U.S. Non-Grain Oriented Electrical Steel Market Size, Share & COVID-19 Impact Analysis, By Thickness (0.35 mm, 0.5 mm, 0.65 mm, and Others), By Type (Semi-processed and Fully Processed), By Application (Household Appliances, AC Motor, Power Generation, and Others), and Country Forecast, 2023-2030

The U.S. non-grain-oriented electrical steel market size was worth USD 2.76 billion in 2022 and is projected to grow at a CAGR of 5.0% during the forecast period.

Non-grain-oriented electrical steel offers benefits such as low core loss and enhanced magnetization direction. Consequently, it is used in high-performance electric motors, generators, and rotating equipment within household appliances. Technological advancements in energy-efficient household appliances and heightened competition among manufacturers are projected to increase the U.S. market share globally.

Additionally, the product minimizes electric current loss, enhancing its suitability for various end products and contributing to the U.S. non-grain-oriented electrical steel market growth.

The COVID-19 pandemic negatively affected numerous industries globally, including steel, automotive, and chemical sectors. Lower consumer demand for non-essential products led to restrictions such as a limited workforce, reduced logistics, and temporary closures of steel production units. Consequently, these factors impacted the supply chain for end-use industries in the country, affecting the demand for non-grain oriented electrical steel.

LATEST TRENDS

Rising Demand for HEVs from Expanding Automobile Industry to Create Market Growth Opportunities

The demand for non-grain-oriented electrical steel has surged with the emerging trend of HEVs and EVs. The increasing adoption of electric vehicles in the country is driven by advantages such as lightweight, ease of refueling, and low maintenance compared to traditional fossil fuel-based vehicles. This demand has created a substantial need for high-performance materials such as smart plastics, non-grain-oriented electric steel, and structural materials. Non-grain-oriented electrical steel, offering properties such as light weight, reduced electric loss, and high conductivity, is anticipated to experience increased consumption due to the growing demand for HEVs and EVs.

DRIVING FACTORS

Rise in Consumption of Non-grain Oriented Electrical Steel in End-use Industries to Boost Market Growth

The product finds application in end-use industries such as household appliances, AC motors, and power generation due to its structural strength and essential magnetic properties needed in electric equipment. Additionally, the metal provides excellent punching workability, making it suitable for manufacturing motors and electrical equipment bodies. The expanding end-use industries in the country are expected to drive the product demand.

RESTRAINING FACTORS

Prominent Regulations Pertaining to Mining Activities to Hinder Market Growth

Despite the significant market size in the steel industry, imposed restrictions, limitations, and standards hinder mining activities, impacting steel production, cost, and availability. The U.S. government enacted several acts to ensure environmental safety, such as the Mining Law of 1872, the Mineral Leasing Act of 1920, the Materials Act of 1947, and the Mining and Mineral Policy of 1970. These factors may impede industry expansion.

SEGMENTATION

By Thickness Analysis

Based on thickness, the market is segmented into 0.35 mm, 0.5 mm, 0.65 mm, and others. The 0.5 mm segment holds a leading share of the market due to its preference among electrical equipment manufacturers. Sheets with a thickness of 0.5 mm offer superior magnetic properties and are used in heavy-duty equipment such as transformers and generators. Sheets with thicknesses of 0.35 mm and 0.65 mm are suitable for smaller-size motors and generators where space constraints are crucial. Increased demand for miniature electrical components will drive the growth of these segments.

By Type Analysis

Based on type, the market is segmented into semi-processed and full-processed. The semi-processed type dominates the market due to its customization capacity to meet end-product requirements. This steel can achieve the desired microstructure as it can be heated at elevated temperatures, making it suitable for molding and punching. Semi-processed steel is used in applications such as fans, water pumps, and vacuum cleaners. Conversely, the increasing demand for electric steel without further processing is driving this market, particularly in high-performance electrical generation equipment required in large transformers.

By Application Analysis

Based on application, the market is segmented into household appliances, AC motors, power generation, and others. The power generation application holds the largest U.S. non-grain oriented electrical steel market share, owing to increased usage in manufacturing high-performance generators and energy-efficient transformers. The growing demand for transformers from the electrical industry drives product adoption in power generation applications.

The AC motor segment is rising due to increased electricity consumption in the country, which is attributed to population growth and urbanization rates. The product is widely used in highly efficient power generation motors in punched sheets, laminated sheets, and other forms to meet electricity requirements. Additionally, the growth of household appliances and other segments is linked to technological advancements. Key household appliance manufacturers offer multiple products with upgraded versions that deliver enhanced performance, increasing non-grain electrical steel consumption.

KEY INDUSTRY PLAYERS

Key players in the market comprise Nucor Corporation, Arnold Magnetic Technologies, ArcelorMittal, thyssenkrupp Steel, and Aperam S.A. Established companies operating in the market compete on product’s price and features. Market players aim on acquisitions, collaborations, product innovation, and social marketing.

LIST OF KEY COMPANIES PROFILED:

• Nucor Corporation (U.S.)
• Arnold Magnetic Technologies (U.S.)
• NLMK (Russia)
• ArcelorMittal (Luxembourg)
• thyssenkrupp Steel (Germany)
• POSCO (South Korea)
• NIPPON STEEL CORPORATION (Japan)
• Voestalpine Group (Austria)
• Aperam S.A. (Luxembourg)

KEY INDUSTRY DEVELOPMENTS:

• November 2021: POSCO announced plans to boost the production of non-grain-oriented electrical steel sheets to fulfill consumer demand. The company decided to invest USD 848.6 million to produce 300,000 tons of steel plate per year.
• September 2021: NLMK increased the production capacity of its electrical steel laser treatment unit to 54,000 tons per year. This expansion aimed to attract new customers and maximize revenue.

REPORT COVERAGE

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Based on market analysis, the report provides 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 market growth in recent years and the factors listed above. It examines the market dynamics, opportunities, historical data, and revenue growth estimates at the country level.

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