U.S. Grain Oriented Electrical Steel (GOES) Market Size, Share & COVID-19 Impact Analysis, By Product Type (Conventional, High Magnetic Strength, and Domain Refinement), By Thickness (0.2 mm and Below, 0.23 mm, 0.27 mm, 0.30 mm, and 0.35 mm and Above), By Application (Transformer, Power Generator, Electric Motor, and Others), and Country Forecast, 2023-2030

The U.S. grain oriented electrical steel (GOES) market size was worth USD 896.9 million in 2022 and is projected to grow at a CAGR of 5.6% during the forecast period.

Grain Oriented Electrical Steel (GOES) is a type of electrical steel that is commonly used in power transformers, motors, and generators. It is made by aligning the crystalline structures of steel to optimize its magnetic characteristics, improving electrical equipment's energy efficiency. The increased demand for energy-efficient transformers in the electrical sector is driving the market growth. The demand for high-performance electrical steel has increased as the country modernizes its aging power infrastructure and boosts renewable energy capacity.

In addition, the increasing demand for electric vehicles in the U.S. offers growth opportunities for the market. Electric motors and transformers are heavily used in EVs to convert and regulate power. GOES improved magnetic characteristics contribute to lower energy losses, increasing the total efficiency of these components. The increasing usage of EVs, spurred by environmental concerns and government initiatives, directly translates into a larger demand for GOES.

The COVID-19 pandemic impacted the U.S. grain oriented electrical steel market growth due to disruptions in supply chains and delayed construction projects. However, the emphasis on modernizing the electrical grid and the push toward sustainable energy sources continue to stimulate the demand for grain oriented electrical steel in the country. 

U.S. Grain Oriented Electrical Steel (GOES) Market Trends

Growing Renewable Energy Adoption to Boost Market Growth

The increasing integration of renewable energy sources, such as wind and solar power, is a significant trend in the U.S. grain oriented electrical steel market. As the government continues prioritizing sustainable energy solutions, there is an increasing need for electrical steel in transformers and other essential components that enable the efficient transmission and distribution of renewable energy. Grain-oriented steel’s particular magnetic properties make it well suited for use in transformers, contributing to increased energy efficiency in the renewable energy sector. 

U.S. Grain Oriented Electrical Steel (GOES) Market Growth Factors

Increased Grain Oriented Electrical Steel Demand for Enhancing Energy Grid to Drive Market Growth

The demand for grain oriented electrical steel in the U.S. is significantly driven by the imperative to upgrade and modernize the aging energy infrastructure. As power systems age, sophisticated materials, such as grain oriented electrical steel in transformers and distribution systems, are becoming increasingly important. The federal government and the energy industry are investing in upgrading the electrical grid to improve efficiency and reliability, necessitating high-performance materials. This includes grain oriented electrical steel transformers that enhance electric energy transmission and distribution capacities.

The continued commitment to infrastructure enhancement fits with the strategic use of grain oriented electrical steel, establishing it as a critical component in the modernization of the power system to meet modern energy demands. The emphasis on modernizing electrical infrastructure highlights grain-oriented electrical steel's significance in developing a more robust and efficient energy distribution network in the U.S.

RESTRAINING FACTORS

Fluctuations in Energy Prices to Hamper Market Growth

Fluctuating energy prices hinder the market in the U.S. as they influence power infrastructure construction decisions. The market for grain oriented electrical steel is inextricably linked to the energy sector, and fluctuations in energy costs can cause delays in constructing new power plants, influencing total demand for this specialized electrical steel. Economic considerations and energy market volatility can thus affect the growth and stability of the U.S. grain-oriented electrical steel market.

U.S. Grain Oriented Electrical Steel (GOES) Market Segmentation Analysis

By Product Type Analysis

Based on product type, the market is categorized into conventional, high magnetic strength, and domain refinement.

The conventional segment accounted for the largest U.S. grain oriented electrical steel market share in 2022. The growing demand for conventional steel is due to its established production processes, cost-effectiveness, and versatility. It finds application in transformers, industrial induction machines, and power generators, where its reliable performance and affordability outweigh the need for top-tier magnetic properties.

The rising demand for motors and stators in the U.S. is expected to drive the high magnetic strength segment growth.

By Thickness Analysis

On the basis of thickness, the market is segmented into 0.2 mm and below, 0.23 mm, 0.27 mm, 0.30 mm and 0.35 mm and above. The 0.23 mm segment accounted for the largest share of the market in 2022. The product with this thickness is widely used in applications such as compact transformers, generators, and electric motors. This form of electrical steel is utilized in small-scale applications, such as the production of small motors used in appliances such as refrigerators, washing machines, and air conditioners. Increased demand for such domestic applications is likely to fuel market growth during the forecast period.

The rising demand for products with a thickness of 0.27 mm from large power transformer manufacturers is expected to drive the 0.27 mm segment growth.

By Application Analysis

On the basis of application, the market is segmented into transformer, power generator, electric motor, and others.

The transformer segment dominated the market in 2022. The rising use of transformers in the electric energy distribution and supply in the country is expected to drive the segment growth. Conventional and high-magnetic strength steel types are commonly employed in transformers to ensure efficient energy transfer across the electrical grid.

Power generators also contribute substantially to the product demand, benefitting from the material’s magnetic properties that enhance overall generator efficiency.

List of Key Companies in U.S. Grain Oriented Electrical Steel (GOES) Market

Key players operating in the market are ArcelorMittal, POSCO, Nippon Steel Corporation, and ThyssenKrupp Steel. These companies are involved in collaborations, capacity improvement, product innovation, and acquisitions in the market. The majority of companies are involved in R&D activities, acquisitions, and steel innovation to meet consumers' demands.

LIST OF KEY COMPANIES PROFILED:

• Cleveland-Cliffs Inc. (U.S.)


• Arnold Magnetic Technologies (U.S.)


• VIZ-Steel (U.S.)


• ArcelorMittal (Luxembourg)


• POSCO (South Korea)


• Baosteel Group Corporation (China)


• Nippon Steel Corporation (Japan)


• JFE Steel Corporation (Japan)


• ThyssenKrupp Steel (Germany)

KEY INDUSTRY DEVELOPMENTS:

• December 2019 – Cleveland-Cliffs Inc. acquired AK Steel to be self-sufficient in iron ore pellets and geared toward high value-added steel products. AK Steel engages in the production of automotive steel, electrical steel, and flat-rolled carbon stainless products. Cleveland-Cliffs Inc. expects growth post-acquisition due to the contracted nature of AK Steel’s sales of high-end automotive steel.      

REPORT COVERAGE

The study report thoroughly examines key factors such as leading companies, applications, and products. It also provides market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market's growth in recent years and the factors listed above. It examines the industry's newest market dynamics and opportunities, as well as historical data and revenue growth estimates at the country level.

Report Scope & Segmentation