian Magnitogorsk Iron and Steel Works, are among companies that operate in the region.

Steelmakers elsewhere in Turkey will have to prioritize domestic demand over exports, according to Yayan. The country’s annual steel production capacity, at 55 million tons a year, is more than sufficient to cover local demand, he said.