According to a report published by Grand View Research, electrical steel is used to produce the laminated cores of the motors. Hence, the rising demand for motors in electric vehicles is expected to be the major factor boosting the growth of the market.
According to a report, “Electrical Steel Market Size, Share & Trends Analysis Report By Product (Grain Oriented, Non-Grain Oriented), By Application (Transformers), By Region, And Segment Forecasts, 2019 - 2025” published by Grand View Research, Inc., the global electrical steel market size is anticipated to reach USD 40.57 billion by 2025, expanding at a CAGR of 7.2% over the forecast period. The market is majorly driven by the growing demand for transformers in the energy industry on account of the high requirement for electricity in the industrial and commercial sectors across the globe. The increasing usage of electrical appliances in the residential and commercial sectors is expected to further propel the demand for transformers, thus, complimenting industry growth.
The demand for transformers is likely to increase owing to the increase in the utilization of energy sources due to rising consumption of electricity and other new projects such as electric vehicle charging stations. Electrical steel is used to construct transformer cores owing to its properties such as electrical resistivity, strength, and hardness.
Favorable regulatory policies play a major role in market growth. Regulatory bodies across the globe are largely focusing on augmenting energy efficiency and reducing losses in transformers. Increasing focus on energy conservation and reduction in carbon dioxide emission is anticipated to boost the product demand over the coming years.
Market players are adopting strategies such as mergers & acquisitions and capacity expansions in order to increase their market share and to strengthen their presence. In September 2019, JFE Shoji Trade Corporation acquired Cogent Power Inc., a transformer core manufacturer in Canada. With the acquisition, JFE Shoji Trade Corporation is likely to enhance the product portfolio and the geographical presence.
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Electrical Steel Market Report Highlights
On the basis of product, the grain-oriented electrical steel segment is anticipated to be the fastest-growing market owing to the rising demand for transformer cores used in transformers and large generators.
Non-oriented electrical steel is the largest segment in 2018 and is expected to be the largest segment over the coming years due to the rising demand for motors in various applications such as rolling mills, compressors, paper mills, and turbines.
On the basis of application, the transformers application segment dominated the market with a share of 52.8% In 2018. The segment growth is attributed to the rising demand from renewable energy.
The Motors segment is expected to witness a CAGR of 6.0% in terms of volume owing to rapid growth in electric vehicles. Increasing awareness regarding the benefits of EV’s and HEV’s on a global level coupled with stringent emission standards being adopted by various regulatory bodies is expected to result in high demand for motors.
The Asia Pacific region was the largest segment in 2018 accounting for a volume share of 40.2% in the electrical steel market owing to growing demand from the manufacturing industry. Government initiatives such as “Make in India” are expected to fuel market growth.
Electrical Steel Market Segmentation
Grand View Research has segmented the global electrical steel market report on the basis of product, application, and region:
Product Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2025)
Application Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2025)
Regional Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2025)
Central & South America
Middle East & Africa
Key Players in the Electrical Steel Market
JFE Steel Corporation
Arnold Magnetic Technologies
AK Steel Corporation
Nippon Steel Corporation
China Steel Corporation
United States Steel Corporation
Steel Authority of India Limited (SAIL)
Ansteel Group Corporation Limited
Baosteel Co., Ltd.
About Grand View Research, Inc.:
Grand View Research is a U.S. & India-based market research and consultancy firm. It is headquartered in San Francisco. We provide business insights, syndicated research reports, and customized research reports to large as well as small and medium-scale enterprises. Our database features thousands of statistics and in-depth analyses on more than 45 industries. Grand View Research’s extensive database is used by Fortune 500 companies to understand the regional as well as the global business environment.