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Europe Electrical Steel Market

Europe Electrical Steel Market

Europe Electrical Steel Market Analysis By Product Type (Grain-Oriented Electrical Steel & Non-Grain-Oriented Electrical Steel) By Application (Electrical Steel for Inductors, Transformers and Motors) By End-Use & By Region – Europe Market Insights 2022 to 2032

Europe Electrical Steel Market
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Europe Electrical Steel Market Outlook (2022-2032)

European sales of electrical steel are estimated at around US$ 6.3 billion in 2022. The Europe electrical steel market is projected to register an impressive CAGR of 10.3% during 2022-2032 and generate US$ 10.6 billion in absolute dollar opportunity over the assessment period.

Report Attributes

Details

Europe Electrical Steel Market Size (2021A)

US$ 5.8 Billion

Estimated Market Value (2022E)

US$ 6.3 Billion

Forecasted Market Value (2032F)

US$ 16.9 Billion

Europe Market Growth Rate (2022-2032)

10.3% CAGR

Russia Market Share (2021)

~47.6%

Russia Market Growth Rate (2022-2032)

~8.5% CAGR

Market Share of Top 5 Companies

~45%

Key Companies Profiled

  • Novolipetsk Steel (NMLK)
  • ArcelorMittal
  • Cogent Power Limited
  • Phoenix Mecano AG
  • Thyssenkrupp AG
  • Voestalpine Camtec GmbH
  • Aperam S.A.
  • SMS Group GmbH
  • Acciaieria Arvedi
  • Acronic International GmbH
  • Erdemir Romania S.R.L.
  • Severstal

This high market is mainly due to the unique properties of electrical steel providing multiple benefits, advancements in the production technology of electrical steel, and product innovation that is expanding its application areas.

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Europe Electrical Steel Historical Market Analysis (2017-2021) Vs. Growth Forecasts (2022-2032)

Electrical steel is specialized steel and has assured magnetic properties that provide high permeability, resulting in a low core loss. Electrical steel properties are dependent on the amount of silicon in it, since its addition improves permeability, increases resistivity, and reduces hysteresis loss.

The electrical steel industry in Europe is likely to progress at a significant pace as market players are striving to enhance their production capacity. Adoption of advanced production technologies has proven to be beneficial for the industry as it has resulted in increased production efficiency.

Factors such as output of the steel industry, consumer appliance spending, power generation and distribution market, automotive industry growth, etc., will further supplement market growth over the coming years.

  • Short Term (2022 Q2 to 2025): Properties of electrical steel providing several benefits such as ensuring high permeability and resulting in low core loss to support short-term market growth.
  • Medium Term (2025-2028): Prominent market players will invest in research & development to develop innovative product materials and capacity & geographic expansion in the medium term.
  • Long Term (2028-2032): Product innovations in electrical steel will drive the application scope of electrical steel and propel long-term market expansion.

As per detailed industry analysis by Fact.MR, a market research and competitive intelligence provider, the European electrical steel market registered 7.6% historical growth during 2017 to 2021. According to the analysis, the market is predicted to expand at 10.3% CAGR through the forecast years (2022-2032).

Europe electrical steel market forecast by Fact.MR

Market share analysis based on application and country is provided in a nutshell in the above image. Under the application segment, motors dominated the market by holding 52.3% share in 2021.

Which Market Trends are Being Witnessed in the Europe Electrical Steel Industry?

“Beneficial Properties of Electrical Steel Driving Consumption”

The physical properties of electrical steel are enhanced with the addition of silicon in iron. The desirable properties of electrical steel are likely to support its consumption.

For instance, electrical steel possesses high permeability, which provides increased capacity to support magnetic fields. Its property of high electrical resistivity and low magneto-striction ensures less core loss with the help of a reduction in eddy current component and provides a low tendency to expand or contract in magnetic fields.

In addition to this, the decreased hysteresis loss property of electrical steel allows for less wasted energy in heat form by altering the magnetizing force.

Thus, all the above factors are likely to drive the consumption of electrical steel across Europe during the forecast years of 2022-2032.

“Advancements in Electrical Steel Characteristics through R&D”

Spending on research & development is rising as a majority of companies operating in the electric vehicle business are facing difficulty in controlling magnetic field electric motors.

Traditionally, OEMs have consolidated their position by working on the hardware aspect, but as technology drives the vehicles of tomorrow, the industry has been forced to dive into a domain in which they have limited expertise.

Collaboration with tech companies remains a feasible option in the long term. Leading manufacturers of electrical steel have already developed some advancements for electric vehicles by focusing on perfecting the technology of permanent magnet synchronous reluctance motors for increasing the efficiency of EVs, in turn, fueling demand for electrical steel in Europe.

What Kind of Competition Do Electrical Steel Suppliers Have to Face?

“Market Players to Contend with Increasing Demand for Amorphous Metal Alloys”

Amorphous metal alloys (Fe-B-Si) exhibit higher magnetism properties than those exhibited by electrical steel. Replacement of grain-oriented electrical steel with amorphous metal alloys reduces the core losses of transformers by 75%.

Also, noise and temperature are significantly lower when amorphous metal alloys are used as the core material for transformers instead of grain-oriented electrical steel.

These factors and additional benefits offered by amorphous metal alloys are expected to hamper the demand growth of electrical steel in Europe to a significant extent.

An Adaptive Approach to Modern-day Research Needs

Country-wise Insights

Where is Consumption of Electrical Steel Higher in Europe?

“European Market Led by Russia and Germany”

Russia’s electrical steel market and Germany's electrical steel market are leading the market in Europe with 47.6% and 10% market shares, respectively, in 2021.

Substantial growth in automotive industries along with rising public and private investments in the economy is propelling market growth in these countries. These factors are likely to supplement market growth at 8.5% and 13% CAGRs during the forecast years of 2022-2032.

In addition to these factors, rising emphasis on electric vehicle production and power generation is supporting the need for electric motors and charging stations. Prominent companies in these countries are focusing on the industrial production of electrical steel and are investing their resources to develop innovative electrical steel with improved properties, thereby boosting the competitiveness of their products in the European market.

Category-wise Insights

Which Type of Electrical Steel is More Widely Used across Europe?

“Non-Grain-Oriented Electrical Steel to Maintain Dominance”

The European electrical steel market, under product type, is segmented into grain-oriented electrical steel and non-grain-oriented electrical steel.

Non-grain-oriented electrical steel dominates the European landscape by holding 73.7% share of the market. Several beneficial factors such as non-grain-oriented electrical steel carrying uniform properties in all directions, not requiring a recrystallization process for the development of properties, and providing better thermal conductivity are supplementing its demand growth.

As such, consumption of non-grain-oriented electrical steel is projected to rise at 9.5% CAGR throughout the forecast years, with its market share climbing to 76.7% by the end of 2032.

On the other hand, grain-oriented electrical steel holds 26.3% market share and the segment is predicted to exhibit 8.3% CAGR. Using grain-oriented electrical steel leads to less loss of energy as it is composed of iron with 3% Si content. Also, grain-oriented electrical steel exhibits better magnetic properties and carries strong crystallographic properties in the electrical steel sheet rolling direction and their augmented use for non-rotating applications such as transformers, etc.

Where is Electrical Steel Usage the Highest in Europe?

“High Electrical Steel Application in Motors to Drive Revenue Growth”

The European market for electrical steel, under application, is segmented into inductors, transformers, and motors.

The motors segment holds 52.3% share in the market, which is likely to increase to 57.9% by the end of 2032, expanding at a CAGR of 9.2% during the forecast years. Electrical steel is being widely used in electric motors owing to its properties such as high frequency, high permeability, and excellent magnetic properties.

Rising public inclination towards electric vehicles is supporting the demand for electric motors, which, in turn, is fueling the demand for electrical steel in Europe.

The other application segments, namely, transformers and inductors, hold 29.8% and 17.9% market shares, respectively in 2022, and demand from these applications is predicted to increase at the rate of 9.0% and 10.2% over the decade.

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Competitive Landscape

Focus on geographical and capacity expansion along with investing resources in intensifying manufacturing capacities to augment production are the key strategies of European manufacturers of electrical steel.

In addition to this, they are also investing in developing innovative products to be used for several applications and fulfil the varied demands of clients.

For instance :

  • ArcelorMittal acquired John Lawrie Metals Ltd. in 2022. The company is a Scottish steel recycling business, and its acquisition will allow ArcelorMittal to enhance the use of scrap steel to reduce CO2 emissions from steelmaking.
  • In 2021, Novolipetsk Steel (NMLK) announced the building of a grain-oriented steel plant in the state of Maharashtra in India. The installation of metal structures has already been commenced and the plant will produce 64,000 MT of grain-oriented steel annually.

Fact.MR has provided detailed information about the price points of key manufacturers of electrical steel positioned across Europe, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Key Segments of Europe Electrical Steel Industry Survey

  • Europe Electrical Steel Market by Product Type :

    • Grain-Oriented Electrical Steel
    • Non-Grain-Oriented Electrical Steel
      • Fully-Processed
      • Semi-Processed
  • Europe Electrical Steel Market by Application :

    • Inductors
    • Transformers
      • Transmission
      • Portable
      • Distribution
    • Motors
      • 1hp – 100hp
      • 101hp – 200hp
      • 201hp – 500hp
      • 501hp – 1000hp
      • Above 1000hp
  • Europe Electrical Steel Market by End-use Industry :

    • Automotive
    • Manufacturing
    • Energy
    • Household Appliances
    • Others (Construction, Fabrication)
  • Europe Electrical Steel Market by Country :

    • Germany
    • Italy
    • France
    • Spain
    • U.K.
    • Russia
    • BENELUX
    • Rest of Europe

- FAQs -

The Europe electrical steel market is estimated at US$ 6.3 billion and is anticipated to surpass US$ 16.9 billion by 2032-end.
Over the past 4 years, consumption of electrical steel in Europe increased at 7.6% CAGR.
Key suppliers of electrical steel in Europe are Novolipetsk Steel (NMLK), ArcelorMittal, Thyssenkrupp AG, Acronic International GmbH, and Erdemir Romania S.R.L.
Russia leads the European market for electrical steel market accounting for 47.6% share in 2022.
Non-grain-oriented electrical steel accounts for 73.7% share in the European market.

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