U.S. Electrical Steel Market

U.S. Electrical Steel Industry Outlook (2022-2032)

The U.S. electrical steel arcade is estimated to cross US$ 7.3 billion in revenue by the end of 2032, up from a valuation of US$ 3.7 billion in 2022.

The market witnessed 5% historic growth rate from 2017 to 2021; however, it is predicted to rise faster at 7.1% CAGR during the forecast years of 2022-2032..

Report Attributes	Details
U.S. Market Size (2021A)	US$ 3.5 Billion
Estimated Market Value (2022E)	US$ 3.7 Billion
Forecasted Market Value (2032F)	US$ 7.3 Billion
U.S. Market Growth Rate (2022-2032)	7.1% CAGR
South-West U.S. Market Share (2021)	~25.7%
South-West U.S. Growth Rate (2022-2032)	~7.4% CAGR
Market Share of Top 5 Companies	~33%
Key Companies Profiled	AK Steel Holding Corporation Allegheny Technologies, Inc. United States Steel Corporation Cleveland-Cliffs, Inc. Arnold Medical Technologies Big River Steel (BRS) Continental Steel & Tube Co. Johnson Bros. Metal Forming Co. AAA Metals Company, Inc. Gibbs Wire & Steel Company, LLC

Estimated market growth is high due to the rising demand for grain-oriented steel products and non-grain-oriented steel products, along with the several benefits of electrical steel for a wide range of applications

U.S. Electrical Steel Consumption Analysis (2017-2021) Vs. Market Outlook (2022-2032)

Electrical steel is specialty steel that is manufactured by modifying the magnetic properties of conventional steel, inducing high permeability. It is used to manufacture generators, power transformers, inductors, etc. Demand for electrical steel is rising steadily for several applications across end-use industries.

Initiatives undertaken to streamline power distribution centers are also supporting product demand. Moreover, the rising popularity of electric vehicles and opportunities in the automotive industry will also fuel demand for electrical steel over the coming years.

• Short Term (2022 Q2 to 2025): Unique magnetic properties of electrical steel, resulting in low core loss and ensuring high permeability, to support short-term market demand growth.
• Medium Term (2025-2028): Companies investing in research and development to make use of safe and environment-friendly materials, along with developing products complying with local market regulations, is fuel market growth in medium term.
• Long Term (2028-2032): Wide application scope of electrical steel in consumer appliances along with product innovation in electrical steel to propel long-term market expansion.

Electrical steel sales across the U.S. registered a CAGR of 5% from 2017 to 2021. As per this detailed market analysis, the market is projected to exhibit 7.1% CAGR during the assessment period of 2022-2032.

Market share analysis of product type and region is provided in the above image in a nutshell. Under the product type segment, grain-oriented electrical steel held the largest market share of 52.8% in 2021.

Why is Demand for Electrical Steel High in the United States?

“Increasing Demand for Grain-oriented & Non-grain-oriented Products”

Consumption of power and energy is rising because of the rising population, rapid industrialization, and increasing per capita income. Strict government regulations concerning CO2 emissions focus on energy efficiency and environmental sustainability, which are some of the factors driving demand for grain-oriented and non-grain-oriented variants. This is to be used in high-power transformers and motors, especially for power transmission and distribution purposes.

Key market players are focusing on safe and environment-friendly materials such as chrome-free phosphate insulation coatings to grain-oriented products to eliminate the risks from hexavalent chrome and deliver safe and eco-friendly superior insulation coatings.

“Robust Industrial Growth to Anchor Consumption Behavior”

In industrial sectors such as mining, manufacturing, utilities, construction, oil & gas, etc., demand for structural components and engine components such as composite parts is anticipated to rise over the coming years. To capitalize on this trend, many companies are entering the market to expand their geographical footprint.

Players in the market are investing their resources in research, development, and innovation to develop products that comply with the safety norms of local markets, which is likely to provide unexploited opportunities and aid manufacturers enhance their market share.

Companies are developing flat-rolled for motors, transformers, and generators. Demand for extremely thin electrical steel strips for high-frequency applications is also witnessing an increase owing to technological advancements, in turn, anchoring the consumption behavior and fueling market growth in the United States.

Region-wise Insights

Which U.S. Regions Account for Higher Consumption of Electrical Steel?

“Demand for Electrical Steel to Be Higher in South-West U.S. & West U.S.”

The South-West U.S. and the West U.S. hold 25.7% and 22.4% share, respectively, in the overall U.S. market. These regional markets are projected to rise at 7.4% and 7.1% CAGRs across the assessment period.

This high market growth is attributed to factors such as growing emphasis on power generation and electric vehicle production, fueling the need for electric motors and charging stations, in turn, supporting market growth.

For instance, more companies in these regions are investing in building electric vehicles. In addition to increasing investments in the electric vehicle industry, companies are also highlighting electric motors as well by undertaking capacity expansion. They are developing a new class of power electronics with patented coil driver technology to enhance electric motor and battery performance.

Category-wise Insights

Which Type of Holds Dominance in the U.S.?

“Grain-oriented Segment to Bring in Higher Revenues for Market Participants”

Under the product type segment, the market is segmented into grain-oriented and non-grain-oriented variables. Grain-oriented segment holds 52.8% market share and is valued at US$ 1.9 billion, which is estimated to rise to US$ 4.1 billion by 2032, expanding at an impressive CAGR of 8.1%.

Grain-oriented variant delivers high permeability and low energy loss as it is composed of iron with 3% Si content. Grain-oriented grades carry strong crystallographic properties and exhibit better magnetic properties in the rolling direction of the sheet. Along with this, they are also used for non-rotating applications such as transformers.

The non-grain-oriented segment is valued at US$ 1.7 billion and accounts for 47.2% market share. The segment is estimated to register a CAGR of 5.9% over the assessment period.

Factors such as carrying uniform magnetic properties in all directions, providing better thermal conductivity, and no need for a recrystallization process to develop properties are supporting segmental growth.

Where is Electrical Steel Used the Most in the United States?

The U.S. market, under application, is segmented into inductors, transformers, and motors.

The motors segment rules the market with 53.3% share and is valued at US$ 1.9 billion in 2022. The segment is projected to expand at 7.5% CAGR to exceed a market valuation of US$ 4.1 billion by end of 2032.

Factors such as excellent magnetic properties, high permeability, and high frequency of electrical steel make it preferable for electric motors. Rising emphasis on EV production is supporting the demand for electric motors, which, in turn, is fueling product demand.

In addition, electric motors used in industrial machinery provide 4X higher speed, making them more reliable and augmenting motor durability.

Competitive Landscape

Prominent players in the United States market are focusing on expanding their manufacturing capacities to increase production and grab a larger market share.

Market players are also looking to launch innovative and developed products for a wide range of applications to fulfill the expanding demand of a growing client base.

For instance :

• United States Steel Corporation acquired Big River Steel in 2021. This acquisition will enable profitable growth via sustainable production of high-strength steel.
• Cleveland-Cliffs Inc. acquired AK Steel Holding Corporation in 2020. This acquisition will provide a unique strength to the company and add blast furnace steel mills, an HBI plant, and electric arc furnace plants along with other technologically-developed facilities in the company.

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

Key Segments of U.S. Electrical Steel Industry Survey

• By Product Type :

  • Grain-Oriented
  • Non-Grain-Oriented
    • Fully-Processed
    • Semi-Processed

• By Application :

  • Inductors
  • Transformers
    • Transmission
    • Portable
    • Distribution
  • Motors
    • 1hp – 100hp
    • 101hp – 200hp
    • 201hp – 500hp
    • 501hp – 1000hp
    • Above 1000hp

• By End-use Industry :

  • Automotive
  • Manufacturing
  • Energy
  • Household Appliances
  • Others (Construction, Fabrication)

• By Region :

  • West U.S.
  • South-West U.S.
  • Mid-West U.S.
  • North-East U.S.
  • South-East U.S.