How Big Is the Electric Steel Market

Q: What is the overall size of the electric steel market?

The electric steel market is expected to reach USD 61.4 billion by 2031.

Q: What is the expected CAGR of the electric steel market?

The electric steel market is projected to grow at a CAGR of 7.2% during the forecast period.

Q: What are the major challenges facing the electric steel market?

Challenges include high production costs, raw material price volatility, and technical complexities in manufacturing grain-oriented steel.

Q: Which industries are the primary consumers of electric steel?

Key industries include automotive, especially EVs, power generation, electrical equipment manufacturing, and transformers.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

Q: Do you also provide customisation in the market study?

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How Big Is the Electric Steel Market | Growth & Trends 2031

Code: MTA5801

Publication Date: Jul 2025

How big is the electric steel market?

According to 绿帽社 internal database and industry insights, the electric steel market was valued at approximately USD 37.8 billion in 2024 and is projected to reach USD 61.4 billion by 2031, growing at a CAGR of 7.2% during the forecast period.

This growth is driven by the increasing demand for energy-efficient electrical components, rapid urbanization, and expanding investments in power infrastructure. The rise in electric vehicle production, renewable energy systems, and industrial automation is further accelerating the adoption of electric steel in transformers, motors, and generators.

Key Growth Factors of the Electric Steel Market

Rising demand for high-efficiency transformers and electric motors
Growth in renewable energy installations and EV manufacturing
Expansion of smart grid infrastructure and electrification projects
Technological innovations in grain-oriented and non-grain-oriented steel
Supportive government policies promoting energy efficiency
Urban infrastructure development driving power equipment demand

Electric Steel Market Trends

The electric steel market is seeing increased usage of grain-oriented electric steel (GOES) in high-performance transformers and power distribution systems. Non-grain-oriented steel (NGOES) is gaining momentum in high-speed motors, particularly in electric vehicles. Regions such as Asia-Pacific and Europe are leading in technology adoption, while worldwide suppliers are focusing on sustainability and reducing carbon footprint in steel production.

Emerging Developments in the Electric Steel Market

Key advancements include the development of ultra-thin electric steel for compact motor designs and improved magnetic properties. Manufacturers are investing in eco-friendly production technologies and recycling processes. Integration of electric steel in high-frequency inverters and smart transformers is also gaining attention. Supply chain localization efforts are increasing to reduce dependency on imports.