Electrical steel, also known as silicon steel, lamination steel, relay steel or transformer steel is known for its efficiency in electromagnetic applications. It has high magnetic permeability and low power loss characteristics under alternating magnetic fields due its nano-scale grain structure. The global electrical steel market is estimated to be valued at US$ 43.97 Mn in 2024 and is expected to exhibit a CAGR of 8.6% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing use of high-frequency power transformers in growing applications such as renewable energy systems, electric vehicles and energy efficient equipment is contributing to the growth of the global electrical steel market. High-frequency power transformers help in reducing size and weight of equipment by operating at higher frequencies compared to conventional power transformers. Electrical steel exhibits lower core loss at higher frequencies, thereby making it suitable for use in manufacturing of high-frequency power transformers. This high adoption of electrical steel in high-frequency power transformers is expected to drive the market growth over the forecast period.
SWOT Analysis
Strength: Electrical steel can efficiently transfer magnetic flux which makes it suitable for applications in transformers, motors etc. It has high tensile strength and is resistant to corrosion.
Weakness: Electrical steel is more expensive than regular steel due to stringent quality control and precise composition required. High competition from substitutes such as soft magnetic composites can also impact the market.
Opportunity: Growing demand for electrical equipment from end use industries like automotive and power generation will drive electrical steel market growth. Development of non-grain oriented electrical steel with better magnetic properties also presents opportunities.
Threats: Stringent environmental regulations around steel production can increase costs. Volatility in raw material prices also poses threat to stable profits.
Key Takeaways
The Global Electrical Steel Market Size is expected to witness high growth over the forecast period. The increasing demand from the power transmission and motor industries globally is expected to drive the demand.
Region-wise, Asia Pacific currently dominates the global electrical steel market and is expected to witness fastest growth during the forecast period attributed to growing electrical infrastructure and industrial development in countries like China and India.
Key players operating in the electrical steel market are Yara International ASA, The Mosaic Company, Nutrien Ltd., BASF SE. These key players are focusing on expanding their production capacities to cater to growing demand and adopting sustainability practices to reduce environmental impact of steel manufacturing.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it