**Global Electrical Steel Market: Growth Projections and Factors**
- **Market Size and Projection**: In 2022, the global electrical steel market reached an estimated valuation of USD 41.25 billion. A significant expansion is foreseen, with an anticipated market value of around USD 81.52 billion by 2032, reflecting a robust Compound Annual Growth Rate (CAGR) of 7.1% during the forecast period spanning from 2023 to 2032.
**Key Insights**:
- **Product Segmentation**: Non-grain oriented electrical steel (NGOES) claimed the majority of the market share in 2022, encompassing over 71%.
- **Application Distribution**: The transformer segment captured the lions share of market application, accounting for 53% in 2022.
- **End-User Focus**: The energy sector held a substantial market share of 34% in 2022.
- **Regional Contributions**: Asia Pacific region played a pivotal role, contributing over 72% of total revenue in 2022. In contrast, North America held a 9% market share.
**Pandemic Impact**:
- The pandemic adversely affected the electrical steel market. Manufacturing plant disruptions, halts in infrastructure projects, and reduced automobile production during lockdowns substantially hampered growth.
- Reduced demand for electricity during lockdowns further impacted the market. Nevertheless, electrical steels significance in curbing heat dissipation and energy wastage maintained its relevance.
**Government Focus on Energy Efficiency**:
- Initiatives by governments, such as those in India, UAE, and China, targeting energy efficiency, are set to stimulate market growth.
- The replacement of outdated transformers and advancements in transmission lines due to smart transformer trends are expected to drive demand.
- United Nations sustainable development programs are expected to benefit electrical steel vendors in terms of revenue.
**Factors Driving Growth**:
- Electrical steels properties, including enhanced electrical features and heat dissipation reduction, contribute to its diverse applications in electric motors, solenoids, generators, and relays.
- The rising popularity of efficient, low-emission electric vehicles, coupled with government regulations, propels the electric vehicle market.
- Developing regions increased per capita income, as observed in India, Mexico, and China, supports product development.
- Europes growing adoption of electric cars and stringent regulations on vehicle emissions contribute to market growth.
**Segment Analysis**:
**Type Insights**:
- **Grain-Oriented Electrical Steel**: The segment is poised for rapid growth due to increased demand for electrical transformers. Grid network upgrades, smart grid initiatives, and general transformer demand contribute to this growth.
- **Non-Grain Oriented Electrical Steel**: Non-oriented electrical steels demand will rise in response to the global increase in electric vehicle adoption. It plays a crucial role in efficient hybrid electric vehicle production.
**Application Insights**:
- **Motor Segment**: Projected to witness significant growth, driven by the growing penetration of electric vehicles globally. This increased demand for electric motors creates opportunities for electrical steel manufacturers.
- **Regional Factors**: Europe and North America, boasting a higher number of electric vehicles on the road, will significantly contribute to the motor segments growth.
**Regional Insights**:
- **Asia Pacific**: Anticipates the fastest volume and revenue growth due to the regions substantial demand for power transformers. Countries like China and India are key contributors to this demand.
- **Europe**: Expects considerable growth due to thriving automotive and manufacturing sectors. Germanys automotive industry and the shift toward electrification fuel this demand.
**Key Market Developments**:
- **Joint Venture for Grain-Oriented Electrical Steel**: In May 2021, JFE Steel Corporation and JSW Steel Limited signed an agreement to establish a joint-venture company in India, focusing on grain-oriented electrical steel sheet manufacturing and sales.
- **Expansion of Facilities**: In November 2020, Nippon Steel announced a significant investment to expand its electrical steel sheet facilities in Japan, aiming to increase manufacturing capacity by around 40% by 2023.
**Segment Coverage**:
The report comprehensively covers various segments of the electrical steel market, including:
**By Type**:
- Grain-oriented
- Non-grain-oriented
- Fully-Processed
- Semi-Processed
**By Application**:
- Transformers
- Transmission
- Portable
- Distribution
- Motors
- 1hp - 100hp
- 101hp - 200hp
- 201hp - 500hp
- 501hp - 1000hp
- Above 1000hp
- Inductors
- Others
**By End-User**:
- Energy
- Automotive
- Household Appliances
- Manufacturing
- Others
**By Geography**:
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East & Africa (MEA)
