Grain-Oriented Electrical Steel Market Size
The Grain-Oriented Electrical Steel Marketreached US$ 9.04 billion in 2025 and is expected to reach US$ 13.97 billion by 2033, growing with a CAGR of 5.6% during the forecast period 2026-2033.
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.
Market Scope
| Metrics | Details |
| Market CAGR | 5.6% |
| Segments Covered | By Thickness, By Form By Applocation, By Enduser and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other vital insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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 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
- March 2026 – Nippon Steel, POSCO, and Baowu focus on advanced low-loss and high-grade GOES
Leading manufacturers are investing in laser domain refinement, thin-gauge materials, and high-performance grades, improving transformer efficiency and reducing transmission losses. - February 2026 – Strong integration between steel producers and transformer OEMs
Data center and power equipment manufacturers are forming long-term supply agreements with GOES producers, ensuring consistent quality and reducing supply chain risks in critical infrastructure projects. - February 2026 – Asia-Pacific dominates production and consumption of GOES
Asia-Pacific accounts for over 67% of global demand, driven by large-scale industrialization, grid expansion, and renewable energy investments in China, India, and Southeast Asia. - January 2026 – JFE Steel and JSW Steel expand GOES production capacity in India
A joint venture between JFE Steel and JSW Steel is investing ~USD 600+ million to scale grain-oriented electrical steel production, targeting growing demand for energy-efficient transformers.
Why Purchase the Report?
- Visualize the composition of the grain-oriented electrical steel market segmentation by thickness, form, silicon content, application, end-user and region, highlighting the key commercial assets and players.
- Identify commercial opportunities in grain-oriented electrical steel market by analyzing trends and co-development deals.
- Excel data sheet with thousands of grain-oriented electrical steel market points - level 4/5 segmentation.
- PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
- Product mapping in excel for the key product of all major market players
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
- Steel Manufacturers
- Manufacturers of Electrical Steel
- Automotive Companies
- Power Sector
- Traders, Distributors and Suppliers of Electrical Steel
- World Steel Organization
- Investment Research Firms
