Electrical Steel Market is estimated to be valued at USD 46.70 Bn in 2026 and is expected to reach USD 75.47 Bn by 2033, exhibiting a compound annual growth rate (CAGR) of 7.1% from 2026 to 2033.
The electrical steel industry is fueled by increased investments in power transmission and distribution systems, increased usage of efficient electrical appliances, and higher consumption of electric vehicles and renewable energy systems. There is a global drive towards energy conservation being made by the implementation of energy conservation standards that favor the use of efficient electrical steel in motors and transformers. Increased industrialization, grid modernization programs, and installation of renewable energy sources are driving the growth of the market. Fluctuating cost of raw materials and energy intensive manufacturing process are some of the challenges in the market.
By Type, the Grain-Oriented Electrical Steel is leading the market, having the anticipated market share of 58.0% in 2026 due to its excellent magnetic permeability and low core losses. It is used in transformer cores for improving the efficiency of power transmission and minimizing energy losses. Growing investments in transmission and distribution networks, replacement of existing transformers and use of renewable energy sources are contributing to growing demand for grain-oriented electrical steel.
By Application, transformers have the largest market share due to increasing investments in global power infrastructure. Growing consumption of electricity, rising urbanization and expansion of transmission and distribution networks are resulting in installation of distribution, transmission, and portable transformers. Excellent magnetic properties and energy saving features of electrical steel are making it necessary for producing efficient transformers.
The Asia Pacific region has the largest share in the electrical steel market at 52.4% for 2026 due to rapid industrialization, high capability of steel production, increased electricity infrastructure developments, and production of electric vehicles in China, India, Japan, and South Korea. Investments in renewable energy projects and smart grids add to the demand in the region. The highest growth will be seen in North America during the forecast period because of the fast developments in the modernization of the grid system, energy-efficient electrical devices, and renewable energy production.
Prominent Players in the Electrical Steel Market
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NLMK Group
Company Overview
- Headquarters: Lipetsk, Russia
- Establishment Year: 1934
- Employee Strength: Approximately 45,000 employees
- Leadership: Mr. Grigory Fedorishin, Chief Executive Officer
- Core Services/Products: Grain-oriented electrical steel, non-grain-oriented electrical steel, hot-rolled steel, cold-rolled steel, galvanized steel, transformer steel, and specialty steel products.
SWOT Analysis
- Strengths
- Ability to manufacture superior electrical steel.
- Well-established export business across the world targeting the power industry and automobiles.
- Weaknesses
- High vulnerability to changes in the price of steel raw materials.
- Cyclical nature of demand in industrial and infrastructure sectors.
- Opportunities
- Increased global investments in electricity grids and EVs.
- The need for efficient electrical steel in renewable energy.
- Threats
- Global steel producers in competition.
- Potential barriers due to trade regulations and politics in exports.
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Voestalpine AG
Company Overview
- Headquarters: Linz, Austria
- Establishment Year: 1938
- Employee Strength: Approximately 51,000 employees
- Leadership: Dr. Herbert Eibensteiner, Chief Executive Officer
- Core Services/Products: Electrical steel, specialty steel, high-performance steel products, automotive steel, railway systems, tool steel, and industrial solutions.
