Electrical Steel Market: Transformer Segment Dominated And This Trend Is Expected To Continue During The Forecast Period

 Electrical Steel Industry Overview

The global electrical steel market size is expected to reach USD 34.3 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 4.9% from 2021 to 2028. The growing need for power generation has augmented the demand for transformers, generators, and other such products that require electrical steel to deliver enhanced performance.

Electrical steel is an iron alloy that contains varying amounts of silicon. Based on its composition and application, it is also referred to as lamination steel, silicon steel, transformer steel, and relay steel. Its phenomenal magnetic properties make it of vital use in rotating and static machines.

Based on product, the market is segmented into grain-oriented and non-grain-oriented. The non-grain-oriented segment is anticipated to maintain its dominance over the forecast period owing to its widespread applications in all stages of the energy value chain from generators to appliances. The grain-oriented electrical steel mainly finds application in transformers. It is expected to register faster growth across the forecast period on account of growing production capacity for transformers.

Based on application, the transformer segment dominated the market in 2020 and this trend is expected to continue during the forecast period. On account of the growing expansion of electricity grids worldwide and rising government focus towards rural electrification, the demand for transformers has accelerated. For example, in February 2021, Sylvan Technologies Limited began manufacturing power transformers. This production will help reduce Bangladesh’s dependence on imports and play a vital role in ensuring 100% electrification in the country.


Based on region, Asia Pacific held the largest revenue share of the market in 2020 and is anticipated to maintain its dominance across the forecast period. Growing electricity generation and rising production of electric vehicles in the region have augmented the need for products including transformers, generators, and motors. The increase in manufacturing of these products in turn is anticipated to boost the consumption of electrical steel over the forecast period.

Considering the huge potential growth in the electric vehicles market, companies from different industries are expressing interest in electric car manufacturing. For instance, in March 2021, Xiaomi announced that it plans to produce electric vehicles in partnership with Great Wall Motor. The company expects to launch its electric vehicles around 2023. 

Growth in the end-use industries has made the market highly competitive. The market players are engaged in developing new grades, increasing their production, and expanding their reach to cater to the growing demand for the product. For instance, in March 2021, ArcelorMittal announced to invest a sum of EUR 13 million (~USD 15.9 million) in its Saint Chély d’Apcher plant in France, which manufactures iCARe electrical steel for the automotive sector.


Electrical Steel Market Segmentation

Grand View Research has segmented the global electrical steel market on the basis of product, application, and region:

Based on the Product Insights, the market is segmented into Grain oriented electrical steel, and Non-grain oriented electrical steel.

  • In terms of revenue, the Non-grain Oriented Electrical Steel (NGOES) dominated the market for electrical steel and accounted for the largest revenue share of more than 70.0% in 2020. NGOES finds application in the entire energy value chain from generators to electric motors and appliances. It is available in numerous grades depending upon properties, composition, and applications.

  • Grain-oriented Electrical Steel (GOES) mainly finds application in transformers and charging infrastructure of EVs. It has high magnetic induction and stacking factor enabling less usage of the material in the winding of the core. Its magnetic properties reduce core losses and provide economical and efficient solutions for transformers.


Based on the Application Insights, the market is segmented into Transformer, Motor, Inductor, and Other.

  • In 2020, the transformer segment held the largest revenue share of more than 52.0% of the overall market. Increasing complexity in electrical grids, penetration of EVs, rise in digital loads, and growth in decentralized generation have augmented the need for transformers.

 

  • The motor segment is anticipated to register the fastest growth rate across the forecast period. The high frequency, high permeability, and excellent magnetic properties of electrical steel make it preferable in electric motors. Increasing emphasis on EV production is propelling the need for electric motors, which is eventually expected to benefit market growth.

 

Electrical Steel Regional Outlook

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa (MEA)

 

Key Companies & Market Share Insights

The market for electrical steel is highly competitive in nature owing to the presence of several major players. The key players have a competitive edge such as advanced technology, significant research activities, and a strong foothold in regional markets. The COVID-19 pandemic had major repercussions on supply-chain activities and sales, which even caused several manufacturers to face losses. To compete in the market and overcome the losses, the market players of the industry are adopting numerous strategies, such as upgrading plants to cater high-quality products to customers. For instance, in April 2020, Shougang Qian’an Electric Vehicle Electrical Steel Co., Ltd. ordered a New 6-stand Hyper Universal Crown Control mill for the production of high-grade electrical steels from Primetals Technologies. Some of the prominent players in the electrical steel market include:

  • ArcelorMittal
  • Cleveland-Cliffs Corporation
  • JFE Steel Corporation
  • Nippon Steel Corporation
  • POSCO
  • Tata Steel
  • thyssenkrupp AG


Order a free sample PDF of the Electrical Steel Market Intelligence Study, published by Grand View Research.

 

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

 

Contact:

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Grand View Research, Inc.

Phone: 1-415-349-0058

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