Grain Oriented Electrical Steel Market Size, Analysis Report, 2026-2034
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Grain Oriented Electrical Steel Market Summary
The grain oriented electrical steel market size was valued at USD 13.75 billion in 2025. The market is projected to grow at a CAGR of 5.7% from 2026 to 2034. Rising grid modernization and increasing integration of renewable energy are a few of the key factors driving market growth.
Market Statistics
Key Takeaways
- North America dominated the market with a 37.9% share in 2025. The regional market dominance is driven by the increasing demand for energy-efficient systems.
- Asia Pacific accounted for a significant market share of 34.6% in 2025. Rapid urbanization and industrialization in emerging economies contribute to the regional market growth.
- India is projected to witness significant growth at a 6.5% CAGR. Growing investments in infrastructure development and power transmission networks drive market expansion in the country.
- The conventional segment held the largest market share of 68.4% in 2025. This is owing to its cost-effectiveness and dependable performance.
- The transformer segment dominated with a 72.1% revenue share in 2025. The use of grain oriented electrical steel helps lower energy losses and improve transformer efficiency.
Note: Figures and projections outlined in this report are the result of Polaris Market Research’s proprietary analytical processes, grounded in the latest available datasets and market observations.
Industry Dynamics
- The growing global energy demand has created an increased need for efficient transformers. This, in turn, is contributing to market expansion.
- The increase in the sales of electric vehicles globally is another factor driving market development.
- The rising construction of hyperscale data centers is creating several market opportunities.
- Complex manufacturing processes may present market challenges.
AI Impact on Grain Oriented Electrical Steel Market
- AI is used for improving the production of grain oriented electrical steel by optimizing the rolling, annealing, and coating process for better magnetic properties and lower energy loss.
- It is useful in quality control to identify defects and verify performance specifications.
- AI increases manufacturing efficiency through real-time process monitoring and automation of production optimization.
- It assists manufacturers with advanced data analytics and intelligent decision-making in supply chain planning and product development.
What are Grain Oriented Electrical Steel?
Grain-oriented electrical steel is a type of steel designed to have its grain structure aligned in a specific direction to enhance its magnetic properties. It is commonly used in the cores of transformers and electric motors to improve efficiency by reducing energy losses.
Rapid industrialization and urbanization around the world have led to a growing need for advanced infrastructure to support the development of cities and industries. According to the World Bank Group, 57% of the world's population lived in urban areas in 2023, showcasing an increase in urbanization.. Reliable and efficient power grids, electrical systems, and industrial machinery are essential in this process. Grain-oriented electrical steel plays a crucial role in transformers and electric motors, which are key components in these power grids and machinery. The development of more industries and urban areas is driving the grain oriented electrical steel market demand.
Source: Polaris Market Research Analysis
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Governments worldwide are implementing stricter regulations aimed at improving energy efficiency in electrical systems. These regulations focus on reducing energy losses in power transmission, transformers, and electric motors. The growing demand for energy-efficient systems, driven by government policies and environmental concerns, is pushing manufacturers to increasingly adopt grain-oriented electrical steel to meet these requirements, thereby driving the grain oriented electrical steel market growth.
GOES vs Non-Grain-Oriented Electrical Steel
| Factor | Grain Oriented Electrical Steel (GOES) | Non-Grain Oriented Electrical Steel (NGOES) |
| Grain Direction | All grains oriented in one direction. | The grains are randomly ordered. |
| Magnetic Efficiency | Magnetic efficiency increases in rolling direction. | Identical magnetic properties in any direction. |
| Energy Loss | Lower core loss, better energy saving. | Higher core losses than GOES. |
| Main Applications | Power transformers, distribution transformers, and reactors. | Electric motors, generators, and rotating machines. |
| Performance | More efficiency and permeability of transformer. | Ideal for applications where magnetic flow is needed in multiple directions. |
| Cost & Manufacturing | Generally more expensive and more complex to manufacture. | Easier to manufacture and usually cheaper. |
Grain Oriented Electrical Steel Market Dynamics
Rising Demand for Electricity
The global population is growing, leading to a rising demand for electrical energy. According to the International Energy Agency, the global consumption of electricity grew by 2.2% in 2023 compared to 2022. Increased electricity is required to power homes, industries, and transportation systems. This surge in power demand creates a greater need for efficient transformers that effectively transmit electricity over long distances. Additionally, countries modernizing their power grids to meet this growing demand are further expanding the market for grain-oriented electrical steel to support these changes.
Growth in Sales of Electric Vehicles
The global automotive industry, particularly the rise of electric vehicles (EVs), has greatly boosted the demand for grain-oriented electrical steel. For instance, according to the International Energy Agency, 14 million new electric cars were registered in 2023. Electric vehicles rely on highly efficient electric motors for propulsion, and these motors require grain-oriented electrical steel to optimize performance. The material’s ability to reduce energy losses and improve motor efficiency makes it an important component in electric vehicles. These vehicles are becoming more popular as consumers and governments focus on reducing emissions, thereby contributing to the grain-oriented electrical steel market expansion.
Source: Polaris Market Research Analysis
Grain Oriented Electrical Steel Market Segment Analysis
Grain Oriented Electrical Steel Market Assessment by Product Type
The grain oriented electrical steel market segmentation, based on product type, includes conventional, high magnetic strength sheets, and domain refinement. In 2025, the conventional segment held the largest market share of 68.4%. This type of steel is commonly used in transformers and electrical equipment due to its cost-effectiveness and dependable performance. The rising demand for energy-efficient systems is increasing the popularity of conventional grain-oriented steel, which improves magnetic properties and reduces energy losses in electrical devices. Its affordability and effectiveness in power transmission and distribution systems make conventional grain-oriented electrical steel an appealing option for manufacturers, which is driving the segmental growth in the market.
Grain Oriented Electrical Steel Market Evaluation by Application
The grain oriented electrical steel market segmentation, based on application, includes transformer, power generator, electric motor, and others. The transformer segment dominated the market in 2025 with 72.1%. Transformers are critical for efficient power transmission, and grain-oriented electrical steel improves their performance. The steel’s superior magnetic properties help minimize energy losses and improve efficiency in transformer cores, which is essential for effective electricity distribution. The growing demand for reliable and energy-efficient power systems has increased the need for transformers that use grain-oriented electrical steel, driving the segmental growth.
Source: Polaris Market Research Analysis
Silicon Steel Raw Material and Supply Chain Trends
The grain-oriented electrical steel (GOES) market is sensitive to the availability of high-grade silicon steel and the efficiency of global supply chains. GOES manufacturing requires specialized processes and high-quality raw materials. As such, supply capacity is one of the important factors in the growth of the market. Prices of steel, silicon, and energy can affect manufacturing costs and profitability. The growth of renewable energy projects and the modernization of the power grid simultaneously drive the demand for high performance electrical steels. Therefore, manufacturers are ramping up production capacity and enhancing supply chains to meet the increasing demand for GOES products.
Grain Oriented Electrical Steel Market Regional Insights
By region, the study provides the grain oriented electrical steel market insights into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. In 2025, North America dominated the market with 37.9% share, driven by the increasing demand for energy-efficient systems and the modernization of power grids. To meet this demand the US and Canada are investing in advanced infrastructure and renewable energy projects, which require efficient transformers and electrical equipment, which in turn is driving the demand for grain-oriented electrical steels. Additionally, the shift toward electric vehicles (EVs) is further driving the demand for grain-oriented electrical steel in North America, thereby driving the growth of the grain oriented electrical steel market in North America.
Asia Pacific is expected to record a significant grain oriented electrical steel market share of 34.6% during the forecast period, due to rapid industrialization and urbanization in countries such as China, Japan, and South Korea. The region is also a major hub for power generation and distribution, with a high demand for transformers and electrical equipment. Additionally, the growing shift towards renewable energy sources, such as wind and solar, is further driving the need for efficient power transmission systems.
The grain oriented electrical steel market in India is experiencing substantial growth due to increased investments in infrastructure development, including power transmission and distribution systems. The country’s growing industrial sector, along with a rising demand for energy-efficient electrical equipment, is driving the use of grain-oriented electrical steel in transformers and motors. Additionally, India is also focusing on renewable energy projects, which require advanced electrical systems. Government initiatives to modernize the power grid and improve energy efficiency are further accelerating market growth.
Source: Polaris Market Research Analysis
Grain Oriented Electrical Steel Market Key Players & Competitive Analysis Report
The grain oriented electrical steel market is constantly evolving, with numerous companies striving to innovate and distinguish themselves. Leading global corporations dominate the market by leveraging extensive research and development, and advanced techniques. These companies pursue strategic initiatives such as mergers, acquisitions, partnerships, and collaborations to enhance their product offerings and expand into new markets.
New companies are impacting the industry by introducing innovative products to meet the demand of specific market sectors. This competitive environment is amplified by continuous progress in product offerings. Major players in the grain oriented electrical steel market include ArcelorMittal, POSCO, Stalprodukt S.A., Baosteel Group Corporation, NIPPON STEEL CORPORATION, JFE Steel Corporation, thyssenkrupp Steel, Cleveland-Cliffs Inc., Arnold Magnetic Technologies, and VIZ-Steel.
Nippon Steel Corporation, based in Marunouchi, Chiyoda, Tokyo, is Japan's largest steel producer and a significant entity in the global steel market. The company was formed in 1970 through the merger of Yawata Iron & Steel and Fuji Iron & Steel and later merged with Sumitomo Metal Industries in 2012. In 2019, it reverted to its original name, focusing on technological advancements and global operations. The company operates through four main segments. The steelmaking and steel Fabrication segment is the largest, producing flat products such as sheets and plates for various sectors, including automotive and construction, as well as structural steel for civil engineering projects. The engineering and construction segment, managed by Nippon Steel Engineering Co., Ltd., provides engineering solutions primarily for infrastructure development. The chemicals and materials segment manufactures chemical products and materials used in numerous industrial applications. The system solutions segment, under NS Solutions Corporation, offers IT solutions designed for the manufacturing industry. Nippon Steel has a broad operational footprint, with production facilities in Japan and over 15 countries, including the United States, India, and several ASEAN nations. ORIENTCORE HI-B is a grain-oriented silicon iron by NIPPON STEEL, used in transformers for reduced core loss, noise and improved efficiency. It features superior magnetic properties and stress resistance.
ArcelorMittal S.A. is a multinational steel manufacturing corporation based in Luxembourg and recognized as the second-largest steel producer in the world. The company was formed in 2007 through the merger of Mittal Steel and Arcelor. It operates in 16 countries, with significant production facilities located primarily in Europe and the Americas. The company’s product offerings include a wide range of steel products categorized into flat and long steel products. Flat products consist of sheets and plates used across various industries, while long products include bars, rods, and structural shapes that are essential for construction and infrastructure. Additionally, ArcelorMittal produces pipes and tubes for various applications. Its mining operations yield iron ore lump, fines, concentrates, pellets, sinter feed, and coking coal. The company is also involved in producing automotive-grade steel, with over 200 unique grades designed for the automotive sector. In terms of geographic operations, ArcelorMittal's presence is diverse. Approximately 39% of its steel production occurs in the Americas, while Europe accounts for about 50% of total production. The remaining 11% comes from operations in other regions, such as South Africa and Ukraine. The company’s mining activities extend across several countries, including North America (Canada, Mexico), South America (Brazil), Europe (Ukraine, Bosnia), and Africa (Liberia, South Africa).
Key Companies in Grain Oriented Electrical Steel Market
- ArcelorMittal
- Arnold Magnetic Technologies
- Baosteel Group Corporation
- Cleveland-Cliffs Inc.
- JFE Steel Corporation
- NIPPON STEEL CORPORATION
- POSCO
- Stalprodukt S.A.
- thyssenkrupp Steel
- VIZ-Steel
Grain Oriented Electrical Steel Market Developments
April 2026: JSW Steel and JFE Steel Corporation officially unveiled the new corporate identity for their 50:50 joint venture: JSW JFE Steel Limited. According to JSW Steel, the joint venture includes the integrated steel operations at Sambalpur, Odisha. (source: jsw.in)
March 2026: ArcelorMittal showcased innovative electrical steels at Coiltech Germany 2026. The company also announced capacity expansion at Mardyck to meet rapidly growing demand for the energy transition and e-mobility. (source: europe.arcelormittal.com).
Grain Oriented Electrical Steel Market Segmentation
By Product Type Outlook (Revenue USD Billion, 2021–2034)
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Conventional
- High Magnetic Strength Sheets
- Domain Refinement
By Thickness Outlook (Revenue USD Billion, 2021–2034)
-
0.2 mm and Below
- 0.23 mm
- 0.27 mm
- 0.30 mm
- 0.35 mm and Above
By Application Outlook (Revenue USD Billion, 2021–2034)
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Transformer
- Power Generator
- Electric Motor
- Others
By Regional Outlook (Revenue USD Billion, 2021–2034)
-
North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Netherlands
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Malaysia
- South Korea
- Indonesia
- Australia
- Rest of Asia Pacific
- Middle East & Africa
- Saudi Arabia
- UAE
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Mexico
- Brazil
- Argentina
- Rest of Latin America
Grain Oriented Electrical Steel Market Report Scope
| Report Attributes | Details |
| Market Size Value in 2025 | USD 13.75 billion |
| Market Size Value in 2026 | USD 14.04 billion |
| Revenue Forecast in 2034 | USD 22.71 billion |
| CAGR | 5.7% from 2026–2034 |
| Base Year | 2025 |
| Historical Data | 2021–2024 |
| Forecast Period | 2026–2034 |
| Quantitative Units | Revenue in USD billion and CAGR from 2026 to 2034 |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Industry Trends |
| Segments Covered |
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| Regional Scope |
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| Competitive Landscape |
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| Report Format |
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| Customization | Report customization as per your requirements with respect to countries, regions, and segmentation. |
Source: Polaris Market Research Analysis
Grain Oriented Electrical Steel Market FAQ's
The grain oriented electrical steel market size was valued at USD 13.75 billion in 2025 and is projected to grow to USD 22.71 billion by 2034.
The global market is projected to register a CAGR of 5.7% during the forecast period, 2026-2034.
North America had the largest share of 37.9% in 2025.
The key players in the market are ArcelorMittal, POSCO, Stalprodukt S.A., Baosteel Group Corporation, NIPPON STEEL CORPORATION, JFE Steel Corporation, thyssenkrupp Steel, Cleveland-Cliffs Inc., Arnold Magnetic Technologies, and VIZ-Steel.
In 2025, the conventional segment held the largest market share of 68.4% due to the rising demand for energy-efficient systems is increasing the popularity of conventional grain-oriented steel, which improves magnetic properties and reduces energy losses in electrical devices.
The transformer segment held the largest market share of 72.1% in 2025. Transformers are critical for efficient power transmission, and grain-oriented electrical steel improves their performance.
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