Electrical Steel Market Size, Share, and Growth Analysis, By Product, By Manufacturing Process, By Silicon Content, By Coating, By Application, By End-User Industry, By Region - Industry Forecast 2025-2032
Global Electrical Steel Market size was valued at USD 37.27 billion in 2023 and is poised to grow from USD 39.54 billion in 2024 to USD 63.5 billion by 2032, growing at a CAGR of 6.1% during the forecast period (2025-2032).
The electrical steel market is poised for significant growth, driven by its essential role in a variety of electromagnetic devices such as motors, generators, and relays, which are vital for the power distribution sector. As the second-largest electricity generator globally, the U.S. reported a 16.7% increase in renewable energy generation in 2023, further enhancing the demand for electrical steel. Additionally, the electric vehicle (EV) industry serves as a key growth catalyst, as this specialized steel is critical for improving motor efficiency, extending vehicle range, and meeting rising environmental standards. The market, valued at USD 40.9 billion in 2023, is projected to reach USD 68.7 billion by 2032, with a notable CAGR of 6.7% from 2025 to 2032, signaling robust expansion.
Top-down and bottom-up approaches were used to estimate and validate the size of the Global Electrical Steel market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.
Global Electrical Steel Market Segments Analysis
Global Electrical Steel Market is segmented by Product, Manufacturing Process, Silicon Content, Coating, Application, End-User Industry and region. Based on Product, the market is segmented into Grain Oriented Electrical Steel and Non-Grain Oriented Electrical Steel. Based on Manufacturing Process, the market is segmented into Cold Rolled, Hot Rolled, Continuous Annealed and Batch Annealed. Based on Silicon Content, the market is segmented into 0.5-1.5%, 1.5-2.5%, 2.5-3.5% and 3.5-4.5%. Based on Coating, the market is segmented into Oiled, Inorganic, Organic and Hybrid. Based on Application, the market is segmented into Transformers, Motors and Inductors. Based on End-User Industry, the market is segmented into Automotive, Energy, Manufacturing and Household Appliances. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Driver of the Global Electrical Steel Market
A significant factor propelling the growth of the Global Electrical Steel market is the increasing demand for electric motors within residential, commercial, and industrial sectors. Electrical steel plays a crucial role in manufacturing motors that deliver enhanced magnetic flux and torque, along with power generators boasting superior electromagnetic characteristics and reduced carbon dioxide emissions. Furthermore, the rising popularity of hybrid and electric vehicles (H/EVs) is contributing to this market's expansion. Components made from electrical steel in vehicles not only weigh less but also improve their overall aesthetics and safety features, further driving the demand for this essential material.
Restraints in the Global Electrical Steel Market
One of the primary constraints facing the Global Electrical Steel market is the substantial initial investment needed for its development and production. Establishing manufacturing facilities and acquiring cutting-edge technologies pose significant financial hurdles, especially for newcomers to the market. Building an electrical steel plant entails considerable expenditures on infrastructure, specialized equipment, and machinery. Additionally, the financial implications of research and development, process optimization, and adherence to regulatory standards further compound the investment challenges. This high upfront cost can discourage potential entrants and hinder the growth of current players, as the lengthy payback periods and uncertain returns make it difficult to rationalize such capital investments, thereby restricting overall market expansion.
Market Trends of the Global Electrical Steel Market
The Global Electrical Steel market is experiencing significant growth, propelled by the increasing demand for electricity driven by rapid population growth, urbanization, and industrial expansion. As the world shifts towards more energy-efficient practices, electrical steel is pivotal due to its superior magnetic properties, essential in manufacturing transformers and generators. This material enhances energy efficiency and minimizes losses in power transmission and distribution, addressing the critical need for reliable electricity supply. With these dynamics, the market is poised for robust expansion, integrating advancements in technology and sustainability while meeting the escalating global demand for electrical infrastructure and energy efficiency solutions.
Table of Contents
Introduction
Objectives of the Study
Scope of the Report
Definitions
Research Methodology
Information Procurement
Secondary & Primary Data Methods
Market Size Estimation
Market Assumptions & Limitations
Executive Summary
Global Market Outlook
Supply & Demand Trend Analysis
Segmental Opportunity Analysis
Market Dynamics & Outlook
Market Overview
Market Size
Market Dynamics
Drivers & Opportunities
Restraints & Challenges
Porters Analysis
Competitive rivalry
Threat of substitute
Bargaining power of buyers
Threat of new entrants
Bargaining power of suppliers
Key Market Insights
Key Success Factors
Degree of Competition
Top Investment Pockets
Market Ecosystem
Market Attractiveness Index, 2024
PESTEL Analysis
Macro-Economic Indicators
Value Chain Analysis
Pricing Analysis
Case Studies
Regulatory Landscape
Global Electrical Steel Market Size by Product & CAGR (2025-2032)
Market Overview
Grain Oriented Electrical Steel
Non-Grain Oriented Electrical Steel
Global Electrical Steel Market Size by Manufacturing Process & CAGR (2025-2032)
Market Overview
Cold Rolled
Hot Rolled
Continuous Annealed
Batch Annealed
Global Electrical Steel Market Size by Silicon Content & CAGR (2025-2032)
Market Overview
0.5-1.5%
1.5-2.5%
2.5-3.5%
3.5-4.5%
Global Electrical Steel Market Size by Coating & CAGR (2025-2032)
Market Overview
Oiled
Inorganic
Organic
Hybrid
Global Electrical Steel Market Size by Application & CAGR (2025-2032)
Market Overview
Transformers
Motors
Inductors
Global Electrical Steel Market Size by End-User Industry & CAGR (2025-2032)
Market Overview
Automotive
Energy
Manufacturing
Household Appliances
Global Electrical Steel Market Size & CAGR (2025-2032)
North America (Product, Manufacturing Process, Silicon Content, Coating, Application, End-User Industry)
US
Canada
Europe (Product, Manufacturing Process, Silicon Content, Coating, Application, End-User Industry)