Electrical Steel Market Report 2026

Electrical Steel Market Overview

• Electrical Steel market size has reached to $37.13 billion in 2025 • Expected to grow to $51.67 billion in 2030 at a compound annual growth rate (CAGR) of 6.8% • Growth Driver: Renewable Energy Investments Driving Growth In Electrical Steel Market • Market Trend: Innovative Ultra-Thin Electrical Steel Advancements Driven By Electrification And EV Demand • Asia-Pacific was the largest region in 2025 and North America is the fastest growing region.

What Is Covered Under Electrical Steel Market?

Electrical steel refers to a ferromagnetic material made up of iron that contains varying amounts of silicon (Si) that range from 1% to 6.5%. It is a soft magnetic material with enhanced electrical properties that are widely used across applications such as small relays, solenoids, electric motors, generators, and many other electromagnetic devices. The main types of electrical steel include grain-oriented and non-grain-oriented. Grain-oriented electrical steel is used in efficient transformers and large, high-performance generators. Grain-oriented electrical steel contains 3% silicon steel that is processed under carefully controlled conditions and is used in transformers and generators. Electrical steel is used in different industries such as energy, automotive, household appliances, and manufacturing for applications in transformers, generators, motors, and other applications.

What Is The Electrical Steel Market Growth Forecast?

The electrical steel market size is expected to see strong growth in the next few years. It will grow to $51.67 billion in 2030 at a compound annual growth rate (CAGR) of 6.8%. The growth in the forecast period can be attributed to rising electric vehicle production, increasing demand for high-performance motors and generators, adoption of energy-efficient transformers, expansion of renewable energy infrastructure, growth in industrial automation requiring electrical steel. Major trends in the forecast period include rising demand for grain-oriented electrical steel, increasing use of non-grain-oriented steel in motors, growth in electric vehicle applications, expansion of transformers and generators manufacturing, adoption of high-performance electrical steel for industrial applications.

Global Electrical Steel Market Segmentation

1) By Type: Grain-Oriented, Non-Grain-Oriented 2) By Industry: Energy, Automotive, Household Appliances, Manufacturing, Other Industries 3) By Application: Transformers, Generators, Motors, Other Applications Subsegments: 1) By Grain-Oriented: Transformer Steel, Laminated Core Steel 2) By Non-Grain-Oriented: Regular Non-Grain-Oriented Steel, High-Performance Non-Grain-Oriented Steel

What Is The Driver Of The Electrical Steel Market?

The rapid growth in investments in renewable power generation capacities is expected to drive the electrical steel market during the forecast period. The strong growth in renewable energy results in significant demand for electric transmission and distribution (T&D) equipment, such as transformers. A large number of power generation companies are investing in renewable energy sources, especially in the USA and European countries. For instance, in June 2024, according to the International Energy Agency, a France-based autonomous intergovernmental organisation, Global energy investment is set to exceed USD 3 trillion in 2024, a significant rise from 2023, with USD 2 trillion directed towards clean energy. Therefore, rapid growth in investments in renewable power generation is driving growth in the electrical steel industry.

Key Players In The Global Electrical Steel Market

Major companies operating in the electrical steel market report are ArcelorMittal S.A., POSCO, Baoshan Iron & Steel Co. Ltd, JFE Holdings, Inc., ThyssenKrupp AG, Cleveland-Cliffs Corporation, Steel Authority of India Limited, Bekaert SA, The Heico Companies, Ningbo BST Metal Products Co., Ltd, Nanjing Hengjie Industrial Co., Ltd, Suzuki Garphyttan Ab, Beloretsk Metallurgical Plant AO, Arnold Magnetic Technologies, Aperam, Companhia Siderúrgica Nacional, Siderca, Mahindra Intertrade, Harsh Electrical Stampings, Iron Products Industries Ltd, Sevan Construction Nigeria Limited

Global Electrical Steel Market Trends and Insights

Major companies operating in the electrical steel market are focusing on developing technological innovations such as ultra-thin, low-loss non-grain-oriented (NGO) electrical steel for high-efficiency motors and e-mobility applications. Ultra-thin NGO electrical steel is a silicon-alloyed sheet designed to reduce core losses, enable lighter motor designs, and deliver isotropic magnetic performance suitable for rotating machines, balancing efficiency and formability. For instance, in March 2023, United States Steel Corporation, a United States–based steelmaker, launched InduX, an ultra-thin, very wide, lightweight NGO electrical steel produced at its Big River Steel facility. The product features optimized magnetic properties, ultra-thin gauges to reduce core losses and motor weight, and manufacturing at scale to strengthen domestic supply chains, delivering improved motor efficiency, longer EV range, and smaller, high-performance traction motors and industrial generators.

What Are Latest Mergers And Acquisitions In The Electrical Steel Market?

In December 2023, Nippon Steel Corporation, a Japan-based Steelmaking company, acquired United States Steel Corporation for $14.9 billion. With this acquisition, Nippon Steel Corporation aims to enhance its manufacturing capabilities, expand its geographic reach, and increase its crude steel capacity while promoting sustainability. United States Steel Corporation is a US-basedcompany that manufactures electric steel.

Regional Outlook

Asia-Pacific was the largest region in the electrical steel market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the electrical steel market are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electrical steel market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Electrical Steel Market?

The electrical steel market consists of sales of silicon steel, transformer steel, or lamination steel. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Electrical Steel Market Report 2026?

The electrical steel market research report is one of a series of new reports from The Business Research Company that provides market statistics, including Market Report 2026?global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the electrical steel Market Report 2026? The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the Market Report 2026?