This report provides a detailed analysis of the global electrical steel market from 2025 to 2032, with a focus on key trends, market dynamics, and the competitive landscape. The market is expected to grow at a compound annual growth rate (CAGR) of 6% during the forecast period, driven by factors such as increased demand for energy-efficient electric motors, transformers, and the growing adoption of renewable energy sources.
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Electrical steel, also known as silicon steel, is a critical material in the production of electrical transformers, electric motors, and other components of electrical systems. Its unique magnetic properties allow for the efficient transmission and generation of electrical energy, making it indispensable in a variety of industries. This market analysis explores the trends, drivers, challenges, and opportunities shaping the electrical steel market from 2025 to 2032.
Electrical steel is a specialized form of steel that is used for the production of electrical equipment due to its high magnetic permeability and low core loss. There are two main types of electrical steel:
Grain-Oriented Electrical Steel (GOES): Primarily used in transformers.
Non-Grain-Oriented Electrical Steel (NGOES): Used in electric motors and other rotating machines.
The electrical steel market is segmented by:
Product Type: Grain-Oriented Electrical Steel (GOES) and Non-Grain-Oriented Electrical Steel (NGOES).
End-Use Industry: Power Generation, Electrical Appliances, Automotive, Industrial Equipment, and Others.
Region: North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
Growing Demand for Electric Vehicles (EVs): The automotive industry is increasingly adopting electric powertrains, which require non-grain-oriented electrical steel for motor manufacturing. This is expected to drive significant growth in the electrical steel market.
Renewable Energy and Energy Storage: As global energy grids shift toward renewable sources, there is an increasing need for transformers and electrical equipment that use electrical steel to ensure efficient energy transmission and storage.
Technological Advancements: Advances in electrical steel production techniques, such as the development of high-silicon electrical steel, are improving material efficiency and lowering costs.
High Manufacturing Costs: The production of electrical steel, especially grain-oriented steel, involves advanced techniques that lead to higher manufacturing costs, which can be a barrier to adoption in some markets.
Environmental Concerns: The steel industry is energy-intensive, contributing to carbon emissions. Stringent environmental regulations could impact the growth of the electrical steel market.
Emerging Markets: Rapid industrialization in regions such as Asia-Pacific and Latin America presents significant growth opportunities for electrical steel, especially in the power generation and automotive sectors.
Smart Grids and Energy Storage Systems: As smart grids and energy storage systems become more prevalent, the demand for efficient electrical steel in transformers and other components is expected to rise.
Volatile Raw Material Prices: Fluctuations in the prices of raw materials such as iron ore and silicon can impact the overall cost structure of electrical steel production, potentially affecting market pricing.
The increasing focus on sustainable energy systems and electric mobility is prompting manufacturers to adopt more energy-efficient electrical steels that reduce energy losses and improve performance in transformers and electric motors. Innovations such as high-efficiency electrical steel are expected to play a significant role in supporting these goals.
Recent advancements in electrical steel coatings are enhancing the material's ability to resist corrosion and further reduce energy loss. This trend is expected to boost the demand for high-performance electrical steel in industrial applications.
The electrical steel market has seen a trend toward mergers and acquisitions as major players seek to strengthen their position in the supply chain, enhance technological capabilities, and expand their geographic footprint.
The global electrical steel market was valued at approximately USD XX billion in 2024 and is projected to grow at a CAGR of 6% from 2025 to 2032. By the end of the forecast period, the market is expected to reach USD XX billion.
Grain-Oriented Electrical Steel (GOES): Expected to dominate the market due to its widespread use in the power generation sector, especially in transformers.
Non-Grain-Oriented Electrical Steel (NGOES): Anticipated to see strong growth due to increasing demand in the automotive and industrial sectors.
Power Generation: This sector is expected to remain the largest consumer of electrical steel, driven by continued investments in energy infrastructure and renewable energy generation.
Automotive: With the rise of electric vehicles, the automotive sector is anticipated to see rapid growth in its demand for non-grain-oriented electrical steel.
Asia-Pacific: Dominates the global electrical steel market, primarily driven by China, Japan, and India. The region's strong manufacturing base in automotive, industrial equipment, and power generation is a key contributor to market growth.
North America: The market in North America is expected to witness steady growth, with increasing investments in renewable energy and electric mobility.
Europe: A strong focus on sustainable energy and electric vehicles will drive the demand for electrical steel in this region.
ArcelorMittal: A leading player in the global electrical steel market, known for its wide product portfolio and strong market presence.
POSCO: One of the largest producers of electrical steel, with a significant share in both the GOES and NGOES segments.
Nippon Steel Corporation: A prominent player offering high-quality grain-oriented and non-grain-oriented electrical steel products.
JFE Steel Corporation: A major supplier of electrical steel, focusing on technological advancements in the production of energy-efficient steel products.
Key players are focusing on:
Expanding their manufacturing capabilities, particularly in emerging markets.
Innovating new high-efficiency steel variants to cater to the growing demand for energy-efficient products.
Forming strategic partnerships and alliances to enhance product offerings and expand geographic reach.