Electrical Steel Market Analysis

Electrical Steel Market Analysis

Grain oriented electrical steel market surpassed USD 5 billion in 2020 and is projected to grow at a CAGR of around 7% during the forecast period. Rising demand from transformers, transducers and magnetic amplifier cores boosting the market growth of the segment.

Grain oriented electrical steel (GOES) request will enlist critical increases more than 6.5% by 2025. It further develops the transformers execution by upgrading the effectiveness and decreasing hardware weight. These items contain enormous, measured grains that assistance in diminishing hysteresis misfortune, are energy effective steel and are broadly utilized in transformers and influence generators. Expanding worldwide interest for energy and quick development in power industry should additionally fuel the electrical steel piece of the pie.

The COVID-19 pandemic has affected the business negatively. Halt in the infrastructure projects, operations of manufacturing plants and decline in automobile production during lockdown has mainly affected the market growth partially offset by higher residential use. For instance, according to The International Energy Agency (IEA), electricity demand in China dropped by 13% in February 2020 as compared to February 2019 under lockdown. However, the recommencement of business operations is expected to boost the electrical steel market sales in the upcoming years.
 

The global non-grain oriented electrical steel market for audio transformers will exceed USD 1.4 billion by 2027. Rising technological advancements and the inescapable adoption of versatile electronic gadgets, for example, cell phones and tablets, laptops, radios etc. will help the prerequisite for amplifiers, in which sound or audio transformers are generally utilized. Electrical steel especially non-grain-oriented is more affordable when contrasted with grain oriented electrical steel that can be utilized in audio transformers.
 

These items assume a fundamental part in matching impedance between associating links, receivers, and enhancer input, which is expected to trigger the item interest and speed up business development over the conjecture time span. have a positive impact on steel demand.
 

Moreover, the manufacturers operating in electronics or electrical industry are effectively utilizing electrical steel as they provide improved durability, abrasion resistance, vibration control and strength. It also permits the manufacturers to minimize production cost facilitate modular assembly practices and improve the quality of the products.
 

The North America electrical steel market is expected to exceed USD 5 billion by 2027, and it is expected to grow at a CAGR over 6% from 2021 to 2027 owing to the increasing demand for renewable energy with increasing adoption of electronic and electric vehicles.
 

The region is experiencing significant economic growth and the demand for goods, travel and services is increasing, increasing the need for electricity and fuel. In 2019, US power plants will produce over 4 billion kilowatt hours (kWh) of electricity, which provides ample growth opportunities. Increased government interest in promoting manufacturing, favourable infrastructure policies and increasing demand for air conditioning will further increase demand for electricity and drive growth in the electrical steel market.
 

In 2020, the US electrical steel market is valued at around USD 2.5 billion and is expected to grow significantly due to changing lifestyles & trends in the automotive industry resulting into lightweight & electrical vehicles. Furthermore, the expansion of R & D activities to introduce innovative new products to electronic devices, home appliances and electric vehicles should stimulate the electrical steel market revenue.