Key Factors Shaping Electrical Steel Market
Increasing Application in Supercars (High Speed Cars) & Consumer Appliances to Propel Market Growth
The significant growth in application of electric steel across high speed cars/supercars due to its superior properties that enable reduction of hysteresis loss in high speed electric motors is expected to drive the global electrical steel market by end of forecast period. Furthermore, electrical steel is used in high power consumer appliances such as air conditioners, commercial refrigeration equipment, and high power coolers. Manufacturer of consumer appliances are focusing on using electrical steel that is environment-friendly (has less heat losses) instead of regular steel, which enables energy saving of around 15% to 30%.
Increasing Demand for GO and NGO products
Increasing global population, rising per-capita spending and rapid industrialization has led to an increase in power and energy consumption globally. However, stringent governmental regulations regarding CO2 emission, focus on energy efficiency, and environment sustainability are key factors driving growth of both grain oriented (GO) and non-grain oriented (NGO) electrical steel, to be used in high power transformers and motors, particularly for power transmission and distribution purposes.
- Major key market players such as Tata Steel Limited and thyssenKrupp AG are focusing on safe and environment-friendly materials. Tata Steel’s chrome-free phosphate insulation coating is applied to its entire range of grain-oriented products, thereby eliminating the risk from hexavalent chrome and delivering superior insulation coating, which are safe and environment-friendly. Other clean and environment-friendly materials used are ‘Suralac 7000FF – a formaldehyde-free organic coating, and Suralac 9000. thyssenKrupp AG electrical steel’s innovative hi-tech electrical steel cores include PowerCore C and PowerCore H.
Surface Deposition Technique to Increase Silicon or Aluminum Content
Current trends in the electrical steel industry is to increase electrical resistivity and ultimately reduce magnetic losses, which can be achieved by increasing the concentration of silicon and/or aluminium in electrical steel sheets. Manufacturers are currently adopting this method to increase the concentration of silicon and/or aluminium on a low silicon or aluminium steel substrate. Surface deposition can be done by immersion in molten silicon/ aluminium, and then by its diffusion in the annealing process. Diffusion modifies the microstructural properties of the metal and enhances mechanical and magnetic properties.
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Key Challenge in Electrical Steel Market
Replacement of Magnetic Ballasts with Electronic Ballasts
Lighting ballasts are devices, which ensure that electric lamps receive the right amount of electricity at the initial stage of starting and during operations of electric lamps. Previously, electrical steel transformers were used for magnetic ballasts. Recently however, electronic ballasts have replaced magnetic ballasts to ensure better efficiency, and electronic ballasts do not require transformers for efficient operation, as these work on the principle of electronic gas discharge. Hence, replacement of magnetic ballasts with electronic ballasts is expected to have negative impact on growth of the global electrical steel market currently, as well as in the foreseeable future.
Electrical Steel Market: Structure Analysis
- The global electrical steel market is a moderately fragmented market, owing to the presence of more number of players in the global market.
- Manufacturers operating in the electrical steel market are focusing on business expansion through mergers, collaborations, partnerships, and joint ventures. Key market players focus on strategies such as offering customized products and enlargement of distribution channels, which will help increase sales of electric steel.
- Major players in the electrical steel market include Novolipetsk Steel, thyssenkrupp AG, JFE Steel Corporation, Nippon Steel & Sumitomo Metal Corporation, ArcelorMittal, POSCO, Cogent Power Limited, Aperam, Baosteel Group, voestalpine Stahl GmbH, AK Steel Corporation, ATI, and Schneider Electric.
Electrical Steel Market: Segmentation
The global Electrical Steel market is segmented into in detail to cover every aspect of the market and present a complete market intelligence approach in front of the reader.
- Non-grain Oriented
- Full Processed
- Semi Processed
- 1hp - 100 hp
- 101 hp - 200 hp
- 201 hp - 500 hp
- 501hp - 1000 hp
- Active 1001 hp
- North America
- Latin America
- Western Europe
- Eastern Europe
- Asia Pacific Excluding Japan (APEJ)