Electrical Steel Market to Hit USD 88.9 Billion by 2035 - Growth Accelerates Across Asia-Pacific, North America, Europe, and China Driven by EV Boom and Renewable Energy Surge

The global electrical steel market is poised for robust expansion through 2035, fueled by electric vehicle (EV) proliferation, renewable energy infrastructure, and energy-efficient transformer demand. According to Future Market Insights (FMI), the market is valued at USD 47.8 billion in 2025 and is projected to reach USD 88.9 billion by 2035, expanding at a compound annual growth rate (CAGR) of 6.3%.

The FMI report, "Electrical Steel Market Size, Share, and Forecast 2025-2035," indicates global revenues will grow by over USD 41 billion over the decade, propelled by advancements in grain-oriented (GOES) and non-grain-oriented (NGOES) steels for motors, generators, and grid systems.

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A Decade of Growth Anchored by EV Adoption and Grid Modernization:

The shift toward high-efficiency magnetic cores and EV traction motors is reshaping supply chains. Between 2025 and 2030, the electrical steel market will expand by USD 18.5 billion, driven by transformer upgrades and wind turbine installations.

Between 2030 and 2035, FMI forecasts an additional USD 22.6 billion in market growth, reflecting scaled EV production exceeding 30 million units annually and HVDC transmission investments.

"Advanced NGOES is slashing motor core losses by up to 20% in high-performance EVs," said an FMI research analyst. "Meanwhile, domain-refined GOES is enabling 15% reductions in global transmission losses, aligning with IEA efficiency targets by 2030."

Electrical Steel Key Market Insights at a Glance:

Metric- Global Estimate

Market Value (2025)- USD 47.8 billion

Forecast Value (2035)- USD 88.9 billion

CAGR- 6.3%

Leading Segment- Transformers (43% share)

Key Type- Non-Grain-Oriented (widely used)

Fastest-Growing Application- Transformers (6.6% CAGR)

China: The Fastest-Growing Electrical Steel Market:

FMI's country-level analysis highlights China's dominance, with the market growing at a CAGR of 7.4% through 2035. Valued within the broader Asia-Pacific surge, China's expansion is powered by EV manufacturing, carbon neutrality policies, and power grid enhancements. Producers like Baowu Steel Group and Shougang are ramping up high-silicon and thin-gauge variants, supporting over 7 million tons of annual demand by 2030.

Regional procurement shifts favor localized supply, with NGOES for EV motors comprising 55% of new automotive orders. Renewable integrations, including 150 GW annual wind additions per BloombergNEF, further amplify GOES usage in turbine generators.

Electrical Steel Five Forces Driving Market Expansion:

EV Traction Motors: NGOES with superior permeability cuts losses by 20%, as seen in Tesla's 2024 deployments.

Renewable Infrastructure: Wind and solar inverter cores demand optimized magnetization for 150 GW+ annual additions.

Energy Efficiency Mandates: GOES-based transformers target 15% global loss reductions by 2030 per IEA.

R&D in Advanced Grades: High-silicon, domain-refined, and coated laminations minimize eddy currents.

Smart Grid Upgrades: Substation and HVDC systems prioritize ultra-high-efficiency thin-gauge steels.

Electrical Steel Market Segment Overview:

By Application: Transformers dominate with 43% global share in 2025, growing at 6.6% CAGR amid grid reliability and rural electrification.

By End Use: Household appliances hold 18% share, expanding at 5.8% CAGR via inverter-based efficiency standards like ENERGY STAR.

By Product Type: Non-grain-oriented electrical steel leads adoption, especially in EV motors and appliances; grain-oriented excels in transformers.

By Region: Asia-Pacific commands the largest volume, followed by North America and Europe; transformers and energy segments drive 60%+ of demand.

Electrical Steel Market Regional Overview:

Asia-Pacific: Fastest growth globally - led by China (7.4% CAGR), South Korea (6.7%), and Japan (5.9%).

North America: USA at 6.3% CAGR, bolstered by renewable investments and EV policies from players like Cleveland-Cliffs.

Europe: Germany (6.1% CAGR) and UK (5.8% CAGR) lead via automotive electrification and wind projects.

Middle East & Africa: Infrastructure in renewables supports steady uptake, though import-dependent.

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Electrical Steel Market Competitive Landscape:

* Nippon Steel Corporation

* POSCO

* ThyssenKrupp AG

* ArcelorMittal

* Voestalpine AG

* Baosteel Group

* JFE Steel Corporation

* Cleveland-Cliffs Inc.

* Tata Steel Limited

Collectively, Nippon Steel, POSCO, and ArcelorMittal hold over 45% market share. Recent moves include Nippon's Ultra-Loss-Core GOES launch (March 2025) for 12% loss reduction and POSCO's NGOES expansion (February 2025) for EV motors.

Electrical Steel Market Outlook: Magnetizing the Energy Transition

Over the next decade, electrical steel will pivot toward sustainability and precision, with ESG-compliant production and recycled content gaining traction. Thin-gauge innovations and AI-optimized coatings will set new benchmarks for hysteresis and eddy current losses.

"Electrical steel is the silent backbone of electrification-from EV drivetrains to renewable grids," the FMI analyst added. "Producers investing in low-carbon processes and high-frequency grades will capture premium segments in a net-zero world."

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