Non-oriented Silicon Steel for New Energy Vehicle Market by Thickness, Coating Type, Application, Vehicle Type, End Use, Sales Channel

Description

List of Tables

The Non-oriented Silicon Steel for New Energy Vehicle Market was valued at USD 3.36 billion in 2025 and is projected to grow to USD 3.58 billion in 2026, with a CAGR of 6.55%, reaching USD 5.25 billion by 2032.

KEY MARKET STATISTICS
Base Year [2025]	USD 3.36 billion
Estimated Year [2026]	USD 3.58 billion
Forecast Year [2032]	USD 5.25 billion
CAGR (%)	6.55%

The accelerating transition to electrified powertrains has placed non-oriented silicon steel at the center of design, manufacturing, and procurement conversations across the automotive sector. As motors, reactors, inductors, and transformers evolve under the twin pressures of performance demand and cost sensitivity, material choices that balance magnetic properties, manufacturability, and lifecycle durability have become mission critical for vehicle OEMs and system suppliers alike. This introduction clarifies why non-oriented silicon steel, with its unique combination of isotropic magnetic characteristics and formability, is indispensable for core electromagnetic components in new energy vehicles and how it supports broader system-level gains in efficiency and reliability.

In recent product generations, designers have leaned into thinner gauge materials to reduce core losses while also exploring coating and lamination techniques that improve thermal stability and enable higher frequency operation. Concurrently, innovation has not been limited to material chemistry; manufacturing processes including cold rolling, annealing, and insulating coating technologies have been refined to meet stricter geometric and electromagnetic tolerances. The aggregate effect is that material specification is no longer a commoditized procurement exercise but rather an integral contributor to vehicle-level performance outcomes and supplier differentiation.

This introduction frames the subsequent sections by establishing the technical and commercial context: stakeholders must evaluate materials, designs, and supply chain structures together, and strategic decisions around specification, sourcing, and alliance formation will materially influence competitiveness in electric powertrain markets.

How technological progress and supply chain realignments are reshaping material requirements and competitive dynamics in electric vehicle power systems

The landscape for non-oriented silicon steel in vehicle electrification is undergoing transformative shifts driven by concurrent technological advances and macro policy changes. On the technology front, electromobility architectures are migrating toward higher power density motors and more complex power electronics, pressing material suppliers to deliver lower core losses, tighter thickness tolerances, and improved surface insulation. Manufacturers are responding with iterative enhancements to grade chemistries and thermal treatment protocols that yield better magnetic permeability and reduced hysteresis, enabling motors to operate more efficiently across a wider speed and torque envelope.

At the same time, the industry is witnessing a reconfiguration of supply chain strategies. OEMs and Tier 1 suppliers are deepening collaboration with steelmakers and coating specialists to secure qualified supply, invest in co-development of tailored grades, and shorten qualification timelines for new materials. This collaborative posture is reinforced by procurement stakeholders who prioritize resilient multi-sourcing and regional diversification to buffer against trade policy shifts and logistical disruptions. Parallel to these supply-side adaptations, manufacturers are optimizing component designs to be more material-efficient, leveraging simulation-driven design and automated stamping to extract incremental improvements in magnetics while reducing scrap and processing costs.

Together, these technological and commercial dynamics are accelerating product differentiation around material specification and process capability, reshaping how competitiveness is defined in the new energy vehicle ecosystem.

Assessing the structural effects of United States tariff changes in 2025 on sourcing strategies, supplier relationships, and supply chain resilience

United States tariffs implemented in 2025 introduced a new variable that companies must integrate into sourcing, pricing, and product development planning. The tariff measures created immediate pressure on global procurement strategies, prompting manufacturers to re-evaluate existing supplier contracts, explore alternative regional sources, and accelerate qualification of domestically produced or duty-exempt materials. In response, several OEMs and component suppliers moved to secure longer-term supply agreements and to negotiate value-sharing mechanisms that mitigate near-term cost impacts while preserving project timelines.

The tariff environment has also triggered a reassessment of inventory strategy and logistics. Firms shifted from just-in-time reliance toward buffered inventory positions for critical grades and thicknesses to avoid single-point disruptions. For companies with vertically integrated capabilities, the situation reinforced the strategic value of in-house processing and localized finishing capacity. Meanwhile, suppliers that could demonstrate tariff mitigation through regional production footprints or trade preference utilization gained a procurement advantage.

Beyond tactical sourcing changes, the 2025 tariff actions have amplified the strategic importance of supplier relationship management and material qualification agility. Organizations with established co-development pathways and flexible procurement playbooks were able to translate policy disruption into competitive repositioning by rapidly qualifying alternate grades, adjusting component designs to accommodate available thicknesses, and leveraging contractual instruments to stabilize supply and pricing for critical vehicle programs.

Comprehensive segmentation-driven insights linking application types, thickness classes, grades, and channels to material selection and component performance

Insightful segmentation is essential to align product strategy with application-specific electromagnetic requirements, manufacturing constraints, and commercial channels. Based on application, the market spans inductors, motor cores, reactors, and transformers, where inductors are further differentiated into choke and filter variants, motor cores distinguish between rotor core and stator core, reactors are categorized as AC reactor and DC reactor, and transformers are evaluated across distribution transformer and power transformer applications; this application-level granularity informs which magnetic properties and dimensional controls are prioritized during material selection and component design.

When analyzed by thickness, material behavior and processing choices diverge between the narrow bands represented by 0.24-0.27 mm, thinner gauges at or below 0.23 mm, and thicker variants above 0.27 mm; thinner gauges typically support lower core loss at higher frequencies but require tighter rolling and handling protocols, while thicker gauges can offer advantages in mechanical robustness and stamping cost efficiency. Material grade distinctions such as M270-50A, M300-50A, and M330-50A reflect incremental differences in silicon content, grain structure, and magnetic performance, and these grades are selected to balance permeability, processing ease, and cost considerations based on component function.

Vehicle type segmentation identifies the differing demands from battery electric vehicles (BEV), hybrid electric vehicles (HEV), and plug-in hybrid electric vehicles (PHEV), with BEV platforms often driving higher continuous power densities and therefore stricter magnetic loss requirements. Coating-type choices-Glass, Organic, and Uncoated-impose downstream processing and thermal behavior implications, influencing lamination insulation, heat dissipation, and corrosion resistance. End use contexts, distinguished between commercial vehicles and passenger cars, create divergent priorities around durability, duty cycle, and unit economics. Finally, the sales channel split between aftermarket and OEM emphasizes that qualification cycles, certification demands, and procurement lead times differ substantially depending on whether materials are destined for original equipment production or service and repair markets. Integrating these segmentation lenses enables a nuanced approach to product development, supplier selection, and commercialization strategies.

Regional supply chain and demand dynamics that determine strategic localization, resilience, and sourcing choices across global automotive markets

Regional patterns shape both supply and demand dynamics and should inform strategic investment and sourcing decisions across the value chain. In the Americas, emphasis is placed on securing nearshoring opportunities, expanding localized finishing capabilities, and aligning with automotive manufacturers accelerating EV programs; policy incentives and industrial initiatives are encouraging greater domestic processing capacity for critical electrical steels. Europe, Middle East & Africa combines advanced manufacturing practices with stringent regulatory expectations for efficiency and sustainability, creating a climate where high-performance grades and traceable supply chains are prioritized by OEMs and suppliers focused on premium and commercial vehicle segments. Asia-Pacific remains the dominant center of materials production and processing innovation, with integrated supply networks, scale advantages, and strong downstream clustering that support rapid qualification cycles and cost-competitive offers.

Across all regions, trade policy, logistics infrastructure, and labor skill composition influence where value is captured along the supply chain. Regional demand profiles also vary; commercial vehicle electrification timelines and passenger car adoption rates differ by market, which affects the relative attractiveness of investing in localized capacity versus leveraging global sourcing. For companies evaluating expansion or partnership, balancing the cost and speed benefits of Asia-Pacific production with the resilience and proximity advantages offered by localized Americas or EMEA capacity will determine how effectively they can meet regional program requirements and respond to evolving procurement preferences.

Competitive landscape overview emphasizing material innovation, processing control, and strategic partnerships that accelerate automotive qualification

Industry participants encompass a mix of integrated steelmakers, specialized electrical steel producers, coating and finishing specialists, and component-level manufacturers that jointly determine the competitive frontier. Leading materials suppliers are differentiating through grade innovation, control of finishing processes such as annealing and coating, and investments in quality systems that shorten qualification cycles for automotive programs. Component manufacturers and motor designers that partner early with material suppliers are achieving better alignment between electromagnetic performance requirements and manufacturing realities, yielding lower program risk and improved time-to-market.

Service providers and solution integrators that offer end-to-end capability-spanning coil processing, stamping, lamination assembly, and validation testing-are becoming strategic partners for OEMs seeking consolidated supply agreements and simplified validation pathways. Tiered supplier models persist, with global producers serving high-volume programs and regional specialists addressing customized or niche performance needs. Mergers, strategic alliances, and targeted capacity expansions are visible as companies pursue cost optimization and technical differentiation. The competitive landscape rewards firms that combine a clear roadmap for material innovation with demonstrable process control, supplier transparency, and an ability to support rigorous automotive qualification protocols.

Actionable recommendations for leaders to align material innovation, supplier strategies, and operational resilience for electric vehicle programs

Industry leaders should adopt a multi-dimensional playbook that combines technical investment, commercial agility, and supply chain resilience to capitalize on demand for high-performance non-oriented silicon steel in electric vehicles. Prioritize development programs that co-optimize grade chemistry and thermal processing to target the loss profiles required by high-power BEV motors while maintaining manufacturability for high-volume production. This technical focus should be complemented by investments in coating technology and lamination practices that preserve magnetic performance under real-world thermal and mechanical stresses.

From a commercial perspective, diversify sourcing strategies by securing dual or regional suppliers for critical thicknesses and grades, and establish contractual mechanisms that share risk across the supplier network. Strengthen supplier co-development agreements to accelerate qualification cycles and to ensure rapid responsiveness to design changes. Operationally, expand capabilities in localized finishing or form-slitting to shorten lead times and to mitigate tariff and logistics exposure. Finally, embed scenario-based trade policy and logistics stress testing into procurement planning so that teams can pivot quickly between supply alternatives while preserving program timelines and cost targets.

Research methodology combining primary stakeholder interviews, technical literature review, and scenario-driven supply chain analysis to ensure robust conclusions

This research synthesizes primary interviews with technical and commercial stakeholders across the non-oriented silicon steel and automotive supply chain, supplemented by a structured review of publicly available technical literature, industry standards, and recent regulatory actions that affect trade and manufacturing. Primary sources included discussions with materials engineers, motor designers, procurement leads, and processing specialists who provided insight into grade selection rationale, qualification hurdles, and supplier performance under program constraints. Secondary analysis focused on process technology trends, coating innovations, and regional policy developments that influence capacity planning and investment decisions.

Analytical methods combined qualitative synthesis with comparative capability mapping to identify where material properties align with component-level requirements, and to highlight where supply chain bottlenecks are most likely to emerge. Scenario analysis was used to stress-test sourcing strategies under different trade and logistics conditions while supplier capability assessments prioritized processing control, quality systems, and co-development track records. Wherever possible, findings were validated through cross-referencing multiple independent sources and technical experts to ensure robustness and to reduce single-source bias in conclusions.

Conclusion synthesizing technical progress, supply chain imperatives, and strategic imperatives shaping the future of silicon steel in electrified mobility

Non-oriented silicon steel is positioned as a foundational enabler of improved electric motor and passive component performance in the ongoing vehicle electrification journey. Technological advances in grade formulation, thinner gauge processing, and coating systems are directly translating into incremental gains in efficiency and power density that, when coupled with optimized stamping and lamination practices, deliver material benefits at the vehicle system level. Commercially, the sector is adapting to a more complex procurement environment where trade policy, regional capacity, and supply resilience are as consequential as technical specifications.

Moving forward, success in this domain will favor organizations that integrate material science capability with a flexible, regionally informed sourcing strategy and that cultivate deep supplier partnerships to accelerate qualification and co-development. Firms that build localized finishing capabilities and that can demonstrate traceable, high-quality supply will be better positioned to manage policy volatility and to meet the accelerating timelines of electrified vehicle programs. In short, the combination of technical rigor, supplier collaboration, and strategic supply chain design will determine which companies capture long-term value as vehicle electrification progresses.

Product Code: MRR-AE420CB138F0

1. Preface

1.1. Objectives of the Study
1.2. Market Definition
1.3. Market Segmentation & Coverage
1.4. Years Considered for the Study
1.5. Currency Considered for the Study
1.6. Language Considered for the Study
1.7. Key Stakeholders

2. Research Methodology

2.1. Introduction
2.2. Research Design
- 2.2.1. Primary Research
- 2.2.2. Secondary Research
2.3. Research Framework
- 2.3.1. Qualitative Analysis
- 2.3.2. Quantitative Analysis
2.4. Market Size Estimation
- 2.4.1. Top-Down Approach
- 2.4.2. Bottom-Up Approach
2.5. Data Triangulation
2.6. Research Outcomes
2.7. Research Assumptions
2.8. Research Limitations

3. Executive Summary

3.1. Introduction
3.2. CXO Perspective
3.3. Market Size & Growth Trends
3.4. Market Share Analysis, 2025
3.5. FPNV Positioning Matrix, 2025
3.6. New Revenue Opportunities
3.7. Next-Generation Business Models
3.8. Industry Roadmap

4. Market Overview

4.1. Introduction
4.2. Industry Ecosystem & Value Chain Analysis
- 4.2.1. Supply-Side Analysis
- 4.2.2. Demand-Side Analysis
- 4.2.3. Stakeholder Analysis
4.3. Porter's Five Forces Analysis
4.4. PESTLE Analysis
4.5. Market Outlook
- 4.5.1. Near-Term Market Outlook (0-2 Years)
- 4.5.2. Medium-Term Market Outlook (3-5 Years)
- 4.5.3. Long-Term Market Outlook (5-10 Years)
4.6. Go-to-Market Strategy

5. Market Insights

5.1. Consumer Insights & End-User Perspective
5.2. Consumer Experience Benchmarking
5.3. Opportunity Mapping
5.4. Distribution Channel Analysis
5.5. Pricing Trend Analysis
5.6. Regulatory Compliance & Standards Framework
5.7. ESG & Sustainability Analysis
5.8. Disruption & Risk Scenarios
5.9. Return on Investment & Cost-Benefit Analysis

6. Cumulative Impact of United States Tariffs 2025

7. Cumulative Impact of Artificial Intelligence 2025

8. Non-oriented Silicon Steel for New Energy Vehicle Market, by Thickness

8.1. 0.24-0.27 Mm
8.2. <=0.23 Mm
8.3. >0.27 Mm

9. Non-oriented Silicon Steel for New Energy Vehicle Market, by Coating Type

9.1. Glass
9.2. Organic
9.3. Uncoated

10. Non-oriented Silicon Steel for New Energy Vehicle Market, by Application

10.1. Inductor
- 10.1.1. Choke
- 10.1.2. Filter
10.2. Motor Core
- 10.2.1. Rotor Core
- 10.2.2. Stator Core
10.3. Reactor
- 10.3.1. AC Reactor
- 10.3.2. DC Reactor
10.4. Transformer
- 10.4.1. Distribution Transformer
- 10.4.2. Power Transformer

11. Non-oriented Silicon Steel for New Energy Vehicle Market, by Vehicle Type

11.1. BEV
11.2. HEV
11.3. PHEV

12. Non-oriented Silicon Steel for New Energy Vehicle Market, by End Use

12.1. Commercial Vehicle
12.2. Passenger Car

13. Non-oriented Silicon Steel for New Energy Vehicle Market, by Sales Channel

13.1. Aftermarket
13.2. OEM

14. Non-oriented Silicon Steel for New Energy Vehicle Market, by Region

14.1. Americas
- 14.1.1. North America
- 14.1.2. Latin America
14.2. Europe, Middle East & Africa
- 14.2.1. Europe
- 14.2.2. Middle East
- 14.2.3. Africa
14.3. Asia-Pacific

15. Non-oriented Silicon Steel for New Energy Vehicle Market, by Group

15.1. ASEAN
15.2. GCC
15.3. European Union
15.4. BRICS
15.5. G7
15.6. NATO

16. Non-oriented Silicon Steel for New Energy Vehicle Market, by Country

16.1. United States
16.2. Canada
16.3. Mexico
16.4. Brazil
16.5. United Kingdom
16.6. Germany
16.7. France
16.8. Russia
16.9. Italy
16.10. Spain
16.11. China
16.12. India
16.13. Japan
16.14. Australia
16.15. South Korea

17. United States Non-oriented Silicon Steel for New Energy Vehicle Market

18. China Non-oriented Silicon Steel for New Energy Vehicle Market

19. Competitive Landscape

19.1. Market Concentration Analysis, 2025
- 19.1.1. Concentration Ratio (CR)
- 19.1.2. Herfindahl Hirschman Index (HHI)
19.2. Recent Developments & Impact Analysis, 2025
19.3. Product Portfolio Analysis, 2025
19.4. Benchmarking Analysis, 2025
19.5. Aperam S.A.
19.6. Baoshan Iron & Steel Co., Ltd.
19.7. Cleveland-Cliffs Inc.
19.8. JFE Steel Corporation
19.9. Nippon Steel Corporation
19.10. POSCO Holdings Inc.
19.11. Public Joint Stock Company Novolipetsk Steel
19.12. Tata Steel Limited
19.13. thyssenkrupp AG
19.14. voestalpine AG