Electrical Steel
Electrical Steel Market by Type (Grain Oriented, Non-Grain Oriented), Application (Inductors, Motors, Transformers), End-User, Processing Method, Thickness, Coating Type, Core Loss, Technological Advancements - Global Forecast 2025-2030
SKU
MRR-436BDB26AF59
Region
Global
Publication Date
February 2025
Delivery
Immediate
2024
USD 55.23 billion
2025
USD 59.15 billion
2030
USD 82.10 billion
CAGR
6.82%

The Electrical Steel Market size was estimated at USD 55.23 billion in 2024 and expected to reach USD 59.15 billion in 2025, at a CAGR 6.82% to reach USD 82.10 billion by 2030.

Electrical Steel Market
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Electrical steel, a specialized steel tailored for magnetic properties, is indispensable in manufacturing transformers, inductors, and motors, playing a crucial role in the efficiency of electric power conversion. The necessity of electrical steel is driven by its ability to reduce energy losses, enhance performance, and ensure thermal stability in electrical devices. Key applications span industries including automotive, energy, manufacturing, and consumer electronics. As the global push toward energy efficiency and renewable energy sources intensifies, the demand for advanced electrical steel is poised to grow, driven by the proliferation of electric vehicles, wind turbines, and smart grids.

Market growth is influenced by the increasing urbanization and industrialization policies worldwide, which demand a robust infrastructure for power distribution and generation. Opportunities abound in developing eco-friendly and highly efficient electrical steels that cater to evolving environmental regulations and sustainability needs. Moreover, the rise of Industry 4.0 introduces potential for innovations in smart transformers and intelligent motors, necessitating advanced materials with superior electrical properties. However, the market faces considerable challenges, including fluctuating raw material prices, particularly silicon and aluminum, and the complex production processes that demand significant technical expertise and capital investment. Supply chain disruptions and global trade tensions further exacerbate these challenges, potentially impeding market expansion.

To capitalize on the opportunities, businesses should focus on research areas like the development of high-performance grain-oriented and non-oriented electrical steels, emphasizing sustainability and cost-efficiency. Moreover, investing in localized production capabilities and fostering collaborations with technology developers can facilitate innovation and minimize dependency on volatile supply chains. The market's nature is competitiveness-driven, emphasizing innovation and adaptability, with organizations vying to enhance product offerings and expand their geographical presence. By aligning with policy shifts towards green technologies and energy-efficient solutions, firms can strategically position themselves to harness emerging opportunities and drive business growth.

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Market Dynamics

The market dynamics represent an ever-changing landscape of the Electrical Steel Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

  • Market Drivers
    • Analyzing the key growth drivers propelling the electrical steel market into a new era of demand
    • Examining the economic and technological incentives catalyzing the electrical steel market's progression
    • Recognizing the strategic elements enhancing the competitive edge of electrical steel in key industries
  • Market Restraints
    • Studying the repercussions of economic uncertainties on investments and growth in electrical steel
    • Determining the challenges posed by rising environmental concerns and sustainability mandates
    • Assessing the consequences of potential scarcity of high-quality iron ore on steel production
  • Market Opportunities
    • Increasing investments in electrical infrastructure upgrading across developed and developing nations
    • Potential in the rail industry with a shift towards electrification of rail networks globally
    • Opportunities in the Asia-Pacific region due to rapid industrialization and urbanization
  • Market Challenges
    • Examining the effects of energy efficiency standards on demand for electrical steel components
    • Addressing environmental concerns and sustainability challenges inherent in the electrical steel industry
    • Navigating regulatory pressures and compliance requirements in the global electrical steel sector

Market Segmentation Analysis

  • Type: Burgeoning usage of non-grain-oriented electrical steel as a cost-effective choice for a vast array of applications

    Grain-oriented electrical steel is silicon steel designed to provide superior magnetic properties in the rolling direction. This type of steel undergoes a complex manufacturing process that aligns the crystal lattice of the silicon steel so that the magnetic flux density is enhanced in the direction in which the steel has been rolled. Fully processed electrical steel refers to grain or non-grain-oriented steel undergoing a complete thermal treatment during production. This annealing process improves the steel's magnetic properties by promoting uniform grain structure and relieving internal stresses. Semi-processed electrical steel is provided to the end user in an annealed but not fully decarburized state and requires additional processing to optimize its magnetic properties. This is generally less expensive than fully processed steel and is often chosen when the material cost is a critical factor, and some degree of compromise on the magnetic performance can be tolerated. Non-grain-oriented electrical steel is a silicon steel designed to have identical magnetic properties in all directions of the sheet. Unlike grain-oriented steel, the crystalline structure is not directionally aligned, allowing for consistent magnetic properties regardless of the direction of current flow. NGOES is widely used in rotating machinery, including motors and generators, as well as inductors and transformers, where uniform magnetic performance is required across varying directions.

  • Form: Growing preference for electrical steel sheets cater to precision and custom-shaped requirements

    Electrical steel coils are one of the primary forms used in manufacturing transformers, motors, and inductors, offering ease of manufacturing for large-scale production as they can be wound into the desired shape and then cut to specification. This form is preferred when uniform quality and consistency are needed over long product lengths. Coils are also selected for their efficiency in automated processes, reducing labor costs. Electrical steel plates are used for heavy-duty applications that require larger cross-sectional areas, such as power generation equipment. Plates are typically chosen for applications where structural integrity and high magnetic permeability are essential. Electrical steel sheets are highly preferred for their versatility and are extensively used in smaller transformers, motors, generators, and other electrical applications. Electrical steel sheets can be cut and stamped to specific sizes and shapes, making them ideal for custom and precision applications. Electrical steel strips are commonly used to manufacture smaller transformers and are favored for high-precision and customization applications. The strips can be wound or stacked to form the cores of electrical components where space is at a premium. Wire rod electrical steel is specially designed for motors and generators in electromagnetic wire coils. Its applications are primarily found in intricate and particular industries, including automotive, aerospace, and defense.

Porter’s Five Forces Analysis

The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Electrical Steel Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.

PESTLE Analysis

The PESTLE analysis offers a comprehensive tool for understanding and analyzing the external macro-environmental factors that impact businesses within the Electrical Steel Market. This framework examines Political, Economic, Social, Technological, Legal, and Environmental factors, providing companies with insights into how these elements influence their operations and strategic decisions. By using PESTLE analysis, businesses can identify potential opportunities and threats in the market, adapt to changes in the external environment, and make informed decisions that align with current and future conditions. This analysis helps companies anticipate shifts in regulation, consumer behavior, technology, and economic conditions, allowing them to better navigate risks and capitalize on emerging trends.

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Electrical Steel Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Electrical Steel Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Recent Developments

  • Nippon Steel Corporation (NSC) to Acquire U. S. Steel, Moving Forward Together as the ‘Best Steelmaker with World-Leading Capabilities’

    Nippon Steel Corporation (NSC), Japan's steel manufacturer and a global industry leader, agreed to acquire United States Steel Corporation (U. S. Steel), a key figure in the American steel sector with notable competitive edges, in a definitive all-cash transaction valued at about USD 14.9 billion including debt, offering a 40% premium over U. S. Steel's last closing price. Emphasizing a convergence of superior technologies, the deal aims to extend NSC’s worldwide presence, particularly in the U.S. and is expected to push its total steel production to 86 million tonnes annually. This strategic move aligns with NSC's ambitious target of reaching 100 million tonnes and underscores a shared commitment to technological advancement and sustainable industry practices [Published On: December 18, 2023]

  • Posco to Invest USD 850 Million in Electrical Steel Plant For EVs

    South Korean steel manufacturer POSCO has announced a substantial expansion of its production capabilities for non-grain-oriented electrical steel, a critical component in EV traction motors aimed at solidifying its position in the electric vehicle (EV) sector. Outlining an investment of nearly 1 trillion South Korean won (approximately USD 848.6 million) to construct new manufacturing facilities. These facilities, expected to become operational by 2025, will augment the company's output to 400,000 tons of steel sheets annually a fourfold increase from its current capacity. This capacity boost will support material requirements for up to 8 million electric cars and is projected to facilitate a reduction of 840,000 tons in greenhouse gas emissions per year, underscoring POSCO's commitment to environmental sustainability. [Published On: September 20, 2023]

  • JSW Steel, Japan's JFE Steel Ink Agreement to Manufacture Electrical Steel In India

    JSW Steel announced its collaboration with JFE Steel of Japan to form a new joint venture, set on a 50:50 equity basis, aimed at producing cold-rolled grain-oriented (CRGO) electrical steel in India. With the adoption of JFE Steel's advanced, energy-efficient production technology, the venture is geared to meet India's burgeoning demand with high-quality "Made in India" CRGO materials, also marking a step towards sustainable steel practices and reduced CO2 emissions. [Published On: May 22, 2023]

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Electrical Steel Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Electrical Steel Market, highlighting leading vendors and their innovative profiles. These include Ampco-Pittsburgh Corporation, Aperam SA, ArcelorMittal S.A., Arnold Magnetic Technologies Corporation, China Steel Corporation, Cleveland-Cliffs Inc., Foshan Shunge Steel Trading Co., Ltd., JFE Steel Corporation, JSW Steel Ltd., Keiko Shoji Co., Ltd., Laser Technologies, Inc., Leicong Industrial Co., Ltd., Mitsui & Co., Ltd., NikoMag, Nippon Steel Corporation, NLMK Group, Posco Holdings Inc., Shandong Haorui Metal Material Co.Ltd, Shanghai Walmay Metal Group, Steel Authority of India Limited, Suzhou Yogiant Holdings Co., Ltd., TATA Steel Limited, ThyssenKrupp AG, Voestalpine AG, and Wuxi Zhongxin Special Steel Co.,Ltd..

Market Segmentation & Coverage

This research report categorizes the Electrical Steel Market to forecast the revenues and analyze trends in each of the following sub-markets:

  • Type
    • Grain Oriented
      • Conventional
      • High-Permeability
      • Laser Scribed
    • Non-Grain Oriented
      • Fully Processed
      • Semi-Processed
  • Application
    • Inductors
      • Fixed Value Inductors
      • Suspended Inductors
    • Motors
      • Commercial Motors
      • Electric Vehicles
      • Industrial Motors
    • Transformers
      • Distribution Transformers
      • Power Transformers
  • End-User
    • Automotive
      • Electric Vehicles
      • Hybrid Vehicles
      • Traditional Vehicles
    • Consumer Electronics
      • Gadgets and Wearables
      • Home Appliances
    • Energy
      • Renewable Energy Systems
      • Traditional Energy Systems
    • Industrial
      • Heavy Machinery
      • Light Industrial Equipment
  • Processing Method
    • Cold Rolled
      • Batch Annealing
      • Continuous Annealing
    • Hot Rolled
      • Hot Band Annealing
      • Pack Rolling
  • Thickness
    • Medium Gauges
    • Thick Gauges
    • Thin Gauges
  • Coating Type
    • Metallic Coatings
      • Aluminum
      • Zinc
    • Organic Coatings
      • Environmental Resistances
      • Insulation Enhancements
  • Core Loss
    • Low Core Loss
    • Ultra-Low Core Loss
  • Technological Advancements
    • Advanced Scribing
    • Amorphous Metals
    • Nano-Crystalline Techniques
  • Region
    • Americas
      • Argentina
      • Brazil
      • Canada
      • Mexico
      • United States
        • California
        • Florida
        • Illinois
        • New York
        • Ohio
        • Pennsylvania
        • Texas
    • Asia-Pacific
      • Australia
      • China
      • India
      • Indonesia
      • Japan
      • Malaysia
      • Philippines
      • Singapore
      • South Korea
      • Taiwan
      • Thailand
      • Vietnam
    • Europe, Middle East & Africa
      • Denmark
      • Egypt
      • Finland
      • France
      • Germany
      • Israel
      • Italy
      • Netherlands
      • Nigeria
      • Norway
      • Poland
      • Qatar
      • Russia
      • Saudi Arabia
      • South Africa
      • Spain
      • Sweden
      • Switzerland
      • Turkey
      • United Arab Emirates
      • United Kingdom

This research report offers invaluable insights into various crucial aspects of the Electrical Steel Market:

  1. Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
  2. Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
  3. Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
  4. Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
  5. Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.

Additionally, the report addresses key questions to assist stakeholders in making informed decisions:

  1. What is the current market size and projected growth?
  2. Which products, segments, applications, and regions offer promising investment opportunities?
  3. What are the prevailing technology trends and regulatory frameworks?
  4. What is the market share and positioning of the leading vendors?
  5. What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?
Table of Contents
  1. Preface
  2. Research Methodology
  3. Executive Summary
  4. Market Overview
  5. Market Insights
  6. Electrical Steel Market, by Type
  7. Electrical Steel Market, by Application
  8. Electrical Steel Market, by End-User
  9. Electrical Steel Market, by Processing Method
  10. Electrical Steel Market, by Thickness
  11. Electrical Steel Market, by Coating Type
  12. Electrical Steel Market, by Core Loss
  13. Electrical Steel Market, by Technological Advancements
  14. Americas Electrical Steel Market
  15. Asia-Pacific Electrical Steel Market
  16. Europe, Middle East & Africa Electrical Steel Market
  17. Competitive Landscape
  18. List of Figures [Total: 33]
  19. List of Tables [Total: 944 ]
  20. List of Companies Mentioned [Total: 25]
360iResearch Analyst Ketan Rohom
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Frequently Asked Questions
  1. How big is the Electrical Steel Market?
    Ans. The Global Electrical Steel Market size was estimated at USD 55.23 billion in 2024 and expected to reach USD 59.15 billion in 2025.
  2. What is the Electrical Steel Market growth?
    Ans. The Global Electrical Steel Market to grow USD 82.10 billion by 2030, at a CAGR of 6.82%
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