Published Date : 19 Jun 2023
The global electrical steel market size surpassed USD 40.96 billion in 2022 and is projected to rise to USD 71.5 billion by 2030, anticipated to grow at a strong CAGR of 7.21 percent during the projection period from 2022 to 2030.
Rising electricity generation worldwide is one of the important driving factors for market growth. As the name suggests, electrical steel possesses advanced electrical properties like high electrical resistivity, low hysteresis loss, high permeability, and low magnetostriction. These qualities make it highly preferred for appliances related to electricity generation, consumption, and distribution.
Electrical Steel Market Report Scope:
|Market Revenue in 2023
|USD 43.91 Billion
|Projected Forecast Revenue in 2030
|USD 71.5 Billion
|Growth Rate from 2022 to 2030
|CAGR of 7.21%
|2022 To 2030
|North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa
Demand for electrical steel in the U.S. is estimated to rise at a roughly 5% CAGR between 2022 to 2030. In terms of manufacturing and usage by various end-use industries, the U.S. has come out as a market leader in this sector.
East Asia will exist to be one of the appealing markets for electric steel during the forecast period, with China producing over 50% of revenue by 2030.
Demand has increased gradually and unexpectedly for a number of applications across many end-use industries.
Steps to streamline power distribution units in developing countries is a major reason driving demand for electrical steel. Moreover, chances of growth across the automotive industry, amid increasing demand for EVs proves to be a driving factor for the market.
Simultaneously, work-from-home directives have led to a rising energy need for generating electricity. A huge spike has been seen in the healthcare sector, ascribed to the need for uninterrupted power for therapeutic purposes. Numerous advancements have taken place in this industry. For example, Ramco Electric Motors Inc. which is acquired by Arnold Magnetic Technologies, will help the company grow its electric motor and steel solutions, along with semiconductors manufacturing.
As the COVID-19 pandemic cracked, the electrical steel industry had to suffer a significant downturn with regards to production, logistics and supply-chain equilibrium. Compulsory lockdowns forced the manufacturing units to stop production, as a result there was a restricted output. These elements proved to be the restraining factors for the market growth.
In spite of the difficult circumstances, economies are steadily improving in 2022, as the restrictions ease. Distribution networks are strengthening along with he supply capacity, while company activities have resumed to revive. Amongst all this, the pandemic is unlikely to show long-term consequences for the electrical steel industry. Electrical steel is often known as silicon steel. Silicone is an important component in various manufacturing units, especially in the manufacturing of electrical steel.
The electronics industry will continue to be the leading consumer of silicone material, where silicone is majorly utilized as a semiconductor. Therefore, the propelling demand for silicon components which will boost the sales for the electrical steel market.
Steel prices increased significantly in the first quarter of 2022, pertaining to decreased supply and reimposed lockdowns, particularly across China. This trend is estimated to continue throughout the market, with supply remaining constrained.
This may present itself as a challenge for the growth of the market. Moreover, future predictions indicate gradual easing of this imbalance, which will probably help recover projections eventually.
Major Key Players:
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