North America Electrical Steel Market – Industry Trends and Forecast to 2031

North America Electrical Steel Market Analysis and Size

The increasing demand for lightweight components from the automotive industries and rising demand of the high permeability grades alloy core and weight reduction materials in the power industry is driving the market growth. While distortion in properties of electrical steel due to temperature variations and improper and inadequate electronics waste disposal systems are restraining the market.

Data Bridge Market Research analyzes that the North America electrical steel market is expected to reach USD 6.46 billion by 2031 from USD 3.97 billion in 2023, growing with a CAGR of 6.4% in the forecast period of 2024 to 2031.

The North America electrical steel market report provides details of market share, new developments, and the impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, products approvals, strategic decisions, product launches, geographic expansions, and technological innovations in the market. To understand the analysis and the market scenario, contact us for an analyst brief. Our team will help you create a revenue-impact solution to achieve your desired goal.

Market Definition

Electrical steel, also known as silicon steel or transformer steel, is a type of specialty steel optimized for electrical applications. It has specific magnetic properties, including low core loss and high permeability, which make it ideal for use in transformers, inductors, electric motors, and generators. The steel is typically alloyed with silicon to enhance its electrical resistivity and reduce energy losses. Electrical steel is produced in various grades, tailored to meet specific requirements of the electrical industry, contributing significantly to energy efficiency in power distribution and electric devices.

North America Electrical Steel Market Dynamics:

This section deals with understanding the market drivers, opportunities, restraints, and challenges. All of this is discussed in detail below:      

Drivers

• Rise in Demand for Sustainable Energy Sources Such as Wind and Hydropower

The demand for sustainable sources of energy such as wind and hydro prover, among others due to changing environmental scenarios is a major driver for the North America electrical steel market since non-grain oriented electrical steel finds applications in most of the turbines and motors used in such forms of sustainable energy.

Since, the respective initiative requires building new windmills that require turbines and motors that utilizes non-grain oriented electrical steel and since the U.S. is the most major economy in North America, such initiatives from the U.S. government that promotes the demand for sustainable energy sources such as wind and hydropower acts as a major market driver for North America electrical steel market and escalates the demand side of the respective market.

• Gain in Popularity of Non Grain Oriented Electrical Steel in Household Appliances

The overall demand for household appliances, particularly, cooling appliances, is growing drastically as a majority of people are still confined within their houses due to the COVID-19 pandemic. The growing popularity of non-grain oriented steel in household appliances is a major driver for the North America non-grain oriented electrical steel market as a major landslide in demand for non-grain oriented electrical steel would be created by the growing demand for household appliances that uses non-grain oriented electrical steel.

The demand for household appliances particularly cooling appliances that utilize non-grain oriented electrical steel is being scaled up. Since such scale-up in demand for household appliances is boosting the demand and consumption of non-grain oriented electrical steel, the respective parameter is considered as a major market driver or the North America electrical steel market.

Opportunities

• Growth in Application of Electric Vehicles

Since the environmental impact of fossil fuels is gaining popularity, the demand for electric vehicles is growing throughout the world. Since non-grain oriented electrical steel finds application in the manufacture of various parts that are vital for the working of electric vehicles, the growth in the application of electric vehicles is considered as a major market opportunity for the North America electrical steel market capable of boosting the sales and market demand.

In conclusion, due to the growing environmental concerns, electric vehicles have started to widely replace, the normal vehicles that run on fossil fuels. However, since many of the parts present in such electrical vehicles are comprised of various parts made from non-grain oriented electrical steel, the growing demand for electrical vehicles acts as an excellent opportunity that could boost the demand and production of non-grain oriented electrical steel in the North America electrical steel market.

Restraints/Challenges

• The Tendency of Steel to Corrode Over Time on Exposure to Moisture and Air

Since steel is an alloy of iron, the fact that it is susceptible to rust that arises due to moisture as well as air. Nonetheless, the tendency of steel to undergo corrosion over time on exposure to moisture and air pose a major challenge to North America electrical steel market as corrosion could damage the physical and chemical properties of steel, making it extremely debilitated for its industrial applications, thereby reducing the market demand.

Nonetheless, as such large-scale replacements of steel due to corrosive characteristics diminishes the overall market demand and sales of the non-grain oriented electrical steel, the tendency of steel to corrode over time on exposure to moisture and air acts as a challenge to the North America non-grain oriented electrical steel market

• Fluctuation in Raw Material Prices

Fluctuation in the raw material prices will affect the production cost of the electrical steel products. The change in the production cost will change the revenue for the manufacturers. The raw material which is used for the production of the electrical steel products is mixed with other components for the production of electrical steel in different grades for different applications in the industries.

The raw material is available in different quality and at different rates due to which production of the electrical steel products is very difficult for the manufacturers. Highly fluctuating raw material costs and ineffective price management can greatly endanger a manufacturer in the market. Due to the fluctuation in the raw material prices, the manufacturer is now able to fix the cost of the product which further resulted in a loss to manufacturers.

Recent Developments

• In April 2024, POSCO at the World Steel Association's semi-annual member meeting in London, it was named the Sustainability Champion for the third consecutive year. This recognition highlights POSCO's ongoing efforts to transition to a low-carbon system, including the introduction of electric arc furnaces and the operation of a sustainability management council
• In January 2024, Tempel, a Worthington Steel Company and a global leader in high-precision electrical steel laminations for motors, generators, and transformers, proudly announces receiving the Zero PPM (Parts per Million) award from Mahle Electric Drives India Pvt. This award recognizes Tempel's unwavering commitment to manufacturing excellence and quality assurance. MAHLE is a prominent international development partner and supplier in the automotive industry, pioneering electrification, thermal management, and clean combustion engines
• In 2024, Nippon Steel Corporation ("Nippon Steel") participated in the Offshore Technology Conference (OTC) in Houston, USA, from May 6 to May 9. OTC is a prominent exhibition that attracts offshore-related companies and organizations globally, featuring over 1,300 exhibitors and drawing around 30,000 attendees annually
• In December 2023, NIPPON STEEL CORPORATION (NSC) announced today its decision to acquire United States Steel Corporation (U. S. Steel), an integrated blast furnace and electric arc furnace steel manufacturer in the U.S., through its wholly-owned subsidiary, NIPPON STEEL NORTH AMERICA, INC. (NSNA). This acquisition follows the decision by NSC's Representative Director, mandated by the Board of Directors' resolutions on November 30, 2023, December 15, 2023, and December 18, 2023
• In May 2023, POSCO became the first global steelmaker to win three awards in the Technology Category at the worldstainless-27 conference, held in Brussels, Belgium. The company received Gold, Silver, and Bronze Awards for its innovations, including high-strength steel for large-scale premium home appliances, non-magnetic steel for mobile devices, and low-cost brazing filler metal. Lee Kyung-jin, Head of Office Stainless Steel Marketing at POSCO, stated, "They will lead the global market and supply the highest quality products to their customers based on the stainless steel material development technologies." This achievement marks yet another global recognition of POSCO's technical prowess, following their Gold Award in the same category at the 26th conference last year

North America Electrical Steel Market Scope

North America electrical steel market is segmented into six notable segments based on type, thickness, application, core losses, flux density, application, and end-use. The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to make strategic decisions to identify core market applications.

Type

• Non-Grain Oriented Electrical Steel
• Grain Oriented Electrical Steel

On the basis of type, the market is segmented into non-grain oriented electrical steel and grain oriented electrical steel.

Thickness

• 0.23 MM
• 0.27 MM
•  0.30 MM
• 0.35 MM
• 0.5 MM
•  0.65 MM
• Others

On the basis of thickness, the market is segmented into 0.23 MM, 0.27 MM, 0.30 MM, 0.35 MM, 0.5 MM, 0.65 MM, and others.

Core Losses

• Less than 0.9 W/KG
• 0.90 W/KG to 0.99 W/KG
• 1.00 W/KG to 1.29 W/KG
•  1.30 W/KG to 1.39 W/KG
•  Above 1.39 W/KG

On the basis of core losses, the market is segmented into less than 0.9 W/KG, 0.90 W/KG to 0.99 W/KG, 1.00 W/KG to 1.29 W/KG, 1.30 W/KG to 1.39 W/KG, and above 1.39 W/KG.

Flux Density

• Above 1.76 Tesla
• 1.73 Tesla to 1.76 Tesla
• 1.69 Tesla to 1.73 Tesla
• 1.65 Tesla to 1.69 Tesla
•  Less than 1.65 Tesla

On the basis of flux density, the market is segmented above 1.76 tesla, 1.73 tesla to 1.76 tesla, 1.69 tesla to 1.73 tesla, 1.65 tesla to 1.69 tesla, less than 1.65 tesla.

Application

• Motors
•  Transformers
• Power Generators
• Inductors
•  Electrical Ballasts
•  Battery
•  Convertors
•  Shunt Reactors
• Wound Cores
• Others

On the basis of application, the market is segmented into motors, transformers, power generators, inductors, electrical ballasts, battery, convertors, shunt reactors, wound cores, and others.

End-User

• Energy and Power
• Engineering
• Automotive
•  Building and Construction
•  Household Appliances
• Others

On the basis of end-user, the market is segmented into energy and power, engineering, automotive, building and construction, household appliances, and others.

North America Electrical Steel Market Regional Analysis/Insights

North America electrical steel market is segmented into six notable segments based on type, thickness, application, core losses, flux density, and end-use.

The countries covered in the North America electrical steel market are U.S., Canada, and Mexico.

The U.S. is the highest growing country in the North America electrical steel market due to gain in popularity of non-grain oriented electrical steel in household appliances.

The country section of the report also provides individual market-impacting factors and changes in market regulation that impact the current and future trends of the market. Data point downstream and upstream value chain analysis, technical trends porter's five forces analysis, and case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of regional brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data.  

Competitive Landscape and North America Electrical Steel Market Share Analysis

The North America electrical steel market competitive landscape provides details by competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, production sites and facilities, company strengths and weaknesses, product launch, product trials pipelines, product approvals, patents, product width and breadth, application dominance, technology lifeline curve. The above data points provided are only related to the companies’ focus related to the North America electrical steel market.

Some of the prominent participants operating in the North America electrical steel market are Cleveland-Cliffs Inc., JFE Steel Corporation., ArcelorMittal, voestalpine AG, thyssenkrupp AG, Baosteel Co.,Ltd., C.D. Wälzholz GmbH & Co. KG, NIPPON STEEL CORPORATION, POSCO, TC Metal, and Tempel (A subsidiary of Worthington Steel), among others.

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