The electrical steel market is expected to register year-on-year growth at 5.3% in 2021, with the overall valuation forecast to reach US$ 37.5 Bn. A Future Market Insights (FMI) analysis estimates electrical steel sales to increase at 6.5% CAGR between 2021 and 2031. According to the study, the overall electrical steel market is expected to reach US$ 70.5 Bn by 2031.
While non-grain oriented electrical steel is expected to remain dominant, grain oriented electrical steel demand will surge at a higher pace, exhibiting growth at 5.7% CAGR in 2021.
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According to the annual market analysis conducted by Future Market Insights, expansion of the energy and automobile industries has led to heightened demand for electrical steel products. Rapid technological advancements in production technologies are also projected to complement market growth over the coming years.
In spite of the recessionary effect of the COVID-19 pandemic in 2020, the overall steel industry in terms of production and supply has largely remained unaffected. With the continual demand from the energy industry, growth of electrical steel in the coming decade is expected to reflect an upward trajectory for the foreseeable future.
2016-2020 Electrical Steel Market Outlook Compared to 2021-2031 Forecast
Revenue generated in the energy segment of the electrical steel market grew at a strong pace in 2021. Demand increased by 6% between 2020 and 2021, enabling electrical steel markets to register year-over-year growth of over 5% in 2021, as per FMI analysis.
Growth can be attributed to the increase of power generation and transmission projects across the globe. The demand for electrical steel has increased consistently and surprisingly for diverse applications across end-use industries.
Key factors fuelling the demand for electrical steel include initiatives undertaken for enhancing power distribution centers in developing nations. Leading steel manufacturing companies are focusing on expanding their production and distribution capacities in various countries. To improve their industrial research activities, some companies are collaborating directly with regional manufacturers.
The automobile segment is among the leading end-use industries influencing demand for electrical steel. In addition, the expansion of the global electric vehicle market is expected to fuel the demand for effective EV materials.
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Companies operating in the electrical steel market are aiming for strategic collaborations and partnerships with other manufacturers to expand their product manufacturing capacity to address the growing demand of an expanding consumer pool.
- For instance, In May 2021, JFE Steel Corporation signed a memorandum of understanding to conduct a feasibility study with JSW Steel Limited (JSW) to establish a grain oriented electrical steel sheet manufacturing and sales joint-venture company in india.
Manufacturers are also focusing on the expansion of manufacturing facilities globally to maintain their global presence.
- For instance, In November 2020, Nippon Steel announced plans to invest nearly US $1 billion to expand its electrical steel sheet facilities at two plants in Japan. This series of measures to improve capacity and quality will take full effect during the first half of 2023, with manufacturing capacity expected to increase by approximately 40%.
- In March 2021, ArcelorMittal invested €13 million in its plant in Saint Chély d’Apcher, France, which specializes in iCARe electrical steels for the automotive sector. The investment means the plant will be able to produce cutting-edge non grain-oriented (NO) iCARe electrical steel grades, through production upgrades to meet the requirements of the electro mobility market.
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Key Players :
- Novolipetsk Steel
- Voestalpine Stahl GmbH
- 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.
Electrical Steel Market by Category
By Product Type:
- Grain-Oriented Electrical Steel
- Non-Grain Oriented Electrical Steel
- 1hp – 100hp
- 101hp – 200hp
- 201hp – 500hp
- 501hp – 1000hp
- Above 1000hp
By End Use:
- Household Appliance
- Others (Construction, Fabrication)
- North America
- Latin America
- East Asia
- South Asia & Pacific
- Middle East and Africa (MEA)