Grain-oriented Silicon Steel Market

Global Grain-oriented Silicon Steel Market Size (2024-2032):

The size of the global grain-oriented silicon steel market was worth USD 12.48 Billion in 2023. The global market is anticipated to grow at a CAGR of 5.8% from 2024 to 2032 and be worth USD 20.73 billion by 2032 from USD 13.20 billion in 2024.

Current Scenario of the Global Grain-oriented Silicon Steel Market

The grain-oriented silicon steel market is developing quicker, with considerable growth rates in recent years. As a result, it is projected to increase significantly in the anticipated period, i.e., 2024 - 2032. The necessity to reduce production and process costs and the drive for a sustainable environment that will encourage market expansion are critical aspects of the rise in market revenue for Grain-Oriented Silicon Steel. Magnetic softness is improved, while electrical resistance is increased, thanks to the silicon additions. However, when silicon additions exceed roughly two wt. Percent, they also have the unfavourable effects of lowering the Curie temperature, decreasing saturation magnetization, and embrittling the alloy. Silicon steels with more than roughly 3% silicon are challenging to produce due to the embrittling effects of silicon. Owing to these factors, the grain-oriented silicon steel market will experience significant growth during 2024 - 2032.

MARKET DRIVERS

Increasing power demand, particularly in developing nations like India, Indonesia, and Vietnam, is expected to positively impact the grain-oriented silicon steel market.

These counties are positioned to bolster the need for transmission capacity development due to fast urbanization and a growing population. For example, according to a study, the National Institution for Transforming India (NITI) increased transmission capacity by over 51,000 circuit kilometres (CKM) between 2016 and 2017. As a result, consistent transmission network expansion is expected to play a critical role in product demand. Grain-oriented silicon steel refers to orientated silicon steel that has been cold rolled. The ferrosilicon alloy cold-rolled oriented silicon steel, commonly known as cold-rolled transformer steel, is widely utilized in manufacturing the transformer (iron core). It has a complicated manufacturing process and stringent manufacturing technology.

Silicon steel is a soft magnetic material used in power transformers, motors, and generators. It has a high silicon concentration of roughly 3.2 mass percent, which raises iron's electrical resistivity and lowers eddy current losses. Grain-Oriented Silicon Steel is characterized by a stable preferred crystallographic orientation in non-rotating applications, such as transformers. The crystal directions are the easiest magnetization orientations in iron. The Goss orientation is technologically realized in Grain-Oriented Silicon Steel to minimize magnetic losses in electrical transformers. The product is an iron-silicone alloy that can deliver high permeability and minimal core loss in electrical transformers. Therefore, it is frequently used as the core of power transformers and is regarded as the most energy-efficient steel. As a result, the product is also known as transformer steel in different parts of the world. These are the crucial factors that tend to boost the global grain-oriented silicon steel market in the upcoming years.

MARKET RESTRAINTS

The slow growth of the grain-oriented silicon steel market, mainly in emerging economies, and the increasing demand for amorphous steel are the primary factors that hamper the grain-oriented silicon steel market growth.

Transformer makers' main task is to reduce or eliminate core losses. Traditionally, transformer manufacturers preferred cold-rolled grain-oriented (CRGO) steel. However, the capacity of amorphous steel to minimize core losses by a large margin compared to CRGO is expected to boost demand for the material. As a result, the growth of the Grain-Oriented Silicon Steel Market will be limited. Moreover, silicon requires a thick layer and has short life cycles. On the other hand, silicon crystals are very expensive. These are the major restraints that slow down the global grain-oriented silicon steel market growth. 

IMPACT OF COVID-19 ON GRAIN-ORIENTED SILICON STEEL MARKET

The grain-oriented silicon steel market has experienced a negative impact due to COVID-19. Most of the population across the world is confined to their homes due to the fear of getting a virus. The different age groups of people suffered from various symptoms of COVID-19. The rapid spread of the disease may cause many regions to step towards lockdown across the world. As a result, several industries faced huge losses and manufacturers have no other choice but to follow the regulations implemented by the government. However, the purchasing power of the consumers decreased, and the grain-oriented silicon steel market suffered a massive loss and is trying many ways to recover post-COVID.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Grain-oriented Silicon Steel Market Analysis By Product

Based on the product, 0.30 mm tends to hold the largest grain-oriented silicon steel market and sustain its dominance during the forecast period. This is because the 0.30mm thickness of silicon steel increases the electrical resistivity of iron and is also responsible for decreasing eddy current losses.

Global Grain-oriented Silicon Steel Market Analysis By Application

Based on application, the electric motor's application plays a dominant role in the global grain-oriented silicon steel market. It is anticipated to hold the maximum CAGR during the forecast period. The cores of motors, transformers, and generators are made of electrical steel, commonly known as silicon steel, a steel alloy of iron and silicon. This softer form of steel has a wide range of magnetic characteristics, high permeability, and low core loss, further responsible for the global grain-oriented silicon steel market growth.

REGIONAL ANALYSIS

The North American region acts as a dominant player in the Grain-Oriented Silicon Steel Market owing to the increasing demand for electricity, mainly in the U.S. and Canada.

The Asia Pacific tends to grow with the highest CAGR in the Grain-Oriented Silicon Steel Market owing to the increasing population and rapid urbanization in India and China.

The Europe region is anticipated to have a significant CAGR owing to the increasing focus on high-end quality products.

KEY PLAYERS IN THE GLOBAL GRAIN-ORIENTED SILICON STEEL MARKET

Companies playing a prominent role in the global grain-oriented silicon steel market include Stalprodukt SA, AK Steel, Baosteel, EILOR, Millennium Steel, Shanghaimetal, NSSMC, KODDAERT nv, POSCO, JFE Steel and Others.

RECENT HAPPENINGS IN THE GLOBAL GRAIN-ORIENTED SILICON STEEL MARKET

• Stalprodukt SA launched the production of laser-treated steel. Through the decrease of core loss, the laser scratching method allows for a significant, long-term improvement in the magnetic properties of electrical steel strips.
• The board of directors of AK Steel has approved a $21 million capital investment to enhance the Company's manufacturing capacities for high-value-added, grain-oriented electrical steels, which are currently in great demand in domestic and international markets.
• Tata Steel announced a wide variety of new electrical steel products. In addition, it possesses a unique quality. It can reduce the loss of electricity by 25-35 % to conventional grain-oriented grades.
• JFE Steel Corporation declared that it had signed a Memorandum of Understanding with JSW Steel Limited (JSW), a Strategic Alliance Partner, The goal is to complete the study during the current fiscal year of 2021 and then take the necessary procedures to set up the Company, pending the required permissions.

DETAILED SEGMENTATION OF THE GRAIN-ORIENTED SILICON STEEL MARKET INCLUDED IN THIS REPORT

This global grain-oriented silicon steel market research report has been segmented and sub-segmented based on product, application, and region.

By Product

• 0.23mm
• 0.27mm
• 0.30mm
• 0.37mm

By Application

• Electric Motors
• Transformer
• Home Appliances
• Generator
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa