Electrical Steel Market
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Market Snapshot
2025 Market Size
US$ 24.3 billion
Estimated Base Value
2035 Forecast
US$ 45.6 billion
Projected Market Value
CAGR 2026–2035
6.5%
Compound Annual Growth
Largest Segment
Grain-Oriented Electrical Steel
Fastest Growing Segment
Non-Grain-Oriented Electrical Steel - Semi-Processed
Leading Region
Asia Pacific
Fastest Growing Region
Emerging Areas
Top Country
China
By Market Share
22.1% market share
Key Players
China Steel Corporation
Emerging Players
ArcelorMittal, Tata Steel
Market Definition & Overview
The Electrical Steel Market encompasses the global production, distribution, and consumption of specialized iron alloys engineered with specific magnetic properties to minimize energy loss in electrical equipment. This market primarily deals with silicon steel, which is crucial for manufacturing cores in transformers, motors, generators, and other electromagnetic devices. It is segmented into Grain-Oriented Electrical Steel (GOES), vital for high-efficiency transformers, and Non-Grain-Oriented Electrical Steel (NGOES), used in rotating machinery like motors. The market's dynamics are driven by global industrialization, power infrastructure development, the growth of renewable energy, and the expanding electric vehicle sector, focusing on material innovation for improved energy efficiency.
Scope
- Global market coverage across all major continents and countries
- Analysis by product type (GOES, NGOES), application, and end-use industry
- Historical data from 2018-2022 and forecast period from 2023-2030
Inclusions
- Grain-oriented electrical steel (GOES) sheets and coils
- Non-grain-oriented electrical steel (NGOES) sheets and coils
- Electrical steel specifically for transformer cores
- Electrical steel for motor and generator laminations
- High-permeability and conventional grades of electrical steel
- Sales, production volumes, and pricing trends for electrical steel
Exclusions
- Standard carbon steel or stainless steel products
- Finished electrical components like complete motors or transformers
- Raw iron ore or silicon mining activities
- Magnetic materials used outside of electrical energy conversion
- Soft magnetic composites or powder metallurgy products
Market Size Forecast
Executive Summary
• The Electrical Steel market is valued at $24.3 Bn in 2025 and is forecast to reach $45.6 Bn by 2035, reflecting a robust CAGR of 6.5% as demand accelerates across every major segment and region over the ten-year outlook.
• Grain-Oriented Electrical Steel leads the segment breakdown by current market share, underscoring where the bulk of near-term revenue and competitive activity within this market is concentrated today.
• Asia Pacific commands the largest regional share at 48.0%, while Emerging Areas is expanding the fastest at a 9.0% CAGR, signalling where future growth is shifting.
• China remains the single largest country-level market at 22.1% of global share, anchoring overall demand within its home region throughout the forecast period.
• Accelerating EV adoption and robust grid modernization initiatives globally are driving a significant demand surge for high-efficiency electrical steel grades, particularly in Asia and Europe, necessitating advanced material innovation.
• Intense competitive pressures, coupled with geopolitical supply chain re-alignment, are compelling major producers to strategically invest in capacity expansion and integrated upstream capabilities to secure critical raw materials.
• Stringent global energy efficiency regulations are fundamentally reshaping product portfolios, with a distinct shift towards premium, grain-oriented electrical steels, impacting market segmentation across developed economies.
• The long-term market outlook is defined by relentless innovation in non-grain-oriented steel for high-frequency applications and sustainable production methods, positioning specialized players for significant competitive advantage.
• Strategic partnerships and selective M&A activities are intensifying within the value chain, as companies seek to consolidate market share and leverage technological synergies for next-generation electrical infrastructure demands.
• Divergent regional growth trajectories highlight Asia's role as the primary production hub, while North America and Europe prioritize specialized, high-performance steels essential for advanced industrial and energy applications.
Key Market Takeaways
Critical findings and data points from this market research study.
Current Market Valuation
The Electrical Steel Market is currently valued at $24.3 billion in the base year.
Projected Future Value
The market is projected to reach a significant $45.6 billion by the forecast year.
Consistent Growth Rate
This growth trajectory represents a robust Compound Annual Growth Rate (CAGR) of 6.5% over the forecast period.
Overall Market Growth
Starting from $24.3 billion in the base year, the Electrical Steel Market demonstrates strong momentum, poised to nearly double to $45.6 billion at a 6.5% CAGR.
Regional Leadership
Asia-Pacific is anticipated to remain a leading region, driven by its expanding manufacturing bases and increasing infrastructure development.
Electrification Trend
The accelerating adoption of electric vehicles (EVs) and the growing renewable energy sector are key trends fueling the demand for electrical steel.
Market Dynamics
Market Trends
- Shift towards high-efficiency grain-oriented electrical steel (GOES).
- Growing demand for energy-efficient transformers.
- Increasing adoption of non-grain-oriented (NGOES) for motors.
- Volatile raw material prices impact market stability.
Growth Drivers
- Global expansion of renewable energy projects.
- Rapid industrialization and urbanization drive power demand.
- Government regulations promote energy efficiency standards.
- Surging electric vehicle production fuels demand for NGOES.
Restraints
- Volatility in raw material prices poses a significant challenge for manufacturers.
- High energy consumption during production increases operational costs for steelmakers.
- Stringent environmental regulations add compliance burdens and necessitate investment.
- Intense competition from global players pressures pricing and profit margins.
Opportunities
- Develop advanced electrical steel for high-frequency applications.
- Expand into emerging markets with growing infrastructure needs.
- Innovate manufacturing processes to enhance cost-effectiveness.
- Collaborate with EV and power sectors for tailored products.
Market Dynamics Framework · 2026–2035
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Market Segmentation
| Segment | Sub-segments |
|---|---|
| By Type | Grain-Oriented Electrical SteelNon-Grain-Oriented Electrical Steel - Fully ProcessedNon-Grain-Oriented Electrical Steel - Semi-Processed |
| By Application | TransformersElectric MotorsGeneratorsInductors & ChokesElectric VehiclesRenewable Energy SystemsHome Appliances |
| By End-User | Energy & Power GenerationAutomotive & TransportationIndustrial ManufacturingConsumer ElectronicsConstruction & InfrastructureAerospace & Defense |
| By Form | CoilsSheetsStripsLaminationsPunched BlanksRings |
| By Grade & Material Properties | Conventional GradesHigh Permeability GradesLow Core Loss GradesLaser-Scribed GradesHigh Strength Grades |
| By Coating Type | C2 CoatingsC3 CoatingsC4 CoatingsC5 CoatingsC6 Coatings |
Regional Analysis
- Asia-Pacific leads the electrical steel market, primarily driven by China and India. Extensive industrialization, massive investments in power infrastructure development, and a booming automotive manufacturing sector, including electric vehicles, fuel this dominance.
- The Asia-Pacific region is also the fastest-growing market for electrical steel. Rapid urbanization, significant infrastructure projects, and increasing demand for energy-efficient transformers and motors, supported by government initiatives for renewable energy, propel this growth.
- A noteworthy trend is the surging demand for high-grade Non-Grain-Oriented (NGO) electrical steel in North America and Europe. This is significantly driven by the booming electric vehicle (EV) market and increasingly stringent energy efficiency regulations for electric motors.
| Asia Pacific48.0% | Europe21.0% | North America16.0% | Latin America7.0% | Middle East & Africa5.0% | Emerging Areas3.0% |
North America
5.2% CAGR
$3.9 Bn
16% share
- Characterized by significant investments in grid modernization, renewable energy projects, and a steady increase in electric vehicle production, contributing to consistent demand for electrical steel.
Latin America
6.5% CAGR
$1.7 Bn
7% share
- Experiences growth from infrastructure development, expanding industrial sectors, and increasing electrification projects across key economies like Brazil and Mexico.
Europe
5.5% CAGR
$5.1 Bn
21% share
- A mature market driven by demand for energy-efficient transformers, renewable energy installations, and the growing electric vehicle industry, with a strong focus on quality and innovation.
Asia Pacific
7.8% CAGR
$11.7 Bn
48% share
- Dominates the market due to robust industrialization, massive infrastructure projects, and a booming electric vehicle manufacturing sector across countries like China, India, and Japan.
Middle East & Africa
8.5% CAGR
$1.2 Bn
5% share
- Shows strong growth potential driven by ambitious national development visions, significant investments in power transmission infrastructure, and nascent industrialization efforts across the region.
Emerging Areas
9.0% CAGR
$729.0 Mn
3% share
- Represents smaller, nascent markets in regions such as Central Asia, the Caribbean, and parts of Sub-Saharan Africa, poised for rapid percentage growth as electrification and industrial bases develop from a low starting point.
Country Analysis
United States and Brazil represent the largest country-level markets, with growth across the remaining countries shaped by local regulatory, infrastructure, and demand-side factors specific to each geography.
| # | Country | Market Size | CAGR | Key Driver |
|---|---|---|---|---|
| 1 | United States | $923.4 Mn | 4.6% | The US market is driven by robust demand from the automotive industry (especially EVs), power transformers, and efficient industrial motors, supporting a diverse manufacturing base. |
| 2 | Brazil | $510.3 Mn | 4.9% | Brazil, with its large industrial base, significant automotive industry, and ongoing power infrastructure projects, represents the largest electrical steel market in South America. |
| 3 | Germany | $1.1 Bn | 3.8% | Germany is a critical market due to its leading automotive industry (especially EVs), advanced industrial machinery, and high demand for energy-efficient electrical components. |
| 4 | China | $5.4 Bn | 9.8% | As the world's largest producer and consumer, China's market is propelled by massive infrastructure development, rapid EV adoption, and dominant positions in electronics and renewable energy. |
| 5 | United Arab Emirates | $874.8 Mn | 6.5% | United Arab Emirates is a significant market within Middle East & Africa for this industry. |
Countries Covered (26)
United States, Mexico, Canada, Brazil, Argentina, Rest of Latin America, Germany, Spain, Russia, France, Italy, United Kingdom, Rest of Europe, China, Japan, India, South Korea, Malaysia, Australia, Taiwan, Indonesia, Rest of Asia Pacific, United Arab Emirates, Saudi Arabia, South Africa, Rest of Middle East & Africa
Competitive Landscape
| # | Company | Share | Key Strategy | Key Note | Key Developments | Key Products |
|---|---|---|---|---|---|---|
| 1 | China Steel Corporation | 5.7% | Focus on high-value-added products and technological innovation to maintain market leadership and sustainable growth. | It is Taiwan's largest integrated steel producer and a major global player in electrical steel. | Continuously invests in R&D for advanced electrical steel grades to meet evolving automotive and energy efficiency demands. | Electrical SteelHot Rolled SteelCold Rolled Steel+1 |
| 2 | Benxi Iron and Steel Group Co., Ltd. | 5.4% | Expand market share through diversified product offerings and strategic regional presence within China. | One of China's oldest and largest state-owned steel enterprises. | Engaged in ongoing modernization projects to upgrade production facilities and improve environmental performance. | Electrical SteelCold Rolled SteelHot Rolled Steel+1 |
| 3 | Usiminas | 5.1% | Optimize operational efficiency and product mix to capitalize on demand in the South American market, particularly for automotive and energy sectors. | A leading Brazilian steel company with a strong focus on high-quality flat steel products. | Focused on increasing production of high-value steel products, including electrical steel, to serve growing industrial demands. | Electrical SteelHot Rolled CoilsCold Rolled Coils+1 |
| 4 | MMK (Magnitogorsk Iron and Steel Works) | 4.9% | Enhance product quality and expand into new markets while maintaining cost leadership in its primary operations. | One of the world's largest steel producers and a leader in Russia's ferrous metallurgy industry. | Actively working to modernize production lines to improve efficiency and broaden its portfolio of high-value-added products. | Electrical SteelHot Rolled ProductsCold Rolled Products+1 |
| 5 | Severstal | 4.6% | Pursue technological leadership and operational excellence to deliver high-quality steel products to diverse industries globally. | Known for its integrated business model, high technological level, and strong focus on efficiency. | Investing in digital transformation and advanced manufacturing technologies to enhance competitiveness and sustainability. | Electrical SteelHot Rolled SteelCold Rolled Steel+1 |
Market Positioning Map
Market share vs. growth outlook — bubble size is market share, bubble color is relative profitability
Companies Profiled (20)
China Steel Corporation, Benxi Iron and Steel Group Co., Ltd., Usiminas, MMK (Magnitogorsk Iron and Steel Works), Severstal, Jindal Steel & Power (JSPL), Erdemir Group, BlueScope Steel Limited, Liberty Steel Group, Stelco Holdings Inc., Dongkuk Steel Group, Samhwa Steel Co. Ltd., KG Dongbu Steel, Anyang Iron & Steel Group Co., Ltd., Xinyu Iron and Steel Group Co., Ltd., Sichuan Changcheng Special Steel Group Co., Ltd., Fushun Special Steel Co., Ltd., Jianhu Longgang Electrical Steel Co., Ltd., PT Krakatau Steel (Persero) Tbk, Jiangsu Changjiang Industrial Group Co., Ltd.
The global Electrical Steel market features a competitive landscape led by China Steel Corporation, Benxi Iron and Steel Group Co., Ltd., Usiminas, MMK (Magnitogorsk Iron and Steel Works), Severstal, and Jindal Steel & Power (JSPL), among other established and emerging players. Market participants continue to compete on product innovation, pricing strategy, geographic expansion, and strategic partnerships to strengthen their position in this evolving market.
* Market share estimates based on revenue analysis, primary interviews, and secondary research.
Company Profiles
China Steel Corporation
Benxi Iron and Steel Group Co., Ltd.
Usiminas
MMK (Magnitogorsk Iron and Steel Works)
Severstal
Jindal Steel & Power (JSPL)
Erdemir Group
BlueScope Steel Limited
Liberty Steel Group
Stelco Holdings Inc.
Dongkuk Steel Group
Samhwa Steel Co. Ltd.
KG Dongbu Steel
Anyang Iron & Steel Group Co., Ltd.
Xinyu Iron and Steel Group Co., Ltd.
Sichuan Changcheng Special Steel Group Co., Ltd.
Fushun Special Steel Co., Ltd.
Jianhu Longgang Electrical Steel Co., Ltd.
PT Krakatau Steel (Persero) Tbk
Jiangsu Changjiang Industrial Group Co., Ltd.
* Classification reflects relative market share and maturity, derived from revenue analysis and public disclosures.
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Recent Market Developments
ArcelorMittal Commits €1.7 Billion to Spanish Electrical Steel Production
ArcelorMittal announced a major investment of €1.7 billion for the decarbonization of its Gijón plant in Spain, a significant portion of which is dedicated to establishing a new electrical steel facility. This expansion aims to boost high-grade electrical steel supply in Europe, catering to growing demand from the automotive and renewable energy sectors.
JSW Steel Plans Entry into Grain-Oriented Electrical Steel Market
Indian steel major JSW Steel revealed plans to establish a production facility for Grain-Oriented Electrical Steel (GOES) in India, addressing the country's reliance on imports for this critical material. This strategic move aims to enhance domestic manufacturing capabilities for high-efficiency transformers and power infrastructure.
POSCO Accelerates Supply of Advanced 'Hyper NO' Electrical Steel for EVs
POSCO, a leading global steel producer, announced increased focus and supply of its high-performance 'Hyper NO' (Non-Oriented Electrical Steel) grades, specifically engineered for electric vehicle motors. This move supports the rapid growth of the EV market by providing lighter, more efficient materials crucial for next-generation automotive powertrains.
ThyssenKrupp Secures Billions in Funding for Green Steel Transformation
ThyssenKrupp Steel secured substantial government funding, totaling billions of euros, to accelerate its transition to green steel production via hydrogen-based direct reduction technology. This significant investment will transform its Duisburg plant, impacting the entire product portfolio including electrical steel with more sustainable manufacturing processes.
Report Data Parameters
| Parameter | Value |
|---|---|
| Base Year | 2025 |
| Forecast Year | 2035 |
| Historical Period | 2019–2025 |
| Market Size (Base Year) | $24.3 Bn |
| Market Size (Forecast) | $45.6 Bn |
| CAGR | 6.5% |
| Forecast Period | 2026–2035 |
| Geography | Global |
| Countries Covered | 26 Countries |
| Segments Covered | 6 Segments, 32 Sub-segments |
| Companies Profiled | 20 Companies |
Report Value
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