In this report, the Electrical Steel Market has been segmented by Type, Manufacturing Process, Application, End-Use, and Geography.

Electrical Steel Market, Segmentation by Type

The Electrical Steel Market has been segmented by Type into Non Grain-Oriented Steel and Grain-Oriented Steel - [Fully Processed and Semi-Processed].

Non Grain-Oriented Steel

Non Grain-Oriented Steel holds a significant share of the electrical steel market, estimated at around 45%. Its isotropic magnetic properties make it essential for manufacturing motors and generators used across automotive and industrial sectors. This steel type is favored for its ability to minimize core losses, enhancing the energy efficiency of electrical equipment.

Grain-Oriented Steel

Grain-Oriented Steel captures nearly 40% of the market, owing to its specialized grain alignment that boosts magnetic performance along a single axis. This characteristic makes it indispensable for transformer cores and inductors, supporting expanding power transmission networks. Its low energy dissipation plays a key role in optimizing electrical systems..

Electrical Steel Market, Segmentation by Manufacturing Process

The Electrical Steel Market has been segmented by Manufacturing Process into Cold Rolled, Hot Rolled, Continuous Annealed, and Batch Annealed.

Cold Rolled

Cold Rolled electrical steel, representing nearly 50% of production, is processed at room temperature to deliver superior surface finish and precise dimensions. This method enhances both the mechanical strength and magnetic properties, making it ideal for high-precision uses such as motors and transformers.

Hot Rolled

Hot Rolled electrical steel, making up around 20% of the segment, involves rolling at elevated temperatures, resulting in a more economical product with a coarser surface texture. It is suitable for applications where cost-effectiveness is critical and surface finish is less important.

Continuous Annealed

Continuous Annealed steel undergoes a controlled heat treatment that improves magnetic qualities and reduces internal stresses, enabling consistent quality in mass production. This method accounts for about 20% of manufacturing processes and is widely employed in transformer cores and other electrical equipment.

Batch Annealed

Batch Annealed electrical steel offers excellent magnetic performance through controlled batch heat treatments, providing customization for specific applications. This process comprises roughly 10% of the market and is preferred for specialized transformers and tailored electrical components.

Electrical Steel Market, Segmentation by Application

The Electrical Steel Market has been segmented by Application into Transformers - [Current Transformers, Power Transformers, and Distribution Transformers], Motors, Inductors, and Others.

Transformers

Transformers dominate the electrical steel market applications, comprising about 75% of the total usage. This includes Current Transformers, Power Transformers, and Distribution Transformers, each serving distinct roles in electrical systems. Current Transformers account for around 25%, primarily used for precise current measurement and system protection, with rising demand linked to smart grid expansion. Power Transformers make up approximately 30%, essential for high-voltage transmission and distribution, relying on high-quality electrical steel to reduce energy losses. Distribution Transformers represent about 20%, facilitating voltage regulation for end-users with steel optimized for low core losses and enhanced reliability.

Motors

Motors account for roughly 15% of electrical steel applications, where the material’s magnetic properties help improve energy efficiency in automotive, industrial, and household uses.

Inductors

Inductors consume about 5% of electrical steel, utilizing its magnetic characteristics for energy storage in electronic circuits and power conditioning equipment.

Others

The Others segment includes generators, relays, sensors, and similar uses, collectively making up about 5% of the market, relying on specialized magnetic steel features tailored to specific needs.

Electrical Steel Market, Segmentation by End-Use

The Electrical Steel Market has been segmented by End-Use into Energy, Automobiles, Manufacturing, Household Appliances and Others.

Energy

Accounting for nearly 40% of electrical steel consumption, the Energy sector relies heavily on this material for power generation and distribution equipment. Expansion of renewable energy projects and modernization of grids are key drivers behind this substantial demand.

Automobiles

With about 25% share, the Automobiles segment is growing due to the rising production of electric and hybrid vehicles. Electrical steel is critical in crafting efficient electric motors that enhance vehicle performance and reduce energy consumption.

Manufacturing

The Manufacturing industry consumes around 15% of electrical steel, using it in industrial motors and transformers that support various production processes. High-quality magnetic materials are crucial for improving operational efficiency and cost-effectiveness.

Household Appliances

Household Appliances make up roughly 10% of the market, with electrical steel used in motors and transformers in everyday devices. Growth in this segment is fueled by consumer demand for energy-saving appliances.

Others

Other applications, including electronics, aerospace, and telecommunications, collectively represent about 10% of electrical steel usage, leveraging its unique magnetic properties for specialized functions.

Electrical Steel Market, Segmentation by Geography

In this report, the Electrical Steel Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

Electrical Steel Market Share (%), by Geographical Region

North America

Capturing approximately 25% of the electrical steel consumption, North America benefits from advanced industrial capabilities and increasing renewable energy investments. Key sectors driving demand include energy, automotive, and manufacturing.

Europe

Europe commands around 30% of the market, propelled by established electrical grids and strict regulations promoting energy-efficient technologies. The region heavily consumes electrical steel for transformers, motors, and renewable energy systems.

Asia Pacific

As the largest regional market at nearly 35%, Asia Pacific’s growth is fueled by rapid industrialization, robust automotive manufacturing, and expanding power infrastructure. Leading countries such as China, India, and Japan drive this surge.

Middle East & Africa

Representing about 5% of the market, the Middle East & Africa region is experiencing growth from power sector expansions and industrial development. Ongoing infrastructure modernization is expected to enhance electrical steel demand.

Latin America

Latin America accounts for close to 5% of electrical steel consumption, supported by rising industrial activities and infrastructure projects. Growth in renewable energy initiatives also bolsters regional market expansion.

This report provides an in depth analysis of various factors that impact the dynamics of Electrical Steel Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints, and Opportunities Analysis

Drivers

• Increasing Demand for Energy Efficiency
• Rise in Power Generation and Distribution Infrastructure

• Growing Automotive Sector - The surge in electric and hybrid vehicles is pushing automakers to purchase far more high-efficiency electrical steel, a material prized for its low core loss and strong magnetic permeability.

  Each new EV contains multiple motors, onboard chargers, and power-electronics modules that rely on precision-engineered steel laminations to maximize energy conversion and extend driving range.

  Emerging motor designs—axial flux, permanent-magnet synchronous, and other compact topologies—demand premium, tightly specified grades that can endure higher frequencies and temperatures without performance drop-off.

  Because consumer demand, emissions rules, and performance benchmarks all favor electrified mobility, suppliers able to deliver automotive-ready electrical steel are positioned for multi-year growth across Asia, Europe, and North America.

Restraints

• Fluctuating Raw Material Prices
• Impact of COVID-19 Pandemic

• Stringent Environmental Regulations - Producing advanced electrical steel is energy-intensive, and new carbon-reduction mandates are raising costs for mills that still rely on traditional blast furnaces and high-temperature annealing lines.

  Regions with aggressive climate policy—such as the EU emissions trading system and China’s dual-control energy targets—now impose taxes, caps, and periodic audits that tighten margins for non-compliant producers.

  Meeting these standards requires capital-heavy upgrades: electric arc furnaces, hydrogen-ready burners, and closed-loop water systems, all of which lengthen payback times for small and mid-size mills.

  Until clean-tech retrofits become both scalable and affordable, regulatory pressure will curb capacity expansion and keep some producers on the sidelines, limiting overall market growth.

Opportunities

• Renewable Energy Integration
• Urbanization and Industrialization

• Investments in Infrastructure - Massive public and private infrastructure investments—from smart grids to electrified rail—are generating steady, long-tail demand for transformers, reactors, and inductors built with electrical steel cores.

  Rapid renewable-energy rollout means new transmission lines and substations must handle fluctuating loads, making low-loss grain-oriented steel essential for grid stability and efficiency.

  Beyond power projects, metro systems, high-speed trains, and large industrial complexes all require durable, high-performance laminations to keep equipment compact and energy-efficient.

  Aligning product portfolios with national infrastructure plans allows steelmakers to secure multi-year supply contracts, diversify revenue, and showcase next-generation grades optimized for green-energy applications.

Electrical Steel Market is witnessing a competitive landscape where companies focus on strategies to enhance market share. Strategic collaboration and partnerships account for over 35% of growth, reflecting emphasis on innovation, technological advancements, and operational efficiency to strengthen product offerings and support the market’s future outlook across power generation, automotive, and industrial sectors.

Market Structure and Concentration
The market structure is moderately concentrated, with leading players controlling around 40% of the segment. Firms pursue mergers and acquisitions to expand production capacity and distribution networks. Strategies focusing on grain-oriented and non-oriented steel manufacturing, energy efficiency, and cost optimization drive growth, while ongoing technological advancements enhance competitive positioning.

Brand and Channel Strategies
Companies emphasize brand visibility and multi-channel strategies to increase adoption. Over 30% of revenues stem from partnerships with distributors, OEMs, and industrial clients. Strategic collaboration and marketing innovation reinforce product differentiation, driving growth and boosting electrical steel penetration across key energy and manufacturing applications.

Innovation Drivers and Technological Advancements
Investment in innovation and technological advancements drives nearly 40% of development initiatives. Companies focus on advanced alloy compositions, thin-slab casting, and magnetic performance optimization through research collaboration and laboratory partnerships. These efforts stimulate growth and reinforce the market’s future outlook in high-performance electrical steel solutions.

Regional Momentum and Expansion
Regional expansion is accelerating, with leading players achieving over 25% growth in strategic markets. Collaboration with local distributors and industrial clients enhances accessibility. Targeted strategies and adoption of technological advancements support scalable growth and increase electrical steel penetration in emerging energy and industrial regions.

Future Outlook
The market’s future outlook emphasizes sustained growth through partnerships, mergers, and continuous innovation. Companies plan investments in technological advancements to meet evolving power generation and industrial demands, with projections showing over 50% expansion potential. Strategic collaboration and operational excellence will define competitive leadership moving forward.

Key players in Electrical Steel Market include:

• POSCO
• Nippon Steel Corporation
• ArcelorMittal
• Baosteel / China Baowu Steel Group
• JFE Steel Corporation
• Tata Steel
• voestalpine Stahl GmbH
• Cleveland-Cliffs Inc.
• Aperam
• Thyssenkrupp AG
• VIZ-Stal (NLMK / Russia)
• Stalprodukt S.A.
• United States Steel Corporation
• Shandong Iron and Steel Group
• Arnold Magnetic Technologies

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Market Share Analysis
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis