Electrical Steel Market Size to Hit USD 62.43 Bn by 2030 | Driven by EV Revolution & Smart Grid Expansion (Global Analysis 2024-2030)

As the global transition towards sustainable energy and electric mobility accelerates, the Electrical Steel Market is witnessing an unprecedented surge in demand. According to a comprehensive market research report, the global electrical steel market size was valued at US$ 36.66 Billion in 2023 and is projected to skyrocket to US$ 62.43 Billion by 2030, exhibiting a robust CAGR of 7.9% during the forecast period.

This significant growth is underpinned by the rising production of Electric Vehicles (EVs), the modernization of power grids, and the increasing need for energy-efficient transformers and motors across industrial sectors.

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Electrical Steel Market Overview: The Backbone of Modern Electrification

Electrical steel, often referred to as silicon steel or lamination steel, is a specialized iron-silicon alloy tailored to possess specific magnetic properties. It is the critical core material used in the manufacturing of power transformers, generators, and inductors. By modifying the magnetic properties through high permeability, electrical steel minimizes energy dissipation (core loss), making it indispensable for the energy sector.

The market is primarily segmented into two high-demand categories:

1. Grain-Oriented Electrical Steel (GOES): Essential for high-efficiency transformers.

2. Non-Grain Oriented Electrical Steel (NGOES): Critical for electric motors and rotating machinery.

"With the United Nations' sustainable development goals pushing for industrial efficiency, vendors in the electrical steel market are poised for substantial revenue gains," states the lead analyst from the report.

Key Market Drivers: What is Fueling the 7.9% Growth?

1. The Electric Vehicle (EV) Boom and Automotive Transformation

The automotive industry is the most potent driver of the electrical steel market. As global manufacturing rises, the shift from internal combustion engines (ICE) to electric and hybrid vehicles has created a massive need for high-grade NGOES for traction motors.

• Mileage & Autonomy: By 2030, it is estimated that 40% of mileage in Europe could be covered by autonomous vehicles.

• Efficiency Demands: Electrical steel improves fuel efficiency and extends the driving range of EVs—a critical factor for consumer adoption.

• Foxconn’s Entry: Major players like Foxconn have announced investments (approx. NTD 10 billion) to manufacture EVs in North America by 2023, signaling a long-term demand spike for electrical steel cores.

2. Surging Demand for Energy-Efficient Transformers

Rising global electricity consumption necessitates the expansion of power transmission networks.

• Infrastructure Investment: For instance, a new power transformer facility was commissioned in Kerala, India (Feb 2021) with an annual output capacity of 1,500 MVA, highlighting the growing need for Grain-Oriented Electrical Steel (GOES).

• Smart Grids: The integration of renewable energy into the grid requires advanced transformers that rely on high-permeability electrical steel to reduce transmission losses.

3. Technological Innovations: 3D Printing & In-Wheel Motors

The future of mobility is being reshaped by technologies like 3D printing and additive manufacturing.

• Equipmake’s Innovation: UK-based Equipmake has developed a solution rearranging motor magnets like wheel spokes to improve cooling. Using additive manufacturing, they have increased the surface area for cooling, allowing motors to run more efficiently without overheating.

• Impact: These advancements allow EVs to operate continuously on a single charge, directly influencing the specifications and quality of electrical steel required.

Market Segmentation Analysis

By Type: Grain-Oriented vs. Non-Grain Oriented

• Grain-Oriented (GOES): Expected to hold the largest market share by 2030. Its unique crystal orientation (controlled in the rolling direction) makes it ideal for large power transformers, distribution transformers, and shunt reactors.

• Non-Grain Oriented (NGOES): Witnessing rapid growth due to its application in EV traction motors and household appliances where magnetic direction varies.

By Application: Transformers Lead the Charge

The Transformers segment is forecasted to grow rapidly. With urbanization increasing, the need for step-up and step-down transformers in residential and industrial zones is non-negotiable.

• Motors Segment: Driven by industrial automation and the residential sector (appliances), electrical steel is vital for generating the high magnetic flux required for torque.

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Regional Insights: Asia-Pacific Dominates, North America Rising

Asia-Pacific (APAC): The Global Hub

Asia-Pacific is projected to hold the largest market share through 2030.

• Key Factors: Rapid urbanization, low-cost labor, and the presence of steel giants like Nippon Steel, POSCO, and Tata Steel.

• India’s Role: India’s auto sector is the 6th largest globally, contributing 7% to the national GDP. With over 35 automakers, the demand for automotive-grade steel is soaring.

North America: The EV Frontier

North America is expected to witness rapid growth, driven by government incentives for EV production and charging infrastructure. The focus on renewable energy integration is further propelling the market for high-efficiency transformer cores.

Competitive Landscape: Top Electrical Steel Manufacturers

The market is consolidated with major global players focusing on capacity expansion and R&D. Key players profiled in the report include:

• ArcelorMittal

• Nippon Steel & Sumitomo Metal Corporation (NSSMC)

• POSCO

• Tata Steel Limited

• JFE Steel Corporation

• Voestalpine Group

• United States Steel Corporation

• SAIL (Steel Authority of India Limited)

Challenges: Volatility in raw material prices (iron ore, coal, ferroalloys), influenced by geopolitical events like trade wars, remains a key challenge for these manufacturers.

Frequently Asked Questions (FAQs)

Q1: What is the current size of the Electrical Steel Market? Ans: The global market was valued at US$ 36.66 Billion in 2023 and is expected to reach US$ 62.43 Billion by 2030.

Q2: Which type of electrical steel is in higher demand? Ans: While Grain-Oriented (GOES) currently holds the largest share due to transformer applications, Non-Grain Oriented (NGOES) is seeing the fastest growth rate due to the EV motor boom.

Q3: Who are the key players in the Electrical Steel Market? Ans: Top players include ArcelorMittal, Nippon Steel, POSCO, JFE Steel, and Tata Steel.

Q4: How does the Electric Vehicle industry impact this market? Ans: EVs require high-efficiency traction motors made with high-grade electrical steel. As EV production rises (e.g., Foxconn’s entry, autonomous driving trends), the demand for specialized steel increases proportionally.

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About the Report & Methodology

This report presents a comprehensive analysis of the global Electrical Steel Market, offering stakeholders a clear view of past trends (2018-2023) and future forecasts (2024-2030). It includes a dedicated study of PORTER’s Five Forces, PESTEL analysis, and the impact of micro-economic factors.