According to the Global Energy and CO2 Status Report 2017, the global energy demands elevated by 2.1% in 2017, and the carbon emission surpassed the magnitude of 32 gig tonnes in 2017. And the same source suggests that renewable-based electricity generation rose around 6.3% owing to the expansion of solar, hydropower, and wind energy. Taking these factors into account, the electrical vehicle’s market is primed for extraordinary expansion. As per the International Energy Agency, the global units of electric cars on the road surpassed 3 million in 2017, striking a 56% rise from the previous year. The electric vehicle demands are anticipating a consistent upsurge which further will increase the demands of raw materials used in the manufacturing of electric vehicles.

Electrical steel also known as silicon steel is an iron alloy altered with manganese and aluminium to produce magnetic properties such as hysteresis and permeability. Electric steel is used as laminate steel applied to the rotor and stator of electric motors in electric hybrid vehicles. Application of this electric steel instead of conventional steel provides resistance to rust or corrosion and acts as a lubricant during die cutting.

According to a market research report from IndustryARC, the global electric steel market was worth $22,245 as of 2018. And, if the ongoing trends are followed, this market is supposed to increase at a CAGR of 6.6% during the forecast period of 2019 to 2025. Asia-Pacific is considered as the most lucrative market place for the electric steel market with a market share of more than 39% of the total demands. The information presented is from the IndustryARC’s report titled “Electrical steel market: by grade (non-grain-oriented electrical steel & grain-oriented electrical steel); by application (transformers, motors, inductors, generators & others) & geography – forecast (2019-2025).”

This increasing demands for electric steel can be justified through the fact that China remained the largest market for electric vehicles. Almost 580,000 cars were sold in the region in the year 2017, a whopping 72% increase from the preceding year. According to application segment analysis, the largest demands for electrical steel comes from the transformers industry and is expected to increase at a positive CAGR of 6.8% going through 2025. Electrical steel is produced in the form of cold-rolled strips. These strips, also termed as laminations, are stacked into a core that is used in the transformers. Transformers are typical throughout the world for supply electricity.

Global Electric Steel Market Companies:

Some of the leading players in the electric steel industry are – Nippon Steel & Sumitomo Metal Corporation Group, Shandong Iron and Steel Group Co Ltd, JFE Steel Corporation, SSAIL,Shagang Group Inc., ArcelorMittal, Ansteel Group Corporation, and Baosteel Group.

Nippon Steel & Sumitomo Metal Corporation Group

The Tokyo based steel manufacturer, Nippon Steel & Sumitomo Metal Corporation Group (NSSMC), is one of the top manufacturers of electric steel sheets. The company received the CEO award from Daikin Industries Limited for the production of high-quality electric steel sheets used in compressor motors installed in the outdoor air conditioner units. The company has standardized the development of high-quality steel sheets in their compressed motor called HIEXCORE. HIEXCORE has high induction and low core loss at high frequencies making it efficient for rotating machines. With a consistent rise in the demands of air-conditioners, the demands for compressor motors will also induce the growth in the electric steel market.

JFE Steel Corporation

The company JFE Steel Corporation has regularly invested in its research and development department. They are now manufacturing high-strength electric steel sheets for the production of the lightweight automotive part. Innovative alloy designs and microstructure control has enabled the company to produce cold-rolled and hot-dipped galvanized electric steel sheets with excellent ductility and stretch-flange formability effective for car suspension parts. These sheets with high saturation magnetic flux density and low iron loss capabilities are suitable equipment for car manufacturers. The ever-increasing vehicle’s market is augmented to produce humungous profits for the electric steel OEMs.

Conclusion

An electric steel sheet is a functional material developed by modifying the magnetic properties of steel for optimum electricity and magnetism conversion. The electrical steel market is expected to flourish owing to its wide range of applications in the electrical and automotive industry. The emerging electric vehicle and transformers application is anticipated to drive growth in the electric steel market.

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