PUBLISHER: MarketsandMarkets | PRODUCT CODE: 2066985
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 2066985
The electrical steel market is projected to grow from USD 62.93 billion in 2026 to USD 83.23 billion by 2031, representing a compound annual growth rate (CAGR) of 5.8% during this period.
| Scope of the Report | |
|---|---|
| Years Considered for the Study | 2022-2031 |
| Base Year | 2025 |
| Forecast Period | 2026-2031 |
| Units Considered | Value (USD Million/Billion), Volume (Kilotons) |
| Segments | Type, Application, End-Use Industry and Region |
| Regions covered | North America, Asia Pacific, Europe, Middle East & Africa, and South America |
Demand for electrical steel is driven by accelerating electrification, the expansion of renewable energy, and the need for high-efficiency transformers and electric motors.

"Non-grain-oriented electrical steel segment projected to be the largest segment during the forecast period."
The Non-Grain-Oriented (NGO) electrical steel segment is expected to account for the largest share of the electrical steel market during the forecast period, driven by its extensive use across high-growth applications such as electric vehicles, industrial motors, and household appliances. Unlike grain-oriented grades, NGO steel offers isotropic magnetic properties, making it highly suitable for rotating equipment operating under variable speeds and directions. The rapid expansion of EV production and increasing deployment of energy-efficient motors in manufacturing and HVAC systems are significantly boosting demand for high-performance NGO grades. Additionally, advancements in thin-gauge processing and coating technologies are enabling lower core losses and improved efficiency, positioning NGO electrical steel as a critical material in the global transition toward electrification and energy-efficient systems.
"Motors segment projected to be the second-largest segment during the forecast period."
The motors segment is expected to account for the second-largest share of the electrical steel market during the forecast period, driven by the widespread deployment of electrical steel in industrial machinery, electric vehicles, HVAC systems, and consumer appliances. Motors will require extensive use of non-grain-oriented electrical steel to ensure uniform magnetic strength throughout the motor core, thereby allowing them to operate efficiently in a rotating magnetic field. An increased focus on energy-efficient manufacturing and stricter regulations on motor energy efficiency have led many conventional motors to be replaced with higher-efficiency models. Consequently, these developments are driving demand for new grades of electrical steel with advanced properties. Additionally, electric transportation and increased automation within manufacturing facilities will continue to drive demand for electric motors and electrical steel grades specifically designed for that purpose. Finally, further improvements in thin-gauge electrical steel and coating technology will improve motor efficiency and further solidify the motor segment of the global electrical steel market.
"Automotive end-use industry segment projected to be the second-largest segment during the forecast period."
The automotive segment is expected to account for the second-largest share of the electrical steel market during the forecast period, driven by the fast-moving shift to electric mobility and the increasing electrification of car systems. Electrical steel is a vital material for traction motors in vehicles, especially in non-grain-oriented grades. High magnetic efficiency and low core losses from this material directly contribute to the range and performance of electric vehicles (EVs). The use of electrical steel is increasing in many parts of EVs, including auxiliary motors, sensors, and onboard electrical systems, due to the growing complexity of cars today. With the growing demand for EVs, automakers have increased demand for new, thin-gauge electrical steel to design more compact motors with higher power density. With government incentives for EV production and emissions-reduction targets in place, there are many reasons the automotive sector remains a key driver of electrical steel demand worldwide.
"In terms of value, the North America region is projected to be the second-largest segment during the forecast period."
The North America region is expected to account for the second-largest share of the electrical steel market during the forecast period, driven by substantial investments in grid modernization, renewable energy integration, and electric vehicle adoption. The US and Canada are actively upgrading aging transmission and distribution infrastructure, increasing demand for high-efficiency transformers that rely on grain-oriented electrical steel. Simultaneously, the rapid expansion of EV manufacturing and battery production is boosting consumption of non-grain-oriented electrical steel for traction motors. Strong regulatory focus on energy efficiency and emissions reduction is further accelerating the adoption of advanced electrical steel grades. Additionally, the presence of established automotive and industrial manufacturing bases supports consistent demand, positioning North America as a key contributor to global electrical steel consumption.
By Company Type: Tier 1: 25%, Tier 2: 42%, and Tier 3: 33%
By Designation: C-level Executives: 20%, Directors: 30%, and Other Designations: 50%
By Region: North America: 20%, Europe: 10%, Asia Pacific: 40%, South America: 10%, and Middle East & Africa 20%
Notes: Other designations include sales, marketing, and product managers.
Tier 1: >USD 1 Billion; Tier 2: USD 500 million-1 Billion; and Tier 3: <USD 500 million
Companies Covered: ArcelorMittal (Luxembourg), POSCO (South Korea), China Baowu Steel Group Corporation Limited (China), voestalpine AG (Austria), Nippon Steel Corporation (Japan), United States Steel Corporation (US), Steel Authority of India Limited (SAIL) (India), Tata Steel (India), and thyssenkrupp AG (Germany) among others are covered in the report.
The study includes an in-depth competitive analysis of these key players in the electrical steel market, with their company profiles, recent developments, and key market strategies.
Research Coverage
This research report categorizes the electrical steel market by Type (Grain-oriented, Non-grain-oriented), Application (Transformers, Motors, Inductors), End-use Industry (Energy, Automotive, Manufacturing, Household Appliances), and Region (Asia Pacific, North America, Europe, South America, and Middle East & Africa). The report's scope covers detailed information regarding the drivers, restraints, challenges, and opportunities influencing the growth of the electrical steel market. A detailed analysis of the key industry players has been done to provide insights into their business overview, products offered, and key strategies, such as partnerships, collaborations, product launches, expansions, and acquisitions, associated with the electrical steel market. This report covers a competitive analysis of upcoming startups in the electrical steel market ecosystem.
Reasons to Buy the Report
The report will provide market leaders/new entrants with estimates of revenue for the overall electrical steel market and its subsegments. This report will help stakeholders understand the competitive landscape, gain deeper insights into better positioning their businesses, and plan suitable go-to-market strategies. The report will help stakeholders understand the market pulse and provide information on key market drivers, restraints, challenges, and opportunities.
Analysis of key drivers (abundance of iron ore and other minerals for electrical steel production, expansion of urban infrastructure networks, advancements in electric vehicle motor technologies driving higher material intensity), restraints (volatility in raw material quality and supply security, energy-intensive processing with rising decarbonization pressure), opportunities (expansion into ev-specific ngo steel grades, precision control of silicon content above conventional limits, scrap segregation and closed-loop recycling for electrical steel), and challenges (achieving ultra-low core loss at high frequencies, increasingly stringent environmental compliance for hazardous process emissions).
Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the electrical steel market.