Philippines Electrical Steel Market Is Driven By Increasing Demand From Automotive Industry

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The Philippines electrical steel market offers a variety of products such as grain-oriented electrical steel and non-grain oriented electrical steel used in transformers, generators, motors and other equipment. Grain-oriented electrical steel offers higher efficiency and is widely used in transformers due to low core loss properties. Non-grain oriented steel is commonly used in electric motors and generators owing to affordable price and better machinability. Growing automotive production in the country is a key factor boosting the demand for electrical steel from motor applications. 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: 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. Thyssenkrupp and Posco International are among the top suppliers of grain-oriented electrical steel ...
... in the country.

Growing Demand: Rising investments in transmission and distribution networks along with increasing power demand from industrial and commercial sectors are fueling the consumption of electrical steel. Additionally, growth in the construction industry is augmenting the demand for electric motors, thereby complementing market growth.

Global Expansion: Leading manufacturers are focusing on strategic collaborations with local players to strengthen their presence and market share in the Philippines. The growing infrastructure development projects are also attracting global vendors to target lucrative opportunities in the Philippines electrical steel market.

Market Drivers: Surging automotive production driven by cheap labor and availability of raw materials is a major factor boosting the demand for electrical steel, especially non-grain oriented type from motor applications. Expanding manufacturing activities and rapid industrialization are also contributing significantly to the growth of the Philippines electrical steel market.

Impact Of Geopolitical Situation On The Philippines Electrical Steel Market Growth

The Philippines Electrical Steel market is experiencing volatile growth due to the changing geopolitical environment globally. The Russia-Ukraine conflict has severely disrupted the global supply chains and increased raw material costs. Electrical steel is a crucial component in manufacturing transformers, motors, and electromagnetic applications. Any shortage can hamper production across key industries like power, construction and automobiles. This war has made European and American markets dependent on alternative suppliers from Asia Pacific. However, the Philippines faces disruptions in its imports from China and South Korea due to ongoing maritime disputes in South China Sea region. The tensions between Philippines and China over territory claims have worsened lately. This import reliance and geopolitical uncertainties add risks to Philippines Electrical Steel production. Moreover, inflationary pressures and interest rate hikes also pose challenges. To regain stability, Philippines needs to pursue new trade agreements, diversify supplies through ASEAN alliance and invest in indigenous Electrical Steel production capacities. This can help reduce import dependence and offer secured growth opportunities going forward.

Geographical Regions With Highest Philippines Electrical Steel Market Share

The Philippines Electrical Steel market is concentrated highly in central Luzon and southern Tagalog regions of the country. These areas together account for over 60% of the total market value due to higher concentration of electronics, automobile and power industries there. Central Luzon hosts industrial hubs like Polanco, Cabanatuan and Angeles which are leading production bases for appliances, machinery and electrical equipment. The region benefits from strategic proximity to Metro Manila and availability of skilled workforce. Similarly, southern Tagalog region with its industrial towns of Batangas, Cavite and Laguna has emerged as a major manufacturing destination, driven by special economic zones and export processing zones. These two regions will continue dominating Philippines Electrical Steel demand on account of strong industrial ecosystem and planned capacity additions across end-use sectors.

Fastest Growing Region For Philippines Electrical Steel Market

The Visayas region consisting of islands like Negros, Cebu and Panay in central Philippines is poised to be the fastest expanding market for Electrical Steel. This is because the government has designated Visayas as its new industrial backbone to drive balanced regional development. Special economic zones are being set up in key cities like Bacolod, Iloilo and Cebu which are attracting major investments from electronics, automotive ancillary and engineering sectors. To meet this upcoming manufacturing capacity, investments are also flowing into Electrical Steel production units. Additionally, infrastructure projects worth billions of dollars are modernizing transportation and energy networks across Visayas. This will substantially boost Electrical Steel needs for transformers, switchgears, generators and transmission lines. With pro-industry policies and initiatives, Visayas region is expected to see over 10% annual growth in Electrical Steel consumption 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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About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)

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?