North America Electrical Steel Market (By Product: Grain Oriented Electrical Steel, Non-Oriented Electrical Steel; By Application: Transformers, Motors, Inductors) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2023-2032

The North America electrical steel market was estimated at USD 3.55 billion in 2022 and it is expected to surpass around USD 5.82 billion by 2032, poised to grow at a CAGR of 5.06% from 2023 to 2032.

Key Pointers

• Based on the product, Non-grain oriented electrical steel (NGOES) held more than 72% revenue share in 2022. 
• The grain-oriented (GOES) segment is anticipated to register a growth rate of 5.52% in terms of revenue across the forecast period. 
• Based on application, transformers dominated the market with a revenue share of over 54% in 2022. 
• The motors segment is expected to register the fastest CAGR of 5.53% in terms of revenue across the forecast period

Report Scope of the North America Electrical Steel Market

Increasing electricity generation worldwide, awareness toward green energy, and rising demand for EVs are attributed to driving the market growth across the forecast period. Electrical steel finds application in transformers and inductors, which are further used in electricity generation and distribution. Growth in electricity production and developments in their distribution infrastructure, especially in developing economies are propelling their demand and thus, benefiting market growth. Further, motors are extensively used in EVs, and the shifting inclination towards electrification of vehicles is boosting demand for motors and propelling the consumption of electrical steel.

The U.S. dominates the overall market owing to rising investments in the energy industry and EV sector. The growing demand for electrical energy requires huge investments in power generation and equipment. Motors, generators, and transformers are the prominent equipment used in the industry. Thus, an increase in power output augments the use of electrical steel for manufacturing generators and motors.

Further, a positive government attitude toward EVs is anticipated to boost market growth. For instance, the U.S. president issued an executive order in August 2021 with the goal of having 50% of all new car sales be electric by 2030. As a result, several automakers are turning their attention towards EVs. For example, Bentley Motors in October 2021, announced that all of its vehicles are likely to be electric by 2030.

Also, in May 2022, Hyundai Motor Company announced to build an EV production facility in Georgia, U.S. The company is planning to construct the plant near its existing facilities dedicated to Kia and Hyundai brands. Thus, rising EV production is anticipated to aid market growth over the forecast period.

The market, however, witnesses restrictions with volatility in raw material prices. Coal, iron ore, and ferrosilicon are among the key raw materials for electrical steel, which face fluctuations in prices due to factors such as trade relations and the demand-supply gap.For instance, in May 2021, iron ore prices reached USD 237.5 per ton owing to the strong demand from China. This was a new record; however, prices eventually stabilized by the end of 2021.

Product Insights

Based on the product, Non-grain oriented electrical steel (NGOES) held more than 72% revenue share in 2022. It is an iron-silicon alloy with nearly the same magnetic properties in any direction. It contains medium to high alloy content depending on core loss requirement. It is utilized to provide exceptional magnetic characteristics, for applications such as electric home appliances, office equipment, and stabilizers.

The grain-oriented (GOES) segment is anticipated to register a growth rate of 5.52% in terms of revenue across the forecast period. GOES is produced from cold-rolled strips, providing an insulated coating with a thickness of less than 2 mm. It also helps to mitigate the eddy current losses. These strips are cut in lamination shapes, which are stacked on each other to form laminated cores of transformers, rotors, and stators of electric motors. GOES is an essential material in the production of energy-efficient transformers and generators.

Application Insights

Based on application, transformers dominated the market with a revenue share of over 54% in 2022. Cold rolled grain oriented (CRGO) core, also known as laminations, is used in transformers as core material to provide high permeability and mitigate eddy current losses. Increasing investment in expanding the grid increases the rate of deployment of transformers, which is anticipated to drive the market in the projected timeline.

The motors segment is expected to register the fastest CAGR of 5.53% in terms of revenue across the forecast period. The product manufacturers are focused on developing soft magnetic materials with high flux density and minimal core losses at high frequencies such as high-speed motors for EVs, power tools, and traction motors.

Increased demand for HVAC systems for residential, commercial, and industrial purposes drives the use of motors which is estimated to propel the market growth during the projected period. For instance, in June 2022, Daikin Comfort Technologies North America, Inc. announced to invest USD 230 million to set up a new plant by 2024.

The inductor segment is expected to register a growth rate of 5.1% in terms of revenue over the forecast period. The inductor is mostly used in power and electronic devices for blocking, choking, attenuating, or filtering/smoothing high-frequency noise in electrical circuits, transferring and storing energy in power converters, impedance matching, and other applications.

North America Electrical Steel Market Segmentations:

By Product 

• Non-Oriented Electrical Steel
• Grain Oriented Electrical Steel

By Application 

• Transformers
• Motors
• Inductors
• Others