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.
SWOT Analysis
- Strengths
- Efficient in producing premium and high-performance specialty steels.
- Constantly investing in latest steel manufacturing technology.
- Weaknesses
- High cost of production due to European manufacturing.
- Dependent on fluctuating prices of energy in business performance.
- Opportunities
- Higher demand for energy-efficient electrical steel in transformers and motors.
- Move towards electric mobility and renewable energy.
- Threats
- High competition from Asian steel producers.
- Hard environmental regulations affecting the cost of manufacturing.
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POSCO Holdings Inc.
Company Overview
- Headquarters: Pohang, South Korea
- Establishment Year: 1968
- Employee Strength: Approximately 63,000 employees
- Leadership: Mr. Lee Kyung-soo, Chief Executive Officer
- Core Services/Products: Grain-oriented electrical steel, non-grain-oriented electrical steel, automotive steel, stainless steel, advanced materials, and battery materials.
SWOT Analysis
- Strengths
- Topmost manufacturer of superior quality electrical steel all over the world.
- Supplemented by technology strength and varied customer base.
- Weaknesses
- Vulnerable to price changes in raw material and energy.
- Capital intensive in view of high cost of production of steel.
- Opportunities
- High demand for EV motors and transformers.
- Development of renewable energy and smart grid construction.
- Threats
- Overproduction of steel in global market.
- Increased competition from local steel producers.
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Nippon Steel Corporation
Company Overview
- Headquarters: Tokyo, Japan
- Establishment Year: 2012
- Employee Strength: Approximately 113,000 employees
- Leadership: Mr. Eiji Hashimoto, Representative Director, President & Chief Executive Officer
- Core Services/Products: Grain-oriented electrical steel, non-grain-oriented electrical steel, automotive steel, steel sheets, structural steel, and specialty steel products.
SWOT Analysis
- Strengths
- A global leader in the production of advanced electrical steels.
- Having strong R&D skills with quality products range.
- Weaknesses
- Costly operations owing to the advanced process of manufacturing.
- Dependence on demand in automotive and industrial markets.
- Opportunities
- Electrification of transport sector and growth of renewables.
- Rising demand for efficient transformer and motor steels.
- Threats
- Severe global competition in the specialty steel industry.
- Volatility in the prices of raw materials and environmental costs.
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thyssenkrupp AG
Company Overview
- Headquarters: Essen, Germany
- Establishment Year: 1999
- Employee Strength: Approximately 96,000 employees
- Leadership: Mr. Miguel Ángel López Borrego, Chief Executive Officer
- Core Services/Products: Electrical steel, flat carbon steel, industrial engineering, automotive materials, plant technologies, and high-performance steel products.
SWOT Analysis
- Strengths
- Well-developed engineering skills along with effective steel production techniques.
- Widespread presence among global customers in industries and automobiles.
- Weaknesses
- High restructuring and operating costs.
- Dependence of profit on changes in demand of steel.
- Opportunities
- Increased spending on energy-efficient electrical system.
- Increasing need of electrical steel in electric cars and renewable energy programs.
- Threats
- Competition from global steel producers.
- Increasing cost of environment regulation and energy prices.
