The Philippines electrical steel market comprises electrical steels such as Oriented Electrical Steels (OES) and Non-Grain Oriented Electrical Steels (NGOES) that have properties suited for electrical applications. They are used to fabricate cores for electric motors and power generators as their high magnetic permeability which enhances the efficiency of the electrical equipment. The growing demand for energy-efficient appliances and increasing investments in infrastructure projects in the Philippines are driving the sales of electrical steels. The Global 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. These players are focusing on expanding their production capacities to cater to the rising demand.
The growing demand for energy-efficient electrical appliances like motors and generators is boosting the electrical steel market in Philippines. Electrical steel has high magnetic permeability which enhances the efficiency of appliances. Infrastructure development projects happening across Philippines is also augmenting the sales of electrical steel.
Technological advancements carried out by manufacturers have led to the development of new grades of electrical steel like non-oriented electrical steel (NOES) and grain-oriented electrical steel (GOES). These new grades demonstrate excellent magnetic properties at higher frequencies, thereby finding increasing usage in applications operating at alternated current.
Market Trends
High frequency induction motor technology - Motors operating at high frequencies require electrical steel that can perform efficiently at increased frequencies. This has prompted manufacturers to develop new grades of non-grain oriented electrical steel suited for high frequency applications.
Growing demand for energy-efficient appliances - Stringent regulations regarding energy efficiency are propelling manufacturers to use materials like advanced electrical steel that enhance motor efficiency. This is expected to drive the electrical steel market.
Market Opportunities
Infrastructure development projects - The Philippine government's 'Build, Build, Build' infrastructure program focuses on building roads, railways and energy projects. This offers opportunities for electrical steel consumption.
Rise in automobile production - Domestic automobile production is expanding in Philippines driven by growing demand. This will augment the use of electrical steel in automobile motors and charging converters.
Impact Of COVID-19 On Philippines Electrical Steel Market
The COVID-19 pandemic has negatively impacted the growth of the Philippines electrical steel market. During the peak of the pandemic in 2020-2021, the nationwide lockdowns imposed by the Philippine government led to the closure of manufacturing facilities. This caused disruptions across the entire supply chain and reduced demand from end-use industries like automotive, power, and electronics. However, post-lockdowns from mid-2021, the market has started recovering steadily as industrial activities regained momentum. But the growth is still below pre-pandemic levels due to workforce shortages, higher input costs, and global logistic issues. Going forward, volatility in raw material prices and China's zero-COVID policy will remain key challenges in the near future. The market is expected to reach pre-COVID sales figures by 2024 if pandemic related uncertainties are addressed comprehensively.
Geographical Concentration In Philippines Electrical Steel Market
In terms of value, Luzon Island dominates the Philippines electrical steel market accounting for over 60% share. This is due to the presence of large manufacturing hubs and consumer bases in the provinces of Metro Manila, Central Luzon, CALABARZON and Northern Mindanao. The thriving industrial sector and rising middle-class population in Luzon have been the key growth drivers. The Visayas region follows Luzon and contributes around 25% to the total market revenues led by economic centers in Cebu and Negros Occidental provinces. However, Mindanao is the fastest growing regional market projected to expand at a CAGR of over 7% during the forecast period driven by increasing investments in infrastructure and energy projects across the island.
Fastest Growing Region In Philippines Electrical Steel Market
The Davao region in Mindanao has emerged as the fastest growing regional market for electrical steel in the Philippines in recent years. Growth has accelerated at over 8% annually owing to large-scale developments underway across sectors like manufacturing, power generation, construction and telecommunications. Cement production facilities along with automotive component manufacturing plants established by Chinese and Japanese companies have augmented demand. Also, power transmission infra upgrades and new substation builds by the government are supporting market revenues. Sustainable economic development initiatives coupled with investor-friendly policies are likely to maintain Davao's strong momentum in the electrical steel industry over the next few years.
*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?
