The global electrical steel market reached USD 32.95 Billion in 2019 and expected to reach USD 48.9 Billion by 2026 market growth with a significant CAGR of 6.8% during forecast period of 2020-2026.
The global electrical steel market reached USD 32.95 Billion in 2019 and predicted to reach USD 48.9 Billion By 2026 market growth with a CAGR of 6.8% during forecast period of 2020-2026. Growing demand for motors in electric vehicles is estimated to remain a major driving factor during the forecast period.
Electrical steel is an alloy with silicon and iron in it. Electrical steel is also known as silicon steel and laminate steel due to silicon is added to it. Electrical steel is a type of particular steel which is manufactured by modifying the magnetic properties of conventional steel on the impact of high permeability. Electrical steel is used to make the core power generators, transformers, inductors, etc. The demand for electric steel is increasing due to technical innovations and the high efficiency of electric steel. Due to the growth in demand from the power sector, the electrical steel industry has vast opportunities. Market growth is promoted by driving demand from the healthcare and industrial sectors. High-speed car or super-car applications are the main segments from which growth is expected during the forecast period. Continuous technological advancement helps steel products achieve performance, thus reducing the cost of production.
Transformer segment in global electrical steel estimated to have the fastest growth during the forecast horizon
Transformer market is estimated to dominate the market during the forecast period of 2020-2026, owing to the growth in the development of industrialization, rural areas, and opening new generation plants. Rising government capital expenditure in the high transmission investment, power sector and increasing global energy consumption are some factors that have helped the market to increase at a rapid pace. In addition, the growing power generation in developing economies as well as emerging nations, the market is expected to have a high growth during the forecast period.
Increasing investment in infrastructural development booming growth trend in electrical steel market with significant growth rate
Rising investment in infrastructure development and growing urbanization is estimated to stimulate electrical steel market growth. Global electrical steel market is estimates the significant growth opportunities. These products find their usage in power industry, transformers and high-speed cars due to their ability to minimize energy loss, improved efficiency, loss in high-speed electric motors, low emissions of carbon dioxide and hysteresis loss in high-speed electric motors. Growing urban population and technological advancements with growing consumer’s disposable income will further stimulate market growth in the energy sector.
Rising demand for motors in automobile industry expected to propel market growth in upcoming years
One of the major drivers forecasting the growth of the electric steel industry around the globe is the rising sustainable demand for motors. Increasing industrialization and the use of motors in the residential sector are driving motor market growth across the world. The use of electric motors reduces the financial burden on consumers and governments by minimizing the consumption of electricity. Electric motors are expected to witness a high demand, mainly from industrial users, in the replacement market during the forecast period.
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