"Innovative Market Solutions to Help Businesses Make Informed Decisions"
The global grain oriented electrical steel market size was valued at USD 11.78 billion in 2022 and is projected to grow from USD 12.47 billion in 2023 to USD 18.81 billion by 2030, exhibiting a CAGR of 6.0% during the forecast period.
Grain oriented electrical steel is a significant material employed in fabricating energy-efficient transformers and huge, high-performance generators. Primarily found in the form of wound, laminated, or punched sheets, it is a vital core material for power transformers, distribution transformers, and small transformers.
Disruption in Steel Industry Hampered Market Growth during the COVID-19 Pandemic
Since December 2019, several countries, including China, India, and the U.S. imposed travel restrictions, limiting the movement of both men and material, significantly disrupting the supply chains of grain oriented electrical steel manufacturers. The emergence of COVID-19 had significantly impacted the revenue generation of several companies. Many countries announced restrictions on raw material transportation, manufacturing facility closures, and movement restrictions since the spread of coronavirus in late 2019, impacting the supply chain of steel manufacturers.
Many steel companies either decreased their production capacity or shut down their production plant during the peak of the virus, which resulted in the supply chain disruption and closure of machinery and steel manufacturing. The demand for power generators was affected as the global lockdown decreased power usage from high-end commercial consumers. The lockdown regulations steered the population to work from home, lowering commercial power consumption and slowing down steel uptake.
Increasing Demand for Electric Vehicles Offers Growth Opportunities for the Market
The rising demand for electrical steel from the automotive for application in electric vehicles is opening growth opportunities for the market. The automotive industry is redesigning due to numerous factors that aim to increase profit margins and benefit the environment, which leads to increasing demand for electric vehicles. Electrical steel is one of the core magnetic materials in EV traction motors, which determines the vehicle's power, and is vital for the efficient performance of EVs. Therefore, high-quality electrical steels are sought by OEM manufacturers for the growing EV market.
Electrical steel is used in engines, traction motors, high-speed rotors, and electric motors for conventional generators and electric vehicles. The rapidly growing automotive industry has escalated the demand for electric cars as a substitute for petroleum fuel vehicles. This has increased the demand for EVs, propelling the adoption of grain oriented electrical steel.
Request a Free sample to learn more about this report.
Growing Product Demand from the Electrical Industry to Fuel Market Growth
The increasing demand for grain oriented electrical steel from power generation applications in emerging economies is driving the grain oriented electrical steel market growth. Growth in urbanization, population, and economic development has surged the construction of metro stations, industrial buildings, and storage units & warehouses where the product is used as transformer steel and lamination steel for electric power distribution. These infrastructure developments have led to heavy electricity consumption. Growing demand for electrical steels due to their high permeability, lesser core loss, and superior magnetic properties will drive the market during the forecast period.
Growing economies are primarily surging the demand for electrical steel as technology and higher efficiency in the power sector and transformer cores have risen. The product provides high electrical resistivity and decreased hysteresis loss in hermetic motors and Alternating Current (AC) motors. Government and municipal corporations are investing in local power networks to connect rural areas and growing communities.
Furthermore, companies are investing in the setup of power plants and fuel extraction machinery, driving the electrical steel demand from the oil & gas industry. In addition, residential housing schemes offered by the governments have created high product usage to provide electricity through the installations of transformers and power generators. This is anticipated to aid the global market growth.
Fluctuations in Prices of Steel to Restrain Market Growth
Steel has witnessed price fluctuations on a daily basis. Along with this, the raw materials used for steel production, including coal, scrap steel, and iron have also witnessed price fluctuations. The prices of raw materials are highly unstable considering the laws of supply and demand. Furthermore, production costs impact prices along with storage capacity, affecting the final product price. Further, the production of transformers is relatively on the higher side with a lack of financial ability to earn a return on investment. This, along with the limited availability of energy efficient transformers and increased import costs or tariffs, increase the final cost of the product. In addition, greater environmental and health risks lead to product adoption in the market.
Conventional Segment to Hold Dominant Share Owing to its Demand from Various Applications
Based on product type, the market is categorized into conventional, high magnetic strength sheets, and domain refinement.
The conventional segment dominated the market in 2022 and may continue its dominance up to 2030. The segment covers electrical steel for applications such as transformers, power generators, conventional lamination steel, and industrial induction machines. Growing demand for electrical supply due to urbanization and higher dependence on technologies is driving the segment growth.
The high magnetic strength sheets segment includes product usage for improving the quality of steel lamination in motors and stators. The growing automotive industry has propelled product demand as the increase in fuel prices has led to electric vehicle adoption.
The domain refinement segment includes heat-resistant magnetic materials steel, which can be used in stacked cores and does not require annealing while also having low iron loss. The low iron loss in grain oriented electrical steel can be observed by reducing hysteresis and improving the orientation integration degree.
0.23 mm Segment Accounted for Dominant Share Owing to its Wider Usage in Household Appliances
On the basis of thickness, the market is segmented into 0.2 mm and below, 0.23 mm, 0.27 mm, 0.30 mm, and 0.35 mm and above. The 0.23 mm segment accounted for a dominating share in the market. This thickness is commonly deployed in applications such as small transformers, generators, and electric motors. This type of electrical steel is used in small-scale applications, such as manufacturing of small motors, similar to those found in appliances such as refrigerators, washing machines, and air conditioners. Rising demand for such household applications is expected to drive the market growth during the forecast period.
Furthermore, the 0.35 mm and above thickness grain oriented electrical steel is used in applications that require very high magnetic flux densities such as large generators and motors. The steel is used in power distribution systems and other high power applications. The rising demand for energy across the globe is expected to benefit and drive the segment’s growth.
Transformer Segment Accounts for the Largest Share Due to the Rising Energy Consumption in the Global Market
On the basis of application, the market is segmented into transformer, power generator, electric motor, and others. The transformer segment accounted for the largest grain oriented electrical steel market share in 2021. The product is mainly suitable for energy-efficient transformers and large, high-performance generators. Used as a laminated, wound, or punched sheet, steel is an essential core material in distribution, power, and small transformers. Rising energy consumption across the globe is expected to create higher demand for transformers, which are an essential part of the electric infrastructure. This would, in turn, increase the consumption of grain oriented electrical steel used in transformers and drive the segment growth.
At the same time, the electric motor segment is expected to grow considerably. Electric motors use electrical steel as laminations. The growing preference for electric vehicles in the automotive industry has raised the demand for electric motors, thereby surging raw materials’ consumption.
To know how our report can help streamline your business, Speak to Analyst
Asia Pacific Grain Oriented Electrical Steel Market Size, 2022 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
Asia Pacific accounted for the largest market share, with a value of USD 8.29 billion in 2022. The rising demand for grain oriented electrical steel in the region is attributed to the growing manufacturing sector. South Korea, India, and China are the leading countries in the manufacturing sector.
The market growth in North America is mainly driven by the presence of economically stable nations supporting technological development. Furthermore, the rise in several end-use industries, including automotive and machinery, where the product is used in transformers, power generators, and motors, is expected to drive the market expansion in the region.
Europe is technologically advanced and supported by developed economies where the product is in demand for the production of industrial equipment, machinery, and engines. Germany held a significant market share in 2022. It is a major manufacturer of automobiles in the region where grain oriented electrical steel is used in engine and electric motors.
The Latin America market share is expected to grow at a considerable rate over the forecast period. This is due to the rising product application from automotive and manufacturing industries. Several end-use industries have manufacturing facilities in the region due to raw materials, labor, and land availability. This has led to high demand for automated machinery, leading to product consumption. The rising economy in the Middle East & Africa has supported the adoption of electric vehicles and led to product demand in manufacturing engines and electric motors.
Business Extension in the Electronic Industry is a Key Strategic Initiative Employed by Market Players
The major players operating in the market are Nippon Steel Corporation, ArcelorMittal, POSCO, and ThyssenKrupp Steel. The companies are involved in product innovation, collaborations, capacity improvement, and acquisition in the market. Nippon Steel Corporation is a prime manufacturer of steel. Further, the company is involved in the acquisition, R&D activity, and steel innovation to meet the demand of consumers.
To gain extensive insights into the market, Request for Customization
The grain oriented electrical steel market research report provides a detailed analysis of the industry and focuses on crucial aspects such as leading companies, applications, and products. The report also offers market insights into key trends and highlights the vital industry developments. In addition, the report encompasses various factors that have contributed to the growth of the market in recent years.
To gain extensive insights into the market, Request for Customization
CAGR of 6.0% from 2023-2030
Value (USD Billion), Volume (Kiloton)
By Product Type, Thickness, Application, and Geography
By Product Type
Fortune Business Insights says that the global market size was USD 11.78 billion in 2022 and is projected to reach USD 18.81 billion by 2030.
In 2022, the market value stood at USD 11.78 billion.
Registering a significant CAGR of 6.0%, the market will exhibit considerable growth over the forecast period (2023-2030).
The conventional segment is expected to lead the market during the forecast period.
The increasing product demand in the electrical industry is a key factor driving the market.
Asia Pacific held the highest market share in 2022.
ThyssenKrupp Steel Europe, Nippon Steel Corporation, ArcelorMittal, and POSCO are the leading players in the market.
The rising demand for transformers and the surging preference for electric vehicles are driving the product adoption in the market.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- UGlobal hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry