The Philippines electrical steel market has been growing owing to increasing demand for transformer-based equipment from utilities and renewable energy sectors. Electrical steel, also known as silicon steel, is known for its high magnetic permeability and low power loss properties which makes it suitable for applications involving alternating current such as transformers. It helps improve overall efficiency and yields energy savings. The increasing demand for electricity from the residential and industrial sectors in the Philippines is driving demand for new distribution transformers, substation transformers and reactors, in turn boosting the electrical steel market. The Global Philippines Electrical Steel Market is estimated to be valued at US$ 103.1 Mn in 2024 and is expected to exhibit a CAGR of 5.5% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the Philippines electrical steel are Thyssenkrupp, NatSteel Asia, Kewei Steel Group, Nippon Steel Corporation, JFE Steel Corporation, Posco International, Voestalpine AG, and Arcelor Mittal. Thyssenkrupp and Nippon Steel Corporation are the global leaders in electrical steel manufacturing.
The Philippines electrical steel market provides considerable opportunities for manufacturers given the country’s growing power infrastructure and renewable energy integration goals. The government has been making efforts to upgrade the country’s transmission and distribution network to better support increasing electricity demand. This would require investment in new substations and transformers creating steel demand.
Technological advancements in electrical steel such as non-oriented electrical steel (NOES) are gaining traction. NOES requires lower magnetizing current compared to oriented electrical steel, thus improving overall energy efficiency. Manufacturers are developing NOES grades for various frequency applications in rotating machines.
Market Drivers
The increasing power infrastructure investments driven by the Philippines government’s goal to achieve 100% electrification by 2022 is a key driver for the electrical steel market. As per estimates, PHP 265 billion will be invested over 2017-2022 to build and strengthen the country’s transmission and distribution systems. This focus on grid upgrades would necessitate installation of new transformers and reactors, driving steel consumption. Further, growing renewable energy integration is also expected to support electrical steel demand from associated grid equipment over the forecast period.
Challenges In Philippines Electrical Steel Market
The Philippines Electrical Steel market is facing various challenges which includes restrictions on imports from major steel producing countries to support domestic manufacturers, rising raw material costs, lack of skilled workforce etc. The protectionist policies implemented by the government aims to strengthen local industries however ends up restricting availability of better quality and innovative products. Also, volatility in raw material prices like iron ore and coal increases input costs for manufacturers. Finding and retaining skilled workforce for advanced manufacturing also remains an issue.
SWOT Analysis
Strength: Presence of large domestic automotive industry increases local demand. Government policies support ‘Buy Philippines’ and imports restrictions.
Weakness: Locally manufactured products have less quality and technical capabilities compared to imports. High dependency on imports for key raw materials.
Opportunity: Growing renewable sector and infrastructure projects increase opportunities. Technical collaborations can enhance product development.
Threats: Protectionist policies of other countries can reduce exports. Fluctuations in currency exchange rates impact import costs.
In terms of geography, Central Luzon remains the major market for Philippines Electrical Steel accounting for over 30% share. It is home to largest automotive and appliance manufacturers which are the major consumers. Metro Manila comes second with rapid growth in infrastructure and real estate construction spurring steel demand. Visayas region is also gaining significance with government focus on developing industrial zones to promote domestic manufacturing.
The Philippines Electrical Steel market is forecast to grow at a highest pace in Mimaropa region over the coming years. It consists of Mindoro, Marinduque, Romblon and Palawan provinces. The region is witnessing rising investments in renewable energy projects like wind and solar. This is boosting requirement for electrical steel for transformers and power transmission segments. New port development plans also aim to develop Mimaropa as a manufacturing and exports hub augmenting steel consumption.
What Are The Key Data Covered In This Philippines Electrical Steel Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the Philippines Electrical Steel’s growth between 2024 and 2031.
:- Accurate calculation of the size of the Philippines Electrical Steel and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- Philippines Electrical Steel Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market’s competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of Philippines Electrical Steel vendors
FAQ’s
Q.1 What are the main factors influencing the Philippines Electrical Steel?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top Philippines Electrical Steel companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the Philippines Electrical Steel’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
About Author – Ravina Pandya
Ravina Pandya,a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile