India Electrical Steel Market to Surge to US$ 3.8 Bn by 2031, Growing at a 10.5% CAGR | Persistence Market Research

The India electrical steel market is experiencing a robust growth trajectory, with expectations to reach a market size of US$ 3.8 billion by 2031. This growth is attributed to a compound annual growth rate (CAGR) of 10.5% from 2024 to 2031. Electrical steel, also known as silicon steel, plays a crucial role in the electrical industry, particularly in the manufacturing of transformers, electric motors, and generators. This material is essential for power generation, transmission, and distribution, making it a core component in the electrical sector's infrastructure. As the demand for energy-efficient and high-performance equipment increases, the adoption of electrical steel continues to rise, contributing significantly to market expansion.

Key drivers behind the market growth include the increasing industrialization, the growing demand for electricity in residential and commercial sectors, and advancements in renewable energy sources. Electrical steel is extensively used in the production of power transformers, motors, and other electrical components, which are vital in these sectors. The automotive industry, with the rise of electric vehicles (EVs), is also emerging as a key end-user for electrical steel, specifically for manufacturing EV motors. Geographically, the Indian market is anticipated to see substantial growth due to the government's emphasis on infrastructure development and the promotion of renewable energy initiatives, making India a leading player in the Asia-Pacific electrical steel market.

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Key Highlights from the Report:

• The India electrical steel market is projected to reach US$ 3.8 billion by 2031.
• The market is expected to grow at a CAGR of 10.5% between 2024 and 2031.
• The automotive industry, especially electric vehicles (EVs), is becoming a major consumer of electrical steel.
• The increasing demand for energy-efficient equipment drives the adoption of electrical steel in power transformers and motors.
• India's government initiatives to promote renewable energy and infrastructure development support market growth.
• The non-oriented electrical steel segment is predicted to hold the largest share in the coming years.

Market Segmentation

The India electrical steel market can be segmented based on product type, application, and end-user industry. In terms of product type, the market is primarily categorized into non-oriented electrical steel (NOES) and oriented electrical steel (OES). Non-oriented electrical steel is widely used in applications that require high magnetic flux, such as in motors and transformers, while oriented electrical steel is used in transformers and other high-efficiency applications where low power loss is essential. Non-oriented electrical steel holds the largest market share, driven by its widespread use in automotive, power generation, and transmission.

In terms of application, the India electrical steel market is segmented into power transformers, electric motors, and others. Power transformers dominate the market due to the growing demand for efficient energy distribution and transmission systems. With India's ambitious goals for renewable energy and infrastructure growth, power transformers continue to see significant demand. Electric motors, particularly in the automotive sector, are expected to witness rapid growth with the rise of electric vehicles. As India accelerates its transition to electric mobility, the automotive sector is likely to be a key driver for the electrical steel market in the coming years.

Regional Insights

India is poised to lead the electrical steel market in the Asia-Pacific region, owing to its large industrial base, rapid urbanization, and growing electricity demand. The government's initiatives to promote infrastructure development and renewable energy sources, such as wind and solar power, are expected to support the expansion of the electrical steel market. Additionally, India's focus on increasing domestic manufacturing capacity for electrical components, such as transformers and electric motors, will further stimulate the demand for electrical steel in the region.

The demand for electrical steel is also expected to grow in other parts of Asia-Pacific, particularly in China and Japan. However, India's competitive manufacturing environment and government incentives for energy-efficient technologies are positioning it as a strong market leader in the region. With the rising shift toward renewable energy and electric vehicles, India is set to capitalize on these trends, making it a significant player in the global electrical steel market.

Market Drivers

The primary driver of the electrical steel market in India is the growing demand for energy-efficient electrical equipment. As energy consumption continues to rise across the nation, there is an increasing need for transformers, motors, and generators that reduce power losses and enhance efficiency. Electrical steel is essential for producing such high-performance equipment, which aligns with India's energy sustainability goals.

The automotive sector, particularly with the rise of electric vehicles (EVs), is also contributing to market growth. Electric motors used in EVs require high-quality electrical steel to ensure efficient operation and performance. With India's push toward electric mobility through initiatives like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, the demand for electrical steel in the automotive sector is expected to rise significantly.

Market Restraints

Despite the positive growth prospects, several challenges hinder the market's expansion. One of the key restraints is the fluctuating prices of raw materials used in the production of electrical steel, such as iron ore and coal. Price volatility can lead to higher production costs, which may impact the profitability of manufacturers and increase the cost of end-products.

Another challenge is the technological limitations in the production of high-grade electrical steel, especially oriented electrical steel (OES). The manufacturing process for OES requires advanced technologies, which may not be widely available in India. This limits the production capacity and availability of high-efficiency electrical steel, hindering market growth in certain high-demand applications, such as transformers and high-performance motors.

Market Opportunities

There are significant opportunities for growth in the India electrical steel market. The transition to renewable energy sources presents an excellent opportunity for the industry. Electrical steel is essential in the construction of high-performance transformers, which are critical to the efficient transmission and distribution of renewable energy. As India increases its focus on solar, wind, and other renewable sources, the demand for electrical steel in power generation and distribution systems is set to rise.

The growth of the electric vehicle (EV) market also presents a major opportunity for the electrical steel industry. The increasing adoption of EVs, driven by government incentives and the global shift toward cleaner transportation, requires efficient electric motors. Electrical steel, specifically non-oriented electrical steel (NOES), is crucial for manufacturing these motors. As India positions itself as a key market for EV production, the demand for electrical steel is expected to soar, providing manufacturers with lucrative opportunities for growth.

Reasons to Buy the Report:

✔ Gain a comprehensive understanding of the India electrical steel market's current and future trends.
✔ Identify key market drivers, restraints, and opportunities to make informed business decisions.
✔ Analyze market segmentation to target high-growth product types and end-user industries.
✔ Understand regional trends and their impact on the growth of the electrical steel market in India.
✔ Gain insights into the competitive landscape, including key players and their strategies.

Frequently Asked Questions (FAQs)

How Big is the India Electrical Steel Market?
Who are the Key Players in the Global Electrical Steel Market?
What is the Projected Growth Rate of the India Electrical Steel Market?
What is the Market Forecast for the India Electrical Steel Market for 2031?
Which Region is Estimated to Dominate the Electrical Steel Market through the Forecast Period?

Company Insights

Several key players are leading the India electrical steel market, focusing on enhancing production capabilities, improving product quality, and expanding their regional presence. Some of the prominent companies in the market include:

• Voestalpine
• ArcelorMittal
• Thyssenkrupp
• Novolipetsk Steel
• Aperam
• POSCO
• Nippon Steel Corporation
• JFE Holdings
• Cleveland-Cliffs Inc.
• Slovenian Steel Group

Recent Developments:

1. Tata Steel Limited has increased its investment in advanced manufacturing technologies to produce high-grade electrical steel that meets the growing demand for efficient transformers and electric motors.
2. JSW Steel Limited has announced plans to expand its production capacity for electrical steel, specifically targeting the electric vehicle and renewable energy sectors.

With the growing demand for energy-efficient electrical components and the increasing adoption of electric vehicles, India is poised to become a significant hub for electrical steel production, offering substantial opportunities for manufacturers in the coming years.

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This release was published on openPR.