Electric Steel Market to Witness Upward Growth Trajectory, as Sales of Electric Vehicles are set to soar through 2030, Projects Fact.MR
Published : 16 Apr 2020 Industry: Chemical & Materials
The global electrical steel market has utilized the opportunities in the market over the last decade with sales of electrical steel pegged at US$ 20.4 Bn in 2019. However, sales are set to plummet during in the middle two quarters of 2020 owing to COVID-19. In addition, several automakers have shuttered their production units, causing incalculable loss to the electrical steel market in 2020. However, the demand of electrical steel is anticipated to rebound and showcase a positive growth trend over the long-term forecast period. The above represented scenario is projected to expand the global electrical steel market at a positive CAGR of ~6.2% over the assessment period (2020-2030).
The future of electrically-powered motors used in automotive relies on high grade electrical steel. The advantages of electrical steel including its efficiency, capability to reduce overall weight and heat loss are some of the factors which are anticipated to amplify the overall sales of electrical steel post COVID-19. Apart from electric vehicle or any other vehicles, electrical steel is anticipated to gain massive opportunities from other sectors as well including consumer electronics and construction.
Key Takeaways of Electrical Steel Market:
- Out of per Mn dollar spent on electrical steel, non-grain oriented electrical steel segment is anticipated to account for ~70% of the opportunity captured in global electrical steel market by 2030
- Over the last 5 years, the demand for electrical steel was restricted to the motors segment and it is likely to showcase a similar growth trend with an absolute dollar opportunity of US$ ~4.5 Bn over the short-term forecast period (2020-2025)
- Prominent electrical steel trading countries such as China, India, US, Russia, Turkey and Brazil will opt for collaborative strategies in the near future to overcome the loss incurred in the wake of COVID-19
- East Asia is house to several key manufacturers for decades and is likely to maintain its leadership in terms of production over the long-term forecast period. The region is expected to account for near half of the sales of electrical steel by 2030.
“The evolving transformation of end use industries towards emission control and adoption of lightweight materials is anticipated to witness a v-shaped growth trend for global electrical steel industry between 2019 and 2022. Also, demand for high frequency, high torque and efficient motors is likely to become a product wish list for key manufacturers", says the Fact.MR analyst.
Tier 1 Companies will Emerge Winners with Greater Penetration in Electrical Steel Industry, Finds Fact.MR
In order to meet increasing demand for electrical steel, prominent companies have ramped up their production capacities during the historical period (2015-2019). The near-term will witness investments in electric steel to make up for the loss created by the pandemic. For instance, companies like ThyssenKrupp AG and Big River Steel have done billion $ investments to expand their production capacities and strengthen their position in the market. However, due to increasing prevalence of coronavirus, many manufactures have halted their current production and investment activities. Some of the tier 1 players include ArcelorMittal S.A., Baosteel Group Corporation, POSCO, Novolipetsk Steel, ThyssenKrupp AG, Nippon Steel & Sumitomo Metal Corporation, and Voestalpine AG accounted for near half of the global sales in 2019.
More Valuable Insights on Electrical steel market:
Fact.MR, in its new offering, presents an unbiased analysis of the electrical steel market, presenting historical demand data (2015-2019) and forecast statistics for the period of 2020-2030. The study divulges essential insights on the electrical steel on the basis of product (grain-oriented electrical steel and non-grain oriented electrical steel), application (inductors, transformers and motors), end use industry (automobile, energy, household appliance, manufacturing and others) across six major regions.
About the Chemicals & Materials Division at Fact.MR
Expert analysis, actionable insights, and strategic recommendations – the Chemicals & Materials team at Fact.MR helps clients from all over the globe with their unique business intelligence needs and requirements of entire value chain of Chemical & Materials sector. A team of passionate analysts track the performance of the existing Chemicals & Materials as well as those that have just entered their product life cycle. With a repertoire of over 1,000 reports and 1 million plus data points, the team has analyzed Chemicals & Materials lucidly in 50+ countries for over a decade. The Chemicals & Materials team at Fact.MR has been assisting clients in their business expansion as well as new ventures, through their analysis and recommendations.