Electrical Steel Market is expected to Grow with a CAGR of 5.82% through 2030
The electrical steel market is driven by
increasing demand for energy-efficient transformers, motors, and generators,
fueled by industrial growth, renewable energy adoption, and advancements in
electric vehicles and power transmission systems.
According to TechSci Research report, “Electrical
Steel Market – Global Industry Size, Share, Trends, Competition Forecast
& Opportunities, 2030F”, the Global Electrical Steel Market was valued at USD 25.78 billion in 2024 and is expected to reach USD 36.52 billion by 2030 with a CAGR of 5.82% during the forecast period. Continuous technological advancements in electrical steel manufacturing are playing a pivotal role in enhancing efficiency, performance, and sustainability in various applications, including power transformers, motors, and generators. The development of advanced manufacturing techniques, such as laser scribing, high-temperature annealing, and domain refinement, is significantly improving the magnetic properties of electrical steel, reducing core losses and increasing energy efficiency. Steel producers are investing in research and development (R&D) to introduce high-silicon electrical steel, which offers lower magnetic losses and improved permeability, making it ideal for high-performance electrical applications.
The adoption of new rolling and coating technologies is also enhancing the durability and corrosion resistance of electrical steel, particularly for applications in harsh environmental conditions such as offshore wind farms and electric vehicle motors. Moreover, digitalization and automation in steel production are streamlining quality control processes, ensuring consistent material properties, and minimizing defects. The integration of artificial intelligence (AI) and machine learning (ML) in manufacturing is further optimizing production efficiency by predicting defects, reducing waste, and enhancing process control. Additionally, advancements in eco-friendly production methods, such as hydrogen-based steelmaking and energy-efficient annealing processes, are gaining traction as the industry shifts towards sustainable practices. The development of ultra-thin electrical steel laminations for next-generation transformers and high-frequency motors is also expected to revolutionize the market by significantly improving energy efficiency. With continuous innovation and technological breakthroughs, the electrical steel market is poised for significant growth, as manufacturers strive to meet the evolving demands of industries such as electric vehicles, renewable energy, and smart grids.
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Based on the Application, Motors &
Generators segment held the largest Market share in 2024. The Electrical Steel
Market in the Motors & Generators segment is primarily driven by the
growing demand for energy-efficient and high-performance electric motors and
generators across various industries. As the global push for sustainability
intensifies, there is a heightened focus on reducing energy consumption and
improving operational efficiency. Electrical steel, especially silicon steel,
plays a crucial role in enhancing the efficiency of motors and generators by
reducing energy losses due to its superior magnetic properties, such as high
permeability and low hysteresis loss. The increasing adoption of renewable
energy sources like wind and solar power further fuels the demand for efficient
generators that rely on electrical steel to operate effectively. Additionally,
the rapid industrialization and electrification in emerging economies
contribute to the expansion of the market as the need for motors and generators
grows across sectors such as automotive, manufacturing, and utilities. The
automotive industry's shift toward electric vehicles (EVs) has also become a
significant driver, as electric motors require high-quality electrical steel to
ensure optimal performance and energy efficiency. Furthermore, advancements in
manufacturing technologies, such as the development of non-oriented electrical
steels and improved production methods, are enhancing the performance and
cost-effectiveness of electrical steel, making it increasingly accessible to a
wider range of applications in motors and generators. The push toward
electrification and automation in industrial applications, coupled with
stringent environmental regulations requiring higher energy efficiency, will continue
to fuel the demand for electrical steel in motors and generators, cementing its
role as a critical component in the energy transition and the industrial
evolution.
Based on the region, Asia Pacific is the
fastest-growing region in the Electrical Steel Market, driven by rapid
industrialization, urbanization, and the increasing demand for energy-efficient
electrical equipment. Countries like China, India, Japan, and South Korea are
at the forefront of this growth, with China leading as the largest producer and
consumer of electrical steel. The region’s robust manufacturing sector,
particularly in automotive, power generation, and electrical equipment
industries, is a key factor propelling market expansion. The shift towards
renewable energy sources, such as wind and solar power, in countries like China
and India is further fueling demand for high-quality electrical steel for
transformers and generators. Moreover, the rise in electric vehicle adoption
across the region is boosting the need for advanced electrical steel used in
electric motor manufacturing. The government’s focus on infrastructure
development, such as smart grids and electric vehicle charging stations, along
with increased investments in power generation and distribution, is
contributing to the growing demand for electrical steel. The presence of
leading manufacturers and the availability of cost-effective labor in the
region also make Asia Pacific an attractive hub for electrical steel
production, reinforcing its position as the fastest-growing market globally.
Major companies operating in the
Global Electrical Steel Market are:
- Benxi Steel Group Co., Ltd
- Nucor Corporation
- Yieh Corporation
- Tata Steel UK Limited
- Arcelormittal Group
- Nippon Steel Corporation
- Arnold Magnetic Technologies
- JFE Steel Corporation
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“The Global Electrical Steel Market is
expected to rise in the upcoming years and register a significant CAGR during
the forecast period. The Electrical Steel Market presents significant growth
opportunities driven by the rising demand for efficient power generation,
transmission, and distribution. As industries seek to improve energy
efficiency, electrical steel, essential for transformers and electric motors,
is becoming more critical. With the rapid expansion of renewable energy sources
and electric vehicles, the need for high-performance electrical steel is
intensifying. Technological advancements in manufacturing processes, such as
the development of advanced coatings and improved magnetic properties, are also
opening new avenues. Additionally, growing investments in smart grids and
sustainable infrastructure are expected to further propel market expansion.
Therefore, the Market of Electrical Steel is expected to boost in the upcoming
years.,” said Mr. Karan Chechi, Research Director of TechSci Research, a
research-based global management consulting firm.
“Electrical
Steel Market - Global Industry Size, Share, Trends, Opportunity, and Forecast,
Segmented, By Type (Grain Oriented Electrical Steel, Non-Grain Oriented
Electrical Steel), By Application (Transformers, Motors & Generators,
Inductors), By Vertical (Automotive, Construction, Manufacturing, Energy &
Power Others), By Region, By Competition, 2020-2030F”, has evaluated the future
growth potential of Global Electrical Steel Market and provides statistics
& information on the Market size, structure, and future Market growth. The
report intends to provide cutting-edge Market intelligence and help
decision-makers make sound investment decisions., The report also identifies
and analyzes the emerging trends along with essential drivers, challenges, and
opportunities in the Global Electrical Steel Market.
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