Global Electrical Steel Market size to exceed USD 22 billion by 2027

According to a new research report by Global Market Insights Inc., the Electrical Steel Market size is set to surpass USD 22 billion by 2027 owing to the growing demand from energy generation & transmission.
 

Electrical steel is mainly used in the power generation on account of its high magnetic permeability and reduce energy loss. Electricity is an essential part of daily life, and it has been utilized in residential as well as industrial set up. Rising consumption of electricity by various sectors is projected to accelerate the demand during the forecast period. 
 

Electrical steel is also used in various end use industries such as automotive and manufacturing industry. Rapid industrial development especially in developing regions such as Asia Pacific and Latin America will escalate the utilization of electrical steel during the forecast period 2021-2027. These developing regions are at nascent stage of their economic development and experiencing huge transformation in their industrial development.
 

Electrical steel is used in manufacturing of automobile, electronic appliances, machineries, and equipment etc. Opening of new production facilities in these regions are expected to boost the product demand. Moreover, availability of raw materials, cheap labor cost and immense engineering potential has encouraged developed nations to shift their manufacturing units to these regions resulting into rapid urbanization. In addition, the improving living standards in emerging economies such as India, China and Brazil have augmented the use of electricity which further supports the electrical steel market growth.
 

Increasing consumption of electricity globally will boost demand of grain oriented electrical steel for large power transformers.

The global grain oriented electrical steel market for large power transformers is anticipated to cross USD 2.3 billion in 2020 and is expected to experience significant growth due to the use of smart grids and smart transformers, and the replacement of existing obsolete power transformers.
 

According to BNEF, global electricity demand is expected to increase by 57% and will reach approximately 38,700 terawatt-hours (TWh) by 2050. Increasing power consumption in various end use industries along with increasing attention to renewable energy generation are contributing to the growth of power generators thereby driving the grain oriented electrical steel market.
 

Browse key industry insights spread across 335 pages with 423 market data tables and 35 figures & charts from the report, “Global Electrical Steel Market Size By Product (Grain Oriented [By End Use (Energy, Automotive, Manufacturing, Household Appliances), By Application (Large Power Transformers, Distribution Transformers, Small Transformers, Power Generators, Audio Transformers)], Non Grain-Oriented [By Product {Semi-Processed, Fully Processed}, By End Use (Energy, Automotive, Manufacturing, Household Appliances), By Application (Power Generators, Motors, Ballasts, Rotating Machines, Small Transformers, Audio Transformers)]), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/electrical-steel-market
 

Increasing global automobile production will propel demand of highly efficient motors

The global non-grain oriented electrical steel market for automotive segment will surpass USD 2.5 billion by 2027. Non-grain oriented electric steel is used in the motor cores in cars. This softer grade steel can produce a variety of magnetic properties, with high permeability and low core loss. Due to the small hysteresis curve, magnetic hysteresis is reduced, and iron loss and energy loss are also reduced. Moreover, its high flux density and low iron loss properties can realize high motor efficiency and torque thus used in rotors and stators.
 

According to the Economist Intelligence Unit Limited, in 2021 the global auto sales was rose by 8%-10% i.e., 83 million-85 million units, up from 77 million in 2020 and electric vehicle sales will have been soared from 2.5 million this year to 3.4 million. The need for highly efficient electrical steels for electric vehicle will boost the demand for non-grain oriented electrical steel for automotive segment.
 

Rising adoption of advanced and high-quality electronics products boosting market growth in Asia Pacific

Asia Pacific electrical steel market was valued at over USD 5.5 billion in 2020 and is expected to grow over a CAGR of 7% between 2021 and 2027 due to the rising adoption of advanced and high-quality electronic products on account of increasing disposable income, changing lifestyles, and improving living standards.
 

Electrical steel is used in small relays, solenoids, electric motors of various household appliances owing to its superior weldability and electrical conductivity. Rising purchasing power has pushed consumers to spend more on modern household appliances such as vacuum cleaners, air conditioners, refrigerators, dishwashers and washing machines which further strengthens the electrical steel market development.

Moreover, extensive R&D and technological collaborations of leading market players with other companies along with the adoption of technologically advanced manufacturing methods will further foster market growth in the region over the forecast timeframe.
 

The prominent players operating in the electrical steel industry are also focusing on adopting various business strategies such as new product development, mergers & acquisition, collaborations/partnerships to gain competitive edge in the global market. Voestalpine, Cogent Power Ltd., ArcelorMittal, MITSUI & Co, SIJ Acroni d.o.o.  and Arnold Magnetic Technologies are some of the major players in the market.