Electrical Steel Market Size, Share Global Analysis Report, 2026-2034

Industry Insights

[244+ Pages Report] According to Facts & Factors, the global Electrical Steel market size was estimated at USD 28.4 billion in 2025 and is expected to reach USD 48.7 billion by the end of 2034. The Electrical Steel industry is anticipated to grow by a CAGR of 6.2% between 2026 and 2034. The Electrical Steel Market is driven by rising global electricity demand, expansion of power infrastructure, growth in electric vehicles, and increasing adoption of energy-efficient motors and transformers.

Market Overview

The Electrical Steel market comprises specialized silicon-iron alloys engineered to exhibit superior magnetic properties, including high permeability, low core loss, and excellent electrical resistivity. These steels are produced in grain-oriented (GOES) and non-grain-oriented (NGOES) forms to minimize energy losses in magnetic circuits. Electrical steel is a critical material used in the cores of power and distribution transformers, electric motors, generators, inductors, and other electromagnetic devices where efficient energy conversion and minimal heat generation are essential. Its unique crystal structure and silicon content enable reduced hysteresis and eddy current losses, making it indispensable for improving efficiency in power generation, transmission, distribution, electric vehicles, and industrial machinery.

Key Insights

• As per the analysis shared by our research analyst, the Electrical Steel market is estimated to grow annually at a CAGR of around 6.2% over the forecast period (2026-2034).
• In terms of revenue, the Electrical Steel market size was valued at around USD 28.4 billion in 2025 and is projected to reach USD 48.7 billion by 2034.
• The Electrical Steel Market is driven by power infrastructure expansion, electric vehicle growth, and demand for energy-efficient electrical equipment.
• Based on the Type, the Non-Grain-Oriented Electrical Steel (NGOES) segment dominated the market in 2025 with a share of 62% due to its widespread use in electric motors and generators requiring isotropic magnetic properties.
• Based on the Application, the Transformers segment dominated the market in 2025 with a share of 48%, owing to massive global demand for efficient power and distribution transformers.
• Based on the End-User, the Power Generation segment dominated the market in 2025 with a share of 45% because of continuous investments in electricity generation and transmission infrastructure.
• Asia Pacific dominated the global Electrical Steel market in 2025 with a share of 52% attributed to rapid industrialization, massive power sector investments, and strong electric vehicle and electronics manufacturing in the region.

Growth Drivers

• Power Infrastructure Expansion and Electrification

Global efforts to expand electricity access, modernize aging grids, and integrate renewable energy sources are driving substantial demand for high-efficiency transformers and electrical steel cores.

Rising electricity consumption in emerging economies and urban centers further accelerates the need for low-loss electrical steel in power equipment.

Restraints

• High Production Costs and Raw Material Volatility

Manufacturing electrical steel requires precise metallurgical processes and high-purity silicon, resulting in elevated production costs that impact pricing and margins.

Fluctuations in iron ore, scrap, and energy prices create uncertainty in the supply chain and affect overall market stability.

Opportunities

• Electric Vehicles and Energy-Efficient Motors

Rapid growth of electric vehicles requires large quantities of non-grain-oriented electrical steel for high-efficiency traction motors, creating a high-growth application segment.

Increasing focus on energy conservation and stricter efficiency standards for motors, transformers, and appliances open opportunities for advanced grades of electrical steel.

Challenges

• Technological Complexity and Competition from Alternatives

Developing next-generation electrical steel with even lower core losses demands significant R&D investment and advanced production capabilities.

Competition from amorphous metals and other advanced magnetic materials in select high-efficiency applications poses a long-term challenge to traditional electrical steel.

Report Scope

Market Segmentation

The Electrical Steel market is segmented by type, application, end-user, and region.

Based on Type Segment, the Electrical Steel market is divided into Grain-Oriented Electrical Steel (GOES) and Non-Grain-Oriented Electrical Steel (NGOES). The most dominant segment is Non-Grain-Oriented Electrical Steel (NGOES), followed by Grain-Oriented Electrical Steel (GOES). NGOEs dominate due to their isotropic magnetic properties, making it ideal for electric motors, generators, and a wide range of rotating machinery where magnetic flux direction varies, thereby driving higher volume consumption across automotive, industrial, and appliance sectors.

Based on Application Segment, the Electrical Steel market is divided into Transformers, Motors, Generators, Inductors, and Others. The most dominant segment is Transformers, followed by Motors. Transformers dominate because of the enormous global requirement for efficient power and distribution transformers in electricity generation, transmission, and distribution networks, which consume the largest share of electrical steel and support continuous infrastructure upgrades.

Based on End-User Segment, the Electrical Steel market is divided into Power Generation, Automotive, Electronics & Appliances, Industrial Machinery, and Others. The most dominant segment is Power Generation, followed by Automotive. Power Generation leads due to massive investments in new power plants, grid expansion, and renewable energy integration that require high volumes of low-loss electrical steel for transformers and generators.

Recent Developments

• In March 2025, Nippon Steel Corporation launched a new high-grade non-oriented electrical steel optimized for next-generation electric vehicle traction motors.
• In May 2025, Thyssenkrupp Steel introduced an advanced grain-oriented electrical steel with significantly reduced core losses for ultra-efficient power transformers.
• In January 2025, POSCO expanded its electrical steel production capacity in South Korea to meet growing demand from the automotive and power sectors.
• In June 2025, ArcelorMittal announced a major investment in electrical steel manufacturing facilities in Europe to support the energy transition.
• In early 2025, several Chinese producers ramped up output of cost-effective NGOES to supply domestic EV and appliance manufacturers.

Regional Analysis

• Asia Pacific to dominate the global market

Asia Pacific leads the Electrical Steel market through its position as the world’s largest producer and consumer of electrical equipment, rapid industrialization, and massive investments in power infrastructure and electric vehicles. The region benefits from strong domestic manufacturing ecosystems and supportive government policies for energy efficiency. China dominates within Asia Pacific with its unmatched scale of power generation and transmission projects, dominant electric vehicle production, and leadership in electronics and appliance manufacturing that collectively drive enormous demand for both GOES and NGOES electrical steel.

Europe holds a significant share in the Electrical Steel market, supported by strict energy efficiency regulations, leadership in renewable energy integration, and an advanced automotive industry focused on electric vehicles. The region emphasizes high-performance, low-loss electrical steel grades. Germany stands out through its engineering excellence, strong transformer and motor manufacturing base, and commitment to sustainable energy solutions that require premium electrical steel.

North America exhibits robust growth in the Electrical Steel market, driven by grid modernization, data center expansion, and accelerating electric vehicle adoption. The region benefits from technological innovation and a focus on energy efficiency. The United States dominates with its large power sector, growing EV manufacturing, and investments in upgrading electrical infrastructure across utilities and industrial facilities.

Latin America is gradually expanding in the Electrical Steel market as countries invest in power generation capacity and industrial development. Brazil leads the region with its significant hydropower base and growing manufacturing sector that increasingly utilizes electrical steel in transformers and motors.

The Middle East & Africa region shows emerging potential in the Electrical Steel market, fueled by power sector expansion, renewable energy projects, and industrial growth in Gulf countries. The United Arab Emirates dominates with its ambitious energy diversification plans and infrastructure development that require reliable electrical steel for transformers and power equipment.

Competitive Analysis

The global Electrical Steel market is dominated by players:

• Nippon Steel Corporation
• Thyssenkrupp AG
• POSCO
• ArcelorMittal
• Baosteel Group
• JFE Steel Corporation
• Cogent Power
• AK Steel 
• Shougang Group
• Ansteel Group

The global Electrical Steel market is segmented as follows:

By Type

• Grain-Oriented Electrical Steel (GOES)
• Non-Grain-Oriented Electrical Steel (NGOES)

By Application

• Transformers
• Motors
• Generators
• Inductors
• Others

By End-User

• Power Generation
• Automotive
• Electronics & Appliances
• Industrial Machinery
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America