Electrical Steel Market

Electrical Steel Market Outlook for 2023 to 2033

The Electrical Steel Market size is currently valued at USD 42,135.7 million in 2023, and this valuation is expected to surpass USD 44,326.7 million by 2033, indicating an upbeat sales outlook. The market's growth is set to gain significant traction, driven by a projected CAGR of 6.5% from 2023 to 2033.

Attributes	Details
Electrical Steel Market Value for 2023	USD 42,135.70 million
Electrical Steel Market Value for 2033	USD 44,326.7 million
Electrical Steel Market Forecast CAGR for 2023 to 2033	6.5%

The increasing adoption of electrical steel in electric vehicles and hybrid cars is contributing significantly to the industry's sales, fueled by the growing focus on sustainable transportation solutions and stricter emission regulations.

Sales Analysis in the Electrical Steel

• The surge in infrastructure development activities, such as the construction of power grids, electrical transformers, and distribution networks, is driving the demand for electrical steel.
• The expanding deployment of renewable energy sources, including wind and solar power generation, is creating substantial demand for electrical steel in the production of efficient electrical equipment.
• The advancements in power transmission technologies, including the development of high-efficiency electrical motors and generators, are fostering the sales of electrical steel.
• The proliferation of consumer electronic devices, such as smartphones, laptops, and household appliances, is driving the need for electrical steel components, contributing to the overall sales growth of the electrical steel market.

Electrical Steel Market Historical Analysis

The historical CAGR of 6.1% signifies the average rate of expansion experienced by the electrical steel market from 2018 to 2022. On the other hand, the forecasted CAGR of 6.5% projects the expected rise in sales of electrical steel in the forecast period. The analysis represents the steady upward trend and robust growth potential of the electrical steel market over the years.

Historical CAGR	6.1%
Forecast CAGR	6.5%

The historical compound annual growth rate (CAGR) of 6.1% from 2018 to 2022 indicates the steady but moderate expansion of the electrical steel market during this period.

• Growing adoption of electrical steel in the construction industry for power transmission and distribution
• Increasing utilization of electrical steel in the manufacturing of transformers and motors
• Rising demand for electrical steel from the automotive sector for the production of electric vehicles
• Surging usage of electrical steel in the renewable energy sector for wind and hydropower projects
• Growing applications of electrical steel in the telecommunications industry for power generation and distribution

Electrical Steel Industry Future Analysis

The forecasted CAGR of 6.5% from 2023 to 2033 signifies an accelerated growth trajectory for the electrical steel market.

• Increasing demand for electrical steel from the renewable energy sector
• Growing sales of electrical steel due to investments in electrical infrastructure
• Rising demand for electrical steel driven by the adoption of electric vehicles
• Expansion of wind energy projects leading to increased demand for electrical steel
• Surge in industrial automation and robotics
• Expansion of the manufacturing sector in developing economies boosts the demand for electrical steel

Key Trends Influencing the Electrical Steel Market

Development of Amorphous and Nanocrystalline Alloys

The emergence of innovative amorphous and nanocrystalline alloys with superior magnetic properties is reshaping the electrical steel market. These advanced materials offer enhanced efficiency and reduced energy loss, catering to the demand for high-performance electrical components in various applications.

Integration of Internet of Things (IoT) in Electrical Steel Products

The integration of IoT technology in electrical steel products is enabling real-time monitoring and predictive maintenance, optimizing the performance and lifespan of electrical equipment. This trend is revolutionizing the market by enhancing operational efficiency and reducing downtime.

Focus on Sustainable Production Techniques

With the increasing focus on sustainability, there is a growing preference for eco-friendly and energy-efficient manufacturing processes in the production of electrical steel. Manufacturers are adopting green technologies and recycling methods, aligning with global environmental regulations and consumer preferences.

Rise of Electric Grid Modernization Programs

Implementing electric grid modernization programs in various countries is driving the demand for high-quality electrical steel to develop smart grids. This facilitates the efficient transmission and distribution of electricity, supporting the integration of renewable energy sources and ensuring reliable power supply.

• Electrification of Industrial Processes

The electrification of industrial processes across diverse sectors, including manufacturing and construction, fuels the demand for electrical steel to produce efficient electric motors, transformers, and other equipment. This trend contributes to increased productivity, reduced operational costs, and improved environmental sustainability.

Increasing Focus on Electromobility Infrastructure

The rapid expansion of electromobility infrastructure, including charging stations and grid networks, amplifies the need for electrical steel to develop robust power distribution systems. This trend is essential for accommodating the growing adoption of electric vehicles and ensuring seamless energy transfer within the infrastructure

Category-wise Insights

The section analyzes the dominating segments in the electrical steel industry. Grain-oriented electrical steel secures a significant market share of 51.7% in 2023. Also, motors emerged as the top application type, capturing a substantial market share of 45.6%. The insights delve into the factors influencing the prominence of these segments, shedding light on their growth drivers, evolving opportunities, and current trends in the industry.

Grain-oriented Electrical Steel Dominates the Industry with a 51.7% Share in 2023

Attributes	Details
Top Product Type	Grain-oriented Electrical Steel
Market Share in 2023	51.7%

Grain-oriented electrical steel maintains a commanding market share of 51.7% in 2023, indicating its widespread usage in manufacturing high-efficiency transformers. Several key growth factors drive the dominance of this product category:

• Growing demand for energy-efficient electrical transformers in power distribution networks.
• Technological advancements enhance the magnetic properties of grain-oriented electrical steel, ensuring optimal energy transmission.
• Increased investments in renewable energy infrastructure, bolstering the need for reliable transformers for power conversion and distribution.
• Rising government initiatives emphasize the modernization of power grids and the expansion of the electricity sector.
• Escalating emphasis on sustainability and reduced energy loss, driving the adoption of high-quality grain-oriented electrical steel for enhanced performance and durability.

Demand for Electrical Steel in Motors Manufacture to Stay High with a Share of 45.6% in 2023

Attributes	Details
Top Application Type	Motors
Market Share in 2023	45.6%

Motors represent the top application type, with a market share of 45.6% in 2023. Several factors drive this predominance.

• Rapid industrialization and automation fuel the demand for electric motors across various manufacturing and production units.
• Advancements in motor technology focus on improving operational efficiency and reducing energy consumption in industrial processes.
• The growing integration of electric vehicles in the automotive sector propels the demand for efficient, high-performance electric motors.
• Rising initiatives toward sustainable and eco-friendly manufacturing practices, emphasizing energy-efficient motors to minimize environmental impact.
• Increasing investments in the development of smart cities and infrastructure projects augment the requirement for advanced motor solutions for diverse applications.

Country-wise Insights

The section delves into the growth trends of the electrical steel market in key regions, including North America, Europe, and Asia Pacific. Each region showcases distinct growth rates, with specific countries dominating the market and contributing significantly to the expansion. Notably, India exhibits an impressive CAGR of 8.20%, spearheading market development in the Asia Pacific. In Europe, France demonstrates a remarkable CAGR of 7.0% through 2033.

North America Electrical Steel Market

Countries	CAGR through 2033
United States	5.40%
Canada	6.10%

United States Electrical Steel Industry

With a projected CAGR of 5.40% through 2033, the United States electrical steel market maintains a resilient position, bolstered by:

• The growing integration of electrical steel in electric vehicle production and expanding sustainable mobility initiatives.
• Increasing demand for high-efficiency electrical steel in power generation and distribution systems.
• Advancements in electrical steel manufacturing technologies, enhancing product quality and performance.
• Rising investments in smart grid infrastructure and renewable energy projects are driving demand for specialized electrical steel products.

Electrical Steel Industry in Canada

Displaying a steady CAGR of 6.10% through 2033, the electrical steel market in Canada is likely to witness rise in sales, supported by:

• Expanding applications of electrical steel in the construction sector, particularly for energy-efficient building systems and infrastructure projects.
• Growing focus on enhancing energy sustainability and improving power transmission and distribution systems across the country.
• Increasing adoption of electrical steel in the manufacturing of industrial machinery and equipment for improved operational efficiency.
• Supportive government policies promoting the use of electrical steel in renewable energy projects and sustainable development initiatives.

Europe Electrical Steel Market

Country	CAGR through 2033
Germany	6.00%
Italy	5.10%
France	7.00%
United Kingdom	6.50%
Spain	5.60%

Electrical Steel Industry in Germany

With a robust CAGR of 6.00% through 2033, the German electrical steel market sustains its growth momentum owing to:

• Increasing demand for electrical steel in the German automotive sector, driven by the rapid shift toward electric vehicles and the production of energy-efficient cars.
• Growing emphasis on renewable energy sources in Germany led to the development of efficient power transmission systems and the integration of electrical steel in the construction of advanced wind turbines across the country.
• Favorable government regulations promote energy-efficient building practices, resulting in the rising integration of electrical steel in sustainable construction materials for eco-friendly architectural designs and infrastructure development.
• Collaborative initiatives between leading German electrical steel manufacturers and international technology providers.

Electrical Steel Industry in Italy

Demonstrating a steady CAGR of 5.10% through 2033, the Italian electrical steel market sustains its upward trajectory driven by:

• Growing adoption of electrical steel in the Italian industrial sector, particularly in producing energy-efficient machinery, motors, and industrial equipment.
• Government-led initiatives promoting sustainable building materials and green construction practices, resulting in the integration of electrical steel in energy-efficient building designs and the development of eco-friendly urban infrastructure projects.
• Advancements in electrical steel coating technologies ensure improved product durability, corrosion resistance, and enhanced performance in challenging operating environments, addressing the evolving needs of the Italian electrical steel market.
• Collaborative research and development projects between prominent Italian electrical steel manufacturers and leading global research institutions.

Electrical Steel Industry in France

With a notable CAGR of 7.00% through 2033, the electrical steel market in France continues its robust expansion, supported by:

• Increasing adoption of electrical steel in the energy sector, particularly in the development of efficient power transmission and distribution systems.
• Growing demand for electrical steel in the automotive industry led to the production of energy-efficient electric vehicles, hybrid automobiles, and electric motors.
• Government initiatives aimed at promoting energy-efficient manufacturing practices, resulting in the integration of electrical steel in the production of advanced industrial machinery, appliances, and commercial equipment.
• Research and development efforts focused on enhancing electrical steel's magnetic properties and electrical conductivity.

Electrical Steel Industry in the United Kingdom

With a robust CAGR of 6.50% through 2033, the electrical steel market in the United Kingdom maintains its upward growth trajectory, fueled by:

• Accelerated investments in renewable energy infrastructure, leading to an increased demand for electrical steel in the construction of efficient wind turbines, solar power systems, and sustainable energy generation projects across the United Kingdom.
• Growing emphasis on energy conservation and the development of sustainable power transmission technologies.
• Rising adoption of electrical steel in the production of energy-efficient electric motors, generators, and electrical components.
• Advancements in electrical steel manufacturing processes lead to the production of high-quality, low-loss electrical steel products with superior magnetic properties.

Electrical Steel Industry in Spain

With a stable CAGR of 5.60% through 2033, the Spanish electrical steel market sustains its growth trajectory due to:

• Increased adoption of electrical steel in the Spanish construction sector, leading to the development of energy-efficient building materials, infrastructure components, and sustainable urban development projects.
• Growing investments in renewable energy infrastructure, driving the demand for electrical steel in the construction of efficient wind energy systems, solar power plants, and sustainable energy generation projects across Spain.
• Government-led initiatives promoting the integration of energy-efficient technologies in manufacturing practices.
• Research and development efforts focused on improving electrical steel products' corrosion resistance, mechanical properties, and thermal stability.

Asia Pacific Electrical Steel Market

Countries	CAGR through 2033
China	7.20%
India	8.20%
Japan	6.30%
ASEAN	7.40%
Australia and New Zealand	6.20%

Electrical Steel Industry in China

With a projected CAGR of 7.20%, the demand for electrical steel is on the rise in renewable energy and electric vehicles.

• Significant investments in infrastructure and smart city developments are driving the demand for electrical steel in China.
• Ongoing advancements in manufacturing processes are leading to the production of high-quality electrical steel.
• Collaborative efforts among industry players are focused on innovation and product diversification to meet growing demands.
• Manufacturers emphasize producing high-quality, low-loss electrical steel products to cater to evolving industry needs.

Electrical Steel Industry in India

The adoption of electrical steel in India is expected to rise at a CAGR of 8.20% through 2033 due to gaining momentum in sustainable energy and automotive sectors.

• Government initiatives promoting energy-efficient manufacturing are fueling the demand for electrical steel in India.
• The integration of electrical steel in appliances and industrial equipment manufacturing is driving market growth.
• Technological advancements focusing on improving magnetic properties are contributing to the expansion of the market.
• Partnerships among key players are fostering innovation and technological excellence in the Indian electrical steel market.

Electrical Steel Industry in Japan

With a projected CAGR of 6.30%, electrical steel finds applications in renewable energy and automotive sectors in Japan.

• Government initiatives promoting sustainable manufacturing and construction are propelling the demand for electrical steel.
• Ongoing efforts to enhance magnetic properties and electrical conductivity are driving market growth in Japan.
• The integration of electrical steel in energy transmission networks and automotive manufacturing is contributing to market expansion.

Electrical Steel Industry in ASEAN

The demand for electrical steel is projected to rise at a CAGR of 7.40% due to the growing adoption of renewable energy and energy-efficient appliances in ASEAN countries.

• The integration of electrical steel in sustainable urban development and infrastructure projects is driving market growth.
• Initiatives aimed at energy-efficient building and smart city projects are fueling the demand for electrical steel.
• Advances in manufacturing processes focused on producing high-performance electrical steel contribute to ASEAN region's market expansion.

Electrical Steel Industry in Australia and New Zealand

With an expected CAGR of 6.20%, investments in renewable energy infrastructure and the automotive sector are driving the demand for electrical steel in Australia and New Zealand.

• The integration of electrical steel in sustainable building and construction projects is contributing to market growth in ANZ.
• Focus on advanced coating technologies for enhanced durability is driving the demand for electrical steel in ANZ.
• Electrical steel finds applications in wind energy systems and the production of energy-efficient vehicles in ANZ.
• Collaborative efforts among industry participants are focused on innovation and enhancing market competitiveness in the ANZ electrical steel industry.

Companies Shaping the Future Outlook of the Electrical Steel Industry

The electrical steel industry is characterized by intense competition among prominent players striving to establish their dominance in the market. The exploration of novel technologies is a promising avenue for innovation, empowering newcomers to develop state-of-the-art electrical steel products and gain a competitive advantage.

Venturing into emerging markets such as China and India, witnessing substantial growth in electrical steel demand, can be a strategic move for new entrants to capitalize on the expanding market opportunities. Niche markets, especially those specializing in high-performance electrical steel products, offer a promising arena for new entrants to carve a distinctive market space, enabling them to navigate through competition from established players.

The burgeoning competition from alternative materials like aluminum and plastics is exerting pressure on the demand for electrical steel. Additionally, stringent environmental regulations further complicate the operational landscape, demanding significant investments to ensure compliance and sustainability.

Recent Developments in the Electrical Steel Industry:

• ArcelorMittal announces plans to invest €1 billion in its electrical steel production facilities in Europe. The investment will be used to increase production capacity and improve the efficiency and environmental performance of the facilities.
• Nippon Steel & Sumitomo Metal Corporation developed a new type of electrical steel that is 10% more energy-efficient than conventional electrical steel. The new steel is expected to be used in a variety of applications, including transformers, motors, and generators.
• JFE Steel announces plans to build a new electrical steel production facility in Vietnam. The facility is expected to start operations in 2025 and will have a production capacity of 1 million tons per year.
• POSCO developed a new type of electrical steel 20% lighter than conventional. The new steel is expected to be used in various applications, including electric vehicles and wind turbines.
• ThyssenKrupp announces plans to invest €500 million in its electrical steel production facilities in Germany. The investment will be used to increase production capacity and improve the quality of the steel.

Key Companies in the Market

• Novolipetsk Steel
• Voestalpine Stahl GmbH
• POSCO
• Nippon Steel & Sumitomo Metal Corporation
• ThyssenKrupp AG
• JFE Steel Corporation
• Cogent Power
• ArcelorMittal SA
• Aperam SA
• Baosteel Group
• AK Steel Holding Corp
• Allegheny Technologies, Inc.
• Phoenix Mecano AG
• Leicong Industrial Co., Ltd.
• Nicore Electrical Manufactory Co., LTD.
• Steel Authority of India Limited

Key Segments

By Product Type:

• Grain-oriented Electrical Steel
• Non-grain Oriented Electrical Steel
  • Fully-processed
  • Semi-processed

By Application:

• Inductors
• Motors
  • 1 HP to 100 HP
  • 101 HP to 200 HP
  • 201 HP to 500 HP
  • 501 HP to 1000 HP
  • Above 1000 HP
• Transformers
  • Transmission
  • Portable
  • Distribution

By End Use:

• Automobile
• Manufacturing
• Energy
• Household Appliance
• Others (Construction, Fabrication)

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• The Middle East and Africa

Frequently Asked Questions

What is the Market Potential for Electrical Steel?

The electrical steel market is projected to expand at a CAGR of 6.5% between 2023 and 2033.

Which End-use Segment Dominates the Electrical Steel Market?

The manufacturing segment dominates the electrical steel market.

Which Country Dominates the Electrical Steel Industry?

India is likely to dominate the electrical steel industry through 2033.

What is the Electrical Steel Market Growth Outlook for 2033?

The electrical steel market is anticipated to surpass US$ 44,326.7 million by 2033.

What is Driving the Demand for Electrical Steel?

The growing emphasis on energy efficiency and the expansion of the power generation sector.

How are Sales of Grain-oriented Electrical Steel Performing in the Market?

Demand for grain-oriented electrical steel in energy-efficient transformers and power generators drives the sales.