India Electrical Steel Market Growth, Share, and Trends Report 2025-2033

Market Overview:

According to IMARC Group's latest research publication, "India Electrical Steel Market Size, Share, Trends and Forecast by Type, Application, End Use Industry, Region, and Company, 2025-2033", the India electrical steel market size reached USD 1.3 Billion in 2024. Looking forward, the market is expected to reach USD 2.6 Billion by 2033, exhibiting a growth rate (CAGR) of 8.06% during 2025-2033.

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

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Our report includes:
● Market Dynamics
● Market Trends and Market Outlook
● Competitive Analysis
● Industry Segmentation
● Strategic Recommendations

Growth Factors in the India Electrical Steel Market

● Renewable Energy Revolution Driving Transformer Demand

India's electrical steel market is experiencing tremendous momentum as the country pushes aggressively toward its renewable energy targets. The government has set an ambitious goal of installing 500 GW of non-fossil fuel-based energy capacity, and as of recent counts, renewable energy sources including large hydropower have achieved a combined installed capacity exceeding 191 GW. This massive infrastructure buildout requires an enormous quantity of transformers-each one needing electrical steel at its core. Think about what's happening on the ground: solar parks are being developed across 12 states with individual capacities of 500 MW or more, wind energy installations are expanding rapidly in states like Gujarat, Maharashtra, Karnataka, and Rajasthan, and all of this renewable generation needs to be connected to the grid through high-efficiency transformers. The Production Linked Incentive scheme has expanded domestic solar PV module manufacturing to 40 GW, creating parallel demand for electrical components. What makes this particularly significant for electrical steel is that renewable energy integration demands advanced transformer technologies capable of handling variable power loads-these aren't your standard transformers; they require premium-grade electrical steel with superior magnetic properties. Grid modernization initiatives like the National Smart Grid Mission are pushing utilities to upgrade transmission infrastructure, which means replacing older, less efficient transformers with modern ones that minimize energy losses. The government's Green Energy Corridor Phase II projects have allocated substantial capital expenditure for establishing transmission lines and substations-in Uttar Pradesh alone, over 154,000 MVA of transformers are operating at different voltage levels, and similar expansions are happening across the country. This isn't just about meeting today's needs; the National Electricity Plan projects India's electricity generation will nearly double from current levels, creating sustained long-term demand for electrical steel products.

● Electric Vehicle Surge Creating Motor Manufacturing Boom

The automotive sector's transformation toward electric mobility is fundamentally reshaping demand patterns in the electrical steel market. India's EV market is projected to grow substantially in the coming years, with industry estimates suggesting compound growth that will make the country one of the world's largest EV markets. The government's FAME scheme has been extended and enhanced with doubled budgetary allocations to subsidize approximately 1.6 million vehicles, creating direct downstream demand for electric motors that rely heavily on non-grain oriented electrical steel. What's particularly interesting is how this affects manufacturing economics-each electric vehicle contains motors that require significantly more electrical steel than traditional automotive applications. EV traction motors need materials with high permeability and efficiency across varying frequencies to deliver optimal performance. The PM Surya Ghar scheme announced in early 2024 aims to install rooftop solar panels across millions of households, and each installation includes inverters and related electrical components that use electrical steel. Beyond passenger vehicles, commercial EV adoption is accelerating-electric buses, delivery vans, and two-wheelers are all entering production at scale. This creates multiple demand streams: the motors themselves, charging infrastructure transformers, and the broader electrical ecosystem supporting EV operations. Manufacturing localization is a key theme here. Major automotive companies are establishing EV production facilities across the country, particularly in states with strong industrial ecosystems. These facilities need reliable local supply chains for critical components, making domestic electrical steel production increasingly valuable. The intersection of renewable energy and electric mobility amplifies demand further-as EVs charge using renewable power, the entire value chain from generation through transmission to end-use application relies on electrical steel products.

● Strategic Joint Ventures Establishing Domestic Manufacturing Capabilities

A defining feature of India's electrical steel market evolution is the formation of major industrial partnerships aimed at building world-class domestic production capacity. JSW Steel and Japan's JFE Steel Corporation have established a groundbreaking joint venture that represents one of the most significant investments in the specialty steel sector. In early 2024, these companies held a groundbreaking ceremony in Bellary, Karnataka for a facility that will become India's first fully integrated grain-oriented electrical steel manufacturing plant. The total investment commitment across their multiple facilities has reached approximately Rs 15,560 crore, with the Karnataka plant planned for 100,000 tonnes per annum capacity and the Nashik facility being expanded to 250,000 tonnes per annum. What makes this particularly significant is that the venture acquired thyssenkrupp Electrical Steel India's operations for over Rs 4,000 crore, immediately gaining market access and manufacturing expertise that had taken years to develop. Full production is targeted for fiscal year 2027, with special focus on high permeability grades that are essential for energy-efficient transformers. This isn't just about capacity addition; it represents technology transfer at a fundamental level. JFE Steel brings decades of research and development in producing high-grade electrical steel with superior energy efficiency characteristics. By manufacturing these advanced grades domestically, India can reduce dependence on imports while ensuring consistent supply for strategic sectors. The implications extend beyond the immediate participants-these facilities will train skilled workforce, develop local supplier networks for ancillary materials, and establish quality standards that will benefit the broader industry. The timing aligns perfectly with government initiatives like "Make in India" and "Atmanirbhar Bharat" that emphasize self-reliance in critical industrial materials. Multiple facility locations in Karnataka and Maharashtra position production close to major consumption centers while leveraging these states' strong industrial infrastructure and proximity to ports for any export opportunities.

Key Trends in the India Electrical Steel Market

● Transformers Dominating Application Segments with Motors Showing Rapid Growth

The application landscape for electrical steel reveals interesting dynamics between established and emerging demand centers. Transformers currently represent the largest application segment, accounting for the majority of electrical steel consumption. This dominance reflects transformers' fundamental role in power generation, transmission, and distribution systems-every point where voltage needs stepping up or down requires a transformer, and every transformer core needs electrical steel. The complexity and scale of India's electrical grid create enormous ongoing demand. High-voltage power transformers used in transmission networks, distribution transformers serving local areas, and specialized transformers for industrial applications all consume substantial quantities. With grid modernization accelerating, replacement demand adds to new installations. Government schemes like the Deendayal Upadhyaya Gram Jyoti Yojana and Integrated Power Development Scheme focus specifically on strengthening transmission and distribution networks, translating directly into transformer orders. What's particularly noteworthy is the quality shift happening within transformer demand-utilities and industrial users increasingly specify energy-efficient transformers to reduce transmission losses and operating costs. This creates preference for grain-oriented electrical steel with superior magnetic properties over conventional grades. The motor segment, while currently smaller, is exhibiting the fastest growth trajectory. Electric motors are everywhere-industrial machinery, household appliances, HVAC systems, and of course, electric vehicles. The motor application segment benefits from multiple growth drivers operating simultaneously: industrial expansion creating demand for manufacturing equipment, rising household incomes driving appliance purchases, infrastructure development requiring construction equipment, and the EV revolution creating entirely new motor demand. Non-grain oriented electrical steel dominates motor applications due to its uniform magnetic properties in all directions, matching the performance requirements of rotating machinery. Innovation in motor design is pushing electrical steel specifications-manufacturers want thinner laminations, tighter tolerances, and improved magnetic characteristics to achieve higher efficiency ratings.

● Regional Distribution Reflecting Industrial and Infrastructure Development Patterns

The geographical spread of electrical steel demand across India follows industrial concentration and infrastructure investment patterns closely. North India represents substantial consumption driven by multiple factors: the region includes Delhi's massive urban load centers, Uttar Pradesh's large population and expanding industrial base, and Punjab and Haryana's agricultural pump load. Uttar Pradesh alone has operational electricity generation tied-up capacity exceeding 40,000 MW, with over 50,000 circuit kilometers of transmission lines and 624 substations established. The state has allocated nearly Rs 18,000 crore for Green Energy Corridor Phase II projects. This infrastructure density creates consistent demand for transformers and related electrical steel. West and Central India forms another major consumption zone, with Maharashtra leading due to its economic strength and industrial diversity. Mumbai's position as India's financial and commercial capital drives substantial transformer demand for commercial complexes, data centers, and urban infrastructure. Gujarat's prosperous industrial landscape, particularly in sectors like chemicals, textiles, and manufacturing, creates varied electrical steel demand across applications. Madhya Pradesh's mineral resources and developing industrial corridors contribute to regional consumption. South India's demand profile reflects the region's technology sector prominence and renewable energy leadership. Karnataka houses Bengaluru's massive IT industry with enormous data center electrical loads requiring specialized transformers. Tamil Nadu's manufacturing strength and wind energy installations drive motor and generator demand. Andhra Pradesh and Telangana are seeing rapid infrastructure development with growing urban centers. East and Northeast India, while currently representing smaller market share, shows promising growth potential. Bihar's population density and electrification efforts, West Bengal's industrial legacy around Kolkata, and Odisha's mineral wealth and emerging manufacturing hubs all contribute to expanding electrical steel requirements. The regional distribution is dynamic-as manufacturing activities spread beyond traditional industrial belts into second and third-tier cities, electrical steel demand follows.

● Technology Advancement and Product Specialization Driving Market Evolution

The electrical steel market is witnessing significant technological sophistication as manufacturers recognize that different applications demand specifically optimized materials. Grain-oriented electrical steel, with its superior magnetic properties in the rolling direction, remains the premium choice for transformer cores where magnetic flux follows a defined path. The specialized manufacturing process-involving precise control of crystal grain orientation-creates material with exceptionally low core losses and high magnetic permeability. Recent developments focus on ultra-low loss grades that further improve transformer efficiency. When you consider that transformers operate continuously for decades, even marginal efficiency improvements translate into substantial energy savings over their lifecycle. This makes higher-cost, higher-performance electrical steel economically attractive for utilities focused on reducing transmission losses. Non-grain oriented electrical steel continues evolving to meet motor application requirements. Manufacturers are developing grades with thinner gauges to reduce eddy current losses, higher silicon content to improve electrical resistivity, and tighter magnetic property tolerances to ensure consistent motor performance. The thickness reduction trend is particularly notable-moving from traditional thicknesses toward ultra-thin gauges requires sophisticated cold-rolling capabilities and precise process control. Quality assurance has become non-negotiable. Leading manufacturers implement stringent testing protocols covering magnetic properties, dimensional accuracy, surface quality, and coating characteristics. Advanced processing techniques like laser scribing create controlled domains in grain-oriented steel to further reduce losses. Coating technologies protect the steel surface while maintaining insulation between laminations when transformer cores are assembled. Innovation extends to sustainability aspects-manufacturers are exploring ways to reduce energy consumption in production processes, minimize waste, and improve recyclability. The carbon footprint of electrical steel production matters increasingly as customers seek materials aligned with environmental objectives. Some producers emphasize their use of electric arc furnace routes that generate lower emissions compared to traditional blast furnace steelmaking.

Leading Companies Operating in the India Electrical Steel Market:

● JSW Steel Limited
● Tata Steel Limited
● Steel Authority of India Limited (SAIL)

India Electrical Steel Market Report Segmentation:

Breakup by Type:
● Grain Oriented Electrical Steel
● Non-Grain Oriented Electrical Steel

Breakup by Application:
● Transformers
● Motors
● Generators
● Others

Breakup by End Use Industry:
● Energy and Power
● Automobiles
● Household Appliances
● Building and Construction
● Others

Regional Insights:
● North India
● West and Central India
● South India
● East and Northeast India

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

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This release was published on openPR.