Electrical Steel Market Size By Product (Grain Oriented [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), Industry Analysis, Regional Outlook, Competitive Market Share and Forecast, 2019 – 2025

Published Date: Feb 2019  |  Report ID: GMI3136  |  Authors: Kunal Ahuja, Kritika Mamtani

Report Format: PDF   |   Pages: 300   |   Base Year: 2018

Summary Table of Contents Industry Coverage Methodology

Industry Overview

Electrical Steel Market size was over USD 14 billion in 2018 and industry expects consumption at over 25 million tons by 2025. Increasing urban population & technological advancements, along with rising consumer’s disposable income will further stimulate market growth in the energy sector.

Growing investment in infrastructure development and increasing urbanization is likely to stimulate electrical steel market growth. Global power transformers market is estimated to be valued at more than USD 22 billion in 2018, which indicates significant growth opportunities. These products find their usage in transformers, power industry and high-speed cars owing to their ability to reduce energy loss, improved efficiency, low emissions of carbon dioxide and hysteresis loss in high-speed electric motors.

Electrical Steel Market Outlook

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Rise in infrastructure demand has resulted in increased per capita consumption of electricity. Government norms in several countries aim to reduce carbon dioxide emission and have enacted regulations for the usage of transformers which has increased productivity with improved properties to manufacture efficient cores. The gradual loss in electrical energy due to hysteresis is uneconomical when used in electrical devices and can adversely affect the workability of steel. These products reduce energy loss owing to their unique properties like high permeability, effective magnetic properties, strong power density and longevity.

However, it is incapable of meeting complex requirements of precision and efficiency. Large amount of mechanical stress is generated during the cutting, bending and punching operations which reduces the magnetism thereby reducing the original magnetic effect. These products also face various technological and safety constraints which may hinder the electrical steel market growth.


Market, By Product

Grain oriented electrical steel demand will register significant gains over 6.5% by 2025. It improves the transformers performance by enhancing the efficiency and reducing equipment weight. These products contain large sized grains that help in reducing hysteresis loss, are energy efficient steel and are widely used in transformers and power generators. Increasing global demand for energy and rapid growth in power industry should further fuel the electrical steel market share.

Electrical Steel Market by Product

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Global non-grain oriented product segment will surpass USD 14 billion by 2025 on account of growing demand for electric vehicles globally. The product ensures high magnetic flux density, low area for hysteresis loop and high magnetic permeability. Rising demand for automobile production has increased product demand as a core material in motor parts to enhance power & fuel performance of automobiles and is expected to boost the electrical steel market growth.

Market, By Application

Grain oriented electrical steel from large power transformers will register gains near about 7% in the forecasted time period pertaining to their high-power efficiency and transmission of power over long distances with minimum energy losses. Rising power sector and rising global initiatives to use renewable energy sources is expected to boost industry growth.

Non-grain oriented electrical steel demand from power generators was estimated at around 2.5 billion in 2018 owing to the increasing power demand, inadequate gas transportation distribution and lack of sufficient grid infrastructure. These products are used as back-ups for generating power for domestic, commercial and industrial usage. Increasing demand for high quality power, growth of telecom, oil & gas and retail industries is likely to accelerate the electrical steel market revenue.

Grain oriented segment size from distribution transformers may register gains over 6% up to 2025 pertaining to the increasing infrastructural and industrial development and growing electric power distribution system across the globe. These products are designed to provide high efficiency at lower loads, easy to install, have low magnetic losses, small sized and provide power generation to remote locations.

Market, By End-Use

Automotive industry is likely to surpass USD 1.7 billion up to 2025. They are used to enhance the efficiency and output power of automotive vehicles and supercars. They help in enhancing the aesthetic value of cars by improving the visual appearance which in turn increases their resale value. It provides high corrosion resistance to catalytic converters in the vehicles, offer lightweight opportunities while maintaining safety standards.

Non-grain oriented electrical steel demand from household appliances may witness significant gains at over 6% owing to its corrosive resistant and recyclable nature. These products are used in refrigerators, motors, washing machines and various other kitchen appliances to give them high-end professional look and textured design to give them an enhanced image. Rising innovations in household and kitchen appliances will accelerate the electrical steel market sales.

Market, By Region

North America, driven by Canada, Mexico and the U.S. is poised to exceed USD 1.4 billion by 2025 owing to growing demand for automotive and electric vehicles in the region. These products ensure minimum energy loss, increase the efficiency of machine and enhance the fuel economy of automotive. Increasing urbanization, growing electric vehicles sales along with increasing preference of manufacturers for steel components and rising technological advancements should further promote regional demand.

Europe driven by Germany, UK, France, Italy and Spain may anticipate gains close to 6.5% in the forecasted timeframe. Increasing electricity consumption, investments for renovation and upgradation of grid infrastructure and rising demand for electronics will drive the market growth in the region.  Use of steel in manufacturing of motors, power generators and various other transformers will boost market growth in the region.

Asia Pacific driven by India, Japan, China electrical steel market size may register significant increase of over 7% by the end of 2025. Rise in construction sector development has increased the power demand which has resulted in installation of new and efficient transformers. Government initiatives to promote accompanied with rising infrastructure development will regional electrical steel market growth.

Competitive Market Share

Global electrical steel industry share is less competitive and consolidated among various market participants such as Voestalpine, ArcelorMittal Europe, MITSUI & Co, and Arnold Magnetic Technologies. Manufacturers are majorly focusing on processing of new innovative products to expand their product line and engage new customers in order to expand business.

Industry Background

Electrical steel is widely used in cores of transformers, motors and generators. They are designed to provide high magnetic flux density, high permeability and minimum energy loss and widely used in automotive, energy and manufacturing industries. Rising per capita income, government initiatives and increasing urbanization are likely to fuel industry growth.

Electrical steel market report includes in-depth coverage of the industry, with estimates & forecast in terms of volume in Tons and revenue in USD from 2014 to 2025, for the following segments:

By Product

  • Grain-Oriented Electrical Steel
    • By application
      • Large power transformers
      • Distribution transformers
      • Small transformers
      • Power Generators
      • Audio transformers
      • Others
    • By end-use
      • Energy
      • Automotive
      • Manufacturing
      • Household Appliances
  • Non-Grain Oriented Electrical Steel Market
    • By product
      • Semi-processed
      • Fully processed
    • By application
      • Power generators
      • Motors
      • Ballasts
      • Rotating machines
      • Small transformers
      • Audio transformers
      • Others
    • By end-use
      • Energy
      • Automotive
      • Manufacturing
      • Household Appliances

The above electrical steel market information is provided on a regional and country basis for the following:

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • UK
    • Italy
    • Spain
    • Russia
    • Ukraine
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Indonesia
    • Australia
  • Latin America (LATAM)
    • Brazil
    • Argentina
  • Middle East & Africa (MEA)
    • Iran
    • UAE
    • Egypt
    • South Africa

Frequently Asked Questions (FAQ) :

Electrical steel is used in transformers, high-speed cars, and power industry due to its ability to reduce energy loss, hysteresis loss in high-speed electric motors, and improved efficiency.
The electrical steel market share will exceed 25 million tons by 2025 in terms of consumption.
Grain oriented electrical steel will depict considerable gains of over 6.5% through 2025 owing to benefits like high power efficiency and the transmission of power over long distances with minimum energy losses.
Automotive applications will register a value of over USD 1.7 billion through 2025 driven by the surging usage of electrical steel for enhancing the efficiency and output power of supercars and automotive vehicles.

Premium Report Details

  • Published Date: Feb 2019
  • Pages: 300
  • Tables: 450
  • Charts / Figures: 21
  • Companies covered: 15
  • Countries covered: 22

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