Electrical Steel Market

Electrical Steel Market Size

The global electrical steel market was valued at USD 26.5 billion in 2025. The market is expected to grow from USD 28.1 billion in 2026 to USD 42.1 billion in 2035, at a CAGR of 4.6% according to latest report published by Global Market Insights Inc.

• The electrical steel market serves as a critical enabler in the efficiency of motors, transformers, and generators, forming the backbone of global electrification and industrial systems. While it provides steel for structures, the sector also drives massive downstream value from automotive, power infrastructure, and industrial automation. Thus, it becomes a strategic material in terms of modern economies.
  
• The future growth momentum remains bright, as the sudden advancements in electric vehicles, modernization of the grid, and automation technologies are anticipated to be generalized accelerants. While prices of premium grades of electrical steel are expected to maintain strength over the years because of its performance requirements, raw material volatility cost them nothing.
  
• Based on the regional aspect, demand has been concentrated in Asia, supported by manufacturing hubs and infrastructure expansions, while Europe and North America push through the efficiency regulations and electrification initiatives.
  
• The balance between rotating machinery and transformer application segmentation includes a fast-growing segment of niche electromagnetic components. Capacity utilization varies globally, but strategic investments in advanced grades and thin-gauge products share competitive advantage. Overall, it is transforming into a performance-driven ecosystem moving in line with energy transition and industrial innovation from a commodity supply chain.
  

Electrical Steel Market Trends

• To withstand increasing challenges imposed by applications like EV motors, manufacturers have been working to develop coating technologies to improve electrical steel performance. Inorganic coatings are more thermally stable and insulating than organic coatings, which themselves are subject to change based on regulations and requirements set out by environmental policies. Self-bonding coatings seem gradually to be replacing existing coatings since these types impose a lot of advantages such as faster assembly of lamination and better efficiency at production, indicating a shift toward simpler methods and greater yield.
  
• The very thin gage laminations became important for high-speed electric motors to cut losses and help improve efficiency under high-frequency conditions. It requires precision in manufacturing and controlled heat treatment in these grades, thereby increasing the complexity and price of production. This segment is anticipated to grow rapidly, supported by the standardization of thin laminations in both premium and mass-market electric vehicles by automakers, thus justifying capital expenditure on specialized processes.
  
• Changes in the industry align more with sustainability and digitalization. Producers follow low carbon steelmaking routes and recycling to comply with global decarbonization targets, whereas digital means like predictive maintenance and digital twins are used for yield enhancement and waste minimization.
  
• On the other hand, supply chains are being localized to support EV programs by balancing regionally available capacity against the scale advantage in Asia. These concurrent trends further position electrical steel as a strategic material in the energy transition and advanced manufacturing ecosystem.
  

Electrical Steel Market Analysis

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Based on product type, the market is segmented into non-grain-oriented electrical steel (NOES/CRNGO). grain-oriented electrical steel (GOES/CRGO), advanced soft magnetic materials. Non-grain-oriented electrical steel (NOES/CRNGO) dominated the market with an approximate market share of 58.4% in 2025 and is expected to grow with a CAGR of 4.9% by 2035.

• Non-Grain-Oriented Electrical Steel (NOES) is very suitable for rotating machinery such as motors and generators, where the magnetic properties must be equally effective in different, sometimes unpredictable, directions. Whenever speed of operation and energy efficiency become important considerations, NOES is the material of choice, namely in electric vehicles and industrial automation.
  
• Grain-oriented electrical steel (GOES) is a tailored electrical steel, designed for transformer cores, where its special magnetic alignment minimizes energy losses in power transmission. Such losses reduce grid infrastructure and high-efficiency power equipment, where precision and stability under load are must-haves. Advanced Soft Magnetic Materials segment represents the next frontier of electrical steel innovation with improved magnetic performance and reduced core losses for specialized applications. These materials address emerging technologies such as high-frequency power electronics and compact motor designs.
  

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Based on coating type, the electrical steel market is segmented into inorganic coatings, organic coatings, natural oxide coatings, self-bonding coatings. Inorganic coatings held the largest market share of 35% in 2025 and is expected to grow at a CAGR of 4.6% during 2026-2035.

• Inorganic coatings have made a mark in tough and very high-temperature insulations, making them a suitable candidate for applications like high-temperature transformer cores and heavy-duty electrical equipment. Under extreme operating conditions, they inhibit interlaminar losses, thus maintaining reliability in power transmission systems.
  
• Inorganic coatings have made a mark in tough and very high-temperature insulations, making them a suitable candidate for applications like high-temperature transformer cores and heavy-duty electrical equipment. Under extreme operating conditions, they inhibit interlaminar losses, thus maintaining reliability in power transmission systems. Natural oxide coating methods are among the cheapest in simple insulating properties against protection. They afford moderate protection, hence usefulness on usually used electrical steels, but their application is largely restricted to situations where performance is unimportant.
  

Based on applications, the electrical steel market is segmented into rotating machinery applications, transformer applications, and electromagnetic components. Rotating machinery applications segment dominated the market with an approximate market share of 45.8% in 2025 and is expected to grow with the CAGR of 3.7% by 2035.

• Rotating machine applications powers motors and generators where efficiency and magnetic performance become critical parameters under dynamic operating conditions. Therefore, these applications would require materials that can reduce energy losses while securing high-speed rotation and mechanical stresses.
  
• The transformer core relies on electrical steel to align its magnetism precisely and reduce its core losses, thus allowing power to be transmitted and distributed reliably. Stability under continuous load and thermal endurance are the priority in this segment, which makes it integral to grid infrastructure and high-efficiency energy systems. Increasingly, advanced grades are being incorporated to comply with more stringent laws and sustainability constraints. Electromagnetic components is highly specialized, as they deal with small, high-frequency components applicable in power electronics, sensors, and even specific industrial machinery.
  

Based on end-user, the electrical steel market is segmented into energy & power generation, automotive & transportation, industrial manufacturing, consumer appliances & electronics, data centers & IT infrastructure, and HVAC & building systems. Energy & power generation segment dominated the market with an approximate market share of 30% in 2025 and is expected to grow with the CAGR of 4.6% by 2035.

• In the energy and power generation industries in transformers and generators, which allow efficiency in the transmission of power and thus stability on the grids. This segment requires materials with very good magnetic properties and thermal stability in large amounts, which will allow massive electrification and renewable integration.
  
• The automotive and transportation arena is the one of the fastest-moving innovation environments ever since electric vehicles came into being. With the application of high-performance electrical steels for traction motors, hybrid systems operate at high efficiency and compact designs toward the overall objective of extended range and sustainability. For data centers and IT systems, stable magnetic performance is needed for reliable power delivery, while HVAC and building systems require energy efficiency and compliance with green norms.
  

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The North America electrical steel market is growing rapidly on the global level with a market share of 12.4% in 2025.

• North America is developing into an emerging strategic hub for electrical steel due to advanced manufacturing technologies, strong regulatory frameworks, and substantial new investments in electrification infrastructure. The region's focus on utilizing energy efficiently and sustainably enables very high-performance grades to meet increasingly stringent technical and environmental requirements.
  

U.S. dominates the North America market, showcasing strong growth potential.

• The U.S. dominates this transformation with policies that favor modernization of power systems and cleaner materials. Its emphasis on domestic production and innovation makes it a noticeable player.
  

Europe electrical steel market grew in industry with revenue of USD 4.8 billion in 2025 and is anticipated to show lucrative growth over the forecast period.

• Advanced grades with superior magnetic properties and stringent environmental standards have rapidly adopted increased efficiency while seeking compliance with regulations on the much broader European commitment to electrification and renewable integration in all industrial and infrastructure sectors.
  

Germany dominates the European market, showcasing strong growth potential.

• Clean technologies and modernizing power plants have served to solidify Germany's status as a key influencer driving the change in vision for product development and supply chain strategies for electrical steel in Europe.
  

The Asia Pacific dominated the electrical steel market is anticipated to grow at a CAGR of 4.5% during the analysis timeframe.

• Asia-Pacific is speeding fast to become the most significant growth hub for electrical steels, pushing on a robust manufacturing environment of rapid industrialization and widespread electrification programs. The demand for advanced grades ensuring optimum efficiency and reliability is being further strengthened by the geographical focus on renewable energy integration and grid modernization.
  

China electrical steel market is estimated to grow with a significant CAGR in the Asia Pacific region.

• China has, therefore, become the most influential player in this transformation, capitalizing on its vast production capacity and capabilities. It is, therefore, setting the innovation standard for electrical steels.
  

Latin America market accounted for 3.7% market share in 2025 and is anticipated to show highest growth over the forecast period.

• The potentials for growth in electrical steel within Latin America are further enhanced by infrastructure modernization, extensive industrial expansion, and energy project investments. The focus on electrification and sustainability in the region presents opportunities for advanced grades that promise performance yet reconcile with environmental standards that change through time.
  

Brazil leads the Latin American electrical steel market, exhibiting remarkable growth during the analysis period.

• Brazil is a key growth driver here, and it is on the way to realizing a well-established industrial base and commitment toward the renewable energy sector. The combination of advanced manufacturing capabilities together with huge infrastructure projects enhances Brazil's positioning as a key influencer in regional demand for high-efficiency electrical steel solutions.  
  

Middle East & Africa Electrical Steel accounted for 2% market share in 2025 and is anticipated to show lucrative growth over the forecast period.

• The Middle East and African continent stand to gain considerably in the future from the increasing demand for electrical steel owing to accelerated infrastructure development, industrial diversification, and heavy investments in energy projects. Sustainability and revitalization have also featured in the offered housing units, ushering in opportunities for higher-grade products.
  

Saudi Arabia electrical steel market to experience substantial growth in the Middle East and Africa market in 2025.

• Saudi Arabia has thus far established itself as the potential engine of economic growth, by utilizing its capabilities through its industrial transformation agenda to incorporate high-performance materials into critical applications, in terms of the future development.  
  

Electrical Steel Market Share

The top 5 companies in Electrical Steel industry include China Baowu Steel Group, ArcelorMittal S.A., Nippon Steel Corporation, POSCO (Pohang Iron & Steel Co.), JFE Steel Corporation. These are prominent companies operating in their respective regions covering approximately 44% of the market share in 2025. These companies hold strong positions due to their extensive experience in electrical steel market. Their diverse product portfolios, backed by robust production capabilities and distribution networks, enable them to meet the rising demand across various regions.

• China Baowu Steel Group is one of the prominent steel makers dealing with flat steel, long steel, and some special materials, particularly for use in an energy system serving automotive- and industrial-mechanical-working applications. Integrated manufacturing facilities with technology-based processes produce electrical steels.
  
• ArcelorMittal S.A., the chief in the worldwide steel industry, furnishes various advanced material solutions pinpointing industrial and motorcars.
  
• Nippon Steel Corporation include products in steel for construction, automotive, and industry purposes, along with the uppermost grades of electrical steels. Special consideration in Nippon Steel's operation is focused upon engineering and material development for energy-efficient technologies and particular end-use requirements.
  
• POSCO (Pohang Iron & Steel Co.) is a steel producer with quite a wide range of products-forms among flat steel plate and sheet steel and rolled steel, to mention specialty steels and electrical steels. The Livraison of the company is virtually enforced with products for power generation, automotive, and industrial equipment superior process adherence.
  
• JFE Steel Corporation grants steel products to the infrastructural, automotive, and energy sectors, including electrical steel products for motors and transformers. The operation is all about blending advanced manufacturing processes, necessary for designing products that will fulfill the unique specifications.
  

Electrical Steel Market Companies

Major players operating in the electrical steel industry include:

• Nippon Steel Corporation
• JFE Steel Corporation
• ArcelorMittal S.A.
• POSCO (Pohang Iron & Steel Co.)
• China Baowu Steel Group
• Thyssenkrupp Electrical Steel GmbH
• Cleveland-Cliffs Inc. (AK Steel)
• Tata Steel Limited
• Aperam S.A.
• Waelzholz Group
• Ansteel Group Corporation
• HBIS Group (Hebei Iron & Steel)
• Nucor Corporation
• Metglas Inc. (Hitachi Metals Group)
• Advanced Technology & Materials Co. Ltd. (AT&M)
  

Electrical Steel Industry News

• In September 2025, ArcelorMittal announced that its subsidiary ArcelorMittal Europe Flat Products is set to showcase its latest generation of electrical steels and a brand-new tailor-made services package at Coiltech Italia.
  
• In April 2024, Tata Steel UK announced its plan to shut Port Talbot blast furnaces in Wales and switch to electric arc furnace production amid its GBP1.25 billion transformation to low carbon production.
  
• In January 2024, POSCO concluded the initial phase of constructing its cutting-edge, eco-friendly non-oriented electrical steel sheet plant, known as Hyper No, at Gwangyang Steel Works.
  

This electrical Steel market research report includes in-depth coverage of the industry, with estimates & forecasts in terms of revenue (USD Billion) and volume (Kilo Tons) from 2025 to 2035, for the following segments:

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Market, By Product Type

• Non-grain-oriented electrical steel (NOES/CRNGO)
• Grain-oriented electrical steel (GOES/CRGO)
• Advanced soft magnetic materials
  • Amorphous electrical steel
  • Nanocrystalline electrical steel
  • Multilayer & composite electrical steel

Market, By Coating Type

• Inorganic coatings
  • C-2 / EC-2 (mill glass - magnesium silicate)
  • C-4 / EC-4 (phosphate or chemical treatment)
  • C-5 / EC-5 (inorganic/ceramic filled)
• Organic coatings
  • C-3 / EC-3 (organic varnish/enamel)
  • C-6 / EC-6 (organic with inorganic fillers)   
• Natural oxide coatings
• Self-bonding coatings

Market, By Application

• Rotating machinery applications 
• Transformer applications
  • Power transformers
  • Distribution transformers
  • Specialty transformers
  • Renewable energy transformers
• Electromagnetic components
  • Inductors & reactors
  • Ballasts & lighting
  • Wireless power transfer

Market, By End Use

• Energy & power generation
  • Electric utilities
  • Renewable energy
  • Conventional power generation
  • Energy storage systems
• Automotive & transportation
  • Electric vehicles (battery electric vehicles - BEV)
  • Hybrid electric vehicles (HEV/PHEV)
  • Automotive auxiliary systems
  • EV charging infrastructure
  • Rail & mass transit
  • Aerospace
• Industrial manufacturing
  • Industrial machinery & equipment
  • Robotics & automation
  • Oil & gas equipment
• Consumer appliances & electronics
  • Home appliances
  • Power tools
  • Consumer electronics
• Data centers & IT infrastructure
  • UPS systems
  • Data center transformers
  • Server cooling systems
• HVAC & building systems
  • Commercial HVAC systems
  • Residential HVAC
  • Elevators & escalators

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of Middle East and Africa