The global electrical steel market is projected to reach USD 88.9 billion by 2035, advancing at a steady compound annual growth rate (CAGR) of 6.3% from its estimated value of USD 47.8 billion in 2025. Growth in the market is primarily driven by the rising production of energy-efficient transformers, robust expansion of the electric vehicle (EV) industry, and accelerating investments in renewable energy infrastructure. As nations focus on electrification and energy optimization, the demand for high-performance magnetic materials like electrical steel is expected to remain strong throughout the forecast period.
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Key Industry Highlights:
- Primary Drivers: Rising demand for energy-efficient motors and transformers, increased adoption of EVs, and modernization of power infrastructure
- Material Segments: Grain-oriented electrical steel (GOES) and non-grain-oriented electrical steel (NGOES)
- Major Application Areas: Power transformers, distribution transformers, electric motors, generators, and inductors
Collaboration Between Small Market Players to Strengthen Product Portfolio:
- Smaller manufacturers are increasingly engaging in strategic partnerships and technical collaborations to improve production capabilities and expand their geographic reach.
- Many SMEs are leveraging R&D investments and licensing agreements with regional universities and research centers to develop low-loss steel grades tailored for high-performance electrical devices.
- For instance, regional steel firms in Southeast Asia and Eastern Europe have begun collaborating with local utilities and appliance manufacturers to develop application-specific electrical steels for home appliances and EV motors.
- These collaborations aim to diversify product portfolios, improve competitiveness, and respond swiftly to customer-specific requirements, particularly in emerging markets.
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Market Concentration:
- The global electrical steel market shows moderate to high market concentration, with a few large players dominating the high-performance steel category.
- These leading players hold a competitive advantage through scale of production, technological superiority, and long-term supply contracts with major OEMs.
- However, regional competitors are gaining ground by offering cost-effective alternatives, particularly in non-grain-oriented steel categories used in household and industrial motors.
- Product differentiation and technological edge continue to be key factors influencing market concentration.
Country-wise Insights:
India:
- The Indian electrical steel market is projected to experience robust growth, driven by the Make in India initiative, rising investment in power generation, and expansion of EV production.
- Domestic demand is supported by grid modernization, smart metering, and urban electrification programs.
- Government incentives for clean energy and duty relief on imported specialty steel have also made India a favorable market for foreign players.
Germany:
- Germany remains a core market in Europe due to its strong automotive manufacturing base and renewable energy sector.
- The country has seen significant investment in high-frequency steel for EV motors and high-efficiency transformers used in wind and solar power transmission.
- German companies are prioritizing eco-efficient manufacturing practices, boosting demand for recyclable electrical steel.
South Korea:
- Home to global steel giants like POSCO, South Korea plays a crucial role in technological innovation in the electrical steel segment.
- High domestic demand for automotive and consumer electronics and active R&D into amorphous and nano-crystalline steel variants mark the South Korean market.
- POSCO’s active expansion into India, Vietnam, and Europe further demonstrates its export-oriented growth strategy.
Global:
- On a global scale, Asia Pacific leads the market, accounting for a significant revenue share in 2025 and forecasted to retain dominance through 2035.
- North America is witnessing rising demand from utility-scale transformer upgrades and industrial motor refurbishments.
- Europe is focused on green steel production and eco-friendly electric grids, encouraging innovation in high-grade grain-oriented steels.
General & Advanced Materials Industry Analysis: https://www.futuremarketinsights.com/industry-analysis/general-and-advanced-materials
Companies
- Nippon Steel Corporation
- POSCO
- ThyssenKrupp AG
- ArcelorMittal
- Voestalpine AG
- Baosteel Group
- JFE Steel Corporation
- Cleveland-Cliffs Inc.
- Tata Steel Limited
Segmentation
By Product Type:
The industry is segmented into grain-oriented electrical steel and non-grain oriented electrical steel.
By Application:
The industry is categorized into inductors, motors, and transformers.
By End Use:
The industry is segmented into automobile, manufacturing, energy, household appliance, and others.
By Region:
The industry is divided into North America, Latin America, Europe, Asia Pacific, and Middle East and Africa.
