The Europe electrical steel market in was estimated to be worth US$ 6.3 billion in 2022. It is anticipated to increase significantly, with a compound annual growth rate of 10.3%, from 2023 to 2033, reaching US$ 16.9 billion by 2032.
Due to the region’s growing emphasis on technical breakthroughs and sustainable energy solutions, the European electrical steel market has grown to become a significant sector of the steel industry. When making transformers, motors, and generators, electrical steel—a speciality steel with magnetic characteristics optimised for maximum performance—is essential. The market for electrical steel has been steadily increasing in Europe because to its strong industrial base and dedication to renewable energy sources. High-grade materials are essential to this industry in order to improve efficiency and lower energy losses in electrical applications.
Market Insights
The market for electrical steel in Europe is deeply influenced by the region’s industrial activities and energy policies. Electrical steel is indispensable in the production of electrical equipment that supports Europe’s extensive power grids and renewable energy infrastructure. The growing emphasis on reducing carbon emissions and increasing energy efficiency has led to a surge in demand for high-efficiency electrical steel. Additionally, the automotive sector’s shift towards electric vehicles (EVs) has further fueled the need for electrical steel, as EV motors require high-grade electrical steel for optimal performance.
Dynamics and Growth Factors
Several key dynamics and growth factors are shaping the Europe electrical steel market. Firstly, the region’s strong emphasis on energy efficiency and sustainability is a primary driver. Electrical steel plays a critical role in minimizing energy losses in electrical devices, making it essential for achieving energy efficiency goals. Secondly, the rapid development of renewable energy projects across Europe requires robust electrical infrastructure, further boosting the demand for electrical steel. The automotive industry’s shift towards electrification, driven by both consumer demand and regulatory pressures, is another significant factor contributing to market growth. Moreover, advancements in manufacturing processes and the development of high-grade electrical steel varieties are enhancing product performance and expanding application areas.
List of Key Companies Profiled in The Report
- Novolipetsk Steel (NMLK)
- ArcelorMittal
- Cogent Power Limited
- Phoenix Mecano AG
- Thyssenkrupp AG
- Voestalpine Camtec GmbH
- Aperam S.A.
- SMS Group GmbH
- Acciaieria Arvedi
- Acronic International GmbH
- Erdemir Romania S.R.L.
- Severstal
- Others
Market Opportunities
The Europe electrical steel market presents several opportunities for growth and innovation. One of the most promising areas is the development of advanced electrical steel grades that offer superior magnetic properties and energy efficiency. Companies investing in research and development to produce high-efficiency electrical steel can capitalize on the increasing demand from various sectors. Additionally, the expansion of renewable energy projects across Europe creates opportunities for electrical steel manufacturers to supply materials for wind turbines, solar panels, and other green energy infrastructure. The rise of electric vehicles also presents a significant opportunity, as the automotive industry seeks high-quality electrical steel for EV motors. Furthermore, the increasing focus on recycling and sustainable manufacturing practices offers potential for growth, as companies adopting environmentally friendly processes may gain a competitive edge.
Competitive Landscape
European manufacturers of electrical steel are strategically focusing on geographical and capacity expansion, alongside enhancing manufacturing capabilities to boost production. They are also investing heavily in developing innovative products tailored to various applications and client needs. For example, ArcelorMittal’s acquisition of John Lawrie Metals Ltd. in 2022 aims to leverage steel recycling expertise for reducing CO2 emissions in steel production. In another instance, Novolipetsk Steel (NMLK) began construction of a grain-oriented steel plant in Maharashtra, India, in 2021. This plant, once operational, will annually produce 64,000 MT of grain-oriented steel, highlighting efforts to expand global production capacity.
