The Electrical Steel Market is witnessing significant growth, driven by the global shift toward energy-efficient technologies and the increasing adoption of electric vehicles. With the market valued at USD 32.0 billion in 2024 and projected to reach USD 33.0 billion in 2025, the demand for high-performance electrical steel is accelerating across North America, Europe, APAC, South America, and MEA regions. By 2035, the market is expected to expand to USD 45.0 billion, registering a CAGR of 3.1% over the forecast period.
Market Overview
Electrical steel, also known as silicon steel, is primarily used in transformers, motors, and generators due to its exceptional magnetic properties. The market is segmented based on product type, application, end-use industry, magnetic property, and region. Key players, including POSCO, Nippon Steel, ArcelorMittal, Steel Authority of India, and China Steel Corporation, are focusing on product innovation and strategic collaborations to strengthen their market presence.
Key Market Drivers
Several factors are propelling the growth of the Electrical Steel Market:
-
Rising demand for electric vehicles (EVs): The surge in EV production globally is fueling the need for high-grade electrical steel in electric motors.
-
Expansion of power generation capacity: With increasing electricity demand, utilities are upgrading transformers and generators, further boosting steel consumption.
-
Technological advancements in manufacturing: Modern techniques are enhancing the efficiency and magnetic performance of electrical steel.
-
Growth in renewable energy: Solar, wind, and other renewable sources require durable electrical steel for efficient power conversion.
-
Stringent environmental regulations: Governments worldwide are enforcing energy efficiency standards, increasing the adoption of electrical steel in appliances and industrial equipment.
Regional Insights
-
North America & Europe: Driven by renewable energy projects and EV adoption, these regions maintain steady demand for high-quality electrical steel.
-
APAC: Countries like China, India, Japan, and South Korea dominate the market due to massive industrial growth and government incentives for green energy.
-
South America & MEA: Infrastructure development and increasing electricity demand are fueling market growth.
Key Opportunities
The Electrical Steel Market presents multiple growth avenues:
-
Increasing use in smart grids and energy-efficient appliances.
-
Expansion of the electric vehicle sector requiring advanced steel solutions.
-
Rising investments in electric motors for industrial and commercial applications.
-
Technological advancements enabling high-performance, low-loss electrical steel.
For businesses exploring adjacent opportunities, the Blue Laser Diode Market also offers significant growth potential, particularly in electronics and medical applications.
Competitive Landscape
Market leaders such as AK Steel, Baowu Steel, SSAB, thyssenkrupp, United States Steel, Tata Steel, Hyundai Steel, Nucor Corporation, Sail Group, and JFE Steel are leveraging R&D and strategic partnerships to enhance their product portfolio and strengthen regional presence.
Market Forecast
The Electrical Steel Market is expected to witness steady growth from USD 33.0 billion in 2025 to USD 45.0 billion by 2035. With the adoption of renewable energy, electric vehicles, and energy-efficient systems, the market is set to expand at a CAGR of 3.1% over the forecast period.
Conclusion
The Electrical Steel Market is poised for significant growth due to global energy transition, industrial expansion, and technological advancements. Companies focusing on innovation, sustainability, and strategic expansion are likely to gain a competitive edge in the coming decade.
FAQs
Q1: What is electrical steel used for?
Electrical steel is primarily used in transformers, motors, generators, and other electrical devices due to its superior magnetic properties and energy efficiency.
Q2: Which regions are driving the growth of the electrical steel market?
APAC dominates the market, followed by North America and Europe, mainly due to industrialization, EV adoption, and renewable energy investments.
Q3: What is the expected growth rate of the electrical steel market?
The market is projected to grow at a CAGR of 3.1% between 2025 and 2035, reaching USD 45.0 billion by 2035.
Explore our Global Report in All Regional Languages:
Leave a Reply