Magnetics Business & Technology - November/December 2020 - 26

INDUSTRY NEWS

Electrical Steel Market Headed for Growth, Despite Pandemic Trauma
Despite traumatic
slowdowns and
shutdowns due to
the Covid-19 pandemic, the market
for electrical steel
is pointed upward
over the long term.
Recent reports by
market analysts
differ somewhat on
their estimates of the market size but all register solid rates of
growth -- albeit with most of the analyses reflecting pre or midpandemic data. Ironically, despite the current pressures, there
are some indications that the pandemic may actually trigger
more growth in demand for electrical steel as a result of accelerating electrification market forces.
Shown above is a summary sheet from the study by Reports
and Data, published in June. It projects the global electrical
steel market to grow at a rate of 10.8% from $10.8 billion in
2019 to $24.4 billion in 2027. The major factors contributing
to this growth is the increase in investments in infrastructure development and urbanization across the world. There is a surge
in demand from energy generation and transmission sector
and the introduction of electrical vehicles is largely driving the
industry's growth.
It defines electrical steel as a special type of steel that is produced by altering certain magnetic properties of steel and is
used in the manufacturing of a number of devices like generators, power transformers, inductors, and others. Silicon, when
added to electrical steel, is known as laminate steel and is used
in the lamination process in the core of electrical components.
As the Covid-19 crisis has grown, says the report, major players in the electrical steel industry are trying to reanalyze their
strategies and trying to sustain in such a difficult situation. The
pandemic had forced many end-use industries like automotive, construction and infrastructure to stop their production as
well as delay their expansion plans which has greatly hurt the
industry.
Some other key findings of the study by Reports and Data are:
*	
Grain oriented electrical steel is one of the most widely
used steel types and it gained the highest market share in
2019. The sub-segment is expected to register 8.5% growth
during the forecast period. This variant of electrical steel helps
in improving performance of transformers by reducing their
weight and increasing their efficiency. The products under this
sub-segment contain large sized grains which reduces hysteresis loss and thus used in transformers and power generators.
The increase in demand of energy and power is likely to drive
the segment's growth.
*	
Transformers are one of the largest applications segments in the industry with a market share of 37.1% in 2019.
The sub-segment is predicted to have a growth of 11.6% during
the forecast period. Large power transformers and distribution
transformers utilize grain oriented electrical steel and they are
needed for their high power efficiency and ability of transmitting power through long distances. The growing infrastructural
and industrial development along with the increasing demand

26

Magnetics Business & Technology * November/December 2020

of power is driving the segment. These products have high efficiency, low magnetic losses and ability of supplying power to
remote locations.
*	
Automobile industry holds one of the most significant
consumer base of electrical steel. It is predicted that this sector
is likely to grow 12% during the forecast period. The products
of the industry enhance efficiency and productivity of automobiles. They also improve the visual appearance of vehicles
which increases resale value of vehicles. This type of steel is
resistant towards corrosion and makes cars lightweight as well
as maintaining safety standards. The introduction and growing
popularity of electric vehicles is also likely to drive the industry's
growth for a long time.
Regionally, North America is the largest consumer of electrical steel with a revenue share of 28.7% in 2019. The region
is expected to witness a growth of 10.2% during the forecast
period. Countries like USA, Mexico and Canada are mainly
contributing towards these figures owing to the increase in
demand of automobile and electric vehicles in these countries.
The products in the industry helps to minimize energy losses,
increase efficiency and results in decreased fuel consumption.
The infrastructural, industrial developments along with shift
towards urbanization is promoting the regional demand and
bringing huge benefits for steel manufacturers.
In a report available from Markets & Markets, the global electrical steel market size is estimated to be $31.5 billion in 2020
and projected to reach $45.9 billion by 2025, growing at a rate
7.9% from 2020 to 2025. "However, the recent outbreak of
Covid-19 is expected to have a severe impact on the electrical
steel market," the authors note.
According to a report by Quince Market Insights, the global
electrical steel market is estimated at $25.3 billion in 2019 and
expected to reach $45.7 billion by 2025, growing at a rate of
6.8% during the forecast period. The increasing urban population worldwide combined with the increased availability of electricity in developing countries is expected to drive the market.
In a report from BlueWeave Consulting, researchers estimate
the global electrical steel market reached $32.9 billion in 2019
and is expected to reach $48.9 billion by 2026, growing at a
rate of 6.8% during the forecast period. Growing demand for
motors in electric vehicles is estimated to remain a major driving factor.
Based on type, the electrical steel market segments broadly
into grain-oriented steel and non grain-oriented steel, notes
BlueWeave. Among various product types, grain-oriented steel
is estimated to dominate the electrical steel market during the
forecast period due to its rising demand from transformers
cores used in transformers and large generators. It is an ironsilicon alloy with silicon level of 3%. It is used in various forms,
such as wound, laminated, and punched sheets. Properties of it
are low core loss and high permeability which make them suitable in enhancing the performance and efficiency of transformers and generators.
For more info, see www.reportsanddata.com, www.marketsandmarkets.com, www.blueweaveconsulting.com and www.
quincemarketinsights.com.

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Magnetics Business & Technology - November/December 2020

Table of Contents for the Digital Edition of Magnetics Business & Technology - November/December 2020

Magnetics Business & Technology - November/December 2020
Editor’s Choice/ Features
Paragraf Strides toward Commercializing Graphene- Based Hall Effect Sensors for Highly Precise Magnetic Measurement
Magnetics-Based Turboexpander Enables Energy Recovery from Pressure Letdown Stations in Natural Gas Pipelines
Buildup of Littoral Naval Forces Brings New Attention to Underwater Magnetic Sensing
Tech Tips
Embedding Magnetics Achieves Reliability & Consistency, Part 2 of 3
Product News
Industry News
Events Calendar/ Advertising Index
Visions
Magnetics Business & Technology - November/December 2020 - Magnetics Business & Technology - November/December 2020
Magnetics Business & Technology - November/December 2020 - Cover2
Magnetics Business & Technology - November/December 2020 - 3
Magnetics Business & Technology - November/December 2020 - Editor’s Choice/ Features
Magnetics Business & Technology - November/December 2020 - 5
Magnetics Business & Technology - November/December 2020 - Paragraf Strides toward Commercializing Graphene- Based Hall Effect Sensors for Highly Precise Magnetic Measurement
Magnetics Business & Technology - November/December 2020 - 7
Magnetics Business & Technology - November/December 2020 - Magnetics-Based Turboexpander Enables Energy Recovery from Pressure Letdown Stations in Natural Gas Pipelines
Magnetics Business & Technology - November/December 2020 - 9
Magnetics Business & Technology - November/December 2020 - 10
Magnetics Business & Technology - November/December 2020 - 11
Magnetics Business & Technology - November/December 2020 - 12
Magnetics Business & Technology - November/December 2020 - 13
Magnetics Business & Technology - November/December 2020 - Buildup of Littoral Naval Forces Brings New Attention to Underwater Magnetic Sensing
Magnetics Business & Technology - November/December 2020 - 15
Magnetics Business & Technology - November/December 2020 - Embedding Magnetics Achieves Reliability & Consistency, Part 2 of 3
Magnetics Business & Technology - November/December 2020 - 17
Magnetics Business & Technology - November/December 2020 - 18
Magnetics Business & Technology - November/December 2020 - 19
Magnetics Business & Technology - November/December 2020 - Product News
Magnetics Business & Technology - November/December 2020 - 21
Magnetics Business & Technology - November/December 2020 - 22
Magnetics Business & Technology - November/December 2020 - 23
Magnetics Business & Technology - November/December 2020 - Industry News
Magnetics Business & Technology - November/December 2020 - 25
Magnetics Business & Technology - November/December 2020 - 26
Magnetics Business & Technology - November/December 2020 - 27
Magnetics Business & Technology - November/December 2020 - Events Calendar/ Advertising Index
Magnetics Business & Technology - November/December 2020 - 29
Magnetics Business & Technology - November/December 2020 - Visions
Magnetics Business & Technology - November/December 2020 - Cover3
Magnetics Business & Technology - November/December 2020 - Cover4
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