"Innovative Market Solutions to Help Businesses Make Informed Decisions"

Electrical Steel Market Size, Share & Industry Analysis, By Type (Non-grain Oriented and Grain Oriented), By Application (Transformer, Motors, Inductors, and Others), and Regional Forecast, 2024-2032

Last Updated: May 06, 2024 | Format: PDF | Report ID: FBI100827



The global electrical steel market size was valued at USD 30.70 billion in 2023 and is projected to grow from USD 32.19 billion in 2024 to USD 50.09 billion by 2032, exhibiting a CAGR of 5.6% during the forecast period.

Electrical steel is a specialized steel used to offer assured magnetic properties and provide high permeability coupled with low core loss. Steel offers several beneficial characteristics such as improved permeability, increased resistivity, and reduced hysteresis loss to several applications such as solenoids, electric motors, generators, and small relays. Growing initiatives to improve power distribution centers along with increasing demand for electricity generation are propelling the adoption of electrical steel. Hence, such factors coupled with technological advancements in the electrical industry are boosting the market growth during the forecast timeline.

The COVID-19 pandemic severely disrupted the market. The disruption in the infrastructure projects, decrease in automobile manufacturing and halted operations of production plants during the pandemic adversely affected market growth. However, many governments in several countries are initiating regulations to get their economies back on track, thereby increasing product consumption.

Electrical Steel Market Trends

Increasing Product Adoption to Manufacture Electrical Motors to Boost Market Proliferation

The major factor driving the adoption of electric motors is increasing demand across commercial, residential, and industrial sectors. Electrical steel is needed during manufacturing motors due to its magnetic flux and torque along with low CO2 emissions and electromagnetic characteristics. Additionally, the consumption of electrical motors is increasing rapidly in drilling, water pumps, hard disc drives, machines, and industrial equipment. Moreover, growing technological advancements along with rapid industrialization & infrastructure development would augment the product adoption. Hence, such factors would propel the electrical steel market growth.

Request a Free sample to learn more about this report.

Electrical Steel Market Growth Factors

Increased Product Demand from the Automotive Industry to Aid Market Expansion

The rapid growth of the automotive industry coupled with the rising utilization of hybrid vehicles is fueling the adoption of electrical steel for improving aesthetic performance along with reducing the weight of the vehicle. Moreover, supportive government regulations in emerging economies including China, India, the U.S., and Brazil for environmental protection through vehicles are further propelling the product demand. Also, many government bodies are initiating research & development activities and emphasizing the reduction of CO2, which would contribute to the adoption of sustainable steel. Furthermore, the increasing adoption of hybrid vehicles and rising consumer expenditure will drive the use of the vehicle. Hence, the aforementioned factors will create lucrative opportunities for the market to grow positively during the review period.

In addition, electrical steel is essential for the efficient functioning of electric motors. As automakers strive to enhance the efficiency and performance of their vehicles, they require high-quality steel with specific magnetic properties to optimize motor performance and reduce energy loss. Furthermore, ongoing technological advancements in steel production and processing techniques are making it more feasible for automotive applications. Innovations in material composition, coatings and manufacturing processes are enhancing the magnetic properties and performance of electrical steel, making it more attractive for automotive manufacturers. Global events, such as the COVID-19 pandemic and geopolitical tensions, have underscored the importance of resilient and diversified supply chains. Automotive manufacturers are increasingly prioritizing local or regional sourcing of critical components, including steel parts, to mitigate supply chain risks, boosting market growth.


Fluctuations in Raw Material Prices to Hamper Market Augmentation

The prices of steel mainly rely on the raw materials that are required during electrical steel production. The major materials include ferroalloys, coal, iron ore, and some industrial gases. However, the prices of these raw materials are highly volatile, which makes major fluctuations in steel prices and causes variations in the overall price. Furthermore, crude oil prices, storage capacity, and manufacturing cost further influence steel prices. Hence, such factors are anticipated to restrain market growth.

Electrical Steel Market Segmentation Analysis

By Type Analysis

Non-grain Oriented Segment to Dominate the Market Due to Growing Consumption from Power Generations

Based on type, the market is segmented into non-grain oriented and grain oriented. Non-grain-oriented segment accounted for the leading electrical steel market share in 2023. This silicon steel is an important material employed in manufacturing motors, rotors, EV traction motors, and high-performance power generators. Additionally, it is primarily utilized in electrical equipment and offers significant magnetic properties, including high permeability or low hysteresis loss. Hence, such factors along with its adoption as vital core material for EV traction motors and household appliances will drive the segment growth.

On the other hand, the increasing demand for grain-oriented in the electronics, industrial equipment & machinery, energy, and power applications is propelling the segment growth. The rapidly growing automotive and construction industries are propelling product consumption, which includes usage as transformers, power generators, lamination steel, conductive steel, and motors & engines. Among these, grain oriented electrical steel provides high magnetic properties and higher efficiency leading to a higher adoption rate of the product, thereby creating growth opportunities for the market.

By Application Analysis

To know how our report can help streamline your business, Speak to Analyst

Transformer Segment to Dominate the Market Due to High Demand from Energy Consumption Applications

Based on application, the market is fragmented into transformer, motors, inductors, and others. The transformers segment held the highest market share in 2023 and is anticipated to be growing with the highest growth rate during the forecast period. Electrical steel is an important material in the production of large, high-performance generators and energy-efficient transformers. They are used in the form of lamination and are an ideal core material in power transformers, distribution transformers, and small transformers. The gaining traction toward transformers owing to high energy usage is driving the segment growth.

In motors, the product is widely used for laminations. The rising adoption of electric vehicles in the automotive industry has fueled the adoption of electric motors, resulting in fueling raw materials adoption. Also, companies are investing in sustainable product development and have increased the production of electric vehicles, further creating growth opportunities. Moreover, growing product consumption in inductors to reduce the flow of current is augmenting its adoption in the inductor segment.


Asia Pacific Electrical Steel Market Size, 2023 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample

The market size in Asia Pacific stood at USD 14.83 billion in 2023. The product adoption in the region is attributed to its growing manufacturing sector. Countries, including China, India, and South Korea are among the leading players in the production sector. This includes the use of electrical steel for the production of industrial equipment, machinery, magnetic devices, transformers, and energy power grids, and the rising demand for these products is augmenting the market growth.

In North America, the market growth can be attributed to the high availability of raw materials within the region, supporting technological development and economically stable nations. Moreover, the growth in machinery and automotive industries, where the product is used in power generators, motors, and transformers is surging the demand for grain oriented electrical steel in the region. The market growth in Europe is owed to the rising trend of technologically advanced electric motors and machinery for industrial and automotive applications. The region is supported by developed economies where the product is in demand for the production of industrial equipment and machinery, engines, power generators, and transformers.

In Latin America, the market growth is mainly driven by rising product applications for the automotive and manufacturing sectors. Several end-use industries have manufacturing facilities set up in the region due to the availability of raw materials, labor, and land. This has led to high demand for automated machinery, thereby leading to product consumption. Furthermore, developed economies within the Middle East & Africa have supported the adoption of advanced technologies and raised the product demand for transformers & power generators to supply electricity at a greater distance. Further, an escalating economy within the region has supported the adoption of electric vehicles, in turn, creating demand for the product for manufacturing engines and electric motors. The aforementioned factor altogether has surged product consumption.

List of Key Companies in Electrical Steel Market

Business Expansion to Retain More Customers is the Key Strategic Initiative Implemented by Companies

Key players operating in the market are ThyssenKrupp Steel Europe, Nucor Corporation, ArcelorMittal, and Nippon Steel Corporation. These companies are involved in product innovation, capacity improvement, collaborations, and acquisition in the market. Thyssenkrupp has presence in 56 countries across the globe. Additionally, the company has a production site in Belgium, Germany, France, Switzerland, and Spain and produces 11 million tons of crude steel. Further, the company is involved in research & development, acquisitions, and product innovation to retain more consumers.



  • March 2022: ArcelorMittal S.A. announced an investment of USD 317.90 million to establish the production plant for electrical steel at the Mardyck site located in Northern France. The purpose of the investment is to increase production capacity to maximize revenue.

  • November 2021: POSCO announced boosting the production of electrical steel sheets to fulfill the consumer’s demand. The company decided to invest USD 848.6 million to produce 300,000 tons of steel plate per year.

  • July 2021: Following the business strategy, the NLMK Group announced the continuation of the construction of an electrical steel plant in Maharashtra, India.  The plant would have a production capacity of 64,000 tons of electrical steel annually.

  • November 2020: NIPPON STEEL CORPORATION expanded electrical steel sheet facilities in the Setouchi Works Hirohata, and Kyushu Works Yawata. The investment, including those previously announced, will approximate USD 721 million. This series of measures to improve capacity and quality will take full effect during the first half of 2023, with manufacturing capacity expected to increase by approximately 40%.

  • April 2020: Shougang Group declared that the company achieved the ultimate production efficiency for the finishing rolling electrical sheets. The purpose of the company is to aim at improving the shearing loss with an enhanced yield rate.


An Infographic Representation of Electrical Steel Market

To get information on various segments, share your queries with us

The research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, types, applications, and products. Also, it provides quantitative data in terms of volume and value, market analysis, research methodology for market data, and insights into market key trends. It highlights vital industry developments and the competitive landscape. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market in recent years.

To gain extensive insights into the market, Request for Customization

Report Scope & Segmentation



Study Period


Base Year


Forecast Period


Historical Period


Growth Rate

CAGR of 5.6% during 2024-2032


Value (USD Billion), Volume (Kiloton)


By Type

  • Non-grain Oriented

  • Grain Oriented

By Application

  • Transformer

  • Motors

  • Inductors

  • Others

By Geography

  • North America (By Type, By Application, By Country)

    • U.S.

    • Canada

  • Europe (By Type, By Application, By Country)

    • Germany

    • U.K.

    • France

    • Italy

    • Rest of Europe

  • Asia Pacific (By Type, By Application, By Country)

    • China

    • Japan

    • India

    • Rest of Asia Pacific

  • Latin America (By Type, By Application, By Country)

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East & Africa (By Type, By Application, By Country)

    • South Arabia

    • South Africa

    • Rest of Middle East & Africa

Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 30.70 billion in 2023 and is projected to reach USD 50.09 billion by 2032.

In 2023, the market value stood at USD 30.70 billion.

Registering a significant CAGR of 5.6%, the market will exhibit considerable growth over the forecast period (2024-2032).

The non-grain oriented segment is the leading type in the market.

Increased product demand from the automotive industry would create lucrative opportunities for the market.

Asia Pacific held the highest share of the market in 2023.

ArcelorMittal, Nucor Corporation, Nippon Steel Corporation, and ThyssenKrupp Steel Europe are the leading players in the market.

The rapid growth of the automotive industry and growing consumption of transformers are anticipated to boost the consumption of the product.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • 2019-2032
  • 2023
  • 2019-2022
  • 150

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Chemicals & Materials Clients

LG Chem

Client Testimonials

“We are quite happy with the methodology you outlined. We really appreciate the time your team has spent on this project, and the efforts of your team to answer our questions.”

- One of the largest & renowned medical research centers based in the U.S. on a report on the U.S. NIPT Market.

“Thanks a million. The report looks great!”

- Feedback from a consultant on a report on the U.S. Beef Market.

“Thanks for the excellent report and the insights regarding the lactose market.”

- Brazil based company specializing in production of protein ingredients.

“I liked the report; would it be possible to send me the PPT version as I want to use a few slides in an internal presentation that I am preparing.”

- Global Digital Services Agency on a report on the Global Luxury Goods Market.

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.