Electrical Steel Market Report

Electrical Steel Market Synopsis

The Global Electrical Steel Market was valued at USD 29.7 billion in 2024 and is expected to grow from USD 31.8 billion in 2025 to USD 56.2 billion by 2033, reflecting a CAGR of 7.2% over the forecast period.

Electrical steel market is the industry that specializes in manufacturing and distributing highly engineered steel in electromagnetic products like transformers, motors, and generators. This steel is engineered with special magnetism characteristics that minimize the core loss and enhance energy efficiency and it is critical in generation of power and distribution as well as industrial machinery. The market is led by increased electricity demand, growth of renewable energy, and growth in electric vehicles, which entail efficient motors and the charge infrastructure. Moreover, stricter energy efficiency standards and upgrade of power grids is also promoting stable global demand of electrical steel.

Key Takeaways of the Electrical Steel Market

o   On the basis of Product, the Non-grain oriented electrical steel segment is expected to lead the Electrical Steel Market with the revenue share of 59.4% throughout the forecast period.

o   The Transformer, by application, is projected to be the most significant shareholder of 49.9% of the Electrical Steel Market through the projection period.

o   Asia Pacific is expected to dominate the market over the forecast period with the revenue share of 33.5%.

Electrical Steel Market Driver Analysis

Rising Adoption of Electric Vehicles and Charging Infrastructure

The increasing use of electric vehicles (EVs) and a sudden emergence of the charging infrastructure are greatly increasing the demand of electrical steel. EV motors, batteries and charging stations depend on electrical steel to be efficient in energy conversion and the power loss is minimal, making it an essential material in the EV value chain. Due to the shift toward clean mobility advocated by governments and a swift move toward electrification by automakers, high-performance non-grain-oriented electrical steel in traction motors and grain-oriented steel in charging transformers is in growing demand.

Electrical Steel Market Restraint Analysis

Volatility in Raw Material Prices Affecting Profitability

Fluctuation in the prices of raw materials is a significant threat to the electrical steel market because it directly relates to production expenses and general profitability. Iron ore, coal, alloying elements, which are among the key inputs, are usually susceptible to fluctuation in prices which occur as a result of disruptions in the supply chain, geopolitical tensions and shifting demand trends. Because electrical steel involves sensitive formulations and complex processing, any increase in the cost of raw materials can dramatically raise the costs of production, and therefore producers find it hard to ensure consistent pricing.

Electrical Steel Market Opportunity Analysis

Rising Demand in Emerging Economies with Rapid Industrialization

The electrical steel market is experiencing a robust growth potential due to increased demand in the emerging economies where rapid industrialization is underway. Increased electricity consumption due to growth in industries, urbanization, and infrastructure development is now being experienced in countries in Asia-Pacific, Latin America, and some parts of Africa. Such areas need effective transformers, motors and generators to accommodate manufacturing plants, construction projects and rising power grids. Also, the demand on electrical steel is enhanced by the efforts of government to make energy more accessible and invest in renewable energy initiatives.

Electrical Steel Market Trend Analysis

Integration of Electrical Steel in Renewable Energy Equipment

Electrical steel incorporation in renewable energy appliances such as wind turbines is also growing significance as the world moves to adopt clean energy at a faster rate. Generators in wind turbines have electrical steel cores that enhance magnetic performance, minimize energy loss and achieve overall efficiency. The increasing initiation of onshore and offshore wind operations is leading to an incremental demand in high-grade electrical steel. It is an important renewable energy supply chain material since its contribution is significant to guaranteeing dependable power production and durability of turbines in the long term.

Electrical Steel Market Segment Analysis

The Electrical Steel Market is segmented on the basis of Product, Application, and End-User.

By Product

o   Grain oriented electrical steel

o   Non-grain oriented electrical steel

By Application

o   Transformer

o   Inductor

o   Motor

o   Other Applications

By Region

o   North America (U.S., Canada, Mexico)

o   Eastern Europe (Bulgaria, The Czech Republic, Hungary, Poland, Romania, Rest of Eastern Europe)

o   Western Europe (Germany, UK, France, Netherlands, Italy, Russia, Spain, Rest of Western Europe)

o   Asia Pacific (China, India, Japan, South Korea, Malaysia, Thailand, Vietnam, The Philippines, Australia, New-Zealand, Rest of APAC)

o   Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa)

o   South America (Brazil, Argentina, Rest of SA)

By Product, Non-grain oriented electrical steel Segment is Expected to Dominate the Market During the Forecast Period

The non-grain oriented (NGO) electrical steel segment is anticipated to acquire the majority of market share throughout the forecast period. This is majorly because of its broad application in electric motors, generators, and in automotive, especially in electric vehicles where efficiency and performance are of paramount importance. NGO steel is also suitable in rotating machines unlike grain-oriented electrical steel which possesses different magnetic properties in different orientations. The growing use of EVs, intensified industrialization, and a growing number of consumer appliances are the further reasons that are stimulating the demand of NGO electrical steel.

By Application, the Transformer Segment is Expected to Held the Largest Share

The transformer segment is projected to be the highest share of the electrical steel market in the forecast period. Transformers constitute a very important element of power generation, transmission and distribution systems, and they exist on the basis of grain-oriented electrical steel to enable smooth magnetic flux conduction and minimum energy losses. Transformer installations are on the rise all around the globe owing to the increasing demand of dependable electricity supply, the modernization of the old grid infrastructure, and development of renewable energy plants.

Electrical Steel Market Regional Insights

Asia Pacific is Expected to Dominate the Market Over the Forecast period 

Asia Pacific is projected to dominate electrical steel market during the forecast period due to its fast industrialization, growing power infrastructure, and rising use of electric cars. High demand of transformers, motors and generators is due to the presence of a strong manufacturing base in the region and especially in China, India, Japan and South Korea. Moreover, the size of the investments in the renewable energy and grid modernization also give Asian Pacific a leading power in the market of electrical steel.

Recent Development

In March 2022, ArcelorMittal S.A. announced an investment of USD 317.90 million to set up an electrical steel production plant at its Mardyck site in Northern France. This investment aims to expand production capacity and enhance revenue generation.

In November 2021, POSCO announced plans to increase the production of electrical steel sheets to meet growing consumer demand. The company is investing USD 848.6 million to establish capacity for producing 300,000 tons of steel plates annually.

Active Key Players in the Electrical Steel Market

o   Aperam SA

o   Ansteel Group Corp. Ltd.

o   ArcelorMittal

o   Beijing Shougang Co. Ltd.

o   Arnold Magnetic Technologies Corp.

o   China BaoWu Steel Group Corp. Ltd.

o   Cleveland Cliffs Inc.

o   China Steel Corp.

o   Nucor Corp.

o   JFE Holdings Inc.

o   Nippon Steel Corp.

o   JSW Group

o   NLMK Group

o   Other Key Players

Global Electrical Steel Market Scope