Grain-Oriented Electrical Steel Market Size, Share, Industry, Forecast and outlook 2026-2035

Grain-Oriented Electrical Steel Market Size

The Grain-Oriented Electrical Steel Market will reach US$ 9.55 billion in 2026, up from US$ 9.04 billion in 2025, and is projected to reach US$ 15.60 billion by 2035, registering steady growth at a CAGR of 5.6% during the forecast period from 2026 to 2035.

Grain-oriented and non-grain-oriented electrical steel are two forms of electrical steel utilized for various applications. An alloy containing silicon and iron is known as electrical steel. It can be made by changing the magnetic characteristics of steel for efficient magnetism and electricity conversion. It is also known as silicon steel, lamination steel, relay steel, or transformer steel. It is commonly used to construct the cores of transformers and the stators of generators and motors. Grain-orientated electrical steels are iron-silicon magnetic alloys. Because of their unique magnetic properties, these alloys are utilized to make the cores of high-efficiency electric transformers. Electrical steel with a grain orientation makes energy-efficient transformers and huge, high-performance generators. It is an important core material of distribution transformers, power transformers and miniature transformers in laminated, wrapped or punched sheets.

Grain-Oriented Electrical Steel Market Scope

Key Takeaways

• North America accounts for the largest share of the global market, while Asia-Pacific is the fastest-growing region, driven by grid modernization, renewable energy expansion, and rising transformer production.
• Power transformers account for more than 60% of total GOES demand, making the power transmission and distribution sector the primary revenue contributor.
• More than 70% of high-efficiency transformers utilize grain-oriented electrical steel due to its superior magnetic permeability and low core losses, improving energy efficiency.
• Demand for GOES used in renewable energy grids, HVDC transmission, and smart grid infrastructure is growing at over 10% annually, creating significant investment opportunities.
• Advanced domain refinement, laser scribing, and thin-gauge GOES technologies are witnessing annual adoption growth exceeding 15%, enabling higher transformer efficiency and lower energy losses.
• Increasing investments in ultra-high-voltage (UHV) transmission networks and transformer replacement programs are accelerating global demand for premium electrical steel.
• Energy-efficient electrical equipment and stricter energy efficiency regulations are driving the adoption of high-grade GOES across utilities and industrial applications.
• Sustainable steel manufacturing, recycled steel utilization, and low-carbon production technologies are becoming major competitive differentiators across the electrical steel industry.
• Growing investments in renewable energy integration, smart grids, electric mobility, and power infrastructure modernization are expected to accelerate long-term market growth.

Grain-Oriented Electrical Steel Market Dynamics and Trends

The growing application of electrical steel in transformers and motors, particularly in electric and hybrid vehicles, is expected to drive the market. However, fluctuating raw materials prices are expected to hinder the market.

The growing application of electrical steel in transformers and motors, particularly in electric and hybrid vehicles, is expected to drive the market

The rising global automobile manufacturing is a primary driver of expanding the electrical steel market. The utilization of electrical steel in automotive enhances fuel efficiency, resulting in improved demand for electrical steel in the industry. Due to its low saturation flux density and magnetic permeability, traditional non-grain-oriented silicon steel cannot meet the high power density and torque density requirements for EV traction motors. As a result, grain-oriented electronic steel is a viable alternative for applications. The surging demand for hybrid vehicles and electric vehicles (EVs) is expected to fuel the expansion of the electrical steel market over the forecast period.

Moreover, the expansion of electrical steel in motors is fueled by increasing industrialization and the applications of motors in the residential sector. Electrical steel has become a vital component of electric motors because it delivers a greater magnetic flux, critical for torque. Additionally, it leads to increased efficiency. Further, businesses in the electrical steel market will greatly gain income, given that the United Nations' sustainable development program calls for increased industry in the future year.

Fluctuating raw materials prices

The steel industry relies on raw materials to create and process steel products. Iron ore, coal, industrial gases and ferroalloys are important raw resources for steel manufacture. Steel production and processing can run smoothly if raw materials are fairly priced.

On the other hand, raw material prices are extremely changeable. Increases in raw material prices impact steel manufacturing costs, resulting in higher pricing for finished steel products like grain-oriented and non-grain-oriented electrical steel.

Grain-Oriented Electrical Steel Market Segmentation Analysis

The global grain-oriented electrical steel market is segmented into transformers, motors, inductors and others based on application.

The application grade-oriented electrical steel in transformers is projected to lead the market. The segment's growth attributes to the growing energy consumption in developed and developing economies. Transformer cores are an essential part of the transformer, which comprises laminations of electric steel. The three main types of transformers are current, power and distribution transformers.

Grain-oriented electrical steel is a significant material in producing energy-efficient transformers and large, high-performance generators. It is the essential core material for almost all laminated, wound or punched sheets transformers. ThyssenKrupp Steel Europe developed power core grain-oriented electrical steel in a permanent process for different transformers, including large power transformers, distribution transformers, small transformers and current transformers.

Grain-Oriented Electrical Steel Market Geographical Shares

The global grain-oriented electrical steel market is segmented into North America, Europe, South America, Asia-Pacific and Middle East & Africa based on geography.

Asia-Pacific's growth attributes to various global steelmakers such as ArcelorMittal, Tata Steel, Nippon Steel & Sumitomo Metal Corporation and POSCO Steel. The availability of raw labor and materials at a low cost in the region are added advantages. In addition, the rapidly increasing urbanization are other factors expected to fuel the market's growth.

Grain-Oriented Electrical Steel Market Artificial Intelligence and Smart Electrical Steel Manufacturing Analysis

The Grain-Oriented Electrical Steel (GOES) Market is experiencing significant technological transformation driven by the global expansion of smart power grids, renewable energy integration, and next-generation transformer manufacturing initiatives. Advanced manufacturing technologies involving artificial intelligence-enabled process optimization, laser domain refinement techniques, intelligent quality management systems, and digital twin capabilities are substantially improving the production of high-performance grain-oriented electrical steel worldwide. These innovations enable manufacturers to achieve superior magnetic permeability characteristics, lower core losses, and enhanced energy efficiencies required for modern power transmission infrastructure applications.

Manufacturers are increasingly focusing on developing ultra-thin and high magnetic flux density grain-oriented electrical steel grades designed to improve transformer efficiencies while minimizing electricity transmission losses. The growing adoption of intelligent manufacturing technologies is anticipated to play a strategically important role in accelerating material innovation initiatives throughout the forecast period across major industrial economies globally.

Grain-Oriented Electrical Steel Market Grid Modernization and Renewable Energy Infrastructure Analysis

The accelerating modernization of global power transmission infrastructure continues creating substantial growth opportunities for advanced grain-oriented electrical steel technologies worldwide. Governments and utility companies are increasingly investing in energy-efficient transformers, ultra-high voltage transmission networks, and renewable energy integration projects designed to strengthen grid resilience capabilities while simultaneously reducing operational losses across modern power infrastructures.

Grain-oriented electrical steel remains an indispensable material across power transformers, distribution transformers, and high-voltage electrical equipment owing to its exceptional magnetic performance characteristics and energy efficiency capabilities. Growing investments supporting renewable energy installations, including offshore wind farms and utility-scale solar projects, are significantly strengthening demand for next-generation transformer technologies globally. Furthermore, increasing electrification initiatives across emerging economies are anticipated to substantially improve commercialization opportunities throughout the forecast period.

Grain-Oriented Electrical Steel Market Advanced Transformer Manufacturing Analysis

Transformer applications continue representing the largest demand segment across the Grain-Oriented Electrical Steel Market globally. Modern transformer manufacturers increasingly require advanced electrical steel solutions capable of improving operational efficiencies while simultaneously complying with increasingly stringent energy performance regulations across international markets.

High-grade cold-rolled grain-oriented electrical steel products are becoming increasingly important across large power transformers supporting hyperscale data centers, renewable energy infrastructures, electric vehicle charging ecosystems, and industrial electrification initiatives worldwide. Growing electricity consumption patterns associated with artificial intelligence data centers, intelligent manufacturing facilities, and smart cities are anticipated to substantially strengthen future demand across transformer manufacturing industries globally.

Additionally, manufacturers are investing significantly in laser-scribed grain-oriented electrical steel technologies capable of reducing transformer core losses and improving magnetic properties. These technological advancements are expected to positively influence future market competitiveness considerably throughout the forecast period.

Grain-Oriented Electrical Steel Market Companies

The global grain-oriented electrical steel market is moderately competitive with several established steel-producing companies, resulting in high investment. In addition, major players contributing to the market's growth are Nippon Steel & Sumitomo Metal Corporation (NSSMC), Baowu Group, Thyssenkrupp Steel Europe, Arnold Magnetic Technologies, AK Steel, NLMK Group, JFE Steel, Posco, ArcelorMittal, Cogent (Tata Steel) and others. Moreover, the companies are adopting growth strategies such as expansions, acquisitions, product launches and collaborations, contributing to the market growth globally.

Arnold Magnetic Technologies

Overview: Arnold Magnetic Technologies is a U.S.-based global manufacturer of high-performance permanent magnets, electromagnets, magnetic assemblies, flexible composites and precision thin metal foils. It is headquartered in New York, U.S. In addition, Arnold Magnetic Technologies has locations and representatives in UK, Switzerland and China.

Product Portfolio: Arnold Magnetic Technologies offers Grain-Oriented Electrical Steel processed under carefully controlled conditions. The company produces the steel from several silicon steel grades, including 3% silicon under the USA and DFARS compliance.

Recent Developments in Grain-Oriented Electrical Steel Market

• June 2026: ArcelorMittal commissioned a new electrical steel production facility in France, expanding the supply of grain-oriented and non-grain-oriented electrical steels for transformers, electric motors, and renewable energy applications.
• June 2026: POSCO increased production of premium grain-oriented electrical steel to support growing global demand from transformer manufacturers and power grid modernization projects.
• May 2026: Baowu Group accelerated investments in green steel manufacturing and high-grade electrical steel production to strengthen its position in the transformer and electric vehicle supply chain.
• May 2026: JFE Steel expanded the production of high-efficiency grain-oriented electrical steel sheets to improve transformer energy efficiency and meet rising demand from Asian power infrastructure projects.
• April 2026: Nippon Steel Corporation continued investing in advanced electrical steel manufacturing technologies and low-carbon production processes to support next-generation energy applications.
• April 2026: thyssenkrupp Steel Europe strengthened its electrical steel portfolio by advancing low-carbon steel production and supplying high-performance transformer-grade electrical steel to European customers.
• March 2026: NLMK Group continued improving production efficiency and quality for electrical steel products through modernization initiatives across its steel manufacturing operations.
• March 2026: Arnold Magnetic Technologies expanded its portfolio of high-performance electrical and magnetic materials for transformers, motors, and industrial power applications.

Grain-Oriented Electrical Steel Market Investment and Strategic Collaboration Analysis

Public and private sector investments supporting advanced electrical steel manufacturing capabilities continue creating substantial commercialization opportunities across global markets. Industry participants are increasingly allocating resources toward intelligent manufacturing technologies, sustainable material engineering capabilities, and next-generation electrical steel innovations designed to improve operational performance outcomes significantly.

Strategic collaborations involving transformer manufacturers, power equipment companies, steel producers, and advanced manufacturing technology organizations are substantially accelerating technological innovation activities worldwide. Increasing investments supporting domestic electrical steel manufacturing infrastructures are anticipated to strengthen regional competitiveness while simultaneously improving supply chain security across major industrial economies.

Furthermore, expanding investments supporting renewable energy infrastructure projects, smart grid modernization programs, and power transmission initiatives are expected to positively influence future market developments considerably throughout the forecast period.

Grain-Oriented Electrical Steel Market Emerging Technologies Analysis

Emerging technologies involving laser domain refinement capabilities, ultra-thin grain-oriented electrical steel solutions, intelligent metallurgical analytics systems, digitally connected manufacturing environments, and high magnetic flux density material innovations are substantially transforming future market opportunities worldwide. Continuous advancements supporting lower core loss characteristics and improved transformer efficiencies are anticipated to significantly strengthen material competitiveness across global electrical applications.

Furthermore, increasing integration between artificial intelligence technologies and advanced steel manufacturing ecosystems is expected to improve production efficiencies while accelerating next-generation material development initiatives. The convergence of intelligent manufacturing capabilities and sustainable energy transformation programs will continue influencing future technological developments across the Grain-Oriented Electrical Steel Market globally.

Grain-Oriented Electrical Steel Market Future Trends (2026-2035)

The Grain-Oriented Electrical Steel Market is expected to witness sustained growth throughout the forecast period driven by increasing adoption across smart grid modernization initiatives, renewable energy infrastructure developments, intelligent transformer manufacturing technologies, and global electrification programs worldwide. Future market expansion will be supported by sustainable manufacturing capabilities, advanced material engineering innovations, intelligent production technologies, and next-generation power transmission developments across major global economies.

Increasing investments supporting renewable energy integration initiatives, grid modernization programs, and advanced transformer technologies are anticipated to substantially strengthen commercialization opportunities globally. Furthermore, growing demand for highly energy-efficient electrical equipment capable of improving operational performance while simultaneously enhancing sustainability outcomes is expected to significantly influence future market dynamics through 2035.

Why Choose DataM?

Technological Innovations: DataM explores advancements across intelligent grain-oriented electrical steel manufacturing technologies, laser domain refinement capabilities, sustainable material engineering initiatives, and next-generation metallurgical innovations that are enabling organizations worldwide to improve operational efficiencies and energy performance characteristics across advanced electrical infrastructure environments. Emerging technologies involving ultra-thin grain-oriented electrical steel solutions and intelligent transformer materials are substantially transforming commercialization opportunities globally.

Product Performance & Market Positioning: The report evaluates how leading market participants deliver grain-oriented electrical steel solutions based on critical performance parameters such as magnetic permeability characteristics, core loss performance metrics, energy efficiency capabilities, manufacturing flexibility attributes, and sustainability considerations, highlighting how organizations differentiate through technological innovation and material engineering excellence across global applications.

Real-World Evidence: DataM highlights the adoption of advanced grain-oriented electrical steel technologies across power transmission infrastructures, renewable energy projects, intelligent transformer manufacturing facilities, and advanced industrial ecosystems worldwide. Market participants continue utilizing high-performance electrical steel materials to improve transformer efficiencies, optimize electricity transmission capabilities, reduce operational losses, and strengthen sustainability outcomes across diverse industrial environments.

Market Updates & Industry Changes: The report tracks key developments including manufacturing capacity expansion initiatives, advanced transformer material innovations, strategic collaborations supporting next-generation electrical steel technologies, supply chain localization programs, and increasing investments across North America, Europe, and Asia-Pacific supporting intelligent energy transformation initiatives.

Competitive Strategies: DataM analyzes how leading organizations expand through advanced material innovations, strategic partnerships, sustainable manufacturing technologies, intelligent metallurgical capabilities, product portfolio diversification initiatives, and regional commercialization programs designed to address increasing demand for highly energy-efficient electrical steel solutions worldwide.

Pricing & Market Access: The report explains pricing variations based on magnetic performance specifications, steel grades, manufacturing technologies, thickness requirements, and industrial integration considerations, along with market access opportunities through transformer manufacturers, utility companies, renewable energy organizations, and intelligent manufacturing enterprises supporting global commercialization initiatives.

Market Entry & Expansion: DataM identifies attractive growth opportunities driven by increasing investments supporting renewable energy initiatives, accelerating adoption of intelligent power transmission technologies, expanding smart grid applications, and growing demand for advanced grain-oriented electrical steel capabilities globally. The report further outlines strategic approaches involving regional expansion initiatives, technology differentiation strategies, customized material engineering solutions, and collaborative commercialization models designed to support successful market entry and long-term business expansion across emerging and established grain-oriented electrical steel markets.

The global grain-oriented electrical steel market report would provide access to an approx. 77 market data tables, 75 figures and 180 pages.

Target Audience

The report is strategically developed for stakeholders operating across the global electrical steel, power transmission, renewable energy, transformer manufacturing, and intelligent industrial technology ecosystem. It provides actionable market intelligence for steel manufacturers, power equipment companies, utility providers, transformer manufacturers, renewable energy developers, and intelligent manufacturing technology providers seeking to strengthen their competitive positioning within rapidly evolving industrial markets. Furthermore, government agencies, regulatory organizations, academic institutions, investment firms, material science laboratories, and strategic business leaders can utilize the report to evaluate emerging technological innovations, sustainability initiatives, commercialization trends, and future growth opportunities shaping the Grain-Oriented Electrical Steel Market through 2035.