Electrical Steel Market - Forecasts from 2021 to 2026

March 2021 | 129 pages | ID: E14CD7CF7934EN
Knowledge Sourcing Intelligence LLP

Abstracts

The electrical steel market is expected to grow at a compound annual growth rate of 8.17% over the forecast period to reach a market size of US$47.595 billion in 2026 from US$27.467 billion in 2019. The electrical steel market is estimated to grow in the forecast period. Increase in the infrastructural development, industrialization, rise in the demand in the power sector and urbanization are going to be the driving factors of the electrical steel market. The electrical steel is used across various applications such as solenoids, electric motors, generators, small relays and various other electromagnetic devices. The key users of electric steel are the automobile industries and electric power distribution system which will foster growth in the market.

Market Drivers

• Rise in the demand for electric vehicles will lead to increase in the demand for electric steel in the automobile market. The HEV/EV are going to play a crucial role in the growth of the electrical steel market.
• Rapid industrialization and increase in the population have led to increase in the global consumption of power and energy. Stringent government regulations due to increasing concerns for the environment pertaining to the CO2 emissions has led to focus on environmental sustainability and energy efficiency, thereby increasing the demand for grain oriented and non-grain oriented electrical steel. This steel is used in the high-powered transformers and motors.
• The addition of silicon to iron substantially increases the physical characteristics of electric steels. For the benefit of energy generation, distribution and consumption, electrical steels have the following attractive properties: high electrical resistivity, decreased hysteresis loss, low magnetostriction and high permeability.
• The Indian steelmakers are considering to produce CRGO electric steel which is used in the manufacture of transformers and electric motors, the main reason being to become self-sufficient and reduce the dependence on China, Japan and South Korea for the product.
• The demand for non-grain oriented electric steel will increase with the increase in the demand for household appliances because its recyclable in nature and corrosion resistant. It is used in washing machines, refrigerators, motors and various other appliances that are used in the kitchen. The market of electrical steel will grow with the increase in innovation and demand for these household products.
• Increase in the demand for electric cars and automotive in US, Canada and Mexico is going to foster growth in the market of electric steel.
• Initiatives taken by the government will encourage the use of electrical steel. Growing concerns for the environment strict regulations are being implemented which will foster the growth of the electrical steel market.

Market Restraints

• The prices of raw material are very volatile. The steel industry depends largely on the availability of raw materials for the production and processing of steel goods. Iron ore, coal, industrial gases, and ferro-alloys are the main raw materials needed for steel production. If raw materials are fairly priced, it is possible to perform steel manufacturing and steel processing operations smoothly. But the prices of raw materials are extremely unpredictable. Increases in raw material costs have an effect on the cost of production of steel, contributing to inflation in the prices of finished steel goods, such as grain-oriented electrical steel and non-grain-oriented electrical steel.

Impact of Covid-19

• The impact of Covid-19 has been severe on almost all the industries. The global electrical steel market has witnessed a downfall in year 2020 as compared to the previous years. Due to lockdown restrictions in various parts of the world it hindered the supply globally as the manufacturing, distribution, and various other activities came to a halt.

Recent Trends

• The US Department of Commerce started a national security investigation under section 232 which could cause more tariff on imports of the essential electrical steel components that are used in making of transformers and other related products.
• US and Mexico have reached an agreement on November 2020 on export of Grain Oriented Electrical Steel. Moreover, there will be no section 232 tariffs on Mexico for the shipments of GOEC.
• Nippon Steel of Japan has planned to produce electrical steel sheet using electric arc furnace in the year 2022. This step was taken to tackle the climatic changes around the world. When compared to the traditional furnaces the electric furnaces release only a fourth of the carbon dioxide.
• Cleveland-Cliffs acquired AK Steel in March 2020. This merger has a lot of benefits for both the companies.
• Nippon Steel & Sumitomo Metal Corp acquired a 51% stake in Sanyo Special Steel Co. Ltd in March 2019.
• ArcelorMittal announced in December 2019 the acquisition of Essar Steel India Limited (ESIL), a fully integrated manufacturer of flat carbon steel located in Gujarat, India. At the same time, the company formed a joint venture with Nippon Steel Corporation called ArcelorMittal Nippon Steel India Limited, which will own and operate ESIL. This acquisition helped the company to reinforce its Indian market presence.

Major Players

The major players in the electrical steel market are ArcelorMittal, POSCO, Baosteel Group Corporation, Voestalpine AG, Nippon Steel & Sumitomo Metal Corporation, ThyssenKrupp AG, Phoenix Mecano AG, NLMK (Novolipetsk Steel), Nicore Electrical Manufactory Co Ltd., Leicong Industrial Co Ltd., Cogent Power Limited, ATI, AK Steel Corporation, and many others. The companies are using various strategies to stay ahead in the market by entering into a joint venture, merger and acquisition in order to expand their business and enter the untapped and potential market.

Segmentation

• By Type
• Grain Oriented
• Non-Grain Oriented
• By Application
• Transformers
• Motors
• Inductors
• Others
• By End-User Industry
• Energy
• Automotive
• Manufacturing
• Household Appliances
• Others
• By Region
• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• United Kingdom
• France
• Italy
• Russia
• Others
• Middle East and Africa
• Saudi Arabia
• South Africa
• Others
• Asia Pacific
• China
• India
• Japan
• South Korea
• Australia
• Others

Note: The report will be dispatched in 3 business days.

Contents

1. INTRODUCTION

1.1. Market Definition
1.2. Market Segmentation

2. RESEARCH METHODOLOGY

2.1. Research Data
2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
  4.3.1. Bargaining Power of Suppliers
  4.3.2. Bargaining Power of Buyers
  4.3.3. The threat of New Entrants
  4.3.4. Threat of Substitutes
  4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis

5. ELECTRICAL STEEL MARKET ANALYSIS, BY TYPE

5.1. Introduction
5.2. Grain Oriented
5.3. Non-Grain Oriented

6. ELECTRICAL STEEL MARKET ANALYSIS, BY APPLICATION

6.1. Introduction
6.2. Transformers
6.3. Motors
6.4. Inductors
6.5. Others

7. ELECTRICAL STEEL MARKET ANALYSIS, BY END-USER INDUSTRY

7.1. Introduction
7.2. Energy
7.3. Automotive
7.4. Manufacturing
7.5. Household Appliances
7.6. Others

8. ELECTRICAL STEEL MARKET ANALYSIS, BY GEOGRAPHY

8.1. Introduction
8.2. North America
  8.2.1. North America Electrical Steel Market Analysis, By Type
  8.2.2. North America Electrical Steel Market Analysis, By Application
  8.2.3. North America Electrical Steel Market Analysis, By End-User Industry
  8.2.4. By Country
    8.2.4.1. United States
    8.2.4.2. Canada
    8.2.4.3. Mexico
8.3. South America
  8.3.1. South America Electrical Steel Market Analysis, By Type
  8.3.2. South America Electrical Steel Market Analysis, By Application
  8.3.3. South America Electrical Steel Market Analysis, By End-User Industry
  8.3.4. By Country
    8.3.4.1. Brazil
    8.3.4.2. Argentina
    8.3.4.3. Others
8.4. Europe
  8.4.1. Europe Electrical Steel Market Analysis, By Type
  8.4.2. Europe Electrical Steel Market Analysis, By Application
  8.4.3. Europe Electrical Steel Market Analysis, By End-User Industry
  8.4.4. By Country
    8.4.4.1. Germany
    8.4.4.2. United Kingdom
    8.4.4.3. France
    8.4.4.4. Italy
    8.4.4.5. Russia
    8.4.4.6. Others
8.5. Middle East and Africa
  8.5.1. Middle East and Africa Electrical Steel Market Analysis, By Type
  8.5.2. Middle East and Africa Electrical Steel Market Analysis, By Application
  8.5.3. Middle East and Africa Electrical Steel Market Analysis, By End-User Industry
  8.5.4. By Country
    8.5.4.1. Saudi Arabia
    8.5.4.2. South Africa
    8.5.4.3. Others
8.6. Asia Pacific
  8.6.1. Asia Pacific Electrical Steel Market Analysis, By Type
  8.6.2. Asia Pacific Electrical Steel Market Analysis, By Application
  8.6.3. Asia Pacific Electrical Steel Market Analysis, By End-User Industry
  8.6.4. By Country
    8.6.4.1. China
    8.6.4.2. India
    8.6.4.3. Japan
    8.6.4.4. South Korea
    8.6.4.5. Australia
    8.6.4.6. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrativeness
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix

10. COMPANY PROFILES

10.1. ArcelorMittal
10.2. POSCO
10.3. Baosteel Group Corporation
10.4. Voestalpine AG
10.5. Nippon Steel & Sumitomo Metal Corporation
10.6. ThyssenKrupp AG
10.7. Phoenix Mecano AG
10.8. NLMK (Novolipetsk Steel)
10.9. Nicore Electrical Manufactory Co Ltd.
10.10. Leicong Industrial Co Ltd.
10.11. Cogent Power Limited
10.12. ATI
10.13. AK Steel Corporation