Electrical Steel Market Size & Growth Forecast 2027–2036, By Segments (Type, Application, End-use), Regional Demand Trends (North America, Asia Pacific, Europe), Key Country Insights (U.S., Japan, South Korea, Germany, France, Italy), and Competitive Landscape
Market Size and Growth Outlook
Electrical Steel Market size was valued at USD 32.4 billion in 2026 and is anticipated to grow at a 5.23% CAGR from 2027 to 2036, crossing USD 53.94 billion by 2036. The industry revenue for 2027 is estimated at USD 33.83 billion.
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Regional Market Dynamics
- Asia Pacific leads with 64.02% share due to concentrated steelmaking capacity, large-scale manufacturing, and strong downstream demand from power equipment, automotive, and industrial machinery sectors.
- Asia Pacific’s 5.59% CAGR reflects expanding manufacturing capacity and rising demand for electrical steel in transformers, motors, and energy-efficient industrial equipment.
Segment Momentum
- Transformers hold the largest share because electrical steel is essential for transformer cores, supporting magnetic efficiency, operational reliability, and the ongoing requirements of power transmission and distribution systems.
- Motors are growing fastest as demand rises across industrial machinery, appliances, and electrified systems where energy efficiency and performance improvements increasingly influence material procurement decisions.
Market Expansion Drivers
- Accelerating electric vehicle production increasing demand for high-efficiency motor-grade electrical steel.
- Expanding grid infrastructure and transformer installations driving consumption of grain-oriented electrical steel.
- Capacity expansion investments improving regional supply security for advanced electrical steel manufacturing.
Leading Market Participants
- Prominent players in the electrical steel market include ArcelorMittal (Luxembourg), Baoshan Iron & Steel Co., Ltd. (China), China Steel Corporation (Taiwan), JFE Steel Corporation (Japan), Nippon Steel Corporation (Japan), POSCO Holdings Inc. (South Korea), Shougang Group Co., Ltd. (China), Tata Steel Limited (India), thyssenkrupp Steel Europe AG (Germany), voestalpine AG (Austria).
Global Market Forecast Snapshot
Market Outlook
- 2026 Market Size: USD 32.4 billion
- 2027 Estimated Market Size: USD 33.83 billion.
- Projected Market Size: USD 53.94 billion by 2036
- Growth Forecast: 5.23% CAGR (2027-2036)
Regional and Segment Outlook
- Leading Regional Market: Asia Pacific
- High-Growth Regional Hub: Asia Pacific
- Core Revenue Segment: Non-grain-oriented Electrical Steel (Type) | Transformers (Application) | Energy (End-use)
- Emerging Opportunity Segment: Grain-oriented Electrical Steel (Type) | Motors (Application) | Energy (End-use)
Market Growth Drivers and Industry Trends
Accelerating electric vehicle production increasing demand for high-efficiency motor-grade electrical steel
Accelerating electric vehicle production will drive the electrical steel market as traction motors require magnetic materials that can support efficient energy conversion and reduced electrical losses. Motor-grade electrical steel is used in motor cores because its magnetic properties enable efficient operation under demanding performance conditions. As automakers and component manufacturers expand electrified powertrain production, demand for specialized steel grades suited to compact, high-performance motors is increasing, while improvements in motor efficiency and energy consumption continue to influence material selection.
Expanding grid infrastructure and transformer installations driving consumption of grain-oriented electrical steel
Expansion of electricity transmission and distribution infrastructure will propel the electrical steel market through increasing requirements for transformer cores. Grain-oriented electrical steel is particularly suited to transformer applications because its directional magnetic properties help reduce core losses during electrical energy conversion. Investments in grid expansion, replacement of aging equipment, and installation of additional transformers are increasing material requirements across utility and industrial power systems, while broader electrification is placing additional emphasis on efficient power transmission and distribution equipment.
Capacity expansion investments improving regional supply security for advanced electrical steel manufacturing
Capacity expansion investments are strengthening the electrical steel market by increasing the availability of specialized production capabilities and supporting more resilient regional supply networks. Manufacturers are investing in advanced processing and production infrastructure to meet requirements for high-performance electrical steel used in motors, transformers, and other electrical equipment. Greater local manufacturing capacity can also reduce supply constraints and improve access to specialized grades, while investments in production technology support tighter control of magnetic performance, surface quality, and material consistency.
| Growth Driver | Impact on CAGR | Regulatory Influence | Geographic Relevance | Adoption Rate | Impact Timeline |
|---|---|---|---|---|---|
| Accelerating electric vehicle production increasing demand for high-efficiency motor-grade electrical steel | 2.00% | Moderate | Asia Pacific, Europe | High | Near Term |
| Expanding grid infrastructure and transformer installations driving consumption of grain-oriented electrical steel | 1.80% | High | North America, Asia Pacific | High | Mid Term |
| Capacity expansion investments improving regional supply security for advanced electrical steel manufacturing | 1.40% | Moderate | Asia Pacific, Europe, North America | Emerging | Long Term |
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Regional Demand Dynamics
Asia Pacific (Largest & Fastest-Growing Region)
The electrical steel market in Asia Pacific accounted for the largest share of 64.02% in 2026 and is also the fastest-growing regional market. The region's strong position is closely linked to its extensive electrical equipment and automotive manufacturing base, where electrical steel is essential for transformers, motors, generators, and other energy-efficient applications. Expanding power infrastructure, rising electricity demand, and continued investment in transmission and distribution networks are supporting consumption, while the rapid development of electric vehicles and electrified industrial systems is creating additional demand for high-performance electrical steel. The region's integrated manufacturing ecosystem and growing focus on energy efficiency further strengthen its long-term market momentum.
| Parameter | North America | Asia Pacific | Europe | Latin America | MEA |
|---|---|---|---|---|---|
| Innovation Hub i Scale Nascent Developing Advanced | |||||
| Cost-Sensitive Region i Scale Low Medium High | |||||
| Regulatory Environment i Scale Restrictive Neutral Supportive | |||||
| Demand Drivers i Scale Weak Moderate Strong | |||||
| Development Stage i Scale Emerging Developing Developed | |||||
| Adoption Rate i Scale Low Medium High | |||||
| New Entrants / Startups i Scale Sparse Moderate Dense | |||||
| Macro Indicators i Scale Weak Stable Strong |
Key Country Insights
Germany 🇩🇪
Industrial Efficiency MaterialsGermany emphasizes premium electrical steel for energy-efficient motors, industrial automation, and renewable power infrastructure. German producers continue refining advanced processing technologies to meet stringent performance requirements across automotive and electrical equipment manufacturing.
France 🇫🇷
Energy Infrastructure MaterialsFrance supports electrical steel demand through investments in renewable energy projects, transmission infrastructure, and energy-efficient industrial equipment. French manufacturers emphasize reliable material supply for transformers and electric machinery supporting national decarbonization initiatives.
Italy 🇮🇹
Precision Manufacturing SupplyItaly strengthens its electrical steel market by supplying specialized materials for industrial motors, transformers, and machinery production. Italian manufacturers continue improving processing capabilities to deliver higher-performance electrical steel for advanced engineering applications.
Japan 🇯🇵
High-Grade Steel DevelopmentJapan focuses on producing high-grade electrical steel with improved magnetic performance for advanced automotive and industrial applications. Japanese manufacturers continue investing in material innovation and precision manufacturing to support evolving electrification requirements.
South Korea 🇰🇷
EV Component IntegrationSouth Korea prioritizes electrical steel production aligned with electric vehicle motors, battery manufacturing, and power equipment industries. South Korean steelmakers continue enhancing product quality and manufacturing efficiency to meet growing demand from domestic and export-oriented manufacturers.
United States 🇺🇸
Grid Modernization SupplyThe U.S. electrical steel market is supported by investments in grid modernization, electric vehicle manufacturing, and domestic transformer production. U.S. manufacturers are strengthening localized supply chains while expanding production of high-performance electrical steel for energy-efficient applications.
Segment Leadership and Growth Trends
Electrical Steel Market Share (%), by Type, 2026
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Request Free Sample ReportType Segment Analysis: Non-grain-oriented Electrical Steel (Largest Segment) vs Grain-oriented Electrical Steel (Fastest-Growing Segment)
Non-grain-oriented electrical steel held the largest share of the electrical steel market in 2026, driven by its extensive use in electrical machines where magnetic properties must support efficient energy conversion across rotating components. Its suitability for motors, generators, and other electrical equipment makes it an important material for applications requiring low energy losses and reliable electromagnetic performance. Growing electrification across industrial equipment, transportation, and energy systems is sustaining demand for non-grain-oriented electrical steel.
Grain-oriented electrical steel is projected to be the fastest-growing type as demand increases for materials optimized for high-efficiency magnetic applications. Its directional magnetic properties make it particularly suitable for equipment where minimizing core losses and improving electrical efficiency are critical. Expansion of power infrastructure, increasing emphasis on energy-efficient equipment, and continued modernization of electrical systems are strengthening opportunities for grain-oriented electrical steel.
Application Segment Analysis: Transformers (Largest Segment) vs Motors (Fastest-Growing Segment)
Transformers accounted for the largest share of the electrical steel market in 2026, reflecting the material's essential role in transformer cores, where strong magnetic performance and low energy losses are critical to efficient power transmission and distribution. Electrical steel enables transformers to operate with improved energy efficiency while supporting reliable conversion between voltage levels. Rising electricity demand, grid modernization, and investments in transmission and distribution infrastructure continue to underpin demand for transformer applications.
Motors are expected to be the fastest-growing application as electrification expands across industrial machinery, mobility, appliances, and other equipment. Electrical steel is critical to motor efficiency because its magnetic characteristics influence energy consumption, operating performance, and heat generation. The increasing deployment of electric motors and greater emphasis on energy-efficient equipment are therefore accelerating demand for electrical steel in motor applications.
| Segment | Sub-Segment | Largest Segment | Fastest Growing |
|---|---|---|---|
| Type | Grain-oriented Electrical Steel, Non-grain-oriented Electrical Steel | Non-grain-oriented Electrical Steel | Grain-oriented Electrical Steel |
| Application | Transformers, Motors, Inductors, Others | Transformers | Motors |
| End-use | Energy, Automotive, Manufacturing, Household Appliances, Others | Energy | Energy |
Competitive Landscape and Market Positioning
Leading companies in the electrical steel market:
1. ArcelorMittal (Luxembourg)
2. Baoshan Iron & Steel Co. Ltd. (China)
3. China Steel Corporation (Taiwan)
4. JFE Steel Corporation (Japan)
5. Nippon Steel Corporation (Japan)
6. POSCO Holdings Inc. (South Korea)
7. Shougang Group Co. Ltd. (China)
8. Tata Steel Limited (India)
9. thyssenkrupp Steel Europe AG (Germany)
10. voestalpine AG (Austria)
The electrical steel market is evolving through advancements in energy-efficient materials and high-performance magnetic properties. Manufacturers are investing in improved grain-oriented steel technologies and sustainable production processes to support growing demand from renewable energy and electric mobility sectors. Expansion of smart grid infrastructure is also creating new opportunities across the electrical steel market.
| Company | Market Share | Company Revenue | Revenue CAGR (%) | Product Portfolio | Geographic Presence | Innovation / R&D Focus | Strategic Developments |
|---|---|---|---|---|---|---|---|
| ArcelorMittal (Luxembourg) | |||||||
| Baoshan Iron & Steel Co. Ltd. (China) | |||||||
| China Steel Corporation (Taiwan) | |||||||
| JFE Steel Corporation (Japan) | |||||||
| Nippon Steel Corporation (Japan) | |||||||
| POSCO Holdings Inc. (South Korea) | |||||||
| Shougang Group Co. Ltd. (China) | |||||||
| Tata Steel Limited (India) | |||||||
| thyssenkrupp Steel Europe AG (Germany) | |||||||
| voestalpine AG (Austria). |
Industry Development/News
| Company Name | Date | Key Development |
|---|---|---|
| Cleveland Cliffs | May-26 | Cleveland Cliffs secured Township Planning Commission approval for an operational expansion layout adding four electric induction furnaces and extending its current plant footprint. The capital investment scales downstream electrical steel production capacity and raises product quality to address grid modernization and industrial electrification. |
| ArcelorMittal | Apr-26 | ArcelorMittal manufactured its first industrial coil at its new USD 582 million electrical steel facility in Mardyck, France. This structural expansion elevates the company’s European electrical steel production capacity to approximately 295,000 metric tons per year, targeting accelerating demand for electric vehicle motors and industrial transformers. |
| Metglas India Private Limited | Mar-26 | Metglas India Private Limited—a joint venture between Proterial and Shirdi Sai Electricals—launched India's first amorphous electrical steel manufacturing plant in Sri City. Backed by a ₹680 crore investment, the facility yields an annual capacity of 34,000 tons, localizing production to reduce supply chain dependency and lower transformer core losses by up to 70%. |
| European Commission | Mar-26 | The European Commission initiated a formal trade investigation regarding surging imports of grain-oriented electrical steel sheets into the European market. This regulatory intervention threatens to modify international supply flows, baseline material pricing structures, and competitive sourcing dynamics for global steel producers. |
| Klöckner & Co | May-25 | Klöckner & Co deployed capital to expand its electrical steel processing and distribution capacity within the United States. The investment optimizes its North American supply chain networks for both grain-oriented and non-grain-oriented materials, capitalizing on intensive grid infrastructure growth. |
| JSW Steel | Feb-25 | JSW Steel, in collaboration with JFE Steel, finalized the acquisition of thyssenkrupp Electrical Steel India for INR 4,158 crore. The transaction integrates downstream manufacturing assets, positioning the joint venture to capture high-growth Indian industrial and energy markets through localized grain-oriented electrical steel production. |
| ArcelorMittal | Feb-25 | ArcelorMittal advanced its North American industrial footprint by moving forward with the construction of a new non-grain-oriented electrical steel manufacturing plant in Alabama. The facility scales long-term production capacity tailored directly for automotive electric vehicles and advanced industrial applications. |
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Electrical Steel Market — Custom Segments
| Segment | Sub-Segment |
|---|---|
| Thickness | Below 0.23 mm, 0.23–0.30 mm, 0.30–0.35 mm, Above 0.35 mm |
| Coating Type | Inorganic Coatings, Organic Coatings, Hybrid Coatings |
| Distribution Channel | Direct Sales, Distributors & Wholesalers, Specialty Steel Service Centers |
Electrical Steel Market — Custom
| Custom Chapter | Custom Details |
|---|---|
| EV and Grid Infrastructure Demand Assessment |
|
| High-Grade Electrical Steel Technology Adoption |
|
| Decarbonization Pathways for Electrical Steel Production |
|
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