Electrical Steel Market worth $83.23 billion by 2031 - Exclusive Report by MarketsandMarkets™

DELRAY BEACH, Fla., May 13, 2026 /PRNewswire/ -- According to MarketsandMarkets, 'Electrical Steel Market by Type (Grain-oriented, Non-grain-oriented), Application (Transformers, Motors, Inductors), End-use Industry (Energy, Automotive, Manufacturing, Household Appliances), and Region - Global Forecast to 2031', The electrical steel market is projected to grow from USD 62.93 billion in 2026 to USD 83.23 billion by 2031, representing a compound annual growth rate (CAGR) of 5.8% during this period.

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Electrical Steel Market Size & Forecast:

• Market Size Available for Years: 2022-2031
• 2026 Market Size: USD 62.93 billion
• 2031 Projected Market Size: 83.23 billion
• CAGR (2026-2031): 5.8%

Electrical Steel Market Trends & Insights:

• The use of electrical steel is gaining traction in industries such as energy and automotive because of its ability to form efficient coils of electrical wire. End-users are replacing conventional steels with value-added, electrically engineered steels that are designed to optimize the magnetic properties of electricity passing through electrical coils. At the same time, improvements in the manufacture of electrical steel (due to advances in domain refinement technology, coating technology, and high-precision rolling methods) are resulting in improved permeability of grain oriented electrical steels (e.g. lower hysteresis losses), enabling the development of higher performing electrical coils when placed under various operating conditions. These improvements are essential to addressing the increasing complexity of today's electrical power systems as well as high-efficiency electric vehicle drivelines and renewable energy systems and correspondingly to improving the reliability and reducing energy losses of electrical systems.
• Asia Pacific accounted for a significant share of 51.6% in 2025.
• By type, the non-grain-oriented electrical steel segment is expected to be the largest in the forecasted period with 69.7% market share in 2025.
• By application, the transformers segment is projected to register the highest CAGR of43.9% during the period.
• By end-use industry, the energy segment dominated the market in 2025, accounting for 52.9% of the market share.
• ArcelorMittal (Luxembourg), POSCO (South Korea), China Baowu Steel Group Corporation Limited (China), voestalpine AG (Austria), and Nippon Steel Corporation (Japan) were identified as star players in the electrical steel market (global), given their strong market share and product footprint.
• Cleveland-Cliffs Inc. (US), Hebei Puyang Iron and Steel Group (China), JSW Steel (India), Angang Steel Company Limited (China) has distinguished themselves among startups and SMEs by securing strong footholds in specialized niche areas, underscoring their potential as emerging market leaders.

Browse in-depth TOC on 'Electrical Steel Market'

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Electrical steel is a specialized steel engineered to deliver excellent magnetic performance and is typically used in electromagnetic applications such as transformers, motors, and generators. Electrical steel is made by combining silicon with iron (steel) and is processed using advanced rolling and annealing techniques to provide low core loss, high permeability, and improved energy efficiency. Electrical steel can be divided into two categories: grain-oriented and non-grain-oriented. Each type has specific application requirements based on the requirements of directionally or isotropically operating magnetic field performance. Usually, electrical steel is manufactured as very thin sheets and/or coils to reduce energy losses associated with eddy currents. The use of electrical steel extends across the energy, automotive, and industrial sectors, making it essential to the production of electrical power, transmission of electrical power, and electric mobility. The properties of electrical steel are improved through both precision processing and coating technologies, so that electrical steel is vital to the creation of high-efficiency, low-loss electrical systems in today's infrastructure.

By type, the grain-oriented electrical steel segment accounted for the fastest CAGR during the forecasted period.

The Grain-Oriented Electrical Steel (GOES) segment is expected to register the fastest CAGR during the forecast period due to growing requirements for high-efficiency power transformers, due to a modernizing and expanding grid. GOES has been specifically manufactured to provide greater alignment of magnetic flux along a single axis, which dramatically reduces core losses in both transmission and distribution transformers. Investment in renewable energy, where efficient, long-distance transmission/transportation is essential, is driving growth in the more advanced grades of GOES. Additionally, in developed economies, high-efficiency transformers are replacing aging current transformers. Also, in developing economies, the increasing use of electricity as more consumers gain access is boosting demand for GOES transformers. Developmental innovations in coatings and refinement processes for GOES have improved performance, establishing GOES as one of the most important materials for next-generation energy systems.

By application, the transformers segment recorded the fastest CAGR during the forecast period.

The transformers segment is expected to register the fastest CAGR during the forecast period, driven by increasing demand for grid expansion, renewable energy integration, and cross-border power transmission systems. As electricity consumption continues to rise and energy systems become increasingly decentralized, utilities are installing more advanced and efficient transformers made from high-quality electrical steel to reduce core losses and improve load management. Moreover, the increasing complexity of power flows due to intermittent renewable resources has created a strong need for transformers that are more reliable and high performing. The replacement of aging grid infrastructure in developed nations, as well as electrification and rural connectivity projects in developing countries, are also substantially driving up demand. The combination of these trends will drive significant growth in the use of electrical steel in the transformer product segment.

By end-use industry, the energy segment accounted for the fastest CAGR during the forecast period.

The energy sector is anticipated to experience the fastest CAGR during the forecast period due to the drastic transition towards low-carbon and electrified infrastructures occurring within the worldwide electrical systems. A growing number of investments will be made in renewable energy projects, including wind and solar, thereby creating high demand for high-voltage electrical steels for use in generators, transformers, and grids. A growing need exists to manage variable power generation and maintain grid stability; therefore, manufacturers are advancing their production of next-generation electrical products with superior magnetic properties. In addition, demand for electricity is increasing due to the expansion of transmission networks, the electrification of rural communities, and the integration of large-scale energy storage. As countries work towards improving energy efficiency and meeting decarbonization targets, the electrical steel industry will grow quickly compared with other global industries (electricity has about 1/3 of the average total sales of other manufacturing industries).

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The Middle East & Africa region recorded the highest CAGR during the forecast period.

The Middle East & Africa region is expected to register the fastest CAGR during the forecast period, driven by rapidly increasing investment in all types of power infrastructure, grid expansion, and electrification initiatives. A major contributor to this increase in demand for electricity, and therefore the construction of new transmission and distribution systems, is the overall growth and urbanization of the population, which requires transformer equipment made from electrical steel. In addition, the growth of large-scale renewable energy projects (solar/wind) is generating significant demand for efficient grid integration and creating opportunities for new methods to reduce transmission losses and improve energy efficiency in the country, all of which are driving demand for new electrical steel grades. The ongoing growth of industrialization and the diversification of economies away from oil will continue to support the long-term growth of the Middle East and Africa as an emerging market for all types of electrical steels.

Key Players

The electrical steel market comprises major players such as ArcelorMittal (Luxembourg), POSCO (South Korea), China Baowu Steel Group Corporation Limited (China), voestalpine AG (Austria), Nippon Steel Corporation (Japan), United States Steel Corporation (US), Steel Authority of India Limited (SAIL) (India), Tata Steel (India), and thyssenkrupp AG (Germany) are covered in the electrical steel market. Partnerships, acquisitions, and expansions are among the major strategies adopted by these key players to enhance their positions in the electrical steel market.

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