Electrical Steel Sheet Market is expected to exceed USD 78.43 billion by 2034

According to Exactitude Consultancy, the Electrical Steel Sheet Market was valued at USD 39.56 billion in 2024, and it is projected to reach USD 78.43 billion by 2034, growing at a CAGR of 7.1% from 2024 to 2034. The primary demand stems from automotive electrification, renewable energy deployment, and power grid modernization.

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Market Overview: Key Highlights
• Market Size (2024): USD 39.56 Billion
• Market Forecast (2034): USD 78.43 Billion
• CAGR (2024-2034): 7.1%
• Key Drivers: Rising EV production, smart grid upgrades, industrial electrification
• Challenges: Raw material price volatility, capital-intensive manufacturing
• Leading Players: ArcelorMittal, Nippon Steel Corporation, POSCO, JFE Steel Corporation, Tata Steel, Voestalpine AG
Electrical steel is no longer a commodity-it's a strategic material enabling low-loss power systems, especially as the world transitions to low-carbon energy.

Segmentation Analysis
By Type:
• Grain-Oriented Electrical Steel (GOES)
• Non-Grain-Oriented Electrical Steel (NGOES)

By Thickness:
• Below 0.23 mm
• 0.23-0.27 mm
• Above 0.27 mm

By Application:
• Transformers
• Motors
• Generators
• Inductors

By End-Use Industry:
• Automotive
• Energy & Power
• Industrial Machinery
• Household Appliances
• Construction

Summary:
Grain-oriented electrical steel is dominant in transformer cores due to its high magnetic flux density. However, non-grain-oriented electrical steel is growing faster, especially in EV motors, industrial drives, and appliance manufacturing. The thickness segment below 0.23 mm is in high demand for high-speed and high-frequency applications.

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Regional Analysis
North America:
• Demand rising from EV motor production, wind energy projects, and modernization of old transmission lines.
• The U.S. Inflation Reduction Act (IRA) incentivizes local steel production for clean energy and mobility.
Europe:
• Germany and France lead in wind energy, hydrogen power, and electrified transport systems.
• Stringent EU energy efficiency policies drive advanced steel sheet adoption.
Asia-Pacific:
• Largest and fastest-growing market, led by China, Japan, India, and South Korea.
• China is the global hub for transformer and motor manufacturing, while India ramps up EV policies and industrial electrification.
• Japan continues to lead in advanced steel alloys for automotive giants.
Middle East & Africa:
• Steady demand from power transmission and infrastructure projects.
• Gulf nations are exploring local manufacturing for energy diversification.
Latin America:
• Brazil and Mexico support transformer exports and growing automotive electrification efforts.
• Hydroelectric and solar infrastructure expansions fuel demand.

Summary:
Asia-Pacific dominates both production and consumption due to strong domestic industries and infrastructure growth. However, North America and Europe are increasing investments in localized and sustainable electrical steel production to reduce import dependency and support energy transition targets.

Market Dynamics
Key Growth Drivers:
• EV Revolution: Electrical steel is a critical material in traction motors, onboard chargers, and battery cooling systems for electric vehicles. With EV sales growing globally, demand for high-performance steel is surging.
• Renewable Energy and Smart Grids: Wind turbines, solar inverters, and grid transformers rely on high-grade electrical steel to optimize energy transmission and reduce losses.
• Industrial Electrification: As factories adopt energy-efficient motors and systems, electrical steel becomes essential in motor cores and drives.
• Government Regulations and Incentives: Global policies targeting net-zero emissions are prompting power and transport sectors to upgrade to high-efficiency technologies using advanced magnetic materials.
• Transformer Replacement Boom: Aging transformer fleets, particularly in the U.S., EU, and Japan, are being replaced with new energy-efficient units built with grain-oriented steel sheets.

Key Challenges:
• Raw Material Costs: Fluctuations in iron ore, silicon, and energy prices affect profit margins.
• Manufacturing Complexity: Producing high-grade steel sheets with precise grain orientation and thickness demands expensive equipment and skilled labor.
• Limited Suppliers: The market is concentrated among a few global players, leading to supply chain vulnerability, especially in times of geopolitical tension.
• Recycling Purity Issues: Electrical steel recycling remains limited due to contamination risks, especially in high-purity grain-oriented grades.

Latest Trends:
• Ultra-Thin Electrical Steel (≤0.2 mm): Gaining traction in next-gen EV motors and AI data centers for compact, efficient power delivery.
• High Silicon Content Steel: Enhancing electrical resistivity and reducing core losses, especially in AI chips and server power systems.
• Localized Production: Governments in the U.S., India, and EU pushing for domestic production of electrical steel to reduce reliance on imports.
• Green Steel Initiatives: Manufacturers adopting low-carbon and hydrogen-based steelmaking processes to align with ESG goals.
• Digital Quality Control: AI-enabled inspection and predictive defect analysis improving product consistency and throughput.

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Competitor Analysis
Top Market Players:
1. ArcelorMittal - Leading in NGOES for automotive and electrical equipment; investing in green steel technologies.
2. Nippon Steel Corporation - Known for super-high-grade GOES for high-efficiency transformers.
3. POSCO - South Korean giant offering high-quality NGOES for EVs and industrial drives.
4. JFE Steel Corporation - Supplies ultra-thin, high-grade steel for next-gen EV applications.
5. Tata Steel - Strong presence in India and Europe; ramping up electrical steel production in Odisha, India.
6. Voestalpine AG - Focused on specialized electrical steels for aerospace and industrial automation.
7. Baowu Steel Group - China's largest steelmaker with rapid expansion in electrical steel capacity.
8. AK Steel (Cleveland-Cliffs) - Major U.S. supplier for domestic transformer and automotive OEMs.
9. Thyssenkrupp AG - Developing high-silicon, low-loss grades for EU EV manufacturers.
10. JSW Steel - Expanding electrical steel portfolio in response to India's power sector reforms.

Summary:
The competitive landscape is shaped by technological innovation, capacity expansion, and green manufacturing. While legacy players dominate high-performance segments, new entrants and joint ventures in Asia and Latin America are narrowing the gap with regionally optimized offerings.

Conclusion: Energizing the Future with Efficient Materials
The global electrical steel sheet market is positioned as a key enabler of the net-zero energy transition, electrified transportation, and next-gen industrial automation. With increasing regulations demanding energy efficiency, and as global manufacturing pivots to greener materials, electrical steel will remain a strategic component in powering tomorrow's infrastructure.

With a projected CAGR of 7.1% and revenue set to nearly double by 2034, this market is not only robust-it's essential. Companies investing in high-grade, sustainable, and customized steel offerings are well-positioned to lead this transformative decade.

Key Takeaways:
• Grain-oriented steel dominates in transformers; NGOES rapidly growing in EVs and motors.
• Asia-Pacific leads in production and demand, but Western regions are localizing supply chains.
• EVs, renewable energy, and industrial electrification are key growth verticals.
• Innovation in thin-gauge, high-silicon steel, and AI-driven quality control is reshaping the market.
• Green steel and ESG compliance are becoming major differentiators for global players.

This report is also available in the following languages : Japanese (電磁鋼板市場), Korean (전기강판 시장), Chinese (电工钢板市场), French (Marché des tôles d'acier électriques), German (Markt für Elektrostahlbleche), and Italian (Mercato della lamiera di acciaio elettrico), etc.

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