The global electrical steel market is expected to experience substantial growth in the coming years, with an estimated value of USD 40.6 billion in 2023 and a projected value of USD 60.7 billion by 2028, growing at a CAGR of 8.4%.
Electrical steel, also known as silicon steel, is a type of steel that is specifically designed to produce electromagnetic properties such as low core loss and high magnetic permeability. It contains silicon up to 3.5% in weight, which helps to improve its electrical and magnetic properties. Electrical steel is mainly used in electrical equipment, such as transformers, generators, and motors, as well as in the automotive industry for electric motors and other components.
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The global electrical steel market is expected to witness substantial growth in the coming years, driven by a combination of various factors. The abundance of iron ore and other minerals required for the production of electrical steel, along with the increasing urban population and urbanization, is expected to boost the demand for electrical steel in various applications. The transition towards renewable energy sources such as wind and solar power is also expected to drive the demand for electrical steel as it is a critical component in generators. The high rate of consumption of electrical steel in transformers and motors, which are essential components in various industries such as energy, automotive, and manufacturing, is also expected to contribute to the growth of the electrical steel market. The growing market for electric vehicles (EVs) is also expected to create new opportunities for the electrical steel market, as it is used in the production of electric motors. With these factors in play, the electrical steel market is poised for significant growth in the coming years. However, the market also faces certain challenges such as the volatile prices of raw materials and limited supply of high-quality electrical steel, which may hinder the growth of the market. Safety and technology constraints, as well as environmental concerns also pose major challenges in the electrical steel industry.
The demand for electrical steel is mainly furnished by global players manufacturing for various end-use industries. Some of the leading companies involved in the manufacturing of electrical steel are The global electrical steel market comprises major manufacturers, such as ArcelorMittal (Luxembourg), POSCO (South Korea), Voestalpine AG (Austria), China Baowu Steel Group (China), Nippon Steel Corporation (Japan), United States Steel Corporation (United States), Steel Authority Of India (India), TATA Steel Limited (India), Thyssenkrupp AG (Germany), JFE Steel Corporation (Japan), amongst others. and others are covered in the electrical steel market. These companies, along with other regional companies, cater to the demand for electrical steel products globally.
ArcelorMittal (Luxembourg) was created by merging Arcelor and Mittal Steel. This company manufactures a diverse range of high-quality steel products, both finished and semi-finished, and has manufacturing facilities in 16 countries. It serves customers in 155 countries across various industries, including construction, transport, energy, appliances, machinery, and automotive. ArcelorMittal is among the largest steel manufacturers in Europe, North America, and South America.
ArcelorMittal operates through five business segments, namely NAFTA, Brazil, Europe, ACIS, Mining and Others. The NAFTA segment produces flat products such as coated steels, hot-rolled coils, cold-rolled coils, plates, and slabs. The Europe segment manufactures cold-rolled coils, hot-rolled coils, tinplates, coated products, plates, and slabs. The Brazil segment focuses on producing wire drawings, wire rods, rebars, billets, and blooms. The ACIS segment produces a combination of long, flat, and tubular products. The Mining segment focuses on steel operations, and the company is a leading producer of electrical steel. It produces various types of electrical steels, including non-oriented fully processed, non-oriented semi-processed, and pole sheet electrical steel.
China Baowu Steel Group Corporation Limited (China) is a state-owned iron & steel company producing a wide range of steel products, including hot-rolled, cold-rolled, galvanized, and electrical steel, as well as wire rods, bars, and pipes. The company's steel products are used in various industries, including construction, automotive, machinery, and energy. China Baowu provides steel products through its subsidiary companies such as Baosteel Co., Ltd., Bayi Iron & Steel, Shaoguan Iron & Steel, Baosteel Special Steel, Echeng Iron & Steel, Baosteel Stainless Steel, Baosteel Metal, and Wusteel River North Group. Baowu Steel Group is a leading player in the global steel industry, with a strong focus on sustainability, innovation, and global expansion.
Voestalpine AG is a multinational steel-based technology and a capital goods company. It serves various industries such as automotive, railway, building & construction, aviation, mechanical engineering, energy, storage technology, white goods, and consumer goods. The company's product range is divided into steel, special steel, metal engineering, and metal forming. It is a key partner for consumer goods and automotive industries in Europe. Voestalpine operates through four divisions: Steel, High Performance Metals, Metals Engineering, and Metals Forming. Its Steel division produces and processes steel products for various industries, including automotive, white goods, electrical, processing, energy, and engineering. The High Performance Metals division offers tool steel, heat treatment, and coating services, as well as warehousing and preprocessing of special steel. The Metal Engineering division manufactures rails, turnout products, rod wires, drawn wires, seamless tubes, and welding filler materials. The Metal Forming division develops special sections, tube products, precision strip steel, and pre-finished system components made from pressed, punched, and roll-profiled parts. The company offers a wide range of electrical steels under the Steel segment. Voestalpine operates in 50 countries and is listed on the Vienna Stock Exchange. It holds a leading position in turnout technology, special rails, tool steel, and special steel sectors.
Other companies have initiated the following developments:
Electrical Steel Market by Type (Non-grain-oriented, and Grain-oriented), Application (Transformer, Motors, Inductors), End-user Industry (Automotive, Energy, Manufacturing, Household Appliances), and Region - Global Forecast to 2028
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