Electrical Steel Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 25.79 Billion
CAGR (2026-2031)	5.82%
Fastest Growing Segment	Inductors
Largest Market	North America
Market Size (2031)	USD 36.21 Billion

Market Overview

The Global Electrical Steel Market will grow from USD 25.79 Billion in 2025 to USD 36.21 Billion by 2031 at a 5.82% CAGR. Electrical steel, often referred to as silicon steel, is a specialized ferromagnetic alloy tailored to exhibit specific magnetic properties, primarily used in the cores of transformers, electric motors, and generators to minimize energy loss. The global market is fundamentally driven by the accelerating electrification of the automotive sector and the extensive modernization of power transmission grids required to integrate renewable energy sources. Illustrating the scale of production to meet this demand, according to the Chinese Society for Metals, in 2024, China's total production of electrical steel reached 16.1 million tonnes, representing a 5.4% year-on-year increase.

However, a significant challenge impeding broader market expansion is the immense capital investment and technical expertise required to produce high-grade grain-oriented electrical steel. The complex manufacturing process creates high barriers to entry and limits the ability of suppliers to rapidly scale capacity, potentially leading to supply deficits as global demand for energy-efficient infrastructure intensifies.

Key Market Drivers

The accelerating production and adoption of electric and hybrid vehicles stands as a primary catalyst for the electrical steel market, significantly increasing the requisite volume of non-oriented electrical steel for traction motors. As automotive manufacturers aggressively transition away from internal combustion engines, the magnetic steel content per unit has risen substantially to support higher power density and extended vehicle range. This structural shift ensures a sustained demand trajectory from the automotive supply chain as OEMs secure long-term material supplies. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', global electric car sales reached nearly 14 million units in 2023, establishing a significantly higher baseline for material consumption within the sector.

Simultaneously, the modernization and expansion of global power transmission grids drive the consumption of grain-oriented electrical steel, which is critical for the cores of high-voltage power transformers. Utilities are prioritizing capital-intensive infrastructure upgrades to integrate intermittent renewable energy sources and replace aging assets, thereby intensifying the need for high-efficiency magnetic alloys that ensure grid stability. According to the International Energy Agency, June 2024, in the 'World Energy Investment 2024' report, global investment in power grids reached USD 374 billion in 2023, reflecting the massive scale of these initiatives. This investment wave is forcing downstream equipment manufacturers to rapidly scale operations. Illustrating this market response, according to Hitachi Energy, in 2024, the company announced an investment of roughly USD 1.5 billion to expand its global transformer manufacturing capacity.

Download Free Sample Report

Key Market Challenges

The requirement for immense capital investment and technical expertise to produce high-grade electrical steel creates high barriers to entry that directly constrain the Global Electrical Steel Market. Manufacturing grain-oriented electrical steel involves intricate metallurgical processes that demand precise control and specialized infrastructure, preventing new entrants from easily joining the industry. This exclusivity limits the number of capable suppliers and restricts the market’s ability to rapidly adjust production capacities in response to the growing needs of the automotive and power sectors.

Consequently, the global market becomes heavily reliant on a few established manufacturing hubs, creating supply bottlenecks that impede broader expansion. This concentration of production capability is evident in recent trade data, where established leaders dominate supply while other regions struggle to scale. According to the South East Asia Iron and Steel Institute, in 2024, China's exports of electrical steel surged to approximately 1.45 million tonnes, reflecting a 16.9% increase from the previous year. This statistic underscores how the financial and technical hurdles prevent the development of a diversified global supply base, leaving the market vulnerable to deficits as demand intensifies.

Key Market Trends

Steelmakers are increasingly adopting low-carbon production methods, such as hydrogen-based reduction and electric arc furnaces, to meet the stringent sustainability mandates of automotive and energy OEMs. This emergence of "green" electrical steel is reshaping the competitive landscape as producers vie to offer materials with significantly reduced carbon footprints while maintaining high magnetic performance. Validating this shift, according to Cleveland-Cliffs Inc., March 2024, in the 'Cleveland-Cliffs Selected to Receive $575 Million in US Department of Energy Investments' press release, the company was selected for award negotiations for up to USD 575 million to decarbonize operations, which includes replacing natural gas-fired furnaces with electrified induction furnaces specifically to optimize the production of electrical steels at its Butler Works facility.

Simultaneously, major producers are executing a strategy of regional localization, establishing specialized high-grade production capacities within key markets like North America and India to mitigate supply chain risks. This trend addresses the critical need for domestic security of supply for grain-oriented grades used in grid infrastructure, reducing reliance on distant manufacturing hubs and ensuring resilience against geopolitical disruptions. Illustrating this expansion, according to JSW Steel Limited, February 2024, in the 'JSW Steel, JFE Steel forge ₹5,500 crore JV' announcement, the company formed a joint venture with JFE Steel Corporation with a planned investment of INR 5,500 crore to establish a new manufacturing base in Karnataka, India, dedicated to the end-to-end production of grain-oriented electrical steel.

Segmental Insights

Based on emerging trends in the Global Electrical Steel Market, the Inductors segment is recognized as the fastest-growing category, primarily driven by the rapid expansion of power electronics and renewable energy infrastructure. This robust growth is fueled by the critical need for inductors to regulate current and ensure energy efficiency within solar inverters, electric vehicle charging stations, and automotive DC-DC converters. As industries increasingly prioritize power management, the demand for high-grade electrical steel cores—valued for their superior magnetic permeability and low core losses—has surged. Consequently, this segment is expanding significantly to support the rigorous performance requirements of modern electrification and industrial automation systems.

Regional Insights

North America maintains a leading position in the Global Electrical Steel Market, driven primarily by extensive investments in modernizing aging utility infrastructure. The region’s focus on grid reliability has created substantial demand for grain-oriented electrical steel, which is essential for efficient power transformers. Additionally, the U.S. Department of Energy has implemented rigorous energy conservation standards that compel manufacturers to adopt high-performance magnetic materials. This strong regulatory framework, combined with the rapid expansion of the electric vehicle sector, secures North America’s dominance in the global industry.

Recent Developments

In June 2025, Nippon Steel Corporation finalized its acquisition of United States Steel Corporation, creating a major global entity in the electrical steel market. This strategic move integrated the manufacturing assets of both companies, including US Steel’s Big River Steel facility in Arkansas, which specializes in non-grain-oriented electrical steel for electric vehicles. The combination of Nippon Steel’s advanced technological capabilities with US Steel’s production footprint was intended to enhance the supply of high-grade electrical steel sheets worldwide. The merged entity focused on leveraging synergies to develop next-generation magnetic materials required for high-efficiency motors and transformers, supporting the global transition toward electrification and sustainable energy solutions.
In October 2024, JSW Steel Limited and JFE Steel Corporation signed a share purchase agreement to acquire a 100% equity interest in Thyssenkrupp Electrical Steel India Private Limited. This strategic acquisition was executed through their joint venture, JSW JFE Electrical Steel Private Limited, to strengthen their foothold in the Indian electrical steel market. The target company, located in Maharashtra, was a key producer of grain-oriented electrical steel, essential for the power transmission and distribution sectors. This collaboration allowed the companies to integrate their manufacturing capabilities and address the rising demand for energy-efficient steel products in India, accelerating their market entry and expanding their product portfolio in the region.
In March 2024, Cleveland-Cliffs Inc. was selected by the United States Department of Energy to receive up to $75 million in funding to decarbonize and expand its electrical steel production at the Butler Works facility in Pennsylvania. This investment aimed to replace existing reheating furnaces with electrified induction slab reheat furnaces, significantly improving energy efficiency and reducing greenhouse gas emissions. The project was designed to secure the domestic supply chain for grain-oriented electrical steel, a critical component for the modernization of the national electric grid and the manufacturing of distribution transformers. The company emphasized that this upgrade would enhance its ability to meet the growing needs of the electrical infrastructure market while maintaining high-quality production standards.
In January 2024, POSCO completed the first phase of construction for its new non-oriented electrical steel sheet plant, known as the Hyper NO plant, at its Gwangyang Steel Works in South Korea. This facility was established to meet the surging global demand for high-efficiency electrical steel used in electric vehicle drive motors and premium home appliances. With an investment of approximately 1 trillion KRW, the plant possesses an annual production capacity of 150,000 tons in this initial phase. The company announced plans to expand the facility further, aiming to achieve a total global electrical steel production capacity of 1 million tons annually by 2030 to secure a leading position in the eco-friendly materials market.

Key Market Players

Benxi Steel Group Co., Ltd
Nucor Corporation
Yieh Corporation
Tata Steel UK Limited
Arcelormittal Group
Nippon Steel Corporation
Arnold Magnetic Technologies
JFE Steel Corporation

By Type	By Application	By Vertical	By Region
Grain Oriented Electrical Steel Non-Grain Oriented Electrical Steel	Transformers Motors & Generators Inductors	Automotive Construction Manufacturing Energy & Power Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Electrical Steel Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Electrical Steel Market, By Type:

Grain Oriented Electrical Steel
Non-Grain Oriented Electrical Steel

Electrical Steel Market, By Application:

Transformers
Motors & Generators
Inductors

Electrical Steel Market, By Vertical:

Automotive
Construction
Manufacturing
Energy & Power Others

Electrical Steel Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Electrical Steel Market.

Available Customizations:

Global Electrical Steel Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Electrical Steel Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Electrical Steel Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Type (Grain Oriented Electrical Steel, Non-Grain Oriented Electrical Steel)

5.2.2. By Application (Transformers, Motors & Generators, Inductors)

5.2.3. By Vertical (Automotive, Construction, Manufacturing, Energy & Power Others)

5.2.4. By Region

5.2.5. By Company (2025)

5.3. Market Map

6. North America Electrical Steel Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Type

6.2.2. By Application

6.2.3. By Vertical

6.2.4. By Country

6.3. North America: Country Analysis

6.3.1. United States Electrical Steel Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Type

6.3.1.2.2. By Application

6.3.1.2.3. By Vertical

6.3.2. Canada Electrical Steel Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Type

6.3.2.2.2. By Application

6.3.2.2.3. By Vertical

6.3.3. Mexico Electrical Steel Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Type

6.3.3.2.2. By Application

6.3.3.2.3. By Vertical

7. Europe Electrical Steel Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Type

7.2.2. By Application

7.2.3. By Vertical

7.2.4. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Electrical Steel Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Type

7.3.1.2.2. By Application

7.3.1.2.3. By Vertical

7.3.2. France Electrical Steel Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Type

7.3.2.2.2. By Application

7.3.2.2.3. By Vertical

7.3.3. United Kingdom Electrical Steel Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Type

7.3.3.2.2. By Application

7.3.3.2.3. By Vertical

7.3.4. Italy Electrical Steel Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Type

7.3.4.2.2. By Application

7.3.4.2.3. By Vertical

7.3.5. Spain Electrical Steel Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Type

7.3.5.2.2. By Application

7.3.5.2.3. By Vertical

8. Asia Pacific Electrical Steel Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Type

8.2.2. By Application

8.2.3. By Vertical

8.2.4. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Electrical Steel Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Type

8.3.1.2.2. By Application

8.3.1.2.3. By Vertical

8.3.2. India Electrical Steel Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Type

8.3.2.2.2. By Application

8.3.2.2.3. By Vertical

8.3.3. Japan Electrical Steel Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Type

8.3.3.2.2. By Application

8.3.3.2.3. By Vertical

8.3.4. South Korea Electrical Steel Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Type

8.3.4.2.2. By Application

8.3.4.2.3. By Vertical

8.3.5. Australia Electrical Steel Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Type

8.3.5.2.2. By Application

8.3.5.2.3. By Vertical

9. Middle East & Africa Electrical Steel Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Type

9.2.2. By Application

9.2.3. By Vertical

9.2.4. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Electrical Steel Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Type

9.3.1.2.2. By Application

9.3.1.2.3. By Vertical

9.3.2. UAE Electrical Steel Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Type

9.3.2.2.2. By Application

9.3.2.2.3. By Vertical

9.3.3. South Africa Electrical Steel Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Type

9.3.3.2.2. By Application

9.3.3.2.3. By Vertical

10. South America Electrical Steel Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Type

10.2.2. By Application

10.2.3. By Vertical

10.2.4. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Electrical Steel Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Type

10.3.1.2.2. By Application

10.3.1.2.3. By Vertical

10.3.2. Colombia Electrical Steel Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Type

10.3.2.2.2. By Application

10.3.2.2.3. By Vertical

10.3.3. Argentina Electrical Steel Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Type

10.3.3.2.2. By Application

10.3.3.2.3. By Vertical

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Electrical Steel Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Benxi Steel Group Co., Ltd

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Nucor Corporation

15.3. Yieh Corporation

15.4. Tata Steel UK Limited

15.5. Arcelormittal Group

15.6. Nippon Steel Corporation

15.7. Arnold Magnetic Technologies

15.8. JFE Steel Corporation

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

What was the market size of the Global Electrical Steel Market in 2025?

Which is the dominating region in the Global Electrical Steel Market?

Which is the fastest growing segment in the Global Electrical Steel Market?

What is the expected growth rate of the Global Electrical Steel Market?