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

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ELECTRICAL STEEL MARKET OVERVIEW

The global Electrical Steel Market size estimated at USD 15.06 billion in 2026 and is projected to reach USD 37.76 billion by 2035, growing at a CAGR of 10.75% from 2026 to 2035.

The Electrical Steel Market is witnessing strong industrial expansion due to rising transformer installations, electric vehicle production, and grid modernization projects across 48 major economies. Global electrical steel consumption exceeded 52 million tons in 2025, with grain-oriented electrical steel accounting for nearly 38% of transformer core demand. More than 71% of high-efficiency motors manufactured in 2025 incorporated non-oriented electrical steel laminations. Power transmission projects across Asia-Pacific added over 126,000 circuit kilometers during 2024, increasing demand for magnetic core materials. Manufacturing utilization rates in electrical steel processing facilities crossed 81% globally in 2025. High silicon-content electrical steel grades above 3.2% silicon represented nearly 44% of premium industrial motor applications worldwide.

The United States electrical steel market maintained strong growth momentum through domestic transformer manufacturing and electric mobility expansion. The U.S. produced more than 1.8 million metric tons of electrical steel during 2025, while imports accounted for nearly 29% of domestic consumption. More than 64% of utility transformer upgrades initiated across 32 states used grain-oriented electrical steel cores. Electric vehicle motor production in the U.S. exceeded 5.2 million units in 2025, increasing demand for non-oriented electrical steel sheets. Industrial motor replacement projects across manufacturing plants increased by 17%, while energy-efficient appliance production expanded by 13%. Data center infrastructure expansion also contributed to a 15% rise in high-grade electrical steel procurement across North America.

KEY FINDINGS OF ELECTRICAL STEEL MARKET

LATEST TRENDS

The Electrical Steel Market is experiencing rapid technological transformation driven by electrification and energy efficiency requirements. Ultra-thin electrical steel sheets below 0.2 mm thickness recorded a 21% increase in industrial adoption during 2025 due to higher efficiency requirements in electric motors and generators. More than 58% of newly commissioned EV motor plants integrated high-grade non-oriented electrical steel with magnetic permeability exceeding 1.75 tesla. Transformer modernization programs across 40 countries increased demand for grain-oriented electrical steel by 16% during 2024.

Hydrogen-based steelmaking technologies gained momentum, with 19% of new electrical steel projects integrating low-carbon production methods. Laser-scribed grain-oriented steel adoption expanded by 27% because of reduced core losses in high-voltage transformers. Manufacturers also increased investments in domain refinement technologies, improving transformer efficiency by nearly 11%. In Asia-Pacific, over 73% of EV traction motor manufacturers preferred premium-grade electrical steel with low eddy current losses.

MARKET DYNAMICS

Driver

Rising demand for electric vehicles and energy-efficient transformers.

The increasing electrification of transportation and modernization of power infrastructure are accelerating electrical steel consumption worldwide. Global electric vehicle production exceeded 21 million units during 2025, increasing non-oriented electrical steel demand by 24%. More than 67% of EV traction motors now utilize premium-grade electrical steel laminations with high magnetic flux density. Utility companies across 52 countries initiated transformer replacement projects to reduce transmission losses, creating strong demand for grain-oriented electrical steel.

Restraint

Volatility in raw material and energy costs.

Electrical steel manufacturing depends heavily on silicon, iron ore, and energy-intensive annealing operations, creating significant production cost pressure. Silicon price fluctuations exceeded 18% during 2024, affecting stable procurement for steel producers. More than 39% of manufacturers reported operational disruptions due to electricity cost increases in thermal processing units. Production of grain-oriented electrical steel requires complex cold rolling and decarburization processes, increasing operational expenditure by nearly 22% compared with standard carbon steel manufacturing.

Expansion of renewable energy and smart grid infrastructure

Opportunity

Renewable energy installations and smart grid expansion projects are creating strong long-term opportunities for electrical steel manufacturers. Wind turbine installations surpassed 130 GW globally during 2025, significantly increasing demand for high-performance generator laminations.

Solar power infrastructure upgrades also accelerated transformer deployment, with more than 8.4 million distribution transformers installed worldwide during 2024. Smart grid projects across Asia-Pacific and Europe increased high-efficiency transformer demand by 17%.

Complex manufacturing processes and limited production capacity

Challenge

Electrical steel manufacturing involves sophisticated processing technologies including cold rolling, annealing, insulation coating, and magnetic domain refinement. Only a limited number of global producers possess advanced facilities capable of manufacturing premium grain-oriented electrical steel.

Approximately 43% of global supply is concentrated within fewer than 12 large steelmakers, creating supply bottlenecks during periods of high demand. Production lead times for transformer-grade steel often exceed 5 months due to limited annealing capacity.

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ELECTRICAL STEEL MARKET SEGMENTATION

By Type

• Oriented Electrical Steels: Oriented electrical steels are primarily utilized in transformers, generators, and high-voltage transmission systems due to their superior magnetic alignment properties. This segment accounted for nearly 37% of global electrical steel consumption in 2025. More than 74% of power transformers installed in utility infrastructure projects utilized grain-oriented electrical steel cores. High-permeability grades reduced transformer core losses by approximately 12%, improving energy transmission efficiency.

• Non-oriented Electrical Steels: Non-oriented electrical steels dominated the market with approximately 63% share due to extensive usage in electric motors, generators, compressors, and EV traction systems. More than 69% of electric vehicle traction motors manufactured globally utilized non-oriented electrical steel laminations. Industrial automation growth increased high-speed motor production by 18% during 2025, supporting segment expansion. Thin-gauge non-oriented steel below 0.25 mm represented 38% of EV motor applications because of reduced eddy current losses.

By Application

• Household: Household applications represented approximately 27% of electrical steel demand, supported by increasing production of refrigerators, air conditioners, washing machines, and compressors. More than 1.6 billion household appliances manufactured globally during 2025 incorporated non-oriented electrical steel motor laminations. Energy efficiency standards across 34 countries increased demand for premium magnetic steel grades by 14%. Compressor motor efficiency improvements reached nearly 11% through advanced thin-gauge steel adoption.

• Industrial: Industrial applications accounted for nearly 42% of total electrical steel utilization due to widespread deployment of industrial motors, pumps, compressors, robotics, and generators. More than 44 million high-efficiency industrial motors were installed globally during 2024. Automation investments across manufacturing plants increased precision motor demand by 16%. Steel processing plants, mining operations, and oil refining facilities collectively consumed approximately 13 million tons of electrical steel during 2025.

• Automotive: Automotive applications held nearly 31% market share because of increasing electric vehicle production and hybrid drivetrain expansion. Global EV motor manufacturing surpassed 21 million units during 2025, significantly increasing demand for high-frequency non-oriented electrical steel. Thin electrical steel laminations below 0.2 mm improved motor efficiency by approximately 13% in high-performance EV systems. Asia-Pacific accounted for over 71% of automotive electrical steel consumption due to strong EV manufacturing activity in China, Japan, and South Korea.

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ELECTRICAL STEEL MARKET REGIONAL OUTLOOK

• North America

North America accounted for nearly 14% of global electrical steel consumption during 2025, supported by transformer replacement programs and industrial electrification projects. The United States represented approximately 82% of regional demand due to utility infrastructure modernization across 32 states.

More than 64% of high-voltage transformer upgrades implemented in North America utilized grain-oriented electrical steel with high magnetic permeability. Electric vehicle motor manufacturing expanded by 18% during 2025, increasing demand for premium non-oriented electrical steel laminations.

• Europe

Europe represented approximately 18% of global electrical steel demand because of aggressive energy efficiency targets and electrification initiatives. Germany, France, Italy, and the United Kingdom collectively contributed nearly 63% of regional consumption. More than 71% of transformer manufacturers in Europe adopted high-permeability grain-oriented electrical steel to comply with energy efficiency standards.

Electric vehicle production across Europe exceeded 5.8 million units during 2025, significantly increasing non-oriented electrical steel utilization. Industrial automation and robotics installations increased by 14% across European manufacturing sectors during 2024. Wind energy generation capacity surpassed 285 GW across the region, supporting strong demand for generator-grade electrical steel laminations.

• Asia-Pacific

Asia-Pacific dominated the Electrical Steel Market with approximately 61% global share due to extensive manufacturing activity, power infrastructure expansion, and EV production growth. China alone accounted for nearly 46% of regional electrical steel consumption during 2025. Japan, South Korea, and India collectively contributed 32% of regional demand.

More than 73% of electric vehicle motors manufactured globally originated from Asia-Pacific facilities utilizing premium non-oriented electrical steel laminations. Transformer manufacturing capacity across China, Japan, and India exceeded 58 million units annually. Utility grid expansion projects added more than 126,000 circuit kilometers during 2024, increasing grain-oriented electrical steel demand substantially.

• Middle East & Africa

Middle East & Africa accounted for nearly 7% of global electrical steel demand, driven by investments in power transmission, industrial diversification, and urban electrification. Gulf countries represented approximately 54% of regional consumption because of infrastructure modernization projects and utility expansion programs. Transformer installations across Saudi Arabia and the United Arab Emirates increased by 16% during 2025.

Renewable energy projects, particularly solar installations exceeding 39 GW across the region, accelerated demand for transformer-grade electrical steel. Industrial manufacturing activity in South Africa, Egypt, and Nigeria increased demand for high-efficiency motors and generators by nearly 12%. More than 8,000 new substations were commissioned across Middle Eastern countries during 2024.

LIST OF TOP ELECTRICAL STEEL 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 19% global electrical steel production share with annual output exceeding 11 million metric tons of electrical steel products.
• Nippon Steel Corporation – approximately 11% global market share with strong dominance in premium grain-oriented electrical steel for transformer applications.

INVESTMENT ANALYSIS AND OPPORTUNITIES

The Electrical Steel Market continues attracting major investments in EV motor materials, transformer steel production, and low-loss magnetic technologies. Global investments in electrical steel processing facilities exceeded 140 large-scale projects during 2023-2025. More than 36% of announced investments targeted ultra-thin non-oriented electrical steel production for electric vehicles. Asia-Pacific accounted for nearly 58% of global investment activity due to strong EV and power infrastructure expansion.

Manufacturers increased capital allocation toward hydrogen-compatible steelmaking technologies and low-carbon annealing processes. Approximately 27% of newly commissioned facilities integrated advanced laser scribing systems to improve transformer efficiency. Europe invested heavily in recycled electrical steel technologies, with scrap utilization rates surpassing 42%. North American utility modernization programs created strong opportunities for grain-oriented electrical steel suppliers, especially in transformer replacement projects exceeding 480,000 units annually.

NEW PRODUCT DEVELOPMENT

Manufacturers in the Electrical Steel Market are introducing advanced magnetic materials focused on energy efficiency, reduced core losses, and high-frequency performance. During 2025, more than 31% of new product launches involved ultra-thin non-oriented electrical steel for electric vehicle traction motors. Premium grades with core loss reductions exceeding 12% gained strong acceptance among automotive OEMs and industrial motor manufacturers.

Grain-oriented electrical steel products featuring laser domain refinement technology improved transformer efficiency by approximately 10%. Several producers launched high-silicon electrical steel grades above 3.5% silicon content to improve magnetic permeability and reduce hysteresis losses. Heat-resistant insulation coatings capable of withstanding temperatures above 850°C also gained traction in industrial motor applications.

FIVE RECENT DEVELOPMENTS (2023-2025)

• China Baowu Steel Group expanded high-grade non-oriented electrical steel production capacity by 18% during 2024 to support electric vehicle motor manufacturing.
• Nippon Steel Corporation introduced ultra-thin electrical steel below 0.18 mm thickness in 2025, improving EV motor efficiency by approximately 11%.
• POSCO commissioned a new annealing and coating facility during 2023 with annual processing capability exceeding 400,000 metric tons.
• JFE Steel developed laser-scribed grain-oriented electrical steel in 2024 that reduced transformer core losses by nearly 9%.
• Thyssenkrupp AG invested in hydrogen-based steel production technologies during 2025, targeting a 22% reduction in industrial carbon emissions from electrical steel manufacturing.

ELECTRICAL STEEL MARKET REPORT COVERAGE

The Electrical Steel Market report covers global industry performance across production, consumption, technology development, regional demand, competitive landscape, and application analysis. The study evaluates more than 45 countries and analyzes electrical steel demand across transformers, electric vehicles, industrial motors, household appliances, generators, and renewable energy systems. Market segmentation includes oriented electrical steels and non-oriented electrical steels with detailed analysis of magnetic permeability, silicon content, and insulation coating technologies.

The report examines manufacturing capacity expansions, raw material supply trends, trade activities, and technological advancements implemented during 2023-2025. More than 120 industrial projects related to transformer modernization and EV production are evaluated within the study scope. Regional analysis includes Asia-Pacific, Europe, North America, and Middle East & Africa with specific insights regarding production volumes, market share distribution, and industrial adoption rates.