Electric Steel Market, Global Outlook and Forecast 2025-2032

The global Electric Steel market was valued at USD 26,130 million in 2023 and is expected to reach USD 38,498.51 million by 2032, representing a Compound Annual Growth Rate (CAGR) of 4.40% during the forecast period.

In North America, the market stood at USD 7,331.99 million in 2023 and is projected to expand at a CAGR of 3.77% through 2032. This growth is largely propelled by technological advancements in electric mobility, rising investments in renewable energy infrastructure, and the modernization of the power grid.

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Globally, the market has seen significant growth over the past decade due to the increasing demand for electric motors in the automotive, consumer electronics, and industrial automation sectors. The expansion of power distribution networks in developing nations and a sharp focus on green energy alternatives have further fueled demand.

Electric steel, also known as silicon steel, lamination steel, relay steel, or transformer steel, is a specialty alloy comprising primarily iron and silicon. This material is engineered to exhibit enhanced magnetic properties, making it essential for energy-efficient magnetism and electricity conversion. The core purpose of electric steel is to serve as a functional material in electrical applications that rely heavily on magnetic flux.

Electric steel sheets are typically categorized into grain-oriented electrical steel (GOES) and non-oriented electrical steel (NOES):

Grain-Oriented Electrical Steel (GOES): Characterized by its highly aligned grain structure, this type is optimized for low core loss in one direction and is predominantly used in transformers, particularly in the power and distribution sectors.

Non-Oriented Electrical Steel (NOES): With grains arranged randomly, NOES delivers uniform magnetic properties in all directions, making it suitable for rotating machinery such as motors and generators.

Grain-Oriented Electrical Steel (GOES): Characterized by its highly aligned grain structure, this type is optimized for low core loss in one direction and is predominantly used in transformers, particularly in the power and distribution sectors.

Non-Oriented Electrical Steel (NOES): With grains arranged randomly, NOES delivers uniform magnetic properties in all directions, making it suitable for rotating machinery such as motors and generators.

Electric steel plays a vital role in minimizing energy losses in electrical devices and contributes directly to the enhancement of energy efficiency and sustainability in infrastructure, industrial machinery, and mobility solutions.

➤Regional Analysis:

➤North America

North America is a mature yet growing market due to electrification in automotive and modernization in electrical infrastructure. The U.S. government's incentives for green energy and EV adoption significantly boost regional demand.

➤Europe

Europe remains a hub for technological innovation and policy-driven demand, especially with stringent energy-efficiency regulations in place. Germany, France, and the Nordic countries lead in electric steel usage for wind energy, smart grids, and electric mobility.

➤Asia-Pacific

Asia-Pacific dominates the global electric steel market due to high demand from China, Japan, South Korea, and India. China alone contributes a substantial share of global production and consumption, with its robust manufacturing base and expansive infrastructure projects.

➤Latin America

Although still in a nascent stage, Latin America is gradually embracing electrification and industrial development, particularly in Brazil and Mexico. Investment in renewable energy and transport electrification is expected to drive growth.

➤Middle East and Africa

The region holds promise for future expansion, especially with the growing emphasis on solar energy and infrastructure upgrades. Government initiatives focused on energy diversification and smart city development will support electric steel market growth.

➤Competitor Analysis:

Leading companies such as JFE Steel, NLMK Group, POSCO, NSSMC, and ThyssenKrupp dominate the market with proprietary technologies and robust global distribution networks. These players invest heavily in R&D, automation, and efficiency improvements to maintain competitiveness.

Other major players include AK Steel, Nucor, Voestalpine, TATA Steel, ArcelorMittal, and Baosteel, each known for strategic partnerships and a strong footprint in regional markets.

Smaller but technologically adept firms such as Stalprodukt S.A. and ATI contribute to innovation and specialized product offerings. Together, these companies shape a competitive landscape characterized by high entry barriers due to capital intensity and intellectual property.

➤Global Electric Steel Market:

Market Segmentation Analysis

This report provides a deep insight into the global Electric Steel market, covering all its essential aspects. This ranges from a macro overview of the market to micro details of the market size, competitive landscape, development trend, niche market, key market drivers and challenges, SWOT analysis, value chain analysis, etc.

The analysis helps the reader to shape the competition within the industries and strategies for the competitive environment to enhance the potential profit. Furthermore, it provides a simple framework for evaluating and assessing the position of the business organization. The report structure also focuses on the competitive landscape of the Global Electric Steel Market. This report introduces in detail the market share, market performance, product situation, operation situation, etc., of the main players, which helps the readers in the industry to identify the main competitors and deeply understand the competition pattern of the market.

In a word, this report is a must-read for industry players, investors, researchers, consultants, business strategists, and all those who have any kind of stake or are planning to foray into the Electric Steel Market in any manner.

➤Market Segmentation (by Application)

Transformers

Motors

Generators

Inductors

Automotive Components

Consumer Electronics

Industrial Equipment

Transformers

Motors

Generators

Inductors

Automotive Components

Consumer Electronics

Industrial Equipment

➤Market Segmentation (by Type)

Grain-Oriented Electrical Steel (GOES)

Non-Oriented Electrical Steel (NOES)

Grain-Oriented Electrical Steel (GOES)

Non-Oriented Electrical Steel (NOES)

➤Key Company

JFE Steel

NLMK Group

POSCO

NSSMC

ThyssenKrupp

AK Steel

Nucor

Voestalpine

TATA Steel

ArcelorMittal

CSC

WISCO

Baosteel

Ansteel

Shougang

Benxi Steel

TISCO

Masteel

Stalprodukt S.A.

ATI

JFE Steel

NLMK Group

POSCO

NSSMC

ThyssenKrupp

AK Steel

Nucor

Voestalpine

TATA Steel

ArcelorMittal

CSC

WISCO

Baosteel

Ansteel

Shougang

Benxi Steel

TISCO

Masteel

Stalprodukt S.A.

ATI

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➤Geographic Segmentation

North America

Europe

Asia-Pacific

Latin America

Middle East & Africa

North America

Europe

Asia-Pacific

Latin America

Middle East & Africa

Market Dynamics (Drivers, Restraints, Opportunities, and Challenges):

➤Drivers

Surging Demand for Electric Vehicles (EVs): The global shift towards sustainable transportation is one of the major drivers of electric steel. EVs require high-performance motors and transformers, both of which depend on electric steel for optimal efficiency.

Expansion of Renewable Energy Infrastructure: Wind turbines and solar energy systems rely on high-grade electric steel to facilitate efficient energy conversion and minimize losses.

Grid Modernization Projects: Many countries are investing heavily in upgrading their electrical transmission and distribution networks. This calls for efficient transformer cores and high-performance electrical components, spurring electric steel consumption.

Industrial Automation and Robotics: As smart manufacturing becomes the norm, the use of electric motors and automation systems is proliferating, driving demand for electric steel components.

Surging Demand for Electric Vehicles (EVs): The global shift towards sustainable transportation is one of the major drivers of electric steel. EVs require high-performance motors and transformers, both of which depend on electric steel for optimal efficiency.

Expansion of Renewable Energy Infrastructure: Wind turbines and solar energy systems rely on high-grade electric steel to facilitate efficient energy conversion and minimize losses.

Grid Modernization Projects: Many countries are investing heavily in upgrading their electrical transmission and distribution networks. This calls for efficient transformer cores and high-performance electrical components, spurring electric steel consumption.

Industrial Automation and Robotics: As smart manufacturing becomes the norm, the use of electric motors and automation systems is proliferating, driving demand for electric steel components.

➤Restraints

High Production Costs: The manufacturing process of electric steel involves precision and quality control, especially for grain-oriented types. The costs associated with producing high-grade electric steel can be restrictive, particularly for smaller players or emerging economies.

Availability of Alternatives: In some applications, alternative materials such as amorphous steel or advanced composites may offer comparable performance, posing competition to conventional electric steel products.

High Production Costs: The manufacturing process of electric steel involves precision and quality control, especially for grain-oriented types. The costs associated with producing high-grade electric steel can be restrictive, particularly for smaller players or emerging economies.

Availability of Alternatives: In some applications, alternative materials such as amorphous steel or advanced composites may offer comparable performance, posing competition to conventional electric steel products.

➤Opportunities

Emerging Markets in Asia and Africa: Rapid industrialization and infrastructure development in countries such as India, Vietnam, and Nigeria are creating lucrative opportunities for market expansion.

Smart Grids and Energy Storage Systems: The integration of IoT and AI in smart grid systems is accelerating the demand for advanced magnetic materials, including electric steel.

Government Incentives and ESG Initiatives: Policies encouraging energy efficiency and sustainable development are pushing OEMs and utilities to adopt electric steel for eco-friendly operations.

Emerging Markets in Asia and Africa: Rapid industrialization and infrastructure development in countries such as India, Vietnam, and Nigeria are creating lucrative opportunities for market expansion.

Smart Grids and Energy Storage Systems: The integration of IoT and AI in smart grid systems is accelerating the demand for advanced magnetic materials, including electric steel.

Government Incentives and ESG Initiatives: Policies encouraging energy efficiency and sustainable development are pushing OEMs and utilities to adopt electric steel for eco-friendly operations.

➤Challenges

Raw Material Price Volatility: The fluctuating prices of iron ore and silicon can disrupt the supply chain and affect the profitability of electric steel manufacturers.

Technological Barriers: Continuous innovation is required to improve magnetic properties and reduce core losses, which demands significant R&D investment and expertise.

Supply Chain Disruptions: Events such as geopolitical tensions, trade restrictions, or pandemics can lead to production delays and inventory shortages, affecting market stability.

Raw Material Price Volatility: The fluctuating prices of iron ore and silicon can disrupt the supply chain and affect the profitability of electric steel manufacturers.

Technological Barriers: Continuous innovation is required to improve magnetic properties and reduce core losses, which demands significant R&D investment and expertise.

Supply Chain Disruptions: Events such as geopolitical tensions, trade restrictions, or pandemics can lead to production delays and inventory shortages, affecting market stability.

➤FAQs:

1. What is the current market size of the Electric Steel Market?

➤The global Electric Steel market was valued at USD 26,130 million in 2023 and is projected to reach USD 38,498.51 million by 2032.

2. Which are the key companies operating in the Electric Steel Market?

➤Leading companies include JFE Steel, NLMK Group, POSCO, NSSMC, ThyssenKrupp, AK Steel, and Baosteel, among others.

3. What are the key growth drivers in the Electric Steel Market?

➤Major drivers include rising demand for electric vehicles, renewable energy expansion, smart grid development, and industrial automation.

4. Which regions dominate the Electric Steel Market?

➤Asia-Pacific is the leading region, followed by North America and Europe in terms of market size and industrial adoption.

5. What are the emerging trends in the Electric Steel Market?

➤Emerging trends include smart grid applications, increased R&D in energy-efficient materials, and the adoption of electric steel in AI-driven manufacturing and robotics.

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