Grain-Oriented Electrical Steel Reflects 50% of Global Electrical Steel Demand: Fact.MR Study
Published : 26 Jul 2021 Industry: Chemical & Materials
A recent Fact.MR study forecasts the global electrical steel market to surpass US$ 70 Bn by 2031, expanding at over 6% CAGR across the forthcoming decade. Applications abound across the automotive and energy generation industries respectively.
Historical projections indicate an impressive growth trajectory, registering a CAGR slightly below 6% from 2016 to 2020. Prospects were weighed down in 2020 due to the outbreak of COVID-19. However, projections appear favorable for 2021, with an expected valuation of over US$ 37 Bn. In the short-term forecast, maximum growth opportunities exist in the electric vehicles domain, as countries increasingly adopt more renewable transportation alternatives.
Prominent manufacturers are capitalizing on the increasing popularity of silicone based semiconductors to increase their electrical steel production targets. Moreover, increasing emphasis on electrification of power grids and automobiles are generating significant expansion opportunities for the market.
Key Takeaways from the Market Study
- Grain-oriented electrical steel to grow rapidly, contributing 51% share in the market
- Transformers anticipated to account for more than 40% of total revenue in 2021
- Energy generation to account for over 33% revenue share for electrical steel
- Sales of electrical steel to expand at approximately 5% CAGR in the U.S
- India to account for over 2 out of 5 electrical steel sales, amid extensive power infrastructure development
- China to surpass the 50% revenue threshold for the East Asian market by 2031
- Sales of electrical steel likely to expand at above 6% CAGR across Japan
“Amplifying demand for silicon semiconductors will continue to be the leading user of silicone material and electrical steel is often referred to as silicon steel,” says the Fact.MR analyst.
Prominent players in the electrical steel market are eyeing collaborations with other players to enhance their product production capacity in order to fulfil the expanding demand of a growing client base. Additionally, sustainable manufacturing practices are acquiring precedence:
- In July 2021, Cogent Power, the European division of Tata Steel, conformed to the European Commission’s Fit to 55 package. This initiative aims to propose a new climate law to achieve a 55% reduction in CO2 emissions by 2030, requiring the company to produce electrical steel more sustainably
- Likewise, in July 2021, JFE Steel Corporation announced an agreement with NYK Line, Kawasaki Kisen Kaisha and Mitsui O.S.K Lines to charter three LNG-fueled bulk carriers for transporting iron ore, coal and electrical steel from overseas locations to its factories in Japan
More Insights Available
Fact.MR, in its new offering, presents an unbiased analysis of the electrical steel market, presenting historical demand data (2016-2020) and forecast statistics for the period of 2021-2031.
The study divulges essential insights on the market on the basis of product type (grain-oriented electrical steel and non-grain oriented electrical steel), application (inductors, motors and transformers) and end use (automobiles, manufacturing, energy, household appliances and others) across seven major regions of the world (North America, Latin America, Europe, East Asia, South Asia, Oceania, and Middle East & Africa).
Fact.MR’s Domain Knowledge in Chemicals and Materials
Our chemical and material consulting team guides organizations at each step of their business strategy by helping you understand how the latest influencers account for operational and strategic transformation in the chemical and material sector. Our expertise in recognizing the challenges and trends impacting the global chemical and material industry provides indispensable insights and support – encasing a strategic perspective that helps you identify critical issues and devise appropriate solutions.
For more information, refer to our market research report or contact the PR author.
Shambhu Nath Jha
Consultant – Chemicals and Materials