Electrical Steel Market Size, Share, Growth Analysis, By Type(Grain-Oriented, Non- Grain-Oriented), By End User(Household Appliances, Manufacturing) - Industry Forecast 2024-2031

Global Electrical Steel Market size was valued at USD 38.34 billion in 2022 and is poised to grow from USD 40.91 billion in 2023 to USD 68.73 billion by 2031, at a CAGR of 6.7% during the forecast period (2024-2031).

Electrical steel is used in a wide range of electromagnetic devices, including small relays, solenoids, electric motors, generators, and many others. Electrical steel has diverse applications in generators, electric motors, relays, solenoids, and various electromagnetic devices, all of which play crucial roles in power distribution systems and related sectors. The United States stands as the second-largest electricity generator worldwide. The nation produced approximately 4,000 terawatt-hours (TWh) of electricity through utility-scale generators, marking a substantial 16.7% increase in renewable power generation from 2019. The burgeoning electric vehicle (EV) industry is another significant catalyst for the electrical steel market. This specialized steel possesses magnetic properties essential for the efficient operation of EV motors, particularly in rotors and stators. Its use results in improved motor efficiency by minimizing core energy losses, consequently extending the vehicle's range. 

Despite the disruptive impact of the pandemic on global economic growth, plug-in vehicle sales surged to around 3.24 million, a remarkable increase of over 43%. Notably, Europe outpaced China to become the largest EV market, experiencing a substantial 137% growth in EV sales. This upswing in EV production directly drives the utilization of electric motors, thus boosting the demand for electrical steel. The escalating demand for electrical steel has prompted manufacturers to expand their production capacities. For instance, in May 2021, JSW Steel and JFE Steel Corporation entered into a Memorandum of Understanding (MoU) to explore the feasibility of establishing a joint venture company in India dedicated to the manufacturing and sales of electrical steel sheets within the country. The rise of electric vehicles, driven by environmental concerns and government incentives, has significantly boosted the demand for electrical steel. This material is essential for the motors and batteries in EVs, where it enhances energy efficiency and extends driving range.

US Electrical Steel Market is poised to grow at a sustainable CAGR for the next forecast year.