"Innovative Market Solutions to Help Businesses Make Informed Decisions"

Grain Oriented Electrical Steel Market Size, Share & COVID-19 Impact Analysis, By Product Type (Conventional, High Magnetic Strength, and Domain Refinement), By Application (Transformer, Power Generator, Electric Motor, and Others), and Geography Forecast, 2022-2030

Region : Global | Format: PDF | Report ID: FBI104116

 

KEY MARKET INSIGHTS

Play Audio Listen to Audio Version

The global grain oriented electrical steel market size was valued at USD 11.12 billion in 2021. The market is projected to grow from USD 12.47 billion in 2022 to USD 18.81 billion by 2030, exhibiting a CAGR of 6.0% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with grain oriented electrical steel experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global grain oriented electrical steel market exhibited a decline of 4.4% in 2020 as compared to 2019.


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 of power transformers, distribution transformers, and small transformers.


COVID-19 IMPACT


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 harmed several companies’ revenue generation. 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.


LATEST TRENDS


Request a Free sample to learn more about this report.


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, thereby growing the grain oriented electrical steel adoption.


DRIVING FACTORS


Growing Demand from the Electrical Industry to Fuel Market Growth


The increasing demand for grain oriented electrical steel from power generation applications in growing economies is driving the market. Growth in the urbanization, population, and economic development have 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. The 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 grain oriented electrical steel market growth.


RESTRAINING FACTORS


Fluctuations in Prices of Steel to Restrain Market Growth


Steel is a product that has witnessed fluctuations daily in the prices along with the raw materials for steel, including coal, scrap steel, and iron. The prices of raw materials are highly unstable under the influence of laws of supply and demand. Also, production costs impact prices along with storage capacity. These fluctuations in steel prices affect the acquirement's prices, 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, upsurges the final product cost. In addition, greater environmental and health risks lead to product adoption in the market.


SEGMENTATION


By Product Type Analysis


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, and domain refinement.


Conventional dominated the market in 2021 and may continue its dominance up to 2030. The conventional segment includes electrical steel for applications, including transformers, power generators, conventional lamination steel, and industrial induction machines. Growing demand for electrical supply due to urbanization and higher dependence on technologies are driving the segment growth. The high magnetic strength segment includes product use 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.


By Application Analysis


To know how our report can help streamline your business, Speak to Analyst


Transformer Segment Accounts for Largest Share Attributable to Rising Consumption of High Energy in the Global Market


On the basis of application, the market is segmented into transformer, power generator, electric motor, and others. 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. It is used as a laminated, wound, or punched sheet and is an essential core material in distribution, power, and small transformers. The gaining traction toward transformers due to high energy consumption drives the segment's 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.


REGIONAL INSIGHTS


Asia Pacific Grain Oriented Electrical Steel Market Size, 2021 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample


Asia Pacific accounted for the largest global market share, with the market size of USD 7.79 billion in 2021. 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 associated with 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 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 2021. It is a major manufacturer of automobiles in the region where grain oriented electrical steel is used in engine and electric motors.


Latin America is expected to grow considerably due to rising product applications 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 and Africa has supported the adoption of electric vehicles and led to product demand in manufacturing engines and electric motors.


KEY INDUSTRY PLAYERS


Business Extension in Electronic Industry is the Key Strategic Initiative Employed by Market Players


The main producers functioning 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.


LIST OF KEY COMPANIES PROFILED:



KEY INDUSTRY DEVELOPMENTS:



  • March 2022 – ArcelorMittal announced an investment of more than USD 295 million to set up a new production unit for electrical steels at the Mardyck manufacturing site in North France. The new industrial unit will have a 200 kiloton production capacity and strengthen the French electro-mobility sector.

  • March 2021 - JFE Steel Corporation signed a memo to conduct a viability study with JSW Steel Limited to launch a grain oriented electrical steel sheet producing & sales joint-venture company in India. The company planned to complete the study within the current 2021 fiscal year and take appropriate steps to set up the company subject.


REPORT COVERAGE


An Infographic Representation of Grain Oriented Electrical Steel Market

To get information on various segments, share your queries with us



The global grain oriented electrical steel market report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, applications, and products. The report also offers market insights into key trends and highlights vital industry developments. In addition, the report encompasses various factors that have contributed to the growth of the market in recent years.


Report Scope & Segmentation


















































  ATTRIBUTE



  DETAILS



Study Period



2018-2030



Base Year



2021



Estimated Year



2022



Forecast Period



2022-2030



Historical Period



2018-2020



Unit



Value (USD Billion)



Segmentation



By Product Type, Application, and Geography



By Product Type




  • Conventional

  • High Magnetic Strength Sheets

  • Domain Refinement



By Application




  • Transformer

  • Power Generator

  • Electric Motor

  • Others



By Geography




  • North America (By Product Type, By Application, By Country)

    • U.S.

    • Canada



  • Europe (By Product Type, By Application, By Country)

    • Germany

    • U.K.

    • France

    • Rest of Europe



  • Asia Pacific (By Product Type, By Application, By Country)

    • China

    • India

    • Japan

    • Rest of Asia Pacific



  • Rest of World (By Product Type, By Application, By Country)

    • Latin America

    • Middle East & Africa





Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 11.12 billion in 2021 and is projected to reach USD 18.81 billion by 2030.

In 2021, the market value stood at USD 11.12 billion.

Registering a significant CAGR of 6.0%, the market will exhibit considerable growth in the forecast period (2022-2030).

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 share of the market in 2021.

ThyssenKrupp Steel Europe, Nippon Steel Corporation, ArcelorMittal, and POSCO are the leading players in the market.

The rising demand for transformers and surging preference for electric vehicles lead to product adoption in the market.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • Nov, 2022
  • 2021
  • 2018-2020
  • 118

    CHOOSE LICENSE TYPE

  • $4850
    $5850
    $7850

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Chemicals & Materials Clients

3M
Petronas
BASF
Iwatani
uniliver

Client Testimonials

“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
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.
X