The global electrical steel market is set to witness substantial growth, with a forecasted Compound Annual Growth Rate (CAGR) of 6.7%. The market is expected to expand from its estimated value of US$33.5 billion in 2023 to reach US$52.8 billion by the end of 2030.
Electrical steel market, a specialized alloy engineered for optimal magnetic characteristics, plays a pivotal role in the contemporary energy domain. It finds extensive use in generators, electric motors, and transformers, offering reduced energy losses through core loss and eddy current mitigation. The unique composition of electrical steel ensures effective energy conversion, making it indispensable in power distribution and transmission systems. The market is witnessing significant growth driven by the escalating demand for electrical steel, propelled by the increasing need for energy efficiency across industries.
Market Growth Drivers
The global electrical steel market is experiencing substantial expansion, attributed to factors such as the increasing demand for electricity, driven by industrialization and urbanization. Investments in power infrastructure expansion and modernization contribute to a surge in electrical equipment and transformer demand, consequently intensifying the need for electrical steel. The growing utilization of renewable energy sources, coupled with advancements in manufacturing technology, further stimulates market growth. Electrical steels role in sustainable energy solutions, including wind and solar power, enhances its significance in the evolving energy landscape.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 – By Product Type, Application, End-user, and Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa): https://www.persistencemarketresearch.com/market-research/electrical-steel-market.asp
Market Restraints
Despite the optimistic outlook, the electrical steel industry faces challenges due to restricted accessibility and the volatility of raw material costs. Silicon steel, a crucial component, relies on a limited resource, and disruptions in the global silicon supply chain impact the market. Additionally, the rapid pace of technological advancements encounters resistance from established norms and technical barriers. Overcoming challenges in material science, metallurgy, and magnetic properties presents a formidable task for manufacturers and researchers.
Opportunities
A significant factor propelling the global electrical steel market is the rapid integration of smart grid technologies worldwide. Smart grids, employing advanced technologies like sensors and data analytics, enhance the efficiency and intelligence of electrical distribution. Electrical steel, crucial in the construction of transformers for smart infrastructure, plays a vital role in optimizing power distribution. The transition to intelligent power grids increases the demand for electrical steel, positioning the industry as a leader in the smart grid revolution.
Analyst’s Viewpoint
The global electrical steel market anticipates significant growth due to a convergence of factors, including electrification of transportation, the transition to renewable energy, and increasing electricity demand. The industrys adaptability to technological advancements and its vital role in critical sectors emphasize its resilience. Collaborative innovation between manufacturers and consumers, coupled with ongoing research in material science, positions the market for continued expansion.
Supply-side Dynamics
Prominent entities such as Nippon Steel Corporation, ArcelorMittal, and POSCO dominate the global electrical steel market. These industry leaders invest substantially in research and development to introduce innovative products that enhance performance and align with environmental consciousness. Germany, China, and the US emerge as significant consumers and producers of electrical steel, with Chinas accelerated infrastructure development and the US automotive industrys shift to electric vehicles driving demand.
Market Segmentation
Leading Product Type Category: GOES-based Steel to Dominate in the Long Term with its Magnetic Properties.
With the highest market share, grain-oriented electrical steel (GOES) is positioned to dominate the worldwide electrical steel industry. GOES, known for its magnetic properties, is extensively used in transformers, contributing to its robust demand. Non-grain-oriented electrical steel (NGOES) is expected to witness the highest growth rate, driven by its adaptability and utilization in various electrical devices.
Largest Application Segment: Transformers Account for the Largest Revenue Share.
The transformers segment is anticipated to hold the most significant market share, driven by the expansion of power infrastructure globally. The electric motors sector is expected to witness rapid growth due to the increasing adoption of electric vehicles and the shift towards energy-efficient technologies.
Leading End-use Industry: The Energy & Power Generation Sector to be the Dominant Segment.
The energy and power generation sector is expected to hold the most substantial portion of the global electrical steel industry. The automotive sector is projected to experience rapid growth, driven by the electrification of automotive systems and the transition to electric vehicles.
Top Regional Markets
Dominant Region: East Asia Leads with Swift Manufacturing Sector and Robust Industrial Operations.
East Asia, including South Korea, Japan, and China, holds the most significant market share, driven by substantial infrastructure development and robust industrial operations. China, as the largest consumer and manufacturer of electrical steel, plays a pivotal role in the regions dominance.
Rapidly Expanding Region: South Asia and Oceania Set for a Thriving Outlook.
South Asia and Oceania are anticipated to experience the most rapid expansion in the global electrical steel market. Developing economies, including India, prioritize the adoption of renewable energy sources, contributing to the surge in electricity demand.
Competitive Intelligence and Business Strategy
Prominent entities like Nippon Steel Corporation, ArcelorMittal, and POSCO implement comprehensive approaches, including research and development, to safeguard and augment their market portions. These companies focus on producing high-performance electrical steel through innovation, addressing evolving consumer demands and industry trends. Ongoing technological progress and the implementation of Industry 4.0 principles contribute to operational efficiency improvements.
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This press release first seen on Brilad
COMTEX_447480359/2840/2024-02-08T01:03:06
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