Global Electrical Steel Market - Forecasts from 2025 to 2030

The Global Electrical Steel Market is anticipated to increase from USD 42.245 billion in 2025 to USD 56.002 billion by 2030, with a 5.80% CAGR.

The electrical steel market is projected to grow in the forecast period, driven by increasing infrastructural development, rapid industrialization, urbanization, and rising demand in the power sector. Electrical steel, critical for applications such as solenoids, electric motors, generators, small relays, and other electromagnetic devices, is integral to the automotive and electric power distribution industries. The market's expansion is fueled by the global push for energy efficiency and environmental sustainability, spurred by stringent government regulations aimed at reducing CO2 emissions. However, volatile raw material prices, including iron ore, coal, industrial gases, and ferro-alloys, pose a significant challenge, as fluctuations increase production costs and impact the pricing of finished steel products like grain-oriented and non-grain-oriented electrical steel.

Market Drivers

The surge in demand for electric vehicles (EVs) and hybrid electric vehicles (HEVs) is a key driver, boosting the need for electrical steel in the automotive sector, particularly in the US, Canada, and Mexico. Rapid industrialization and population growth have escalated global energy consumption, increasing the demand for grain-oriented electrical steel used in high-powered transformers and motors, and non-grain-oriented electrical steel for household appliances like washing machines, refrigerators, and motors. The recyclable and corrosion-resistant nature of non-grain-oriented steel aligns with growing demand for sustainable household products. The addition of silicon to iron enhances electrical steel's properties, including high electrical resistivity, low hysteresis loss, low magnetostriction, and high permeability, making it ideal for efficient energy generation, distribution, and consumption. In India, steelmakers are focusing on producing cold-rolled grain-oriented (CRGO) electrical steel to reduce reliance on imports from China, Japan, and South Korea, aiming for self-sufficiency in transformer and motor manufacturing. Government initiatives promoting environmental sustainability and energy efficiency further support market growth through stricter regulations.

Market Restraints

The primary restraint for the electrical steel market is the volatility of raw material prices, which directly affects production costs. The steel industry relies heavily on iron ore, coal, and ferro-alloys, and unpredictable price fluctuations lead to higher costs for both grain-oriented and non-grain-oriented electrical steel, contributing to inflation in finished goods and posing challenges for manufacturers in maintaining competitive pricing.

Market Players

Key players in the electrical steel market include ArcelorMittal, POSCO, Baosteel Group Corporation, Voestalpine AG, Nippon Steel Corporation, ThyssenKrupp AG, Phoenix Mecano AG, NLMK, Nicore Electrical Manufactory Co Ltd., Leicong Industrial Co Ltd., Cogent Power Limited, and ATI. These companies are adopting strategies such as joint ventures, mergers, and acquisitions to expand their market presence and tap into emerging opportunities, particularly in untapped regions with high growth potential.

Geographical Outlook

The Asia Pacific region, led by countries like India, China, South Korea, and Japan, is expected to dominate the electrical steel market due to rapid industrialization, urbanization, and increasing energy demands. India's push for self-sufficiency in CRGO steel production and government-backed renewable energy initiatives further drive growth. North America follows, with strong demand in the automotive sector for EVs and HEVs. Europe and other regions also show growth potential, supported by infrastructure development and environmental regulations.

Key Benefits of this Report:

• Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, and other sub-segments.
• Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
• Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape future market developments.
• Actionable Recommendations: Utilize the insights to exercise strategic decisions to uncover new business streams and revenues in a dynamic environment.
• Caters to a Wide Audience: Beneficial and cost-effective for startups, research institutions, consultants, SMEs, and large enterprises.

What do businesses use our reports for?

Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive Intelligence

Report Coverage:

• Historical data from 2022 to 2024 & forecast data from 2025 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
• Company Profiling (Strategies, Products, Financial Information, and Key Developments among others.

Electrical Steel Market Segmentation:

By Type

• Grain Oriented
• Non-Grain Oriented

By Application

• Transformers
• Motors
• Inductors
• Others

By End-User Industry

• Energy
• Automotive
• Manufacturing
• Household Appliances
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• India
• Japan
• South Korea
• Indonesia
• Thailand
• Others