Electric Steel

Electric Steel Market Outlook

The global electric steel market is poised for significant growth, projected to reach approximately USD 45 billion by 2035, with a compound annual growth rate (CAGR) of around 6% during the forecast period from 2025 to 2035. This growth is primarily driven by the increasing demand for energy-efficient electrical equipment, the rise in renewable energy projects, and advancements in electric vehicle technology, which heavily rely on high-quality electrical steel for improved performance. Additionally, the burgeoning manufacturing sector and rising investments in infrastructure development are further propelling the demand for electric steel. The transition towards green energy initiatives and the growing focus on reducing carbon emissions are also creating ample opportunities for the electric steel market to flourish. Furthermore, innovations in technology and material science are leading to enhanced product offerings, thus catering to the evolving needs of end-users across various industries.

Growth Factor of the Market

The growth of the electric steel market is significantly influenced by several interrelated factors that shape the industry landscape. One of the primary drivers is the escalating demand for energy-efficient transformers and motors, which require high-performance electrical steel to optimize energy transmission and reduce losses. Moreover, the global shift towards electrification in various sectors, particularly in the automotive and energy industries, further fuels the need for electric steel products. The surge in electric vehicle (EV) production, alongside the growing focus on sustainable energy solutions, necessitates advanced electrical steel that can enhance the efficiency of motors and other components. Additionally, government initiatives promoting green energy and renewable technologies are contributing to the expansion of the market, leading to increased investments in electric steel manufacturing. Finally, technological advancements in steel production, including the development of innovative alloys and processing techniques, are enhancing product quality, thus attracting more customers across diverse applications.

Key Highlights of the Market

• The global electric steel market is expected to reach USD 45 billion by 2035.
• North America and Asia Pacific are anticipated to be leading regions in electric steel consumption.
• Grain-oriented electrical steel is expected to dominate the product type segment.
• Renewable energy applications, particularly wind and solar, are driving demand for electric steel.
• Innovations in manufacturing processes are enhancing the efficiency of electric steel production.

By Product Type

Grain-Oriented Electrical Steel:

Grain-oriented electrical steel is a high-silicon steel that exhibits excellent magnetic properties, making it ideal for use in transformers and other electromagnetic applications. Its unique structure allows for minimal energy loss during operation, which is crucial for enhancing the efficiency of electrical devices. The segment has been witnessing significant demand due to the increasing installation of transformers and related equipment in the power generation and transmission sectors. Furthermore, advancements in manufacturing techniques have enabled the production of grain-oriented electrical steel with superior quality and performance characteristics, thus solidifying its position in the market. As the global emphasis on reducing energy consumption escalates, the market for grain-oriented electrical steel is expected to continue expanding, catering to the needs of the energy and manufacturing industries.

Non-Grain Oriented Electrical Steel:

Non-grain oriented electrical steel is primarily utilized in applications requiring multi-directional magnetic properties, such as in electric motors and generators. This type of steel is characterized by its uniform magnetic performance in all directions, providing an advantage for various applications within the automotive and industrial sectors. The growing demand for electric vehicles, which require high-performance motors, has significantly boosted the demand for non-grain oriented electrical steel. Moreover, the increasing production of renewable energy systems, such as wind turbines, has further accelerated the need for this product type. As manufacturers continue to innovate and enhance the properties of non-grain oriented electrical steel, the market is likely to witness robust growth in the coming years, driven by the evolving landscape of the energy and automotive industries.

By Application

Transformers:

Transformers are one of the primary applications for electric steel, particularly grain-oriented electrical steel, due to their critical role in the power distribution network. This segment is experiencing significant growth as the global demand for electricity continues to rise, necessitating more efficient transformers to minimize energy losses. The increasing adoption of renewable energy sources, such as solar and wind, has also created a demand for transformers designed to handle varying loads and conditions. Additionally, advancements in transformer design and technology are leading to higher efficiency and lower operational costs, further driving the demand for electric steel products tailored for this application. As the world transitions towards smarter and more resilient electrical grids, the transformer application segment is expected to remain a significant contributor to the electric steel market's growth.

Motors:

The use of electric steel in motors is rapidly increasing, driven by the significant growth in industries such as automotive, manufacturing, and renewable energy. Non-grain oriented electrical steel is particularly favored in electric motors due to its excellent magnetic properties and ability to operate efficiently under various conditions. With the rise of electric vehicles and the push for more efficient industrial machinery, the demand for high-quality electric steel for motor applications is expected to soar. Manufacturers are investing in innovative techniques to enhance the performance of electric motors, which in turn promotes the use of advanced electrical steel. As energy efficiency becomes a dominant focus across sectors, the electric motor application segment is poised for substantial growth within the electric steel market.

Inductors:

Inductors, which play a vital role in electrical circuits by storing energy in a magnetic field, are increasingly utilizing electric steel products for improved performance. The magnetic properties of electrical steel contribute to lower energy losses in inductors, making them more efficient and reliable. With the expansion of electronics and communication technologies, the demand for inductors is on the rise, particularly in applications such as power supplies, filters, and transformers. The growing trend of miniaturization in electronic devices has driven the need for compact and efficient inductors, which can be achieved through the use of advanced electric steel. As technological advancements continue to shape the electronics industry, the inductor application segment is expected to witness remarkable growth, further driving the demand for electric steel.

Others:

In addition to transformers, motors, and inductors, electric steel finds application in several other areas, including energy management systems, renewable energy equipment, and various electronic devices. The versatility of electric steel allows for its use in multiple applications across various industries, contributing to overall market growth. The ongoing transition to renewable energy sources and the increasing focus on smart energy solutions are supporting the expansion of electric steel applications in these sectors. As industries continue to innovate and develop new technologies, the demand for electric steel in other applications is expected to grow, driven by the need for efficient and sustainable solutions.

By Use Industry

Energy:

The energy sector is one of the largest consumers of electric steel, primarily due to its extensive use in transformers, generators, and renewable energy systems. The increasing demand for electricity worldwide has necessitated the need for efficient power generation and distribution systems, which rely heavily on high-quality electric steel. The transition towards renewable energy sources, such as wind and solar, has further accelerated investments in electric steel products tailored for these applications. As governments and industries prioritize energy efficiency and sustainability, the electric steel market in the energy sector is poised for significant growth, driven by the rising installation of advanced transformers and generators that utilize innovative electrical steel solutions.

Automotive:

The automotive industry is experiencing a transformative shift towards electrification, which has resulted in a growing demand for high-performance electric steel in electric vehicles (EVs) and hybrid vehicles. Non-grain oriented electrical steel is particularly critical in the manufacturing of electric motors for these vehicles, enhancing their efficiency and performance. As consumers increasingly prioritize eco-friendly transportation options, automakers are investing in electric vehicle technology, further driving the need for advanced electric steel. Additionally, the automotive sector's commitment to reducing carbon emissions and improving fuel efficiency is promoting innovations in electric steel products. The growing popularity of EVs and hybrid vehicles is expected to significantly contribute to the expansion of the electric steel market in the automotive sector.

Manufacturing:

The manufacturing industry utilizes electric steel in various applications, including industrial motors, generators, and machinery. The demand for electric steel in manufacturing is closely tied to the growth of industrial automation and the increasing need for efficient machinery. As manufacturers seek to enhance productivity and reduce energy consumption, the reliance on high-quality electric steel is becoming more pronounced. Furthermore, advancements in manufacturing technologies are enabling the production of more sophisticated machinery that requires specialized electric steel products. As global manufacturing activities continue to expand, the electric steel market in this sector is expected to witness robust growth, driven by the ongoing push for efficiency and sustainability.

Others:

Electric steel is also utilized in various other industries, including construction, consumer electronics, and telecommunications. The versatility of electric steel allows for its application in a wide range of products, from electrical equipment to structural components. As technology continues to evolve, new opportunities for electric steel applications are expected to emerge, particularly in sectors that prioritize energy efficiency and advanced performance. The growing trend of smart manufacturing and the integration of electric steel into innovative technologies are likely to drive demand across these diverse industries. As businesses increasingly adopt sustainable practices, the use of electric steel in other sectors will contribute to the overall growth of the electric steel market.

By Region

The global electric steel market is divided into several key regions, each exhibiting distinct growth patterns and demands. North America holds a significant share of the market, primarily due to its advanced manufacturing capabilities and substantial investments in renewable energy projects. The region is expected to grow at a CAGR of around 5% during the forecast period, driven by the increasing demand for energy-efficient transformers and electric vehicles. Europe follows closely, where stringent regulations on energy efficiency and carbon emissions are propelling investments in electric steel, particularly in the automotive and energy sectors. The European market is highly competitive, with several key players focused on innovation and sustainable practices, further boosting the demand for electric steel products.

Asia Pacific is anticipated to be the fastest-growing region in the electric steel market, fueled by rapid industrialization, urbanization, and increasing energy demands. Countries such as China and India are at the forefront of this growth, with significant investments in infrastructure and renewable energy projects. The region is projected to account for approximately 35% of the global electric steel market by 2035, reflecting a strong CAGR of around 7%. Latin America and the Middle East & Africa are emerging markets for electric steel, with growing demand primarily driven by the expansion of the energy sector and investments in manufacturing capabilities. As these regions strive to improve energy efficiency and reduce reliance on traditional energy sources, the electric steel market is expected to continue expanding.

Opportunities

The electric steel market presents numerous opportunities for growth, especially in light of the rapid transition towards renewable energy and electrification across various industries. The increasing adoption of electric vehicles (EVs) represents a significant market opportunity, as the automotive industry shifts from traditional combustion engines to electric drivetrains. This trend necessitates the use of high-performance non-grain oriented electrical steel for electric motors, thus stimulating demand for innovative electric steel products. Moreover, as governments worldwide implement policies aimed at reducing carbon emissions, the push for energy-efficient equipment and infrastructure is expected to create substantial opportunities for electric steel manufacturers. Businesses that invest in research and development to produce advanced materials tailored to the evolving needs of the energy and automotive sectors will be well-positioned to capitalize on this growth trend.

Furthermore, the ongoing digitization and automation of industrial processes present significant opportunities for the electric steel market. As industries seek to enhance productivity and reduce operational costs, the demand for energy-efficient machinery and equipment is increasing. Electric steel, known for its superior magnetic properties, plays a vital role in improving the performance of motors, generators, and transformers used in industrial applications. Additionally, the rise of smart grids and energy management systems is driving innovations in electric steel products, creating new avenues for market expansion. By strategically aligning their offerings with the growing demand for sustainable and efficient solutions, electric steel manufacturers can leverage these opportunities to capture a larger share of the market.

Threats

Despite the promising growth prospects of the electric steel market, several threats could hinder its expansion. One of the primary concerns is the volatility of raw material prices, particularly iron ore and steel, which can significantly impact production costs and profitability for manufacturers. Fluctuations in commodity prices can result from geopolitical tensions, changes in trade policies, or supply chain disruptions, creating uncertainty for electric steel producers. Additionally, the market faces challenges from intense competition, not only from established players but also from new entrants who may adopt aggressive pricing strategies to gain market share. This heightened competition can lead to price wars, ultimately squeezing profit margins for all stakeholders involved in the electric steel supply chain.

Moreover, the shift towards alternative materials and technologies poses a potential threat to the electric steel market. As industries continue to innovate, there is a growing interest in materials that offer superior performance or lower environmental impact than traditional electric steel. If these alternatives gain traction, the demand for electric steel could be negatively affected. Manufacturers must remain vigilant and invest in research and development to enhance the properties of electric steel and ensure it remains competitive in a rapidly changing landscape. Additionally, regulatory changes and compliance requirements related to environmental standards may require manufacturers to adapt their production processes, potentially increasing operational costs and impacting profitability.

Competitor Outlook

• ArcelorMittal
• AK Steel Holding Corporation
• Thyssenkrupp AG
• POSCO
• Nippon Steel Corporation
• JFE Steel Corporation
• United States Steel Corporation
• Steel Authority of India Limited (SAIL)
• Bharat Heavy Electricals Limited (BHEL)
• Essar Steel
• Severstal
• Voestalpine AG
• Baowu Steel Group
• Corus Group
• Hebei Steel Group

The competitive landscape of the electric steel market is characterized by a mixture of established global players and regional manufacturers, each striving to enhance their market presence through product innovation and strategic partnerships. Key players such as ArcelorMittal and Thyssenkrupp AG dominate the market landscape due to their extensive production capabilities and strong distribution networks. These companies are continually investing in research and development to innovate new electric steel products that meet the changing demands of the energy, automotive, and manufacturing sectors. Furthermore, many competitors are focusing on sustainability initiatives and reducing their carbon footprints, aligning their operations with global trends towards green energy solutions and environmental responsibility.

In addition to large corporations, smaller regional players are also making their mark in the electric steel market. These companies often cater to niche markets or provide specialized products tailored to specific industry needs, allowing them to compete effectively with larger entities. The competitive dynamics are further shaped by collaborations and joint ventures, where companies partner to leverage complementary strengths and enhance their technological capabilities. For instance, collaborations between electric steel manufacturers and technology firms focusing on smart manufacturing solutions are increasingly common, resulting in innovative products that address market demands for efficiency and sustainability.

Major companies such as POSCO and Nippon Steel Corporation are actively expanding their production capacities to meet the growing demand for electric steel, particularly in regions experiencing rapid industrialization and urbanization. These firms are focusing on enhancing their supply chain efficiencies and improving their product offerings, ensuring they remain competitive in the global market. Additionally, as electric vehicles gain traction, companies are aligning their strategies to cater to the burgeoning demand for non-grain oriented electrical steel, essential for electric motors in EVs. By investing in advanced manufacturing technologies and exploring new markets, these players are well-positioned to capitalize on the growth opportunities presented by the electric steel market.

• 1 Appendix

  • 1.1 List of Tables
  • 1.2 List of Figures

• 2 Introduction

  • 2.1 Market Definition
  • 2.2 Scope of the Report
  • 2.3 Study Assumptions
  • 2.4 Base Currency & Forecast Periods

• 3 Market Dynamics

  • 3.1 Market Growth Factors
  • 3.2 Economic & Global Events
  • 3.3 Innovation Trends
  • 3.4 Supply Chain Analysis

• 4 Consumer Behavior

  • 4.1 Market Trends
  • 4.2 Pricing Analysis
  • 4.3 Buyer Insights

• 5 Key Player Profiles

  • 5.1 POSCO
    • 5.1.1 Business Overview
    • 5.1.2 Products & Services
    • 5.1.3 Financials
    • 5.1.4 Recent Developments
    • 5.1.5 SWOT Analysis
  • 5.2 Severstal
    • 5.2.1 Business Overview
    • 5.2.2 Products & Services
    • 5.2.3 Financials
    • 5.2.4 Recent Developments
    • 5.2.5 SWOT Analysis
  • 5.3 Corus Group
    • 5.3.1 Business Overview
    • 5.3.2 Products & Services
    • 5.3.3 Financials
    • 5.3.4 Recent Developments
    • 5.3.5 SWOT Analysis
  • 5.4 Essar Steel
    • 5.4.1 Business Overview
    • 5.4.2 Products & Services
    • 5.4.3 Financials
    • 5.4.4 Recent Developments
    • 5.4.5 SWOT Analysis
  • 5.5 ArcelorMittal
    • 5.5.1 Business Overview
    • 5.5.2 Products & Services
    • 5.5.3 Financials
    • 5.5.4 Recent Developments
    • 5.5.5 SWOT Analysis
  • 5.6 Voestalpine AG
    • 5.6.1 Business Overview
    • 5.6.2 Products & Services
    • 5.6.3 Financials
    • 5.6.4 Recent Developments
    • 5.6.5 SWOT Analysis
  • 5.7 Thyssenkrupp AG
    • 5.7.1 Business Overview
    • 5.7.2 Products & Services
    • 5.7.3 Financials
    • 5.7.4 Recent Developments
    • 5.7.5 SWOT Analysis
  • 5.8 Baowu Steel Group
    • 5.8.1 Business Overview
    • 5.8.2 Products & Services
    • 5.8.3 Financials
    • 5.8.4 Recent Developments
    • 5.8.5 SWOT Analysis
  • 5.9 Hebei Steel Group
    • 5.9.1 Business Overview
    • 5.9.2 Products & Services
    • 5.9.3 Financials
    • 5.9.4 Recent Developments
    • 5.9.5 SWOT Analysis
  • 5.10 JFE Steel Corporation
    • 5.10.1 Business Overview
    • 5.10.2 Products & Services
    • 5.10.3 Financials
    • 5.10.4 Recent Developments
    • 5.10.5 SWOT Analysis
  • 5.11 Nippon Steel Corporation
    • 5.11.1 Business Overview
    • 5.11.2 Products & Services
    • 5.11.3 Financials
    • 5.11.4 Recent Developments
    • 5.11.5 SWOT Analysis
  • 5.12 AK Steel Holding Corporation
    • 5.12.1 Business Overview
    • 5.12.2 Products & Services
    • 5.12.3 Financials
    • 5.12.4 Recent Developments
    • 5.12.5 SWOT Analysis
  • 5.13 United States Steel Corporation
    • 5.13.1 Business Overview
    • 5.13.2 Products & Services
    • 5.13.3 Financials
    • 5.13.4 Recent Developments
    • 5.13.5 SWOT Analysis
  • 5.14 Bharat Heavy Electricals Limited (BHEL)
    • 5.14.1 Business Overview
    • 5.14.2 Products & Services
    • 5.14.3 Financials
    • 5.14.4 Recent Developments
    • 5.14.5 SWOT Analysis
  • 5.15 Steel Authority of India Limited (SAIL)
    • 5.15.1 Business Overview
    • 5.15.2 Products & Services
    • 5.15.3 Financials
    • 5.15.4 Recent Developments
    • 5.15.5 SWOT Analysis

• 6 Market Segmentation

  • 6.1 Electric Steel Market, By Application
    • 6.1.1 Transformers
    • 6.1.2 Motors
    • 6.1.3 Inductors
    • 6.1.4 Others
  • 6.2 Electric Steel Market, By Product Type
    • 6.2.1 Grain-Oriented Electrical Steel
    • 6.2.2 Non-Grain Oriented Electrical Steel
  • 6.3 Electric Steel Market, By Use Industry
    • 6.3.1 Energy
    • 6.3.2 Automotive
    • 6.3.3 Manufacturing
    • 6.3.4 Others

• 7 Competitive Analysis

  • 7.1 Key Player Comparison
  • 7.2 Market Share Analysis
  • 7.3 Investment Trends
  • 7.4 SWOT Analysis

• 8 Research Methodology

  • 8.1 Analysis Design
  • 8.2 Research Phases
  • 8.3 Study Timeline

• 9 Future Market Outlook

  • 9.1 Growth Forecast
  • 9.2 Market Evolution

• 10 Geographical Overview

  • 10.1 Europe - Market Analysis
    • 10.1.1 By Country
      • 10.1.1.1 UK
      • 10.1.1.2 France
      • 10.1.1.3 Germany
      • 10.1.1.4 Spain
      • 10.1.1.5 Italy
  • 10.2 Asia Pacific - Market Analysis
    • 10.2.1 By Country
      • 10.2.1.1 India
      • 10.2.1.2 China
      • 10.2.1.3 Japan
      • 10.2.1.4 South Korea
  • 10.3 Electric Steel Market by Region
  • 10.4 Latin America - Market Analysis
    • 10.4.1 By Country
      • 10.4.1.1 Brazil
      • 10.4.1.2 Argentina
      • 10.4.1.3 Mexico
  • 10.5 North America - Market Analysis
    • 10.5.1 By Country
      • 10.5.1.1 USA
      • 10.5.1.2 Canada
  • 10.6 Middle East & Africa - Market Analysis
    • 10.6.1 By Country
      • 10.6.1.1 Middle East
      • 10.6.1.2 Africa

• 11 Global Economic Factors

  • 11.1 Inflation Impact
  • 11.2 Trade Policies

• 12 Technology & Innovation

  • 12.1 Emerging Technologies
  • 12.2 AI & Digital Trends
  • 12.3 Patent Research

• 13 Investment & Market Growth

  • 13.1 Funding Trends
  • 13.2 Future Market Projections

• 14 Market Overview & Key Insights

  • 14.1 Executive Summary
  • 14.2 Key Trends
  • 14.3 Market Challenges
  • 14.4 Regulatory Landscape

Segments Analyzed in the Report

The global Electric Steel market is categorized based on

By Product Type

• Grain-Oriented Electrical Steel
• Non-Grain Oriented Electrical Steel

By Application

• Transformers
• Motors
• Inductors
• Others

By Use Industry

• Energy
• Automotive
• Manufacturing
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Key Players

• ArcelorMittal
• AK Steel Holding Corporation
• Thyssenkrupp AG
• POSCO
• Nippon Steel Corporation
• JFE Steel Corporation
• United States Steel Corporation
• Steel Authority of India Limited (SAIL)
• Bharat Heavy Electricals Limited (BHEL)
• Essar Steel
• Severstal
• Voestalpine AG
• Baowu Steel Group
• Corus Group
• Hebei Steel Group