US Electrical Steel Market

US electrical steel market size was USD 3.75 billion in 2023 and is predicted to reach USD 6.15 billion in 2032, exhibiting at a CAGR of 5.6% during the forecast period.

The US electrical steel market provides essential components for electrical transformers, motors, and generators, making it an essential part of the country',s industrial environment. This market is still thriving because of strong demand from industries including manufacturing, energy, and automobiles. Renowned for its low core losses and magnetic qualities, electrical steel is essential for increasing energy efficiency and lowering carbon footprint. Leading companies in the sector use innovation and cutting-edge production processes to satisfy a wide range of client demands and strict quality requirements. The US electrical steel market is still well-positioned for continued expansion and innovation as technology develops.

US Electrical Steel Dynamics

Technological developments, shifting raw material prices, and changing regulatory environments have all influenced the US electrical steel market',s dynamic dynamics. The improvement of infrastructure, the electrification of automobiles, and renewable energy all have an impact on demand. Product innovation, cost reduction, and sustainability initiatives are the main strategies used by market participants to manage competitive challenges.

Market circumstances are also impacted by the dynamics of global trade, including trade agreements and taxes. The market dynamics are further shaped by the integration of digital technology and consumer tastes that are shifting towards energy-efficient solutions. When it comes to constant adaptation and innovation, the US electrical steel market exhibits resilience in the face of shifting environmental and economic conditions.

US Electrical Steel Drivers

• Renewable Energy Expansion

Energy storage systems, solar inverters, wind turbines, and other renewable energy sources drive the demand for electrical steel. Renewable energy is growing quickly because gove ments around the world are putting a strong emphasis on clean energy transitions and carbon neutrality targets. Electrical steel is essential for effectively converting renewable energy sources into useable power due to its magnetic characteristics. Improvements in technology that improve the efficiency and dependability of renewable energy systems, favorable regulations, and rising investments in renewable infrastructure are the main factors supporting this trend.

• Infrastructure Mode ization

Electrical steel demand is driven by infrastructure mode ization, which calls for improvements to transportation networks and outdated power grids to increase their dependability and efficiency. Gove ments and businesses fund high-speed rail, smart grid technology, and urban development initiatives, all of which demand sophisticated electrical components. Energy transmission and distribution systems are greatly improved by electrical steel because of its reduced core losses and magnetic qualities. Growing urbanization, population expansion, and the requirement to provide robust and sustainable infrastructure for coming generations are the main causes of this driver.

Restraints:

• Trade Tariffs and Policies

Tariffs on imported steel and associated materials increase the cost of production for home manufacturers, which reduces their ability to compete. Long-term planning and investment are hampered by market volatility that is further exacerbated by uncertainty surrounding trade agreements and punitive actions. Trade obstacles can also restrict access to foreign markets, which can limit growth potential in the face of intense global competition and altering trade dynamics and decrease export opportunities for US electrical steel manufacturers.

• Technological Disruption

The market dominance of electrical steel in a variety of applications is being threatened by advancements in substitute materials like silicon carbide and carbon fiber composites. Existing manufacturers face financial obstacles as a result of the large expenditures needed for research, development, and retooling necessary to adapt to these new technologies. In quickly changing industries, falling behind on technological improvements can lead to a decline in market relevance and a competitive disadvantage.

Opportunities:

• Grid Mode ization Initiatives

Grid mode ization projects create demand for cutting-edge infrastructure components, which presents a large opportunity for the US electrical steel industry. Reliable and efficient electrical systems are necessary for investments in microgrids, smart grids, and the integration of renewable energy sources. In current grids, electrical steel is crucial for transformers, switchgear, and transmission equipment because of its exceptional magnetic characteristics. The market for high-performance electrical steel is expected to rise as gove ments and utilities place a higher priority on sustainability and grid resilience. This will present manufacturers with attractive prospects in the changing energy landscape.

• Increasing Energy Efficiency Standards

The US electrical steel market has a significant opportunity due to rising energy efficiency rules, which are increasing demand for high-performance materials in appliances, motors, and transformers. Advanced electrical steel with lower core losses and better magnetic characteristics is becoming more and more necessary as manufacturers are forced by stricter requirements to use more efficient technologies. The need for compliant electrical steel products is anticipated to increase, stimulating growth and innovation in the market as consumers and businesses look for energy-saving solutions to lower operational costs and environmental impact.

Segment Overview

• By Product

Based on product, the US electrical steel market is divided into grain-oriented electrical steel and non-grain-oriented electrical steel. The non-grain-oriented electrical steel category dominates the market with the largest revenue share in 2023. Because non-grain-oriented electrical steel does not have a preferred crystal orientation, all directions of its magnetic characteristics can be equally strong.

Because of this, NGOES can be used in applications like electric motors, generators, and other electrical devices that experience direction changes in magnetic flux while operating. The magnetic characteristics of grain-oriented electrical steel are enhanced in the rolling direction due to its preferred crystal orientation. Because of this feature, it is perfect for use in distribution and power transformers, where directional magnetic flux is essential for effective energy distribution and transmission.

• By Application

Based on the application, the US electrical steel market is categorized into transformers, motors, inductors, and others. The transformers category leads the US electrical steel market with the largest revenue share in 2023. Transformers are devices that employ electromagnetic induction to move electrical energy between circuits. In transformer cores, electrical steel plays a crucial role in effectively concentrating and channeling magnetic flux to reduce energy losses.

Electric motors provide power to a variety of machinery and equipment by converting electrical energy into mechanical energy. In motor cores, electrical steel is used to produce magnetic fields that propel rotor motion and produce mechanical power. When current passes through inductors, which are passive electrical components, energy is stored in a magnetic field.

US Electrical Steel Overview by Region

The US electrical steel market is categorized into U.S., Canada, and Mexico. The U.S. emerged as the leading region, capturing the largest market share in 2023. Numerous elements, such as a strong emphasis on energy efficiency and sustainability, technical breakthroughs, and a robust industrial infrastructure, are responsible for this leadership. The US has made large expenditures in electrical grid renovation, renewable energy projects, and vehicle electrification programs, which have increased demand for electrical steel in a number of industries.

The competitiveness of US electrical steel makers has also been strengthened by supportive regulatory policies and a highly skilled labor pool, securing the nation',s top spot in the market. The country',s emphasis on switching to a greener, more sustainable energy system, along with gove ment programs encouraging energy efficiency, is increasing demand for electrical steel in a number of industries. Furthermore, Canada',s technological innovation and wealth of natural resources support its potential for long-term growth and competitiveness in the world market for electrical steel.

US Electrical Steel Competitive Landscape

In the US electrical steel market, a few major players exert significant market dominance and have established a strong regional presence. These leading companies remain committed to continuous research and development endeavors and actively engage in strategic growth initiatives, including product development, launches, joint ventures, and partnerships. By pursuing these strategies, these companies aim to strengthen their market position, expand their customer base, and capture a substantial share of the market.

US Electrical Steel Market Leading Companies:

• ArcelorMittal
• United States Steel Corporation
• Steel Dynamics
• BRS
• LIBERTY Steel Group
• Sumitomo Canada Limited
• Union Electric Steel Corporation
• Cleveland-Cliffs Inc, and various others.

US Electrical Steel Recent Developments

• In May 2023, The Canadian branch of JFE Holdings is still at the forefront of the rapidly growing market for the electrical steel components and materials needed to build a sustainable electrical energy future. Together with key partners, JFE Shoji Power Canada announces that it will keep investing more in the equipment and labor needed to grow its output of electrical steel components for power and distribution transformers.
• In March 2023, According to United States Steel Corporation, its new non-grain oriented (NGO) electrical steel line will be inaugurated at its Big River Steel facility in the summer of 2023, marking the beginning of production of the company',s new electrical steel product, InduXTM. Big River Steel, located in Osceola, Arkansas, plans to use its new NGO electrical steel line to produce InduXTM steel.
• In May 2022, The US state of Georgia will host an EV production facility, as confirmed by Hyundai Motor Company. The plant will be built close to the company',s current Kia and Hyundai-branded operations. Rising EV production is therefore expected to support market expansion during the forecast period.

US Electrical Steel Market Report Segmentation