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.