Global Electrical Steel Market to Grow at a Strong CAGR of 6.8% During the Forecast Period 2021-2030

Global electrical steel market is estimated to grow at a CAGR of 6.8% during the forecast period 2021-2030. Global electrical steel market is primarily driven by rising demand for electrical vehicles and rapid urbanization. Rapid urbanization coupled with increasing population is expected to increase the electricity demand and results in installation of new transformers. According to United Nations (U.S.), global urbanization stood at 54% in 2014 and is expected to reach 66% by 2050. Furthermore, adoption of electric vehicles in also a major driving factor for electrical steel as it finds application in manufacturing of motors.

Energy led the end use industry segment of the global electrical steel market as it captured the largest market share of approximately 38.38% in 2020. Energy electrical steel market is expected to grow at CAGR of 7.0% during the forecast. Electrical steel sheets are used as magnetic cores in power generators, transformers, motors, inductors etc. These are the most used components in power transmission. Furthermore, the use of electric steel in these electrical components supplement certain advantages. According to World Steel Association AISBL (Belgium), transformers having magnetic cores of steel provide 35% less energy loss as compared to conventional transformers. According to International Energy Agency, the electricity consumption would observe a 40% rise from 2016 to 2040. Therefore, global electricity demand is also estimated to increase till 2040. These statistics justify that the energy segment would continue to maintain its dominance till 2030.

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Transformers leads the application segment of the global electrical steel market by capturing largest market share of approximately 34.14% in 2020. Global transformers electrical steel market is expected to grow at a CAGR of 6.9% during the forecast period. Transformers are the most basic components required in electricity transmission. The transformers electrical steel market is driven by the rising adoption of electrical steel in transformers owing to enactment of efficiency standards from various government bodies to reduce carbon dioxide emissions. Regulations across various countries are driving the adoption of transformers with electrical steel cores as these transformers are more efficient as compared to conventional transformers.

Global motors electrical steel market is expected to grow at the highest CAGR of 7.1% over the forecast period. Global motor electrical steel market is primarily driven by advent of automation processes coupled with increasing demand of electric vehicles. Furthermore, approximately 30 million new electric motors are sold each year for industrial use, as per Institute of Industrial Productivity. Also, the motors are highly adopted across the household electrical appliances and the fastest growth rate of household appliances leverage huge adoption opportunities for the motor electrical steel market. However, the rising demand of electrical vehicles also provide traction to the motors electrical steel market.

Household appliances electrical steel market is expected to grow at the highest CAGR of 7.2% over the forecast period. Household appliances electrical steel market was estimated to be $6,517 million in 2017 and is expected to grow to $10,590 million by 2024. Most household appliances use electric steel in electric motors, compressors and casings. Furthermore, high growth in household appliances industry across the globe also presents huge growth opportunities for the household appliances electrical steel market.

China dominates the global electrical steel market by capturing largest market share of approximately 33.45% in 2020 with an estimated CAGR of 7.4% during the forecast period of 2022-2030. Highest steel demand is one of the reasons driving the China electrical steel market. Moreover, well-established home appliances, automotive and manufacturing industries of China also drives the adoption of electrical steel. Furthermore, China would record the highest electricity demand till 2040, as the electricity demand in 2016 remained at 5,320 Terawatt-hour (TWh) which would further increase to 9,230 TWh till 2040. 

KEY MARKET MOVEMENTS

• Global electrical steel market is estimated to grow at a CAGR of 6.8% during forecast period 2021-2030.
• Energy led the end-use industry segment of the global electrical steel market as it captured the largest market share of approximately 38.38% in 2020.
• Energy electrical steel market is expected to grow at CAGR of 7.0% during the forecast.
• Transformers leads the application segment of the global electrical steel market by capturing the largest market share of approximately 34.14% in 2020.
• Global transformers electrical steel market is expected to grow at CAGR of 6.9% during the forecast period.
• Global motors electrical steel market is expected to grow at the highest CAGR of 7.1% over the forecast period.
• Household appliances electrical steel market is expected to grow at the highest CAGR of 7.2% over the forecast period.
• China dominates the global electrical steel market by capturing largest market share of approximately 33.45% in 2020 with an estimated CAGR of 7.4% during the forecast period of 2022-2030.