Electrical Steel Market Size, Trends & Forecast 2025-2035
Electrical Steel 2025-2035
The global electrical steel market is set to grow significantly, increasing from USD 43.1 billion in 2025 to USD 45.5 billion by 2035, with a compound annual growth rate (CAGR) of 7.5%. This growth is driven by the rising adoption of renewable energy, increasing demand for energy-efficient solutions, and the proliferation of electric vehicles (EVs).
| Market Attributes | Details |
|---|---|
| Market Size (2025) | USD 43.1 billion |
| Market Size (2035) | USD 45.5 billion |
| CAGR (2025-2035) | 7.5% |
Key Market Drivers
1. Renewable Energy Expansion
The increasing deployment of renewable energy projects, including wind and solar power, has amplified the demand for electrical steel in efficient power transmission systems and high-performance electrical equipment.
2. Electric Vehicle Proliferation
With the global shift towards sustainable transportation, electrical steel has become a critical component in manufacturing motors, batteries, and transformers for EVs and hybrid cars.
3. Smart Grid Development
Investments in smart grid infrastructure, aimed at enhancing energy efficiency and reliability, are fueling the need for high-quality electrical steel. Smart grids demand advanced transformers and motors that rely on electrical steel to minimize energy losses.
Market Challenges for Electrical Steel
1. High Raw Material Costs
Volatility in raw material prices, such as silicon and other alloys, poses a challenge for manufacturers, affecting overall profitability.
2. Competition from Alternative Materials
Emerging alternatives like aluminum in some applications are creating competitive pressures, pushing manufacturers to innovate and enhance product performance.
Regional Insights
| Region | Market Highlights |
|---|---|
| Asia-Pacific | Fastest-growing region, driven by industrialization, EV adoption, and renewable energy projects in countries like China and India. |
| North America | Sustained demand for energy-efficient systems and robust investments in smart grid technologies. |
| Europe | Emphasis on sustainability and renewable energy integration drives the market. |
Market Segmentation of Electrical Steel
By Product Type:
- Grain-Oriented Electrical Steel
- Non-Grain Oriented Electrical Steel
- Fully Processed
- Semi-Processed
By Application:
- Inductors
- Motors
- 1 HP to 100 HP
- 101 HP to 200 HP
- Above 200 HP
- Transformers
- Power Transformers
- Distribution Transformers
- Others
By End-Use Industry:
- Automotive
- Manufacturing
- Energy
- Household Appliances
| Application | CAGR (2024-2034) |
|---|---|
| Motors | 7.8% |
| Transformers | 7.2% |
Emerging Trends and Opportunities
- Adoption of Amorphous Alloys: Advanced materials like amorphous alloys are reshaping the industry, offering superior magnetic properties and reduced energy losses.
- Electrification of Industrial Processes: Electrification across sectors like manufacturing and construction boosts the demand for high-quality electrical steel in motors and transformers.
- Focus on Sustainable Production: Eco-friendly manufacturing processes and green technologies are gaining traction, aligning with stringent environmental regulations.
Competitive Landscape
The market is marked by intense competition, with key players focusing on R&D and sustainability. Major companies include:
- Nippon Steel Corporation
- POSCO
- Thyssenkrupp AG
- ArcelorMittal
- JFE Steel Corporation
Competitive Strategies:
- Innovation: Development of high-performance, eco-friendly electrical steel products.
- Geographic Expansion: Establishing production facilities in emerging markets.
- Partnerships: Collaborating with renewable energy and EV manufacturers.
Contact our advisory team to explore insights on established and emerging players.
Frequently Asked Questions
- What is the projected market size by 2035? The market is expected to reach USD 45.5 billion by 2035.
- Which region leads the market? Asia-Pacific dominates due to rapid industrialization and renewable energy projects.
- What are the primary applications of electrical steel? Key applications include motors, transformers, and inductors.
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