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The global non-grain oriented electrical steel market size was valued at USD 17.50 billion in 2022. The market is projected to grow from USD 18.28 billion in 2023 to USD 25.83 billion by 2030, exhibiting a CAGR of 5.1% during the forecast period.
Non-grain oriented electrical steel is often referred to as lamination steel, electrical steel, core iron, or silicon steel. It is a specialty steel designed to provide certain magnetic properties including high permeability as well as low hysteresis loss to electrical applications. The growing demand for electricity worldwide, growing infrastructure development, and rising urbanization are flourishing the adoption of the product. Hence, such factors coupled with the rising consumption of hybrid electric vehicles will drive the market growth during the forecast period.
Supply Chain Disruptions in the Steel Industry Hampered Non-Grain Oriented Electrical Steel Consumption
The interruption in the steel industry owing to restrictions imposed by governments during the COVID-19 pandemic has considerably influenced the market. Further, governments issued new policies for the manufacturing units that were impacted by COVID-19. This resulted in the slowdown of mining activities, which led to further steel production disruption, impacting the end-use industries. Additionally, the consumption of power generators was decreased as restriction on business operations led to lower demand for electrical power generation from commercial consumers. On the other side, people started working from home, resulting in a decrease in demand for new power generators. All these factors led to lower demand for electric steel as non-grain oriented electrical steel is utilized in manufacturing high-efficiency power generation motors. Furthermore, electrical steel producers decided to lower the production capacity or temporarily shut down the manufacturing units to prevent the spread of the virus. Thus, all these factors interrupted the supply and demand of such electrical steel.
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Rapid Increase in Consumption of Hybrid Electric Vehicles (HEVs) May Create Market Opportunities
The growth in the steel industry has been moderate over the past year, but introducing hybrid electric vehicles boosted the product demand. The adoption of non-grain oriented electrical steel in producing EV motors is creating an opportunity for the market in developing countries. Further, non-grain-oriented electrical steel is widely utilized in the production of EV traction motors, rotors, and other electrical appliances. Additionally, electrical steel is also utilized in traction motors, engines, electric motors, and high-speed rotors for conventional and electric vehicles. This surge in adoption of EVs is driving the non-grain-oriented electrical steel adoption. Thus, all these factors are expected to create a massive opportunity for the market during the forecast period.
Increased Demand from Various Industries is Expected Drive the Consumption of Non-Grain Oriented Electrical Steel
Non-grain oriented steel is an essential magnetic and structural material in use today as the metal offers stronger magnetic flux, high efficiency, and excellent punching workability. As a result, it makes it suitable for the manufacturing of electrical instruments, including power generation motors, rotors, and electrical appliances. Thus, the consistent demand for power generation motors and rotors has created a massive demand for electrical steel. Moreover, non-oriented grain electrical steel offers various advantages over grain-oriented steel as it delivers enhanced punch ability, and acts as the lubricating agent during the stamping, making it appropriate for large rotating equipment, including AC alternators and power generators. Moreover, the automotive industry's rapid growth is another driving factor for the market. Non-oriented grain electric steel is one of the core materials in motor production, which is vital for the high performance of electric vehicles. Thus, the high demand for non-grain oriented electrical from these industries is driving the market growth.
Fluctuation in Steel Prices to Hinder the Market Growth
Non-grain-oriented electrical steel witnessed a boost in demand over the past years. Still, the variation in prices of raw materials for steel, such as coal, scrap, and iron steel, is expected to hinder the market growth. This is due to the price of the raw materials being highly volatile and fluctuating with the supply and demand. Additionally, production cost, crude oil prices, and storage capacity influence steel prices. Therefore, these factors are expected to hinder the non-grain oriented electrical steel market growth.
0.5 mm Segment to Dominate due to Growing Consumption from Large Power Generators and Transformers
Based on thickness, the market is segmented into 0.35 mm, 0.5 mm, 0.65 mm, and others. The 0.5 mm segment accounted for a dominant share of the overall market. 0.5 mm provides optimum performance in terms of magnetic properties and the weight of electrical devices constructed using this sheet size. The thicker non-grain oriented electrical sheets that typically include sheets ranging from 0.5 mm and above are mostly consumed in heavy-duty electrical equipment such as large power generators and transformers. Weight and space occupied by electrical equipment are a less prominent concern in such devices, while the major focus is given to the performance of the material.
Thinner sheets that include sheets ranging from 0.35 to 0.5 mm are used in smaller-size generators and motors. Such types of thinner sheets are majorly used in electrical components where the space and weight of the electrical device are major constraints.
Semi-Processed Segment to Dominate the Market due to High Demand from Electrical Devices
Based on type, the market is segmented into semi-processed and fully-processed. The semi-processed segment accounted for the highest non-grain oriented electrical steel market share in 2022. To achieve the desired microstructure, the semi-processed type needs to be heat treated at an optimum temperature. This temperature can change according to the final application of steel. Being able to customize the final properties of electrical steel via heat treatment enables electrical equipment manufacturers to optimize the performance of electrical devices. The high custom ability offered by the semi-processed type makes it a popular choice among electrical device manufacturers that use it to build stators and rotors of electric motors.
The fully-processed type of electrical steel is produced with the ideal characteristics for its final application without any need for additional processing. Thus, they are produced in comparatively less volume for limited applications that require a unidirectional magnetic field such as a core used in huge transformers.
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Power Generation Segment to Lead due to Rising Applications of Non-Grain Oriented Electrical Steel
By application, the market is categorized into household appliances, AC motor, power generation, and others. The power generation segment held the largest share of the market in 2022 and is anticipated to grow at the highest CAGR during the forecast period. The product is mainly utilized in the form of wound, punched sheets, and laminated and is an essential material in power transformers, small transformers, and distribution transformers. The rising demand for transformers due to high energy consumption is driving the segment growth.
In AC motors, the product is used as laminations. The growing adoption of electric vehicles has surged the adoption of electric motors in the automotive industry, thereby fueling the demand for raw materials. Non-grain oriented steel is a critical component used in small high-speed motors for home appliances such as fans, water pumps, and vacuum cleaners. Additionally, with rising demand for motors used in home appliances, the steel market is expected to create new market growth opportunities during the forecast period.
Asia Pacific Non-Grain Oriented Electrical Steel Market Size, 2022 (USD Billion)
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The market size in Asia Pacific stood at USD 8.20 billion in 2022. Asia Pacific is the home of several developing economies with major contributors such as China and India. These countries have a significant untapped economic growth potential that is likely to be realized during the forecast period. As these countries progress in their economic expansion, the demand for infrastructure is anticipated to grow simultaneously. This includes infrastructure for power generation, transmission, and distribution. Non-grain oriented electrical steel plays a critical role in all such types of electrical equipment used in electrical power infrastructure. Thus, rising demand from the electrical power industry is expected to drive market growth in Asia Pacific.
North America is a heavily industrialized region with high energy demand. The region has a mature power generation and transmission infrastructure that requires constant maintenance and upgrade. The region has witnessed a rapid increase in electric vehicle sales in recent years, and this trend is likely to continue during the forecast period.
Moreover, several European countries have stated their commitment to reducing their carbon emissions during the forecast period. As a result, the major industrial countries in the region pivot toward renewable energy and the demand for non-grain oriented electrical steel is anticipated to rise, creating new market growth opportunities.
The growth in Latin America is anticipated to be driven by rising demand from the electrical power generation and distribution industry. Non grain oriented electrical steel is a critical component in the production of cores of transformers that are critical in stepping up and stepping down voltage during the transmission and distribution of electric power. This, in turn, is anticipated to drive market growth in the region.
The Middle East & Africa region is home to a prominent share of the world’s oil and gas reserves. In order to run the facilities that extract these resources, power plants and other energy production units need electrical devices such as transformers, power generators, and motors. In addition, several countries within these regions have witnessed rapid urbanization over the past few years and this trend is expected to continue during the forecast period.
Strategic Business Expansion in the Construction Industry for the Retention of More Customers Adopted by Various Companies
Key players include ArcelorMittal, Nucor Corporation, Nippon Steel Corporation, and ThyssenKrupp Steel Europe. These companies are engaged in product innovation, capacity improvement, collaborations, and acquisition in the market. Nucor Corporation has a strong presence across North America through its strong and diversified steel and steel products. The company offers non-oriented electrical steel sheets for electrical equipment and motor lamination applications. Further, Nucor Corporation is engaged in steel acquisitions, research and development, and innovation to satisfy consumer demands.
An Infographic Representation of Non-Grain Oriented Electrical Steel Market
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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 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.
CAGR of 5.1% from 2023 to 2030
Value (USD Billion), Volume (Kiloton)
By Thickness, Type, Application, and Region
Fortune Business Insights says that the global market size was USD 17.50 billion in 2022 and is projected to reach USD 25.83 billion by 2030.
In 2022, the market value stood at USD 17.50 billion.
Registering a significant CAGR of 5.1%, the market will exhibit considerable growth over the forecast period (2023-2030).
The 0.5 mm segment is expected to lead during the forecast period.
Increased demand from various industries is expected to drive the consumption of electrical steel.
China held the highest share of the market in 2022.
ArcelorMittal, Nucor Corporation, Nippon Steel Corporation, and ThyssenKrupp Steel Europe are the leading players in the market.
The rapid growth of electrical and automotive industries is anticipated to boost the consumption of the product.
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