The electrical steel market is poised for significant growth over the period from 2025 to 2032, driven by increasing demand for energy-efficient technologies, the expansion of renewable energy systems, and the rapid modernization of power grids. This report provides an in-depth analysis of the market, including its size, growth rate, key players, and trends that will shape its future.
Request a Sample PDF of the Electrical Steel Market Report @ https://www.reportsinsights.com/sample/664408
The global electrical steel market size varies across different reports, but it is generally valued in the range of USD 18.50 billion to USD 41.97 billion in recent years. For instance, in 2024, the market was valued at USD 41.97 billion according to some estimates2. However, for the purpose of this analysis, we will focus on a market size that aligns with a CAGR of approximately 6.28% to 6.9% during the forecast period, reflecting the higher end of growth projections.
Given the variability in market size estimates, let's consider a base year value of around USD 35.7 billion in 2022, as reported by some sources. With a projected CAGR of about 6.5% to 6.9%, the market is expected to reach a substantial value by 2032.
Energy Efficiency and Sustainability: The increasing focus on energy efficiency and sustainability drives the demand for electrical steel, which is crucial in applications like transformers and motors due to its high permeability and low core loss.
Smart Grid Technologies: The adoption of smart grid technologies is a significant growth factor, as these systems require high-quality electrical steel for efficient energy distribution and integration of renewable energy sources.
Electric Vehicles (EVs): The escalating production of EVs boosts the demand for electrical steel, which is used in motors and other components.
Renewable Energy Infrastructure: The expansion of renewable energy systems further fuels the need for electrical steel in generators and other equipment.
By Type: The market is segmented into grain-oriented (GOES) and non-grain-oriented (NGOES) electrical steel. GOES is primarily used in transformers due to its high magnetic permeability, while NGOES is used in motors and generators.
By Application: Key applications include transformers, motors, inductors, and generators. Transformers dominate the market due to their widespread use in power distribution systems.
By End-User: Major end-users are the energy and power sector, automotive industry, household appliances, and building and construction.
Asia-Pacific: This region dominates the market, accounting for over 72.8% of the global share in 2024, driven by its robust industrial base and infrastructure development.
North America and Europe: These regions are also significant, with growth driven by modernization of power grids and increasing demand for EVs.
Major players in the electrical steel market include ArcelorMittal, Baoshan Iron & Steel Co. Ltd., Nippon Steel Corporation, POSCO, Tata Steel Limited, and ThyssenKrupp AG. These companies focus on technological advancements and strategic partnerships to maintain market competitiveness.
Challenges: Fluctuating raw material prices pose a significant challenge, affecting production costs and market stability.
Opportunities: Continuous innovations in production processes and the integration of advanced materials offer opportunities for growth and improved product performance