Electrical Steel Market Size Worth $37.92 Billion by 2032 | CAGR: 4.80%

Electrical Steel Market Size Worth $37.92 Billion by 2032 | CAGR: 4.80%

The global electrical steel market size is expected to reach USD 37.92 billion by 2032, according to a new study by Polaris Market Research. The report “Electrical Steel Market Share, Size, Trends, Industry Analysis Report, By Product (GOES, NGOES), By Application (Transformer, Motor, Inductor), By Region, And Segment Forecasts, 2024- 2032” gives a detailed insight into current market dynamics and provides analysis on future market growth.

Increasing demand for power generation has led to a rise in the requirement for transformers, generators, and other related products that rely on electrical steel to achieve improved performance. Electrical steel, also known as lamination steel, silicon steel, transformer steel, or relay steel, is an iron alloy containing varying silicon content. Its exceptional magnetic properties make it essential for both rotating and static machines. Increasing global expansion of electricity grids and the growing emphasis of governments on rural electrification have led to a significant rise in the demand for transformers.

  • For instance, in February 2021, Sylvan Technologies Limited commenced the manufacturing of power transformers, aiming to reduce Bangladesh's reliance on imports and contribute to achieving 100% electrification in the country.

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Rising electricity generation and growing electric vehicle production in the region have resulted in an increased demand for transformers, generators, and motors. This surge in manufacturing is expected to drive the consumption of electrical steel during the forecast period. With the electric vehicle market showing significant growth potential, various companies from diverse industries are expressing interest in electric car manufacturing. For instance, in March 2021, Xiaomi announced a partnership with Great Wall Motor to produce electric vehicles, with plans to launch them around 2023.

In response to the increasing demand for electrical steel, market players are actively involved in developing new grades, expanding their production capabilities, and extending their market reach.

  • For example, in March 2021, ArcelorMittal announced a significant investment of EUR 13 Mn in its plant in France, which is dedicated to manufacturing iCARe electrical steel for vehicle industry. Moreover, recently, in May 2023, JFE Steel recently unveiled plans for expanding its electric steel sheet capacity and initiating a second phase expansion at the West Works' Kurashiki steel plant. Through this expansion, the company aims to incorporate top-notch technologies and advanced steel products, leading to reduced CO2 emissions and contributing to a more sustainable planet.

Electrical Steel Market Report Highlights

  • GOES segment expected to grow the fastest rate, this is primarily due to high adoption of transformers, government enabled strategic investments, & high demand in rural areas
  • Motor segment will grow at the robust CAGR, due to increased demand from electrical vehicles, increasing investments from corporates, and rising necessity to curb global warming
  • APAC dominated the market, owing to government led large public private partnerships to establish large scale projects, and rising electric consumption
  • North America held the largest share, due to presence of innovative companies and strategic electrification projects
  • The global key market players include ArcelorMittal, Cleveland-Cliffs Corp., JFE Steel, Nippon Steel Corp., and POSCO

Polaris Market Research has segmented the electrical steel market report based on product, application, and region:

Electrical Steel, Product Outlook (Revenue - USD Billion, 2023 - 2032)

  • Grain oriented electrical steel
  • Non-grain oriented electrical steel

Electrical Steel, Application Outlook (Revenue - USD Billion, 2023 - 2032)

  • Transformer
  • Motor
  • Inductor
  • Other

Electrical Steel, Regional Outlook (Revenue - USD Billion, 2023 - 2032)

  • North America
  • U.S.
  • Canada
  • Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Netherlands
  • Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Indonesia
  • Malaysia
  • Latin America
  • Argentina
  • Brazil
  • Mexico
  • Middle East & Africa
  • UAE
  • Saudi Arabia
  • Israel
  • South Africa

Electrical Steel Market Report Scope

Report Attributes


Market size value in 2024

USD 25.74 billion

Revenue forecast in 2032

USD 37.92 billion


4.80% from 2024 – 2032

Base year


Historical data

2019 – 2022

Forecast period

2024 – 2032

Quantitative units

Revenue in USD billion and CAGR from 2024 to 2032

Segments covered

By Product, By Application, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa

Key companies

ArcelorMittal, Cleveland-Cliffs Corp., JFE Steel, Nippon Steel Corp., POSCO, Tata Steel, and thyssenkrupp

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