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U.S. Electrical Steel Market Size, Share & COVID-19 Impact Analysis, By Type (Non-Grain Oriented and Grain Oriented), By Application (Transformer, Motors, Inductors, and Others), and Country Forecast, 2023-2030

Last Updated: July 01, 2024 | Format: PDF | Report ID: FBI108937

 

KEY MARKET INSIGHTS

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The U.S. electrical steel market size was worth USD 3.85 billion in 2022 and is projected to grow at a CAGR of 5.6% during the forecast period.


Electrical steel is a specialty steel that utilizes the ferromagnetic properties of iron. It is known for its excellent characteristics, such as increasing resistivity, improving permeability, and reducing hysteresis loss in many applications, such as electric motors, solenoids, small relays, and generators. The growing demand for electricity generation, increasing technological innovations, and rising initiatives to improve power distribution centers are leading to product adoption. Hence, such factors are expected to drive market growth during the forecast period.


In 2020, the COVID-19 pandemic negatively impacted the electrical & electronics, and automotive industries due to shut down of manufacturing plants and movement restrictions, disrupting the demand for products in these industries. Nevertheless, the U.S. government is setting supportive measures to get its economy back on track. As a result, the U.S. electrical steel market is expected to stabilize at a sustainable rate.


U.S. Electrical Steel Market Trends


Rising Product Adoption in Electrical Motors Fuels Market Growth


The demand for electric motors is growing at a rapid pace due to increasing adoption from residential and commercial spaces. In the production of motors, electrical steel is mainly preferred owing to its ability to spread low CO2 emissions and for providing the highest magnetic torque & flux and electromagnetic characteristics. As a result, various steel manufacturers are initiating expansion of their production capacity and adding electrical steel to their product portfolio to meet consumer demand. Moreover, the growing adoption of electrical motors from water pumps, drilling machines, hard disc drives, and industrial equipment will offer lucrative opportunities for the market during the forecast period.


U.S. Electrical Steel Market Growth Factors


Rising Demand from Automotive Industry to Drive Market Growth


The growing product demand in the automotive industry is expected to augment market growth. Electrical steel is known for its aesthetic performance while reducing the weight of the vehicle. Also, electric vehicles require high flux density, soft magnetic materials, and minimal core losses at high frequencies. As a result, this steel type is a preferred material in electric vehicles. Moreover, factors such as rising demand for hybrid vehicles as a result of increasing consumer expenditure coupled with growing initiatives by government bodies for research & development activities and emphasizing the reduction of CO2 are propelling product adoption. Hence, the abovementioned factors will surge the demand for steel in the automotive industry and are expected to grow positively during the review period.


RESTRAINING FACTORS


Fluctuations in the Raw Material Prices likely to hamper Market Growth


The steel cost is majorly reliant on the raw materials prices for the production of steel. In steel manufacturing, coal, ferroalloys, some industrial gases, and iron ore are the ideal materials utilized for production. However, volatility in the prices of these raw materials creates major fluctuations and variations in the overall cost. Also, the fluctuation of ferrous composition, which is required to achieve specific magnetic properties that offer decreased low core loss, power loss per cycle, and high permeability, hinders product adoption. Hence, such factors are anticipated to restrain the U.S. market growth.


U.S. Electrical Steel Market Segmentation Analysis


By Type Analysis


Based on type, the market is bifurcated into non-grain oriented and grain oriented. Non-grain oriented segment accounted for the largest U.S. electrical steel market share in 2022. The growing demand for non-grain oriented electrical steel from applications such as rotors, motors, high-performance power generation, and EV traction motors will drive the segment growth. The growth is mainly attributed to its high permeability or low hysteresis loss.


On the other hand, the rising adoption of the grain oriented segment in industrial equipment & machinery, electronics, power, and energy applications is fueling the segment's growth.


By Application Analysis


Based on application, the market is segmented into transformer, motors, inductors, and others.


The transformer segment held the largest market share in 2022 and is growing at a significant growth rate during the forecast period. The adoption of this type of steel is gaining traction in the manufacturing of energy-efficient power transformers and large & high-performance generators. The growth is mainly attributed to its high energy consumption. The rapidly growing automotive industry is surging the adoption of motors, as a result fueling the product demand for electrical motors. Moreover, in inductors, this type of steel is utilized to lessen the flow of current. Hence, its adoption in the inductor segment is flourishing.


List of Key U.S. Electrical Steel Market Companies


In terms of the competitive landscape, the market is characterized by the presence of emerging and established electrical steel players. The major market players include Nucor Corporation and Tata Steel, among others. These market players are competing based on the application and price characteristics of the product. The key players focus on collaborations, social marketing, product innovation, and acquisitions.


LIST OF KEY COMPANIES PROFILED:



KEY INDUSTRY DEVELOPMENTS: 



  • January 2023: Nucor launched Elcyon, a sustainable heavy gauge steel plate, which is engineered specifically for offshore wind energy applications. The company’s steel plant is located in Kentucky, U.S., and was commercialized in December 2022.


REPORT COVERAGE


An Infographic Representation of U.S. Electrical Steel Market

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



The study report thoroughly examines key factors such as leading companies, applications, and products. It also provides market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market's growth in recent years and the factors listed above. It examines the industry's newest market dynamics and opportunities, as well as historical data and revenue growth estimates at the country level.


Report Scope & Segmentation













































ATTRIBUTE



DETAILS



Study Period



2019-2030



Base Year



2022



Estimated Year 



2023



Forecast Period



2023-2030



Historical Period



2019-2021



Growth Rate



CAGR of 5.6% from 2023 to 2030



Unit



Value (USD Billion) and Volume (Kiloton)



Segmentation



By Type



  • Non-Grain Oriented

  • Grain Oriented



By Application



  • Transformer

  • Motors

  • Inductors

  • Others






Frequently Asked Questions

Fortune Business Insights says the U.S. market was worth USD 3.85 billion in 2022.

The market is expected to exhibit a CAGR of 5.6% during the forecast period (2023-2030).

By type, non-grain oriented is the leading segment of the market.

Nucor Corporation and Tata Steel are the top players in the market.

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