Electrical steel, also known as silicon steel, is a specially alloyed and processed steel with tight chemical and mechanical tolerances, used to manufacture the cores of transformers, motors, and inductors for applications requiring efficient magnetic circuits. Growing investments towards strengthening the electricity transmission and distribution infrastructure have been boosting the demand for electrical steel in the Philippines. The country has been upgrading its ageing grid and expanding power transmission capacity to reduce losses and meet the demands of evolving industries and growing population.
The Philippines electrical steel market is estimated to be valued at US$ 103.1 Mn in 2024 and is expected to exhibit a CAGR of 5.5% over the forecast period of 2024-2031. Growing urbanization and industrialization have been fueling the demand for electricity in the country. Government initiatives to enhance connectivity in remote areas have also created a need for constructing new transmission lines and substations. Electrical steel finds widespread application in transformers, which help in efficient transmission and distribution of power across long distances.
Key Takeaways
Key players operating in the Philippines electrical steel market are Thyssenkrupp, NatSteel Asia, Kewei Steel Group, Nippon Steel Corporation, JFE Steel Corporation, Posco International, Voestalpine AG, and Arcelor Mittal. These players dominate the market owing to their extensive regional presence and capabilities to provide customized solutions as per project specifications.
Philippines electrical steel market provides lucrative growth opportunities for both international and domestic players. Rising investments in upgrading the ageing grid and establishing new power infrastructure offers a huge untapped market potential. Developing specialty products with advanced magnetic properties suitable for high-voltage applications can help players capture larger market shares.
Global expansion has been a key focus area for major electrical steel manufacturers. They have been strengthening their presence across ASEAN countries through partnerships, acquisitions and Greenfield investments. Philippines presents significant opportunities given the ongoing power sector reforms and government emphasis on rural electrification. Foreign players are looking to leverage the growing import demand through establishing local production capacities or sourcing agreements with regional manufacturers.
Market Drivers
Power Sector Reforms: Ongoing reforms focus on rehabilitating the power transmission infrastructure, improving governance, and enabling greater private sector participation. This is boosting investments towards grid modernization and capacity expansion projects, fueling electrical steel demand.
Government Initiatives: Large-scale rural electrification programs and 'Build, Build, Build' infrastructure agenda are driving investments in new transmission lines, distribution grids and substations. This is increasing the demand for electrical steel from the construction sector.
Market Restraints
Import Dependence: Domestic availability remains limited due to absence of integrated steel production in the country. Philippines meets over 80% of its electrical steel requirements through imports, making it vulnerable to supply disruptions and price volatility in the international markets.
Environmental Regulations: Electrical steel manufacturing requires significant energy and water resources. Stringent emission norms and increasing cost of compliance can negatively impact production costs for both international and domestic players operating in the Philippines.
Segment Analysis
The Philippines electrical steel market is dominated by grain-oriented electrical steel segment. Grain-oriented electrical steel offers benefits such as low core loss at higher frequencies which makes it suitable for use in transformers. It has found widespread adoption in distribution and power transformers across construction, utilities and manufacturing industries. Additionally, the growing home appliance industry has also augmented demand for grain-oriented electrical steel due to properties like high permeability that help design smaller and energy efficient appliances.
Global Analysis
The Asia Pacific region currently represents the largest as well as the fastest growing regional market for Philippines electrical steel. Factors driving growth in the region include rapid industrialization, increasing investments in power generation and transmission infrastructure, and growing electronics manufacturing industry. China, Japan and South Korea are prominent electrical steel producers and any developments in these countries positively influence the overall Asia Pacific market. Furthermore, rising focus on upgrading the electric grid and expanding power networks across Southeast Asian countries including Philippines, Indonesia and Vietnam is anticipated to boost regional demand for electrical steel over the forecast period.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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What Are The Key Data Covered In This Philippines Electrical Steel Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the Philippines Electrical Steel's growth between 2024 and 2031.
:- Accurate calculation of the size of the Philippines Electrical Steel and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- Philippines Electrical Steel Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market's competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of Philippines Electrical Steel vendors
FAQ’s
Q.1 What are the main factors influencing the Philippines Electrical Steel?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top Philippines Electrical Steel companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the Philippines Electrical Steel’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
