The global electrical steel market is projected to increase from USD 30.7 billion in 2024 to USD 69.4 billion by 2034, expanding at a compound annual growth rate (CAGR) of 8.5% during the forecast period. The market is estimated at USD 36.1 billion in 2026. Rising electricity consumption, expansion of power infrastructure, and growing electric vehicle production are supporting demand for electrical steel across transformers, motors, inductors, and other electromagnetic equipment.

Electrical steel is valued for properties including high permeability, electrical resistivity, low hysteresis loss, and low magnetostriction. These characteristics make it important in energy-efficient electrical equipment and increasingly relevant to electric vehicle motor applications.

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Market Snapshot

• 2024 Market Value: USD 30.7 billion
• 2026 Estimated Value: USD 36.1 billion
• 2034 Forecast Value: USD 69.4 billion
• Forecast CAGR (2024–2034): 8.5%
• Leading Product Type: Non-grain-oriented electrical steel, with USD 16.9 billion value in 2024
• Leading Application: Transformers, accounting for 39.4% share in 2024
• North America: 18.5% share in 2024
• China: USD 11.2 billion projected value by 2034

Electric Vehicles and Grid Modernization Strengthen Demand

Non-grain-oriented electrical steel holds a leading position because of its uniform magnetic properties and low core loss. It is widely used in motor cores, including rotors and stators for electric vehicles. Rising EV production is therefore creating an additional source of demand beyond conventional industrial motors.

The transformer segment is projected to account for 39.4% of the market in 2024 and reach USD 26.8 billion by 2034. Electrical steel's magnetic permeability makes it a critical material for transformer cores, while the modernization of aging power infrastructure is creating replacement and expansion opportunities.

Increasing renewable power generation is also contributing to demand. Wind and solar projects require generators, transformers, and supporting transmission infrastructure. Governments and utilities are simultaneously investing in power-grid upgrades and energy-efficiency initiatives, creating a broader market opportunity for electrical steel manufacturers.

The automotive sector remains another important growth area. Manufacturers are increasingly using electrical steel in high-powered motors for hybrid and electric vehicles, where reducing energy losses can support motor efficiency and vehicle range.

North America and China Offer Significant Opportunities

North America is projected to hold 27.9% of the global electrical steel market by 2034. The United States market is forecast to grow at a 13.3% CAGR, increasing from USD 4.1 billion in 2024 to USD 14.2 billion by 2034. EV adoption, renewable energy development, and power-grid modernization are key factors supporting this growth.

China is projected to reach USD 11.2 billion by 2034, expanding at a 12.8% CAGR. Industrialization, urbanization, energy-efficient equipment demand, and the country's growing EV industry are supporting electrical steel consumption. Japan is forecast to grow at an 8.2% CAGR and reach USD 5.7 billion by 2034.

Canada is projected to record a particularly strong 13.4% CAGR through 2034, reflecting opportunities linked to electrification and energy infrastructure.

Analyst Perspective

S.N. Jha, Principal Consultant at Fact.MR, identifies rising electricity demand, industrialization, urbanization, and EV production as major factors influencing electrical steel sales. The report also highlights the importance of infrastructure development, renewable power adoption, and transformer replacement in sustaining market growth.

Competitive Landscape

The electrical steel market includes major steel producers with established capabilities across grain-oriented and non-grain-oriented products. Key companies profiled in the Fact.MR report include Novolipetsk Steel, Voestalpine Stahl GmbH, POSCO, Nippon Steel, Sumitomo Metal Corporation, ThyssenKrupp AG, JFE Steel Corporation, Cogent Power, ArcelorMittal SA, and Aperam SA.

Competition is shaped by product quality, magnetic performance, production capacity, technological development, and the ability to serve automotive and power-sector customers. Manufacturers are also pursuing partnerships and production investments to strengthen supply capabilities.

In 2021, JSW Steel and JFE Steel Corporation signed a memorandum of understanding to conduct a feasibility study for establishing a grain-oriented electrical steel sheet manufacturing and sales joint venture in India. Such investments reflect the broader effort to expand regional production and address growing demand.

High raw-material costs remain a constraint for manufacturers. However, rising EV production, renewable energy investment, transformer replacement, and electricity-grid expansion continue to create opportunities across major markets.

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About Fact.MR

Fact.MR is a market research and competitive intelligence provider delivering market intelligence, competitive analysis, and forecasting across global industries. Its research helps businesses evaluate market demand, understand competitive developments, and identify growth opportunities.