Electrical Steel Global Market Insights 2025, Analysis and Forecast to 2030, by Manufacturers, Regions, Technology, Application, Product Type

Electrical Steel Market Overview

The global electrical steel market is poised for significant growth, driven by increasing demand for energy-efficient electrical equipment and the rapid expansion of renewable energy infrastructure. Electrical steel, also known as silicon steel, is a critical material used in the manufacturing of transformers, motors, and generators. The market is projected to grow at a compound annual growth rate (CAGR) of 5%-7% from 2025 to 2030, reaching a market size of approximately $40 billion to $45 billion by 2030.

Market Size and Share Analysis

The electrical steel market is segmented by product type, process, application, end-use, and region. In 2025, the market is expected to be valued at around $30 billion, with non-oriented electrical steel (NOES) accounting for 60%-65% of the market share and grain-oriented electrical steel (GOES) holding the remaining 35%-40%.

By Product Type

• Non-Oriented Electrical Steel (NOES): NOES is widely used in applications such as motors and generators due to its isotropic magnetic properties. It is expected to grow at a CAGR of 6%-8% during the forecast period.
• Grain-Oriented Electrical Steel (GOES): GOES is primarily used in transformers and is projected to grow at a CAGR of 4%-6% from 2025 to 2030.

By Process

The market is further divided by the manufacturing process, including cold-rolled and hot-rolled electrical steel. Cold-rolled electrical steel dominates the market with a share of 70%-75%, owing to its superior magnetic properties and energy efficiency.

By Application

• Electrical: The largest application segment, accounting for 40%-45% of the market, driven by the demand for transformers and motors.
• Batteries and Power Devices: Expected to grow at a CAGR of 7%-9%, fueled by the rise in electric vehicles (EVs) and energy storage systems.
• Renewable Energy: This segment is projected to grow at a CAGR of 8%-10%, supported by the global shift toward clean energy sources.
• Power: The power sector accounts for 20%-25% of the market, driven by the need for efficient power distribution networks.
• Automotive: The automotive segment is expected to grow at a CAGR of 6%-8%, driven by the increasing adoption of EVs.
• Others: Includes applications in household appliances and industrial machinery, contributing 10%-15% to the market.

By End-Use

The end-use segment includes energy, automotive, industrial, and consumer electronics. The energy sector dominates with a share of 35%-40%, followed by the automotive sector at 25%-30%.

By Region

• Asia-Pacific: The largest market, accounting for 50%-55% of global demand, driven by rapid industrialization and urbanization in countries like China and India.
• North America: Expected to grow at a CAGR of 4%-6%, supported by investments in renewable energy and EV infrastructure.
• Europe: Projected to grow at a CAGR of 5%-7%, driven by stringent energy efficiency regulations and the adoption of green technologies.
• Latin America and Middle East & Africa: These regions are expected to witness moderate growth, with a CAGR of 3%-5%.

Key Players in the Electrical Steel Market

The market is highly competitive, with key players focusing on strategic partnerships, product innovation, and capacity expansion. Major companies include:

• ArcelorMittal: A leading player with a market share of 15%-20%, focusing on high-performance electrical steel for EVs and renewable energy.
• thyssenkrupp: Known for its advanced GOES products, holding a market share of 10%-12%.
• JFE Steel Corporation: A key player in the Asia-Pacific region, with a market share of 8%-10%.
• NIPPON STEEL: Focused on expanding its NOES production capacity, holding a market share of 7%-9%.
• Baowu Steel Group: The largest steel producer in China, with a market share of 6%-8%.
• Stalprodukt S.A.: A prominent European player, specializing in high-quality electrical steel.
• Beijing Shougang: A major Chinese producer, focusing on NOES for industrial applications.
• Baotou Weifeng: Known for its innovative electrical steel products, with a growing presence in the renewable energy sector.
• Yinyi Group: A key player in the Chinese market, with a focus on cost-effective electrical steel solutions.

Market Trends and Drivers

• Energy Efficiency Regulations: Governments worldwide are implementing stringent energy efficiency standards, driving the demand for high-performance electrical steel.
• Rise of Electric Vehicles: The growing adoption of EVs is boosting demand for electrical steel in motors and batteries.
• Renewable Energy Expansion: The shift toward renewable energy sources, such as wind and solar, is increasing the need for efficient transformers and generators.
• Technological Advancements: Innovations in electrical steel production, such as thin-gauge and high-silicon steel, are enhancing product performance.

Market Challenges

• Volatility in Raw Material Prices: Fluctuations in the prices of iron ore and silicon can impact production costs.
• Environmental Concerns: The steel manufacturing process is energy-intensive and contributes to carbon emissions, posing challenges for sustainability.

Market News on Policy and Companies

• Policy Support: Governments in Europe and North America are offering subsidies and incentives for the adoption of energy-efficient electrical steel in transformers and motors.
• Capacity Expansion: Key players like ArcelorMittal and NIPPON STEEL are investing in new production facilities to meet the growing demand.
• Strategic Partnerships: Companies are forming alliances to develop advanced electrical steel products for EVs and renewable energy applications.

Segment Forecasts (2025-2030)

• Non-Oriented Electrical Steel: Expected to grow at a CAGR of 6%-8%, driven by demand from the automotive and renewable energy sectors.
• Grain-Oriented Electrical Steel: Projected to grow at a CAGR of 4%-6%, supported by the expansion of power infrastructure.
• Renewable Energy Applications: Anticipated to grow at a CAGR of 8%-10%, fueled by the global transition to clean energy.
• Automotive Applications: Expected to grow at a CAGR of 6%-8%, driven by the rise of EVs.

Conclusion

The electrical steel market is set for robust growth from 2025 to 2030, driven by increasing demand for energy-efficient materials, the rise of EVs, and the expansion of renewable energy infrastructure. Key players are focusing on innovation and capacity expansion to capitalize on emerging opportunities. However, challenges such as raw material price volatility and environmental concerns need to be addressed to ensure sustainable growth.