The electrical steel market is estimated to observe substantial growth by 2027 owing to prevalent product uptake in varied applications.
Recently, steel is increasingly being preferred over aluminum in the construction of electric vehicles (EVs) on account of its superior strength and better affordability. Soaring prominence of electrical steel in EVs, coupled with rising EV sales supported by growing climate consciousness, has played a crucial role in fostering business outlook.
The electrical steel market has been segmented based on product, end-use, application, and region. In terms of product, the market has further been bifurcated into non grain oriented electrical steel and grain oriented electrical steel.
In terms of end use, the grain oriented electrical steel product segment has been divided into automotive, energy, household appliances, and manufacturing. The grain oriented electrical steel market from the manufacturing end-use segment exceeded a valuation of USD 1.4 billion in 2020 and is set to witness robust growth over 2021-2027. Rapid urbanization and high disposable incomes are likely to propel demand for grain-oriented electrical steel in the manufacturing sector, especially in developing nations like APAC and LATAM, over the following years.
From the application perspective, the grain oriented electrical steel product segment has been categorized into distribution transformers, large power transformers, power generators, small transformers, audio transformers, and others. The grain-oriented electrical steel market from the distribution transformers application segment is expected to register a CAGR of over 6.5% through the review timeline to reach a notable valuation by the end of 2027.
Meanwhile, the non grain-oriented electrical steel product segment was valued at about USD 9.0 billion in 2020 and is slated to register significant expansion at approximately 6.5% CAGR over the analysis period. Surging demand for quality electronics and household appliances is set to boost segmental growth. With respect to end use, the non grain-oriented electrical steel product segment has been segregated into energy, household appliances, automotive, and manufacturing.
The non grain-oriented electrical steel market from the household appliances end-use segment is projected to observe steady growth to surpass a valuation of USD 4.5 billion by 2027. Prevalent adoption of high-quality advanced electronic gadgets is calculated to impel segmental expansion in the forthcoming years.
On the application spectrum, the non grain-oriented electrical steel product segment has been divided into motors, power generators, ballasts, audio transformers, rotating machines, small transformers, and others. In 2020, the non-grain oriented electrical steel market share from the motors application segment was valued at more than USD 1.4 billion and is poised to amass considerable gains through 2027. Improved operational efficiency and insulation properties of electric motors due to technological advancements are anticipated to stimulate segmental demand over the following years.
In the regional landscape, the Middle East electrical steel market is speculated to be valued at above USD 1.75 billon by 2027, growing at a solid CAGR though the forecast period. Escalating product demand in the domestic automotive and household appliances industries is primed to augment regional market progress in the future.