The Electrical Steel Market In Philippines Is Poised To Grow By 5.5% Driven By Increased Demand For Energy-Efficient Motors

The electrical steel market in Philippines plays a crucial role in the economy as it caters to the demand for products used in motors, generators, transformers and other essential power equipment. Electrical steel offers higher magnetic permeability which helps optimize energy generation and distribution systems. The key types of electrical steel available in the market include grain-oriented electrical steel and non-grain oriented electrical steel. Grain oriented electrical steel is preferred for transformers due to its low core loss properties whereas non-grain oriented steel finds applications in motors and generators. 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 2024-2031.

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. With the growing demand for energy-efficient appliances and electric vehicles, the demand for electrical steel is projected to increase significantly in the Philippines. Major global players are expanding their production capacities and distribution networks in the Philippines to capitalize on the growing demand for electrical steel in the country.

The increasing demand for electric motors from various industries such as appliances, automotive, HVAC, machinery equipment etc. is driving the growth of the electrical steel market in Philippines. Stringent regulations regarding energy efficiency are also propelling OEMs to adopt high-quality electrical steel to manufacture motors with lower losses. Moreover, investments in transmission and distribution infrastructure along with renewable energy integration are augmenting the need for transformers, thereby fueling market growth.

Led by the government’s efforts to reduce dependence on fossil fuels and electrification goals, the penetration of renewables and adoption of EVs is increasing rapidly in Philippines. This is expected to create substantial opportunities for electrical steel manufacturers in the country. Key global players are focusing on Philippines to leverage its strategic location and strengthen their presence in Southeast Asian markets.

Market Key Trends

One of the key trends gaining traction in the Philippines electrical steel market is the rising penetration of non-oriented electrical steel grades. While grain-oriented steel remains the primary choice for transformer cores, non-oriented grades are witnessing increased adoption in rotor and stator applications. The improved magnetic properties and toughness of advanced non-grain oriented electrical steel varieties are boosting their popularity compared to conventional grades. This is expected to positively impact the sales volumes during the forecast period.

Porter’s Analysis

Threat of new entrants: Low as the market requires huge capital investments and technology.

Bargaining power of buyers: Medium as there are few global players dominating the market.

Bargaining power of suppliers: High as there are limited steel mills that can produce electrical steel globally.

Threat of new substitutes: Low as there are limited alternatives for electrical steel in transformer and motor cores.

Competitive rivalry: Intense as the key players compete on pricing and product quality to gain market share.

The Philippines electrical steel market is currently concentrated in Luzon region, accounting for over 55% of the total market value. Being the most industrialized and populated region of the country, Luzon has higher demand for electrical steel from transformers, motors and other equipments manufacturers based here. The Visayas region is the second largest geographical market, holding around 30% share while Mindanao region makes up the remaining 15% share.

The fastest growing region for Philippines electrical steel market is projected to be Mindanao over the forecast period. With the ongoing infrastructure development projects in regions like Davao and Cagayan de Oro, investments are rising in power grid upgrades, industrial parks and transportation sector. This is expected to drive strong demand growth for electrical steel in transformers and motors from utilities as well as manufacturing facilities coming up in Mindanao.

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?