Electrical Steel Market Size, Share, Growth, and Industry Analysis, By Type (Oriented Electrical Steels, Non-oriented Electrical Steels), By Application (Household, Industrial, Automotive), Regional Insights and Forecast to 2035

Electrical Steel Market Overview

The global Electrical Steel Market size estimated at USD 15060.17 million in 2026 and is projected to reach USD 37762.85 million by 2035, growing at a CAGR of 10.75% from 2026 to 2035.

The Electrical Steel Market Market is a critical segment of the global steel industry, supplying specialized magnetic steel grades used in transformers, motors, generators, inductors, and energy infrastructure. Electrical steel accounts for nearly 12% of total specialty steel consumption worldwide. More than 38 million metric tons of electrical steel were consumed globally in 2024, with transformer-grade materials representing 44% of total demand. Non-oriented electrical steel contributed approximately 63% of overall volume consumption, while oriented electrical steel represented 37%. More than 72% of utility transformers manufactured globally contain grain-oriented electrical steel. Increasing electrification projects, renewable energy installations exceeding 510 GW annually, and electric vehicle production exceeding 17 million units continue supporting electrical steel market expansion.

The United States remains a significant consumer of electrical steel, supported by grid modernization and electric vehicle manufacturing. The U.S. power grid includes more than 80 million transformers requiring electrical steel components. Domestic electric vehicle production surpassed 1.3 million units in 2024, increasing demand for non-oriented electrical steel. Transformer installations across utility networks exceeded 900,000 units annually. More than 68% of transmission infrastructure projects launched after 2023 involve upgraded transformer systems using advanced electrical steel grades. Industrial motor shipments exceeded 25 million units annually, while renewable energy projects added over 48 GW of capacity, creating substantial demand for high-efficiency electrical steel materials across the country.

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Key Findings

• Key Market Driver: More than 74% of electrical steel demand growth is linked to power transmission expansion, while 61% is associated with electric vehicle motor production and 58% with renewable energy infrastructure deployment.
• Major Market Restraint: Approximately 42% of manufacturers report raw material volatility as a major concern, while 37% cite energy-intensive processing and 33% indicate supply-chain disruptions affecting production efficiency.
• Emerging Trends: High-efficiency grades account for 46% of new product introductions, laser-scribed materials represent 29% adoption growth, and low-core-loss products contribute to 41% of advanced steel developments.
• Regional Leadership: Asia-Pacific controls approximately 63% of global consumption, Europe accounts for 18%, North America represents 13%, and Middle East & Africa contribute 6% of total demand.
• Competitive Landscape: The top five manufacturers collectively hold 54% market participation, while integrated steel producers contribute 71% of global production capacity and specialty producers account for 29%.
• Market Segmentation: Non-oriented electrical steel contributes 63% of demand, oriented electrical steel accounts for 37%, automotive applications represent 34%, industrial uses hold 38%, and household applications contribute 28%.
• Recent Development: More than 52% of new capacity announcements target EV applications, 48% focus on transformer-grade products, and 35% involve advanced low-loss electrical steel technologies.

Electrical Steel Market Latest Trends

The Electrical Steel Market is experiencing significant transformation due to electrification and energy-efficiency requirements. High-grade non-oriented electrical steel has become increasingly important, with over 17 million electric vehicles produced globally during 2024. Electric traction motors typically contain between 35 kg and 75 kg of electrical steel, increasing material demand across automotive supply chains. Transformer modernization remains another major trend. More than 72% of newly commissioned utility transformers incorporate advanced grain-oriented electrical steel grades with lower core losses. Transformer efficiency improvements of 8% have been achieved through laser-domain refinement technologies. Utility investments in transmission infrastructure have increased demand for electrical steel laminations exceeding 0.23 mm precision standards.

Manufacturers are expanding production capacities to address supply shortages. More than 6 million metric tons of new electrical steel capacity has been announced globally since 2023. Asia-Pacific accounts for nearly 69% of these additions. Premium low-loss grades now represent 31% of total electrical steel production compared with 24% five years earlier. Sustainability initiatives are also influencing market development. Steel producers report reductions of 18% in process emissions through advanced annealing technologies. Recycled content in electrical steel production has exceeded 26% globally, while energy-efficient manufacturing systems have improved plant productivity by 14%.

Electrical Steel Market Dynamics

DRIVER

" Rising demand for electrification and energy-efficient power infrastructure."

Global electricity consumption exceeded 30,000 TWh in 2024, supporting extensive investments in transformers and electrical equipment. More than 510 GW of renewable energy capacity additions require substantial quantities of grain-oriented electrical steel. Electric vehicle production surpassed 17 million units globally, creating significant demand for non-oriented electrical steel used in traction motors. Industrial motor installations exceeded 320 million units annually, with high-efficiency motors requiring premium-grade electrical steel. Grid modernization projects across more than 80 countries are increasing transformer replacement activities. Utilities report efficiency improvements of up to 10% when using advanced electrical steel grades, making these materials essential for future power infrastructure development.

RESTRAINT

"Volatility in raw material availability and manufacturing complexity."

Electrical steel production requires highly specialized processing involving cold rolling, annealing, coating, and magnetic optimization. Silicon content in electrical steel frequently reaches 3.2%, creating production challenges and increasing manufacturing complexity. More than 42% of manufacturers identify raw material supply volatility as a significant limitation. Production scrap rates can exceed 8% during advanced processing operations. Energy consumption during annealing remains substantially higher than conventional steel production. Import dependency for specialized grades exceeds 35% in several regions, exposing manufacturers to supply disruptions. These factors contribute to longer production cycles and capacity constraints throughout the electrical steel market.

OPPORTUNITY

" Expansion of electric vehicle and renewable energy sectors."

The electric vehicle sector presents substantial opportunities for electrical steel suppliers. Each EV motor utilizes specialized non-oriented electrical steel laminations designed to reduce energy losses. Global EV penetration exceeded 20% of new vehicle sales in 2024. Wind turbine installations surpassed 120 GW annually, requiring generators with advanced electrical steel components. Offshore wind projects increasingly utilize high-performance magnetic materials capable of improving efficiency by 7%. Solar energy integration into national grids requires transformer expansion, creating demand for grain-oriented electrical steel. More than 140 countries have announced electrification targets supporting long-term demand growth across transportation and energy sectors.

CHALLENGE

" Maintaining supply-demand balance for premium-grade electrical steel."

Premium electrical steel grades require highly specialized production facilities and extensive technical expertise. Demand for high-efficiency grades increased by 28% between 2023 and 2025, while production capacity expanded at a slower pace. Manufacturing tolerances below 0.23 mm create operational challenges and increase production costs. More than 47% of transformer manufacturers report procurement delays for advanced grain-oriented steel products. Technical barriers associated with magnetic permeability optimization and coating performance add complexity to manufacturing operations. Balancing quality standards, capacity utilization, and growing demand remains a significant challenge for producers worldwide.

Electrical Steel Market Segmentation 

The Electrical Steel Market is segmented by type into oriented electrical steels and non-oriented electrical steels. Non-oriented electrical steels account for approximately 63% of global consumption due to extensive use in motors, generators, and electric vehicles. Oriented electrical steels contribute 37% and remain critical for transformer applications. By application, industrial usage holds 38% market share because of widespread motor installations. Automotive applications account for 34%, driven by electric vehicle manufacturing growth. Household applications contribute 28%, supported by appliances such as refrigerators, washing machines, and air conditioners. These segments collectively define global electrical steel consumption patterns.

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By Type

Oriented Electrical Steels: Oriented electrical steels account for approximately 37% of the Electrical Steel Market Market. These materials are specifically designed for transformer cores and power transmission equipment. More than 72% of utility transformers worldwide utilize grain-oriented electrical steel due to superior magnetic permeability. Core losses can be reduced by up to 30% compared with conventional steel products. Thickness specifications commonly reach 0.23 mm, supporting high-efficiency transformer operations. Demand is strongly linked to grid modernization projects, with over 900,000 transformer installations occurring annually in major economies. The segment remains essential for renewable energy integration and transmission infrastructure expansion.

Non-oriented Electrical Steels: Non-oriented electrical steels represent approximately 63% of total market demand. These materials are extensively used in motors, generators, compressors, and electric vehicles. More than 320 million industrial motors produced annually contain non-oriented electrical steel laminations. Electric vehicles require between 35 kg and 75 kg of these materials per motor system. Magnetic isotropy improves motor performance and energy efficiency. Advanced non-oriented grades achieve lower core losses and improved power density. Automotive applications contribute nearly 34% of segment demand, while industrial machinery represents more than 40%, making this the dominant product category in the market.

By Application

Household: Household applications account for approximately 28% of the Electrical Steel Market demand. Electrical steel is used in refrigerators, washing machines, air conditioners, vacuum cleaners, and kitchen appliances. Global appliance production exceeded 950 million units annually, creating steady demand for motor-grade electrical steel. High-efficiency household appliances reduce electricity consumption by approximately 15%, increasing the adoption of premium-grade electrical steel materials. Asia-Pacific dominates household appliance manufacturing, contributing more than 60% of global production volume.

Industrial: Industrial applications hold approximately 38% market share, making this the largest application segment. More than 320 million industrial motors are installed annually worldwide. Electrical steel is utilized in generators, pumps, compressors, conveyors, and manufacturing equipment. High-efficiency industrial motors reduce power losses by 8%, encouraging adoption of advanced electrical steel grades. Industrial electrification initiatives across manufacturing facilities continue driving demand. Heavy industries, including mining and chemical processing, remain key consumers of electrical steel products.

Automotive: Automotive applications represent approximately 34% of total market demand. Global electric vehicle production surpassed 17 million units in 2024, significantly increasing electrical steel consumption. EV traction motors contain specialized non-oriented electrical steel laminations that improve efficiency and torque performance. Hybrid vehicles also require advanced motor-grade electrical steel. More than 20% of global new vehicle sales now involve electrified powertrains. Automotive manufacturers increasingly specify low-loss electrical steel grades to maximize battery range and vehicle performance.

Electrical Steel Market Market Regional Outlook

Regional demand patterns are influenced by industrialization, electrification, renewable energy deployment, and automotive manufacturing. Asia-Pacific leads with approximately 63% market share. Europe contributes 18%, North America accounts for 13%, and Middle East & Africa represent 6%. Regional investments in transformers, motors, electric vehicles, and power grids continue driving electrical steel consumption worldwide.

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North America

North America accounts for approximately 13% of the Electrical Steel Market. The region benefits from grid modernization programs, electric vehicle manufacturing growth, and industrial automation investments. The United States represents nearly 79% of regional demand. More than 80 million transformers operate across U.S. transmission and distribution networks. Renewable energy installations exceeded 48 GW annually, increasing transformer requirements. Electric vehicle production surpassed 1.3 million units in 2024, stimulating demand for motor-grade electrical steel. Industrial motor installations remain substantial, with annual shipments exceeding 25 million units. High-efficiency motor regulations support adoption of advanced electrical steel grades. Utility companies continue replacing aging infrastructure, with transformer replacement rates increasing by 12% since 2023. Manufacturing investments in specialty steel production are also improving regional supply capabilities. Canada and Mexico contribute additional demand through automotive manufacturing and renewable energy projects. These factors support steady electrical steel consumption throughout North America.

Europe

Europe accounts for approximately 18% of global electrical steel consumption. Germany, France, Italy, and Spain are key regional markets. More than 290 GW of wind power capacity is installed across Europe, requiring generators and transformers utilizing electrical steel. Electric vehicle registrations exceeded 3 million units annually, strengthening demand for non-oriented electrical steel products. Transformer modernization remains a major focus throughout the region. More than 60% of utility infrastructure projects involve energy-efficiency upgrades. Industrial motor efficiency regulations have accelerated the adoption of premium-grade electrical steel. Europe also maintains strong production capabilities, with several leading manufacturers supplying advanced grain-oriented products. Sustainability targets encourage investment in low-loss transformer technologies. Regional demand for electrical steel continues to increase through renewable energy integration, electrified transportation, and industrial modernization initiatives.

Asia-Pacific

Asia-Pacific dominates the Electrical Steel Market with approximately 63% market share. China, Japan, South Korea, and India represent major consumption centers. China alone accounts for more than 50% of regional electrical steel demand. Renewable energy additions exceeded 350 GW annually across the region, supporting transformer and generator manufacturing growth. Electric vehicle production surpassed 11 million units annually within Asia-Pacific. Appliance manufacturing exceeds 600 million units annually, creating substantial demand for motor-grade electrical steel. Industrialization continues to expand power generation and distribution infrastructure. Transformer installations remain among the highest globally, supporting grain-oriented electrical steel consumption. Regional steel producers have announced more than 6 million metric tons of new electrical steel capacity since 2023. Asia-Pacific remains the primary manufacturing and consumption hub for electrical steel products worldwide.

Middle East & Africa

Middle East & Africa account for approximately 6% of global demand. Grid expansion projects across Gulf countries and Africa continue driving electrical steel consumption. Electricity access initiatives support transformer deployment throughout developing economies. More than 35 GW of renewable energy projects are under development across the region. Industrial diversification strategies in Saudi Arabia and the United Arab Emirates are increasing demand for motors and generators. South Africa remains a major industrial consumer within the African market. Utility infrastructure investments support transformer installations and modernization projects. Electrification rates continue improving across several African nations, increasing demand for electrical equipment containing electrical steel. The region offers long-term growth potential due to ongoing infrastructure development and rising electricity consumption.

List of Top Electrical Steel Market Companies

• China Baowu Steel Group
• Shougang Group
• Ansteel Group
• Nippon Steel Corporation
• POSCO
• JFE Steel
• OJSC Novolipetsk Steel
• ArcelorMittal
• Thyssenkrupp AG
• Stalprodukt S.A.
• Cogent (Tata Steel)
• AK Steel Corporation
• Allegheny Technologies Incorporated
• Aperam South America
• Unilam Pressings
• TPS

List of Top 2 Companies Market Share

China Baowu Steel Group – approximately 16% global market share.

Nippon Steel Corporation – approximately 11% global market share.

Investment Analysis and Opportunities

Investment activity in the Electrical Steel Market remains concentrated in capacity expansion, advanced processing technologies, and electric vehicle supply chains. Since 2023, announced electrical steel projects have exceeded 6 million metric tons of additional annual production capacity. More than 52% of investments target non-oriented electrical steel for EV applications. Transformer-grade electrical steel projects account for 48% of new investments.

Asia-Pacific attracts approximately 69% of global capacity expansion initiatives. Multiple producers are investing in laser-domain refinement technologies capable of reducing transformer core losses by 10%. Electric vehicle motor demand continues encouraging investment in thinner electrical steel grades below 0.25 mm thickness. Opportunities also exist in renewable energy infrastructure. Wind turbine installations exceeding 120 GW annually require specialized electrical steel generators. Grid modernization programs across more than 80 countries create sustained demand for transformer materials. High-efficiency industrial motor regulations further support market opportunities. Manufacturers focusing on premium low-loss grades are expected to benefit from growing demand for energy-efficient electrical systems.

New Product Development

Innovation within the Electrical Steel Market is focused on reducing magnetic losses and improving efficiency. Manufacturers have introduced advanced grain-oriented electrical steels with core-loss reductions reaching 10% compared with previous generations. Laser-scribed products now represent approximately 29% of newly introduced transformer-grade materials.

Non-oriented electrical steel development is accelerating due to electric vehicle requirements. New grades provide enhanced magnetic flux density and improved mechanical strength. Thickness levels of 0.20 mm are increasingly available for high-speed motors. These products improve motor efficiency by approximately 5%. Coating technologies have also advanced. Insulation coatings now provide improved thermal resistance and enhanced durability during motor operation. More than 46% of recent product launches focus on high-efficiency applications. Manufacturers are additionally incorporating recycled materials into production processes, with recycled content levels exceeding 26% in some new products. Innovation remains centered on efficiency, sustainability, and performance optimization.

Five Recent Developments (2023-2025)

• China Baowu Steel Group announced additional electrical steel production capacity exceeding 1 million metric tons annually in 2024.
• Nippon Steel expanded high-grade non-oriented electrical steel output by approximately 40% to support electric vehicle motor demand in 2024.
• POSCO introduced advanced EV motor electrical steel grades achieving approximately 5% higher efficiency performance in 2023.
• JFE Steel launched ultra-thin electrical steel products with thickness specifications reaching 0.20 mm during 2024.
• ArcelorMittal expanded transformer-grade electrical steel manufacturing capabilities in Europe during 2025, supporting rising utility infrastructure demand.

Report Coverage of Electrical Steel Market Market

The report provides detailed coverage of the Electrical Steel Market Market across product types, applications, manufacturing technologies, regional performance, and competitive developments. The study evaluates more than 16 major manufacturers operating across key regions. Market analysis includes oriented electrical steels and non-oriented electrical steels, which collectively account for 100% of market consumption.

Application assessment covers household appliances, industrial machinery, automotive systems, transformers, generators, and renewable energy equipment. The report examines consumption trends across more than 80 countries and evaluates infrastructure projects involving electrical steel deployment. Regional analysis quantifies market shares across North America, Europe, Asia-Pacific, and Middle East & Africa. The study also reviews production capacities exceeding 38 million metric tons globally, along with technology developments including laser-domain refinement, thin-gauge steel manufacturing, and advanced insulation coatings. Competitive analysis evaluates market participation, production footprints, strategic investments, and product innovation activities. Additionally, the report assesses demand drivers related to electric vehicles, renewable energy installations exceeding 510 GW annually, transformer modernization, industrial motor deployment exceeding 320 million units annually, and electrification initiatives supporting long-term electrical steel demand.