The Electrical Steel market is anticipated to grow with a CAGR of 5.4% over the forecast period of 2019-2028. Electrical steel is a soft magnetic material which is known to have enhanced electrical properties. This material is widely used across various applications, including small relays, solenoids, electric motors, generators, and various other electromagnetic devices. Electrical steel is also commonly known as transformation steel, silicon steel, or lamination steel. It serves to be of important use in electrical power distribution systems and automotive industries. The rising demand for electrical steel due to the rising urban population is expected to anticipate market growth extensively. Also, the increased applications of electrical steel in motors and transformers are expected to drive the market in the forecast market.
Top Driver: Increasing Application of Electrical Steel Needed for Urban Use
The Electrical Steel market is widely driven by the growing urban population owing to the demand for infrastructure requirements. Furthermore, the rising demand for new power supply methods and higher connectivity is also expected to be some regions that anticipate the market in the forecast period. Furthermore, urbanization had led the consumers towards positive buying behavior that may further contribute to the growth of the market. The rise in the disposable income that further anticipates the buying of automobiles and other electrical appliances could also lead to market growth in the future.
However, the benefits of amorphous metals could hinder market growth. Amorphous metals have various properties such as minimum core loss during the transformation process. These properties overshadow the applications of electrical steel hampering its market.
Energy Segment is Expected to Hold the Largest Market Share in the Forecast Period
Based on the type, the Electrical Steel market is segmented into Grain-Oriented Electrical Steel, Non-Grain Oriented Electrical Steel. Based on Application the market is divided into transformsers, distribution, motors, inductors and others. The transformers segment held the largest market share and is expected to drive the market extensively in the forecast period. The electrical steel is the main component for the manufacturing of transformers which in turn are useful for distribution of electricity too various users. On the basis of end use, the market is segmented into energy, manufacturing, automobiles, electrical appliances and others. The energy segment contributed to the largest market share owing to a huge use of electrical steel in generation and distribution of renewable energy.
The Asia Pacific Region to Observe High Growth in the Future
The Asia Pacific held the highest market share in the industry owing to its huge population and therefore owing to the high use of electricity across the region. Also, the presence of various industrial manufacturing plants could also drive the market in the forecast period. The infrastructure is still widely growing in the region that could be a major driver for the region. The regions such as India, China, and Japan have known to introduce grid expansion projects that in turn demand more transformers. Therefore the increasing demand for transformers will ultimately fuel the electrical steel market across the region.
Players to Engaged into Mergers and Joint Ventures Widely to Expand Their Businesses
The global Electrical Steel market is expected to grow with a significant CAGR due to presence of various companies including Voestalpine Group, Nippon Steel & Sumitomo Metal Corporation, ArcelorMittal, Baosteel, United States Steel Corporation, Tata Steel, JFE Steel Corporation, Essar Steel and POSCO among others.
Arcelor Mittal: Arcelor Mittal entered into a joint venture with Cellino Group in February 2017. The venture benefitted the company, as it held 35% of the share. Also, the assets of STEELCAME including four former SoluStil owned by Arcelor Mittal will help it to keep its strong foothold in the industry.
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