Press release
European Grain Oriented Electrical Steel Market Outlook 2025-2035: Key Developments and Future Scope
Grain Oriented Electrical Steel Market
According to recent market analysis, Europe represents a strategic region within the global grain oriented electrical steel landscape, reflecting steady demand for transformer applications and emerging growth in electric vehicle (EV) motor production. The market in Europe is projected to grow alongside global estimates, which forecast the GOES market increasing from USD 9.0 billion in 2025 to USD 15.8 billion by 2035, at a compound annual growth rate (CAGR) of 5.8%. European demand is particularly influenced by stringent energy efficiency regulations, smart grid integration, and investments in renewable energy infrastructure.
Market Size and Segment Insights
Transformers dominate the European GOES market, accounting for more than 60% of total demand. Power transformers, distribution transformers, and industrial transformers remain the primary end-use segments, while smart grid transformers are gaining traction due to their importance in modern electrical networks. Motor applications, particularly electric vehicle motors, represent a growing opportunity, reflecting Europe's push toward sustainable transportation and energy-efficient industrial machinery.
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Key Market Drivers
Energy Efficiency Imperatives:Increasing regulatory emphasis on reducing electricity loss and enhancing grid performance has accelerated adoption of high-grade GOES.
Electrification of Transport:The rising production of electric vehicles in Europe is driving demand for motors requiring advanced electrical steel grades.
Renewable Energy Integration:Expansion of wind, solar, and other renewable power infrastructure necessitates transformers and motors that maximize energy conversion efficiency.
Technological Advancements:Development of ultra-high performance steel grades with improved magnetic properties is enabling superior transformer and motor performance.
European Market Dynamics
Europe hosts both mature and emerging markets for GOES. Germany, France, and the UK are established markets with consistent transformer demand, while Eastern and Northern European countries are witnessing growing opportunities linked to grid modernization projects and renewable energy initiatives. Manufacturers are balancing high-performance, premium-grade steel offerings with cost-effective solutions to address diverse market requirements.
Competitive Landscape
The European market is highly competitive, featuring both global and regional players such as POSCO, ArcelorMittal, Baosteel Group Corporation, NIPPON STEEL CORPORATION, JFE Steel Corporation, and thyssenkrupp. Companies are investing in R&D to produce advanced GOES grades that deliver lower core losses, higher magnetic efficiency, and consistent quality across large-scale transformer and motor applications. Strategic collaborations and technology-focused innovation are expected to remain key competitive differentiators.
Challenges
Despite positive growth trends, the market faces constraints including raw material price volatility, high production costs for ultra-high-grade steel, and competition from alternative materials in niche applications. Additionally, regulatory compliance and performance standards necessitate continuous quality control and innovation, posing challenges for smaller manufacturers.
Strategic Implications
For manufacturers: Investing in R&D, expanding high-performance GOES production, and developing tailored solutions for transformers and EV motors will be critical for capturing market share.
For energy utilities and industrial users: Upgrading electrical infrastructure with GOES-enabled transformers and motors can enhance efficiency, reduce energy loss, and support sustainability targets.
For investors: Europe offers a stable growth environment with long-term demand in both conventional and emerging applications, providing opportunities for strategic investments in high-performance materials and manufacturing capacity expansion.
Outlook Summary
From 2025 to 2035, the European grain oriented electrical steel market is expected to witness steady growth, driven by energy efficiency mandates, electrification trends, and renewable energy adoption. As manufacturers innovate and invest in advanced steel grades, the region will continue to be a critical hub for GOES demand, supporting sustainable electrical infrastructure and high-performance industrial applications.
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