Electrical Steel is extensively used in manufacturing of transformers which are further used in voltmeter, ammeters, rectifiers, power supplies, and others. Increasing demand for electricity is expected to augment the electrical steel market in the coming years. Technological advancements in the automotive industry to improve safety, light weighting, fuel efficiency, and specific requirements are expected to propel the growth of the market.
The Asia Pacific is likely to dominate the global electrical steel market during the forecasted period 2019-2026, owing to the growing production and consulting of electrical and electronic products and simultaneous increase in demand for electricity. For instance, according to German Electrical and Electronic Manufacturers Association, China is the top producer of electrical and electronic products which accounts to USD 2298.68 billion in 2016 and it is anticipated to reach USD 2436.60 by 2019. Moreover, Moreover, China's Electricity power generation capacity was 1604 GW and China is aiming to increase 3275 GW by 2040. This scenario of vision and mission of China intensifies the lucrative market for electrical steel.
Europe is expected to hold significant market share in the global electric steel market. This significant market holding is mainly attributed to growing electric vehicle market. Electric vehicles are major and extensive consumers of electrical steel. Use of advanced electric motors to achieve an optimal fusion between economy, performance and durability of electric vehicles driving the growth of advanced electrical steel market in region. For instance, Norway (39.2%) and Sweden (6.3%) have the largest market share in an electric vehicle from a global perspective.
North America is anticipated to hold substantial market share in the global product market during the forecast period of 2019- 2026. Auto- Manufacturing sector in North America gaining major traction due to growing production capacity and facilities such as low wages etc. For instance, according to a report published by Centre for Automotive Research in 2016, Mexico is an attractive investment destination for automakers on account of a strong manufacturing base and assembly compensation is approximately 80% lower. In addition to that production capacity of Mexico was 4,800,000 millions of units in 2017 and it is projected to increase at 5,500,000 millions of units.
Latin America is likely to hold considerable market share in global product market during the forecast period owing to increasing investment on power generation and favourable regulatory polices. For instance, according to International Renewable Energy Agency, the total investment on power generation was USD 120 billion in between 2010 and 2015.
Middle East and Africa may witness sluggish growth in the global electrical steel market due to the lagging political, underdeveloped financial market, high trade restrictiveness and inappropriate exchange rate policies are holding back industrialization.
Global electrical steel market is segmented by type, application, and end-use industry.
By type, the electrical steel market is segmented into grain oriented and non-grain oriented. Non-grain oriented electric steel is expected to grow at the fastest CAGR during assessment period 2019-2026. This growth is mainly attributed to its exclusive magnetic properties which allows it to be used for electromagnetic applications such as motors, alternators, generators, transformers and other. Growing demand for generators for electricity generation is projected to upsurge electric steel market in coming years. For instance, For instance, according to the government of China, China is the world's largest electricity producer and most of the electricity is generated from coal. China's electricity generation capacity form coal was 960 GW in 2016, and it is projected to increase its capacity to 1300 GW by 2020.
By application, the electrical steel market is segmented into inductor, motor, transformer, and other. Inductor is likely to gain considerable market share in global electrical steel market. Electrical steel is extensively used in the manufacturing of inductors which in turn used in Filter, sensor, transformers, motors, capacitors and others.
By end user industry, electrical steel market is segmented into household appliances, manufacturing, energy, automotive and others. household appliances is major consumer of the electric steel owing to its wide range of usability as it can be used as inductors, capacitors, small motors. Increasing sales of household appliances such as refrigerator, toaster, kettle, microwave, blender and other are expected to propel the growth of electric steel market in future year. For instance, according to India Brand Equity Foundation, the consumer durables market in India was USD 15.5 billion in 2017, and it is projected to reach 46354 billion by 2020.
Electrical Steel Market Segmentation