Electrical Steel Market to Expand to USD 69.4 Billion by 2034, with POSCO, Nippon Steel and ArcelorMittal in Focus
The global electrical
steel market is projected to increase from USD 30.7 billion in 2024 to USD
69.4 billion by 2034, expanding at a compound annual growth rate (CAGR) of 8.5%
during the forecast period. The market is estimated at USD 36.1 billion in
2026. Rising electricity consumption, expansion of power infrastructure, and
growing electric vehicle production are supporting demand for electrical steel across
transformers, motors, inductors, and other electromagnetic equipment.
Electrical steel is valued for properties including high
permeability, electrical resistivity, low hysteresis loss, and low
magnetostriction. These characteristics make it important in energy-efficient
electrical equipment and increasingly relevant to electric vehicle motor
applications.
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Market Snapshot
- 2024
Market Value: USD 30.7 billion
- 2026
Estimated Value: USD 36.1 billion
- 2034
Forecast Value: USD 69.4 billion
- Forecast
CAGR (2024–2034): 8.5%
- Leading
Product Type: Non-grain-oriented electrical steel, with USD 16.9
billion value in 2024
- Leading
Application: Transformers, accounting for 39.4% share in 2024
- North
America: 18.5% share in 2024
- China:
USD 11.2 billion projected value by 2034
Electric Vehicles and Grid Modernization Strengthen
Demand
Non-grain-oriented electrical steel holds a leading position
because of its uniform magnetic properties and low core loss. It is widely used
in motor cores, including rotors and stators for electric vehicles. Rising EV
production is therefore creating an additional source of demand beyond
conventional industrial motors.
The transformer segment is projected to account for 39.4% of
the market in 2024 and reach USD 26.8 billion by 2034. Electrical steel's
magnetic permeability makes it a critical material for transformer cores, while
the modernization of aging power infrastructure is creating replacement and
expansion opportunities.
Increasing renewable power generation is also contributing
to demand. Wind and solar projects require generators, transformers, and
supporting transmission infrastructure. Governments and utilities are
simultaneously investing in power-grid upgrades and energy-efficiency
initiatives, creating a broader market opportunity for electrical steel
manufacturers.
The automotive sector remains another important growth area.
Manufacturers are increasingly using electrical steel in high-powered motors
for hybrid and electric vehicles, where reducing energy losses can support motor
efficiency and vehicle range.
North America and China Offer Significant Opportunities
North America is projected to hold 27.9% of the global
electrical steel market by 2034. The United States market is forecast to grow
at a 13.3% CAGR, increasing from USD 4.1 billion in 2024 to USD 14.2 billion by
2034. EV adoption, renewable energy development, and power-grid modernization
are key factors supporting this growth.
China is projected to reach USD 11.2 billion by 2034,
expanding at a 12.8% CAGR. Industrialization, urbanization, energy-efficient
equipment demand, and the country's growing EV industry are supporting
electrical steel consumption. Japan is forecast to grow at an 8.2% CAGR and
reach USD 5.7 billion by 2034.
Canada is projected to record a particularly strong 13.4%
CAGR through 2034, reflecting opportunities linked to electrification and
energy infrastructure.
Analyst Perspective
S.N. Jha, Principal Consultant at Fact.MR, identifies rising
electricity demand, industrialization, urbanization, and EV production as major
factors influencing electrical steel sales. The report also highlights the
importance of infrastructure development, renewable power adoption, and
transformer replacement in sustaining market growth.
Competitive Landscape
The electrical steel market includes major steel producers
with established capabilities across grain-oriented and non-grain-oriented
products. Key companies profiled in the Fact.MR report include Novolipetsk
Steel, Voestalpine Stahl GmbH, POSCO, Nippon Steel, Sumitomo Metal Corporation,
ThyssenKrupp AG, JFE Steel Corporation, Cogent Power, ArcelorMittal SA, and
Aperam SA.
Competition is shaped by product quality, magnetic
performance, production capacity, technological development, and the ability to
serve automotive and power-sector customers. Manufacturers are also pursuing
partnerships and production investments to strengthen supply capabilities.
In 2021, JSW Steel and JFE Steel Corporation signed a
memorandum of understanding to conduct a feasibility study for establishing a
grain-oriented electrical steel sheet manufacturing and sales joint venture in
India. Such investments reflect the broader effort to expand regional
production and address growing demand.
High raw-material costs remain a constraint for
manufacturers. However, rising EV production, renewable energy investment,
transformer replacement, and electricity-grid expansion continue to create
opportunities across major markets.
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