Gaining traction from flourishing automotive industry and governmental emphasis on providing electricity across rural areas will ensure consistent growth in the electrical steel market, according to a recently published research report from IndustryARC. According to a recently published report by IndustryARC titled “Electrical Steel Market: By Grade (Non-Grain-Oriented Electrical Steel & Grain-Oriented Electrical Steel); By Application (Transformers, Motors, Inductors, Generators & Others) & Geography - Forecast (2019-2025),” the global electrical steel market size was around $22.245 billion in 2018. Moreover, it is estimated to grow with a CAGR of 6.6% during the forecast period of 2019 to 2025.
Electrical steel is an iron alloy used to produce magnetic properties such as low core loss, high permeability, and small hysteresis area. Electrical steel is used in transformers, stators, and rotors for electric motors. Electrical steel can contain up to 6.5% of silicon that helps to increase the resistivity of the iron. Manganese and aluminum can be added into iron alloy up to 0.5%.
India is known as one of the world’s largest producer of crude steel. The country’s crude steel capacity was evaluated to be around 126 million tonnes with a production of 97.4 million tonnes in 2017. National Mineral Development Corporation announced setting up 3 million tonnes per annum steel mill in Karnataka, India. The estimated investment for steel mill was $2.8 billion. Continuous modernization, up-gradation, and investment for iron ore are planned to produce 300 million tonnes steel by 2030, a part of which is going to be electrical steel. This will significantly cause a stir in the India electrical steel market.
Browse through 152 slides and an in-depth TOC “Electrical Steel Market (2019 - 2025)”
Global Electrical Steel Market: Leading Segments
Recent research by the analyst of IndustryARC projects that APAC dominated the demand with a regional share of more than 39% in 2018. Furthermore, the transformer is the leading application segment with a CAGR of 6.8% during the forecast period of 2019 to 2025. Make in India initiative by the Indian government is raising the demand for steel and other metals which is directly fueling the production of steel in India. Additionally, Indian Government has planned Special Purpose Vehicles (SPVs) with four iron ore-rich states such as Karnataka, Jharkhand, Orissa, and Chhattisgarh to set up steel plants having a capacity between 3 to 6 MTPA that is growing the electrical steel market size and share in the APAC region. The development of China’s industrial sector will impressively increase energy demand. China industrialization heavily depends upon the iron and steel industry that will be going to flourish the electrical steel market.
Global Electrical Steel Market Trends
- Electrical steel is primarily used for the lamination process in electrical components, and hence, it is also known as laminate steel or silicon steel. This application drives market growth.
- The increased shift towards sustainable energy systems is a recent trend in industries. High-grade electrical steel with improved magnetic properties for an electric/ hybrid vehicle is anticipated to fuel the electrical steel market.
- The government enacted regulations for the usage of transformers that help to prevent the loss of energy and instill low emission of carbon dioxide is estimated to drive the demand for enhanced and efficient electrical steel worldwide.
- Due to enlargement in the construction and automobiles industries and a rise in export of electrical signal from developing counties, APAC electrical steel market is flourishing.
- Electrical steels are used for various applications including motor, generator, and transformer. The insulated coating on electrical steel helps to improve the performance of the material with reduced power loss, corrosion resistance, welding, and punching. Such properties are widely accepted by different manufacturers that are enhancing the production rate of electrical steel in the market.
- Grain-oriented electrical steel with high performance and permeability is used in association with electronic switching devices which also drives the electrical steel market growth.
- According to the Department of Energy (DOE), the development of increased resistivity and cost-effective soft materials can reduce core losses in a generator and electric motors by 37%. These efficiency improvements can be beneficial for energy savings of over 2,100-gigawatt hours (GWh) per year as well as energy saving in the non-industrial motors of 9,700 GWh with an energy saving of 0.44% of total United States electricity consumption.
Global Electrical Steel Market: Competitive Landscape
Some of the key companies identified in the report that is currently holding majority shares in the global electrical steel market are Nippon Steel & Sumitomo Metal Corporation Group, Shandong Iron and Steel Group Co Ltd, JFE Steel Corporation, SAIL, Shagang Group Inc., ArcelorMittal, Ansteel Group Corporation, and Baosteel Group.
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