Authors:
Kiran Pulidindi, Kavita Yadav
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Electrical Steel Market Size & Share 2026-2035
Report ID: GMI3136
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Published Date: October 2026
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Electrical Steel Market Size
The global electrical steel market was valued at USD 20.2 billion in 2025, is estimated to reach USD 21.71 billion in 2026, and is projected to grow at a 6.35% CAGR (2026–2035), reaching USD 37.38 billion by 2035.
Electrical Steel Market Key Takeaways
Market Leader: China Baowu Steel Group led with over 19% market share in 2025.
Leading Players: Top 5 players in this market include China Baowu Steel Group, Nippon Steel Corporation, POSCO, ArcelorMittal, Thyssenkrupp Steel Europe, which collectively held a market share of 42.5% in 2025.
The electrical steel market is moving from a period in which price deflation masked resilient consumption into one shaped by grid investment, transport electrification, and more demanding motor-efficiency requirements. GOES demand follows transformer procurement and network reinforcement, while NGO demand benefits from the rising technical intensity of traction and industrial-motor applications. Product mix, especially the adoption of thinner and lower-loss grades, will be as important to revenue progression as tonnage growth.
GMI Analyst View
Our discussions with electrical steel producers and downstream OEMs indicate that global electrical steel demand reached 13,900 kilotonnes in 2025. That volume base points to more durable underlying consumption than revenue trends alone suggested during the post-peak pricing correction. As pricing normalizes and premium grades gain a larger role in transformer and motor programs, the market is positioned to convert demand resilience into stronger revenue realization.
Electrical Steel Market Trends, Growth Drivers & GMI Forecast Outlook
Grid reinforcement and vehicle electrification are creating parallel demand streams for transformer-grade GOES and motor-grade NGO. The outlook remains constructive, although transformer manufacturing constraints, trade pressure, and material substitution risks will influence the timing and quality of revenue conversion.
Key Drivers
*Evidence anchors use cited external data; demand implications and forecast conditions represent GMI analysis.*
Grid modernization translates into electrical steel demand through transformer-core procurement rather than through network expenditure directly. Utilities upgrading aging assets and connecting variable renewable generation require transformer fleets with lower losses and increasingly stringent qualification criteria. This favors suppliers able to provide consistent GOES magnetic properties, technical support, and dependable delivery performance.
The transmission build-out also improves the commercial case for premium grades. Long-distance interconnectors, offshore wind links, and high-voltage projects place greater value on core-loss reduction, creating a route for high-permeability GOES to capture a higher-value portion of transformer demand. The result is a demand environment in which project timing and grade mix matter as much as aggregate infrastructure activity.
Traction-motor development is reshaping NGO demand toward thinner gauges, higher mechanical strength, and tighter lamination tolerances. Material suppliers that can qualify advanced NGO with automotive OEMs and motor manufacturers gain access to long-running platforms, while mills focused on standard grades remain more exposed to commodity pricing and conventional industrial cycles.
Key Restraints
*Evidence anchors use cited external data; demand implications and forecast conditions represent GMI analysis.*
Transformer capacity constraints create a mismatch between announced grid investment and immediate electrical steel shipments. Long lead times concentrate procurement among qualified OEMs and can delay adoption of new grades, even when long-term project pipelines are robust. Electrical steel producers therefore face a demand signal that is structurally favorable but uneven in its release into order books.
European GOES producers face a separate challenge: import competition can depress price realization and make capacity utilization more fragile even where transformer demand remains sound. Safeguard action improves the policy setting for domestic producers, but it does not eliminate uncertainty around the permanence of protection or the pace of customer requalification.
Amorphous materials present a targeted substitution risk rather than a universal replacement threat. Their performance can be attractive in particular distribution-transformer designs, yet supply availability, manufacturing requirements, and the physical characteristics of large transformer cores preserve an important role for GOES. Competitive pressure is most consequential where efficiency regulation and procurement economics converge.
GMI Analyst View
We see the principal forecast tension in the gap between evident infrastructure demand and the industry's ability to convert that demand into timely, high-value shipments. Transformer bottlenecks can defer GOES realization, while trade pressure can constrain price recovery. NGO performance will depend on how quickly premium traction applications progress from technology qualification into broad platform adoption.
Electrical Steel Market Segment Analysis
By Type
The electrical steel market separates into GOES and NGO grades, each with a distinct magnetic-performance profile and customer base.
NGO is projected to reach USD 26.91 billion by 2035 and grow at a 6.7% CAGR (2026–2035). NGO benefits from its suitability for rotating machinery, including industrial motors, generators, and EV traction systems. Its broad end-market exposure supports demand resilience, while the movement toward thinner and higher-performance grades improves the revenue mix available to technically capable suppliers.
By Application
Transformers generated USD 7.07 billion in 2025 and are expected to grow at a 5.4% CAGR (2026–2035). Transformer demand is anchored in replacement programs, renewable integration, and network expansion. GOES suppliers with reliable delivery, loss-performance credentials, and established OEM relationships are best positioned to participate in higher-specification utility projects.
Motors & Drives are projected to reach USD 16.03 billion by 2035 and represented 40.0% of revenue in 2025. The segment draws demand from industrial automation, infrastructure equipment, and transport electrification. NGO suppliers increasingly compete on gauge capability, stamping performance, magnetic loss, and customer-specific qualification rather than on volume alone.
Generators generated USD 2.02 billion in 2025 and are projected to advance at a 6.4% CAGR (2026–2035). Generator demand is supported by renewable and conventional power assets, particularly where equipment designers seek improved efficiency at higher operating loads. The addressable mix is influenced by wind investment timing and the technical requirements of large generator cores.
Other applications are projected to reach USD 5.64 billion by 2035 and represented 15.0% of revenue in 2025. Inductors, ballasts, reactors, and related components extend electrical steel demand into power-electronics systems. These applications create a more diversified demand base as charging, inverter, converter, and power-conditioning equipment proliferate.
By End-Use Industry
Energy & Utilities generated USD 6.06 billion in 2025 and are projected to hold 29.0% of market revenue in 2035. Utilities remain the central outlet for transformer-oriented electrical steel. Procurement is driven by asset replacement, load growth, renewable integration, and resilience requirements, all of which reinforce the importance of proven transformer-core supply.
Automotive & Electric Vehicles are projected to reach USD 8.97 billion by 2035 and grow at an 8.3% CAGR (2026–2035). Automotive demand increasingly rewards ultra-thin, high-strength NGO grades that reduce motor losses and support compact traction designs. Qualification cycles are demanding, but successful platform access can improve visibility and pricing quality for electrical steel producers.
Energy Generation represented 15.0% of revenue in 2025 and is projected to expand at a 5.6% CAGR (2026–2035). Wind, hydro, and thermal equipment support a diverse generator-related demand base. The segment's trajectory remains linked to project economics, permitting, and the evolving balance between renewable additions and broader power-system investment.
Industrial Machinery is projected to reach USD 7.10 billion by 2035 and represented 20.0% of revenue in 2025. Industrial motor demand is supported by automation, process equipment replacement, and efficiency requirements. Its broad customer base provides a stabilizing counterweight to the more concentrated procurement cycles of utilities and automotive platforms.
Home Appliances generated USD 2.02 billion in 2025 and are projected to account for 9.0% of revenue in 2035. Appliance and HVAC motors provide a steady outlet for standard and semi-processed NGO. Demand is less sensitive to frontier-grade adoption but remains exposed to consumer durable cycles and appliance-efficiency regulation.
Other end uses are projected to reach USD 1.86 billion by 2035 and grow at a 6.4% CAGR (2026–2035). Rail, defense, medical, and specialized equipment create smaller but technically differentiated demand pools. These applications can reward close collaboration on dimensional accuracy, magnetic properties, and application-specific processing.
By Form
Coils represented 65.0% of revenue in 2025 and are projected to grow at a 6.2% CAGR (2026–2035). Coils remain the preferred format for high-volume slitting, stamping, and lamination operations. Their importance reflects OEM efforts to manage material utilization, reduce handling, and integrate electrical steel into repeatable downstream manufacturing lines.
Sheets are projected to reach USD 9.34 billion by 2035 and represented 25.0% of revenue in 2025. Sheet demand is concentrated in applications requiring defined dimensions, controlled handling, or specialized certification. The form remains relevant for large transformer cores and precision motor laminations where customer processing requirements differ from high-volume coil supply.
Cut-to-Length material generated USD 2.02 billion in 2025 and is projected to grow at a 7.4% CAGR (2026–2035). Cut-to-length supply can reduce downstream processing burden in precision applications. Its growth reflects increasing attention to yield, dimensional consistency, and manufacturing efficiency in premium motor and transformer components.
By Thickness
Ultra-Thin grades are projected to account for 19.0% of revenue in 2035 and grow at an 8.9% CAGR (2026–2035). Ultra-thin grades are increasingly relevant to traction motors, inverter-fed equipment, and high-frequency designs. Their economics favor producers with advanced rolling, annealing, coating, and qualification capabilities.
Thin grades represented 25.0% of revenue in 2025 and are projected to grow at a 7.2% CAGR (2026–2035). Thin electrical steel forms the core material base for many current-generation EV and premium industrial-drive designs. Demand is shaped by the ongoing drive for lower losses without sacrificing manufacturability or mechanical performance.
Standard grades generated USD 9.09 billion in 2025 and are projected to account for 42.0% of revenue in 2035. Standard gauges retain a large installed-market role across industrial motors, transformers, and HVAC equipment. Their continued relevance reflects the breadth of established equipment platforms, despite faster growth in thinner materials.
Thick grades are projected to reach USD 4.48 billion by 2035 and represented 15.0% of revenue in 2025. Thick materials continue to serve selected heavy-duty applications, but efficiency requirements and product redesign are shifting some demand toward lighter gauges. Producers will need to manage this transition without compromising availability for legacy applications.
GMI Analyst View
We view segment performance as a contest between installed-base demand and technology-led mix migration. GOES retains a defensible position in transformer cores, particularly at the premium end, while NGO has the broader pathway to revenue expansion through traction and efficiency-driven motor applications. The decisive variable is the pace at which advanced grades become standard production inputs rather than selective specifications.
Electrical Steel Market Regional Analysis
North America Electrical Steel Market Analysis
The electrical steel market in North America generated USD 3.43 billion in 2025 and is projected to grow at a 6.0% CAGR (2026–2035). Grid renewal, domestic supply-chain policy, and EV manufacturing investment support regional demand. The market is increasingly attentive to qualified local GOES supply, while advanced NGO capability is becoming more important for automotive and industrial customers.
U.S.
The U.S. generated USD 3.02 billion in 2025 and is projected to reach USD 5.42 billion by 2035. U.S. demand is anchored in transmission and distribution investment, data-center-related load growth, renewable integration, and domestic manufacturing policy. The strategic treatment of electrical core steel strengthens the case for local capacity and supplier qualification.
Canada
Canada represented 12.0% of North American revenue in 2025 and is projected to reach USD 740 million by 2035. Hydroelectric upgrades, interconnection projects, and clean-energy investment support transformer demand. Its close integration with U.S. power markets also reinforces the role of cross-border grid development in procurement planning.
Europe Electrical Steel Market Analysis
Europe is projected to reach USD 5.98 billion by 2035 and represented 18.0% of global revenue in 2025. The region combines mature grid infrastructure with high requirements for transformer efficiency and industrial performance. Import competition remains a significant commercial factor, making trade-policy clarity and continued investment in premium local production important to the region's supply outlook.
Germany
Germany generated USD 909 million in 2025 and is projected to reach USD 1.49 billion by 2035. Grid reinforcement and industrial automation support demand, while the country remains central to European GOES production and technical capability. Competitive conditions for domestic mills will influence the degree to which local demand translates into local supply.
France
France represented 12.0% of European revenue in 2025 and is projected to grow at a 4.2% CAGR (2026–2035). French demand is supported by grid, nuclear-maintenance, and industrial activity, while electrical-steel investment improves its production relevance. The development of NGO capacity aligns with European automotive and motor-efficiency requirements.
UK
The UK generated USD 364 million in 2025 and is projected to reach USD 598 million by 2035. Transmission investment and offshore wind integration sustain transformer demand. Automotive transition plans and industrial electrification provide additional support for NGO consumption.
Italy
Italy represented 10.0% of European revenue in 2025 and is projected to account for 9.0% in 2035. Industrial machinery remains the country's main demand base, supported by renewable integration across manufacturing regions. The market's outlook is tied to equipment investment and the continued upgrading of industrial motor systems.
Asia Pacific Electrical Steel Market Analysis
Asia Pacific represented 58.0% of global revenue in 2025 and is projected to reach USD 22.24 billion by 2035. The electrical steel market in Asia Pacific is the industry's principal production and consumption center. China's scale, India's infrastructure expansion, and Japanese and South Korean technology capabilities create a regional mix spanning volume supply, premium-grade development, and fast-growing end-use demand.
China
China generated USD 9.09 billion in 2025 and is projected to represent 73.2% of Asia Pacific revenue in 2035. China combines large domestic demand for grids, EVs, and industrial motors with extensive electrical-steel production capacity. Its export position has material implications for global pricing and trade policy, especially in GOES markets.
India
India is projected to grow at a 10.7% CAGR (2026–2035) and reach USD 2.23 billion by 2035. Power-system expansion, distribution upgrades, renewable integration, and domestic EV production create a broad electrical-steel demand base. Local GOES capacity development is strategically important because it can shorten supply chains for transformer manufacturers as infrastructure programs scale.
Japan
Japan generated USD 670 million in 2025 and is projected to represent 4.7% of Asia Pacific revenue in 2035. Japan remains influential through high-performance material development and established relationships with global transformer and automotive supply chains. Its mature domestic market is offset by the technological value of premium GOES and NGO production.
South Korea
South Korea is projected to reach USD 766 million by 2035 and represented 4.0% of Asia Pacific revenue in 2025. The country's electrical-steel position is tied to automotive, battery, and advanced manufacturing ecosystems. Continued collaboration between steelmakers and vehicle manufacturers supports development of next-generation traction-grade materials.
Latin America Electrical Steel Market Analysis
Latin America generated USD 606 million in 2025 and is projected to grow at a 6.4% CAGR (2026–2035). Grid modernization, industrial activity, and automotive production underpin regional demand. Brazil and Mexico remain the principal markets, with energy infrastructure and manufacturing localization shaping the regional mix.
Brazil
Brazil generated USD 333 million in 2025 and is projected to grow at a 6.4% CAGR (2026–2035). Hydroelectric transmission assets, mining and agribusiness equipment, and renewable additions sustain demand for both transformer and motor grades. The market also benefits from gradual expansion in vehicle electrification.
Mexico
Mexico represented 30.0% of Latin American revenue in 2025 and is projected to reach USD 336 million by 2035. Near-shoring and automotive investment create an important pathway for motor-grade NGO demand. Manufacturing localization also supports demand for industrial motors and power equipment serving new production facilities.
Middle East & Africa Electrical Steel Market Analysis
Middle East & Africa is projected to reach USD 1.86 billion by 2035 and grow at an 8.7% CAGR (2026–2035). The electrical steel market in Middle East & Africa benefits from primary infrastructure development, power-network expansion, renewable projects, and industrialization. The combination of new transformer needs and expanding motor demand gives the region a more balanced growth profile than markets driven by replacement alone.
Saudi Arabia
Saudi Arabia is projected to grow at a 9.1% CAGR (2026–2035) and reach USD 579 million by 2035. Large infrastructure and power-development programs support transformer procurement, while industrial projects widen the addressable market for motor-grade steel. Grid development is closely tied to broader economic diversification objectives.
South Africa
South Africa generated USD 162 million in 2025 and is projected to grow at a 7.6% CAGR (2026–2035). Grid refurbishment, independent power projects, and mining-sector electricity requirements sustain demand. The market's timing will depend on the execution of power-sector investment and reliability initiatives.
UAE
The UAE is projected to reach USD 299 million by 2035 and represented 15.0% of Middle East & Africa revenue in 2025. Clean-energy programs, data-center growth, and industrial automation support demand for transformers, motors, and related equipment. Its role as a regional infrastructure hub also supports project-driven procurement activity.
GMI Analyst View
We see regional growth becoming less dependent on one geography or one end market. Asia Pacific will remain the volume center, but India and the Middle East & Africa offer distinct infrastructure-led expansion paths, while North America and Europe are increasingly shaped by supply security, qualification, and trade-policy considerations. Competitive success will depend on placing the appropriate grade portfolio near the right demand pools.
Electrical Steel Market Share & Competitive Landscape
The electrical steel market share structure is concentrated in premium GOES and advanced NGO, where specialized processing, proprietary metallurgy, stringent loss-performance requirements, and lengthy OEM qualification cycles limit entry. The five leading producers collectively held approximately 42.5% of global revenue in 2025, illustrating meaningful concentration alongside a broad base of regional and specialty suppliers.
China Baowu Steel Group held a 19.0% global revenue share in 2025.
Baowu's position reflects its scale in China's power, automotive, and industrial markets, as well as a broad product presence across GOES and NGO. Its domestic customer access and manufacturing footprint make it a major influence on regional supply, competition, and export availability.
Nippon Steel Corporation held an 8.5% global revenue share in 2025.
Nippon Steel's competitive strength rests on high-permeability GOES and thin-gauge NGO technology. Its established role with transformer OEMs and emphasis on low-loss materials position it strongly in applications where performance and qualification matter more than commodity scale.
POSCO held a 6.0% global revenue share in 2025.
POSCO participates across transformer, industrial, and automotive applications through a broad electrical-steel portfolio. Its collaboration with downstream automotive and research partners reinforces its position in traction-grade materials and in the development path for higher-performance NGO.
Thyssenkrupp Steel Europe remains a major European producer of transformer-grade GOES and traction NGO. Its powercore® portfolio gives it exposure to both grid and EV demand, while its manufacturing position makes it particularly sensitive to European trade policy and local OEM procurement patterns.
ArcelorMittal is expanding its electrical-steel platform through NGO investment and the iCARe® e-steel product family. The company's Mardyck site produced its first commercial coil in March 2026, marking an operational step in its French electrical-steel expansion [4]. The investment strengthens its ability to address European demand for EV traction and high-efficiency motor grades.
Cleveland-Cliffs occupies a strategically important U.S. position as a domestic GOES supplier. Its role is reinforced by defense and supply-security considerations, while its ability to serve qualified transformer programs gives it relevance beyond conventional steel-market competition.
JFE Steel is building a stronger position in India through its joint-venture strategy with JSW Steel. The approach aligns electrical-steel production capacity with a market where transformer demand, grid investment, and industrial electrification are all expanding.
Other participants, including Voestalpine, Cogent Power, Stalprodukt, Aperam, WISCO, Big River Steel, Sutor Technology Group, and Arnold Magnetic Technologies, compete through combinations of specialty-grade capability, downstream processing, geographic access, and application-specific service. The market is becoming more segmented between suppliers competing on commodity availability and those competing on loss performance, gauge precision, qualification, and technical collaboration.
Recent Industry Developments
The European Commission adopted provisional safeguard measures for grain-oriented electrical steel effective September 25, 2026, with the measures scheduled to run through February 2027 [3]. The action has direct implications for European GOES pricing, domestic utilization, and investment confidence across the transformer value chain.
ArcelorMittal produced the first industrial coil at its Mardyck, France electrical-steel lines on March 26, 2026 [4]. The development advances the company's European NGO manufacturing program and supports supply for EV traction motors, high-efficiency industrial motors, and other electrification applications.
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