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.
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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.