India Electrical Steel Market to Reach US$3.8 Bn by 2031, Expanding at a 10.5% CAGR | Persistence Market Research

The India electrical steel market is set to experience substantial growth, with its value projected to rise from US$1.9 Bn in 2024 to US$3.8 Bn by the end of 2031, expanding at a CAGR of 10.5%. Electrical steel is a critical material used in the production of motors, transformers, and other electrical equipment, making it an essential component in India's rapidly electrifying infrastructure.

This impressive market trajectory is largely driven by increasing demand for energy-efficient electrical systems, rapid urbanization, and the growing adoption of electric vehicles (EVs). The non-grain-oriented electrical steel segment is expected to lead due to its wide applicability in motors and rotating equipment. Regionally, Western India is anticipated to dominate the market, backed by heavy industrial investments, presence of manufacturing hubs, and government-led infrastructure upgrades.

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✅Key Highlights from the Report:

➤ The India electrical steel market is valued at US$1.9 Bn in 2024.
➤ It is expected to reach US$3.8 Bn by 2031, growing at a CAGR of 10.5%.
➤ Non-grain-oriented electrical steel is the leading product type segment.
➤ Western India is the leading regional market due to its strong industrial base.
➤ Market growth is driven by rising EV production and smart grid development.
➤ Increased focus on renewable energy integration is boosting transformer demand.

📊 Market Segmentation:

The India electrical steel market is segmented by product type, including grain-oriented and non-grain-oriented electrical steel. Among these, non-grain-oriented steel holds a dominant position, thanks to its widespread use in manufacturing motors, generators, and other dynamic equipment. Grain-oriented variants, while specialized, are primarily utilized in high-efficiency transformers due to their superior magnetic properties.

From an end-user perspective, the market caters to various sectors such as energy, automotive, appliances, and industrial machinery. The energy sector, in particular, remains a significant consumer owing to expanding transmission and distribution networks and increased focus on grid modernization. The automotive industry, especially EV manufacturers, is rapidly adopting electrical steel to enhance motor efficiency and reduce energy loss.

📊 Regional Insights:

Western India leads the market in terms of consumption and production, attributed to its high concentration of heavy industries, transformer manufacturers, and a proactive approach to adopting smart grid solutions. Maharashtra and Gujarat, in particular, play a pivotal role due to favorable industrial policies and infrastructure.

Southern India is also emerging as a promising region, with states like Tamil Nadu and Karnataka investing heavily in renewable energy and electric vehicle infrastructure. The region's robust presence of automotive manufacturing hubs further contributes to the rising demand for electrical steel.

Market Drivers

One of the primary market drivers is India's increasing investment in energy infrastructure, particularly smart grids and renewable energy integration. Electrical steel plays a vital role in transformers and rotating machines used in power generation, transmission, and distribution. Moreover, the government's Make in India initiative is encouraging domestic manufacturing of electrical equipment, boosting demand for high-quality electrical steel.

Another strong catalyst is the growth of the electric vehicle (EV) industry. As India pushes toward decarbonization and sustainable mobility, EV production is surging, which in turn drives the consumption of non-grain-oriented electrical steel used in high-efficiency motors and battery-powered drivetrains.

Market Restraints

Despite strong prospects, the market faces challenges such as volatility in raw material prices, which can significantly affect profit margins and pricing strategies for manufacturers. Furthermore, limited domestic capacity for high-grade electrical steel production makes India dependent on imports, which poses supply chain risks and increases operational costs.

Additionally, technological limitations in processing and refining specific grades of electrical steel domestically have slowed the growth pace. This issue has emphasized the need for enhanced R&D and upgraded manufacturing technologies within the country.

Market Opportunities

Ample market opportunities lie in import substitution and the expansion of value-added product lines. As India continues to develop its domestic electrical manufacturing ecosystem, there is a strong push to localize production of high-grade electrical steel, especially for advanced transformers and EV motors.

The government's focus on building a robust EV infrastructure, along with massive investments in renewable energy integration (like solar and wind), is expected to unlock long-term demand for electrical steel. These sectors require high-performance cores and magnetically efficient materials, aligning perfectly with the product offerings of this market.

👉Frequently Asked Questions (FAQs):

➡️How Big is the India Electrical Steel Market?
➡️Who are the Key Players in the Global Market for Electrical Steel?
➡️What is the Projected Growth Rate of the India Electrical Steel Market?
➡️What is the Market Forecast for Electrical Steel in India for 2031?
➡️Which Region is Estimated to Dominate the Electrical Steel Industry through the Forecast Period?

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📌 Key Players

The India electrical steel market features key domestic and international players actively expanding their footprints and improving production capabilities to meet growing demand:

✦ Tata Steel
✦ JSW Steel Ltd.
✦ JFE Steel Corporation
✦ POSCO
✦ ArcelorMittal Nippon Steel India
✦ Bhushan Power & Steel
✦ Steel Authority of India Limited (SAIL)
✦ Essar Steel
✦ Thyssenkrupp Electrical Steel
✦ AK Steel International

■ JSW Steel Ltd. announced capacity expansion plans to boost electrical steel production for the energy and automotive sectors.
■ Tata Steel introduced advanced grades of non-grain-oriented steel for energy-efficient motor applications, focusing on the EV segment.

Final Thoughts

India's electrical steel market is entering a transformative era, driven by strong policy support, an evolving industrial landscape, and rising technological adoption. With an anticipated market value of US$3.8 Bn by 2031 and a CAGR of 10.5%, the industry offers immense potential for stakeholders across the energy, automotive, and manufacturing sectors.

As India moves toward self-reliance in critical infrastructure materials and cleaner energy solutions, the role of electrical steel becomes ever more crucial. Strategic investments, innovation, and supportive policies will be key enablers in harnessing the full potential of this dynamic market.

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This release was published on openPR.