July 13, 2024

Electrical Steel Market Is Estimated To Witness High Growth Owing To Increasing Demand for Energy-Efficient Transformers

The Electrical Steel Market is estimated to be valued at US$ 35.7 billion in 2022 and is expected to exhibit a CAGR of 6.9% over the forecast period 2022 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Electrical steel is a type of specialty steel that is used in the production of energy-efficient transformers, motors, and generators. It possesses unique magnetic properties, such as high permeability and low core loss, which are essential for efficient energy conversion. Electrical steel finds applications in various industries, including automotive, renewable energy, and electronics. The demand for electrical steel is expected to witness significant growth due to the increasing need for energy-efficient solutions and the rising adoption of renewable energy sources.

Market Dynamics:
The electrical steel market is driven by the growing energy and power sector, coupled with increasing investments in infrastructure development. The demand for energy-efficient transformers and motors is also contributing to market growth. Additionally, the rising focus on sustainability and environmental regulations regarding carbon emissions are propelling the market forward. Furthermore, advancements in electrical steel technology, such as the development of amorphous and grain-oriented electrical steel, are expected to create lucrative opportunities for market players.

Overall, the electrical steel market is poised for significant growth in the coming years, driven by the increasing demand for energy-efficient solutions and the growing focus on sustainability.
Segment Analysis:

The electrical steel market can be segmented based on type, application, and region. In terms of type, the market is dominated by grain-oriented electrical steel (GOES) due to its superior magnetic properties and high efficiency in electrical power distribution systems. GOES is widely used in transformers, generators, and motors, making it the dominating sub-segment.

In terms of application, the market is segmented into transformers, motors, inductors, and others. Transformers hold a significant market share due to the increasing demand for electricity transmission and distribution infrastructure in developing economies. The rapid industrialization and urbanization in these regions have led to the installation of new transformers, driving the demand for electrical steel.

PEST Analysis:

Political: The political landscape plays a crucial role in the electrical steel market. Government regulations and policies regarding the energy sector and investments in infrastructure development influence the market growth.

Economic: Economic factors such as GDP growth, disposable income, and industrial development drive the demand for electrical steel. The increasing investments in renewable energy projects and the expansion of power generation capacities contribute to market growth.

Social: The growing population, particularly in emerging economies, is fueling the demand for electricity, leading to the installation of new power generation facilities and transmission networks. Additionally, the rising awareness towards clean energy sources is driving the demand for electrical steel in the renewable energy sector.

Technological: Technological advancements in electrical steel manufacturing processes are improving the efficiency and performance of electrical equipment. The development of innovative coatings and core materials enhances the magnetic properties of electrical steel, boosting its demand in various applications.

Key Takeaways:

The global Electrical Steel Market is expected to witness high growth, exhibiting a CAGR of 6.9% from 2022 to 2030, reaching a market value of US$ 35.7 billion in 2022. The market growth is primarily driven by the increasing investments in electricity infrastructure development, rising demand for renewable energy sources, and rapid industrialization in emerging economies.

In terms of regional analysis, Asia Pacific is the fastest-growing and dominating region in the electrical steel market. The region has witnessed significant investments in power transmission and distribution networks, along with the expansion of manufacturing sectors. Countries like China, India, and Japan have a high demand for electrical steel due to their large population and rapid urbanization.

Key players operating in the electrical steel market include NLMK, Voestalpine AG, POSCO, Nippon Steel & Sumitomo Metal Corporation, Thyssenkrupp AG, JFE Steel Corporation, ArcelorMittal, Cogent Power Limited, Aperam, Baosteel Group Corporation, AK Steel Corporation, ATI, Schneider Electric, and Nicore Electrical Manufactory Co., Ltd. These key players are focusing on product innovations, mergers and acquisitions, and strategic partnerships to enhance their market presence and gain a competitive edge.

Read More : https://www.coherentmarketinsights.com/market-insight/electrical-steel-market-3961