Electrical Steel Market Report 2026

The electrical steel market size has grown strongly in recent years. It will grow from $37.13 billion in 2025 to $39.72 billion in 2026 at a compound annual growth rate (CAGR) of 7%. The growth in the historic period can be attributed to increasing electrification in energy and manufacturing sectors, rising demand for transformers and generators, adoption of grain-oriented steel in power distribution, growth in household appliance production, expansion of automotive sector using electrical steel.

The electrical steel market size is expected to see strong growth in the next few years. It will grow to $51.67 billion in 2030 at a compound annual growth rate (CAGR) of 6.8%. The growth in the forecast period can be attributed to rising electric vehicle production, increasing demand for high-performance motors and generators, adoption of energy-efficient transformers, expansion of renewable energy infrastructure, growth in industrial automation requiring electrical steel. Major trends in the forecast period include rising demand for grain-oriented electrical steel, increasing use of non-grain-oriented steel in motors, growth in electric vehicle applications, expansion of transformers and generators manufacturing, adoption of high-performance electrical steel for industrial applications.

The rapid increase in investments in renewable power generation capacities is anticipated to propel the electrical steel market over the forecast period. The strong expansion of renewable energy leads to substantial demand for electric transmission and distribution (T&D) equipment, including transformers. Numerous power generation companies are investing in renewable energy sources, particularly in the USA and European nations. For example, in June 2024, the International Energy Agency, a France-based autonomous intergovernmental organization, reported that global energy investment is projected to surpass USD 3 trillion in 2024, marking a notable rise from USD 2 trillion in 2023 allocated to clean energy. Consequently, the swift growth in investments in renewable power generation is fueling the expansion of the electrical steel market.

Major companies operating in the electrical steel market are concentrating on technological advancements such as ultra-thin, low-loss non-grain-oriented (NGO) electrical steel for high-efficiency motors and e-mobility applications. Ultra-thin NGO electrical steel is a silicon-alloyed sheet designed to minimize core losses, allow lighter motor constructions, and provide isotropic magnetic performance suitable for rotating machines, balancing efficiency and manufacturability. For example, in March 2023, United States Steel Corporation, a US-based steelmaker, introduced InduX, an ultra-thin, very wide, lightweight NGO electrical steel manufactured at its Big River Steel facility. The product offers optimized magnetic characteristics, ultra-thin gauges to lower core losses and motor weight, and large-scale production to strengthen domestic supply chains, enhancing motor efficiency, extending EV range, and enabling smaller, high-performance traction motors and industrial generators.

In December 2023, Nippon Steel Corporation, a Japan-based steelmaking company, acquired United States Steel Corporation for $14.9 billion. This acquisition aims to enhance Nippon Steel's manufacturing capabilities, expand its geographic reach, and increase its crude steel capacity while promoting sustainability. United States Steel Corporation is known for its production of electrical steel, which is crucial for applications in electric vehicles and renewable energy technologies. This strategic move positions Nippon Steel to better serve the growing demand for high-quality electrical steel in key markets.

Major companies operating in the electrical steel market report are ArcelorMittal S.A., POSCO, Baoshan Iron & Steel Co. Ltd, JFE Holdings, Inc., ThyssenKrupp AG, Cleveland-Cliffs Corporation, Steel Authority of India Limited, Bekaert SA, The Heico Companies, Ningbo BST Metal Products Co., Ltd, Nanjing Hengjie Industrial Co., Ltd, Suzuki Garphyttan Ab, Beloretsk Metallurgical Plant AO, Arnold Magnetic Technologies, Aperam, Companhia Siderúrgica Nacional, Siderca, Mahindra Intertrade, Harsh Electrical Stampings, Iron Products Industries Ltd, Sevan Construction Nigeria Limited.

Asia-Pacific was the largest region in the electrical steel market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the electrical steel market are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electrical steel market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The electrical steel market consists of sales of silicon steel, transformer steel, or lamination steel. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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