Electrical Steel - Global Strategic Business Report

The global market for Electrical Steel was estimated at US$35.8 Billion in 2024 and is projected to reach US$44.0 Billion by 2030, growing at a CAGR of 3.5% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Electrical Steel market.

Global Electrical Steel Market - Key Trends and Drivers Summarized

How Is Electrical Steel a Cornerstone of Modern Electrical Engineering?

Electrical steel, also known as silicon steel, is a fundamental material in modern electrical engineering, particularly in the construction of transformers, motors, and generators. Its unique properties, such as high permeability and low core loss, make it ideal for reducing energy loss in these applications. This specialized steel is designed to channel magnetic fields efficiently, which is crucial for transforming electrical energy into mechanical energy and vice versa. The efficiency of electrical steel directly impacts the performance and energy consumption of appliances and industrial machinery. As global energy demand grows and efficiency standards become more stringent, the role of electrical steel becomes increasingly significant in manufacturing energy-efficient devices that can help reduce overall electricity consumption and carbon footprint.

What Innovations Are Enhancing the Functionality of Electrical Steel?

Innovations in electrical steel manufacturing are focused on enhancing its magnetic properties and reducing energy losses in electrical applications. Advanced processing techniques such as laser scribing and domain refinement have been developed to improve the magnetic orientation of electrical steel, thereby reducing hysteresis losses (energy lost in the form of heat during magnetic cycling). Manufacturers are also exploring the incorporation of nanocrystalline materials, which can offer superior soft magnetic properties compared to traditional silicon steel. Additionally, coating technologies have evolved to include insulating films that minimize eddy current losses while providing corrosion resistance. These advancements not only improve the material`s performance in final applications but also contribute to the longevity and reliability of the devices that utilize electrical steel.

How Do Electrical Steel Products Impact Environmental Sustainability?

Electrical steel plays a crucial role in enhancing the environmental sustainability of power systems by increasing the efficiency of transformers and motors, which are integral to both industrial machinery and household appliances. By optimizing the energy conversion processes within these devices, electrical steel reduces electricity wastage, which in turn decreases the amount of fuel needed to generate power and thus lowers greenhouse gas emissions. The ongoing efforts to improve the recyclability of electrical steel also contribute to sustainable manufacturing practices. Recycling electrical steel not only conserves raw materials, such as iron and silicon but also requires less energy compared to producing new steel from ore, further reducing the environmental impact associated with its production.

What Trends Are Driving Growth in the Electrical Steel Market?

Several trends are driving the growth of the electrical steel market, including the global push towards energy efficiency, the expansion of renewable energy installations, and the rapid development of electric vehicles (EVs). As governments and industries implement stricter efficiency standards to combat climate change, the demand for high-performance electrical steel is rising to build more efficient electric motors and generators. The growth in renewable energy technologies, particularly wind turbines, which rely heavily on electrical steel for their functioning, is another significant driver. Moreover, the burgeoning EV market is a substantial growth area for electrical steel, as it is essential for lightweight, efficient motors that are critical for extending the driving range of EVs. These factors, coupled with urbanization and industrialization in emerging economies, where new infrastructure and increased automation are in demand, ensure a robust future for the electrical steel market.

SCOPE OF STUDY:

The report analyzes the Electrical Steel market in terms of units by the following Segments, and Geographic Regions/Countries:

• Segments: Type (Non-Grain Oriented, Grain Oriented); Application (Transformers, Inductors, Motors, Other Applications); End-Use (Manufacturing, Energy, Automobile, Household Appliances, Other End-Uses)
• Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Motors segment, which is expected to reach US$6.6 Billion by 2030 with a CAGR of a 4.4%. The Inductors segment is also set to grow at 2.7% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $9.6 Billion in 2024, and China, forecasted to grow at an impressive 6.1% CAGR to reach $9.1 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Electrical Steel Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Electrical Steel Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Electrical Steel Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as ArcelorMittal SA, Baosteel Group Corporation, China Steel Corporation, Essar Steel India Ltd., Hebei Puyang Iron and Steel Group and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 22 companies featured in this Electrical Steel market report include:

• ArcelorMittal SA
• Baosteel Group Corporation
• China Steel Corporation
• Essar Steel India Ltd.
• Hebei Puyang Iron and Steel Group
• JFE Steel Corporation
• JSW Steel Ltd.
• Nippon Steel & Sumitomo Metal Corporation
• POSCO
• Steel Authority of India Ltd. (SAIL)
• Tata Steel Ltd.
• ThyssenKrupp AG
• Union Electric Steel Corporation
• United States Steel Corporation
• Wuhan Iron & Steel (Group) Corporation

This edition integrates the latest global trade and economic shifts as of June 2025 into comprehensive market analysis. Key updates include:

• Tariff and Trade Impact: Insights into global tariff negotiations across 180+ countries, with analysis of supply chain turbulence, sourcing disruptions, and geographic realignment. Special focus on 2025 as a pivotal year for trade tensions, including updated perspectives on the Trump-era tariffs.
• Adjusted Forecasts and Analytics: Revised global and regional market forecasts through 2030, incorporating tariff effects, economic uncertainty, and structural changes in globalization. Includes segmentation by product, technology, type, material, distribution channel, application, and end-use, with historical analysis since 2015.
• Strategic Market Dynamics: Evaluation of revised market prospects, regional outlooks, and key economic indicators such as population and urbanization trends.
• Innovation & Technology Trends: Latest developments in product and process innovation, emerging technologies, and key industry drivers shaping the competitive landscape.
• Competitive Intelligence: Updated global market share estimates for 2025, competitive positioning of major players (Strong/Active/Niche/Trivial), and refined focus on leading global brands and core players.
• Expert Insight & Commentary: Strategic analysis from economists, trade experts, and domain specialists to contextualize market shifts and identify emerging opportunities.
• Complimentary Update: Buyers receive a free July 2025 update with finalized tariff impacts, new trade agreement effects, revised projections, and expanded country-level coverage.