Non-Grain-Oriented Electrical Steel Market Size & Forecast 2035
The global non-grain-oriented electrical steel market was valued at USD 18.60 billion in 2025 and is projected to reach USD 30.88 billion by 2035, expanding at a CAGR of 5.2% during 2026–2035. Growth is supported by electric-vehicle traction motors, industrial motor-efficiency requirements, renewable generators, heat pumps, appliances and localized supply-chain investment.
Non-grain-oriented electrical steel, also called NOES or NGO electrical steel, is a silicon-alloyed soft magnetic steel engineered to provide similar magnetic behavior in all directions within the sheet plane. It is used in rotating electrical machines where the magnetic field changes direction, including motors and generators. Grain-oriented steel is optimized mainly for one direction and is used primarily in transformer cores; combining the two markets creates misleading demand and pricing conclusions.
Commercial performance is defined by core loss, magnetic polarization, permeability, mechanical strength, thickness, coating, flatness and punching behavior. High-speed traction motors require a difficult combination of low loss at high frequency and sufficient strength to resist centrifugal forces. This makes premium thin-gauge grades a separate qualification market from standard industrial-motor and appliance steels.
Key Highlights
- The market is forecast to rise from USD 18.60 billion in 2025 to USD 30.88 billion in 2035 at a CAGR of 5.2%.
- Fully processed NOES held 79% of 2025 revenue because magnetic properties are developed before delivery and require less downstream annealing.
- Sheets between 0.15 mm and 0.35 mm represented 38% of demand; thinner grades are growing faster in high-frequency traction motors.
- Motors accounted for 58% of application revenue, supported by automotive, industrial, appliance and HVAC demand.
- Automotive generated 31% of end-user revenue, with battery-electric and hybrid traction motors driving premium-grade growth.
- Asia-Pacific held 55% of global revenue in 2025; China represented 29%.
- Supplier selection increasingly depends on usable core loss after stamping, strength, coating compatibility, slit quality, regional capacity and product carbon intensity.
Market Dynamics
Vehicle electrification creates a premium-grade growth market
Traction motors operate across wide speed and load ranges and can experience high electrical frequency. Thin laminations reduce eddy-current loss, while optimized chemistry and texture reduce hysteresis loss. Higher rotor speed also increases mechanical stress. Steelmakers therefore offer specialized grades combining low loss with higher strength and stable punching performance.
Electric-vehicle volume alone does not determine steel demand. Motor topology, power density, lamination thickness, scrap rate, rotor design and whether one or several motors are installed per vehicle affect consumption. Hybrid vehicles also use electrical steel in traction and starter-generator systems. Premium grades command higher prices but require lengthy co-development and motor-level validation.
Motor-efficiency regulation supports broad industrial demand
Industrial motors consume a large share of electricity in pumps, fans, compressors and production equipment. Higher-efficiency designs use improved electrical steel, optimized laminations and better copper systems. Heat pumps, air conditioners, refrigerators and other appliances also require efficient motors. This creates a large, stable base for standard and high-grade NOES beyond automotive applications.
The value proposition depends on lifetime electricity savings relative to material cost. A small reduction in motor loss can generate substantial energy savings in equipment that operates continuously. Steel selection must therefore be linked to the completed motor rather than the coil price alone.
Capacity expansion targets localized high-grade supply
Advanced NOES production requires steelmaking cleanliness, precise rolling, annealing, coating and quality control. ArcelorMittal is developing a North American facility at Calvert with capacity of up to 150,000 metric tons annually. POSCO has expanded its Hyper NO ecosystem and motor-core manufacturing, while Japanese and European producers continue upgrading thin-gauge and traction-grade capability.
New capacity improves regional security but does not create immediate interchangeability. Each grade must be qualified for stamping, interlocking, welding or bonding and motor performance. Customers also assess coil width, edge quality, coating cure, residual stress and consistency across lots.
Processing can erase laboratory magnetic advantages
Punching introduces stress near the cut edge and can increase core loss. Burrs, tool wear and poor stacking can cause electrical shorts between laminations. Welding adds heat and stress, while interlocking changes local magnetic behavior. Adhesive bonding can reduce distortion and noise but requires compatible coatings and controlled curing.
Steelmakers increasingly support customers with application data, motor simulation and processing guidance. POSCO’s motor-core activity uses adhesive lamination technology intended to improve efficiency and reduce noise and vibration. Material suppliers that understand stamping and core assembly can defend premium pricing more effectively.
Energy, alloy and trade costs create volatility
NOES manufacturing is energy- and capital-intensive. Iron ore, scrap, silicon, aluminum, coatings, electricity and natural gas influence cost. Decarbonization investments may increase short-term cost while lowering product emissions. Customers are beginning to compare verified carbon intensity and recycled content, especially in automotive supply chains.
Trade measures and local-content policies influence sourcing. Electrical steel is strategically important to vehicle and industrial electrification, so governments and manufacturers seek regional capacity. However, protective measures can raise costs if domestic grades do not meet required performance or capacity is limited.
Market Segmentation
By Processing Type
Fully processed non-grain-oriented electrical steel accounted for 79% of 2025 revenue. Its magnetic properties are established by the producer, allowing customers to stamp and assemble laminations without a full final anneal. Semi-processed steel held 21%, with customers completing heat treatment after stamping to develop magnetic performance or relieve stress.
By Thickness
The 0.15–0.35 mm range led with 38% of 2025 revenue, supported by automotive traction motors and high-efficiency applications. Sheets from 0.35–0.50 mm held 32%, serving industrial motors, generators and appliances. Products above 0.50 mm represented 16%, while ultra-thin grades below 0.15 mm accounted for 9%. Foil and specialized thicknesses contributed 5%. Thin categories carry a larger revenue share than tonnage share because processing difficulty and performance raise selling prices.
By Grade
Standard industrial and commercial grades represented 46% of 2025 revenue. High-efficiency low-loss grades held 29%. Automotive traction and high-frequency grades accounted for 19%, while high-strength, specialty and other grades contributed 6%. Traction grades are expected to grow fastest as electrified vehicle output and motor performance increase.
By Application
Motors generated 58% of 2025 revenue, covering traction, industrial, HVAC, appliance and auxiliary units. Power generators held 14%, supported by renewable, conventional and distributed generation. Small transformers and inductors accounted for 10%. Compressors and pumps represented 8%, magnetic bearings and filters 3%, and electrical ballasts, battery-related systems and other applications contributed 7%.
By End User
Automotive accounted for 31% of 2025 revenue. Industrial machinery held 24%, while household appliances and HVAC represented 18%. Energy and power contributed 13%. Building systems accounted for 6%, aviation, rail and marine 4%, and other end users 4%.
By Motor Class
Industrial motors represented 36% of 2025 market revenue. Automotive traction motors held 24%, appliance and HVAC motors 21%, generator laminations 12%, and specialty high-speed or precision motors 7%. Automotive traction is expected to record the fastest value growth due to thin gauge and stringent loss requirements.
By Sales Form
Wide coil supplied to large stampers and motor manufacturers accounted for 61% of 2025 revenue. Slit coil held 25%, sheet represented 8%, and pre-cut laminations, blanks and other forms contributed 6%. Downstream service centers create value through slitting, inventory management and small-lot supply.
Regional and Country-Level Analysis
Asia-Pacific
Asia-Pacific held 55% of global revenue in 2025. China represented 29% of the world market, Japan 8%, South Korea 6%, India 5%, Taiwan 2% and the rest of the region 5%. China combines large electrical-steel capacity with the world’s largest EV, appliance and industrial-motor production base. Japan and South Korea lead in advanced traction grades and have strong relationships across steel, motor-core and vehicle supply chains. India offers growth in appliances, industrial motors, renewable generation and vehicle electrification, but premium-grade domestic capacity remains a strategic development area.
Europe
Europe accounted for 23% of 2025 revenue. Germany held 7% of the global market, France 3.5%, Italy 3%, Spain 2%, Poland 1.5% and the rest of Europe 6%. Vehicle electrification, heat pumps, industrial efficiency and renewable generation support demand. Germany is the largest regional consumer due to automotive and machinery production. European producers are investing in traction grades and lower-carbon steel, while energy cost and imported competition remain major challenges.
North America
North America generated 16% of global revenue. The United States represented 13%, Mexico 2% and Canada 1%. Domestic demand is expanding through EV and motor production, industrial reshoring and grid investment. ArcelorMittal’s planned Calvert capacity strengthens regional high-performance NOES supply. Qualification timing and motor-program ramps will determine how rapidly new capacity displaces imports.
Latin America
Latin America held 3.5% of 2025 revenue. Brazil accounted for 2% of the global market, Mexico is included in North America, Argentina 0.4% and the remaining countries 1.1%. Motors, appliances, vehicle production and power equipment drive demand. Premium traction grades are often imported, while regional service centers support conventional industrial grades.
Competitive Landscape
The market is concentrated among integrated steelmakers with specialized rolling and annealing capability. Premium traction grades have higher barriers to entry than commodity industrial steel because customers require low high-frequency loss, strength, consistent coating and application support. Long qualification cycles protect approved suppliers but slow the adoption of new capacity.
Competition is shifting from catalog core-loss values to motor-system performance, downstream processability, regional supply and carbon intensity. Steelmakers are collaborating more closely with stampers, core assemblers and vehicle manufacturers. Vertical links into motor-core production provide feedback on stamping yield and lamination behavior.
POSCO
POSCO produces Hyper NO non-oriented electrical steel for EV traction motors and other high-efficiency applications. Its broader group strategy connects steel production with motor-core manufacturing in Asia, North America and Europe. The Poland plant and reported long-term core orders strengthen its downstream position. POSCO competes through thin-gauge technology, low core loss and integrated application development.
Nippon Steel Corporation
Nippon Steel supplies non-oriented electrical steel for industrial motors, appliances, generators and electrified vehicles. Its research addresses diversified traction-motor requirements and processing effects. The company’s strengths include advanced metallurgy, high-grade sheet manufacturing and close collaboration with Japanese motor and vehicle producers. Capacity and quality upgrades support demand for premium grades.
ArcelorMittal
ArcelorMittal offers non-oriented electrical steel for industrial and e-mobility applications. Its investment in Calvert creates a new North American supply source with planned capacity of up to 150,000 metric tons annually. The company competes through regional automotive relationships, application engineering and a growing lower-carbon steel portfolio. Successful ramp-up will depend on customer qualification and consistent premium-grade production.
thyssenkrupp Steel Europe AG
thyssenkrupp Steel markets powercore non-grain-oriented electrical steel across industrial motors, appliances, generators and traction systems. Its traction portfolio emphasizes magnetic efficiency and mechanical performance at high motor speeds. The company benefits from proximity to European automotive and machinery customers. Energy cost, decarbonization investment and competition from Asian suppliers shape its strategic position.
Recent Industry Developments
- ArcelorMittal is developing non-oriented electrical-steel capacity at Calvert in Alabama with planned annual output of up to 150,000 metric tons. The facility targets automotive, mobility, renewable-energy and industrial applications while strengthening North American supply.
- POSCO continues to expand high-grade Hyper NO production through process optimization and technical development. Its strategy targets hybrid and battery-electric vehicle traction motors requiring thin gauge and low loss.
- POSCO International completed a drive-motor-core plant in Poland using POSCO Hyper NO and adhesive lamination technology. The company has reported secured orders covering 35 million drive motor cores through 2033.
- Nippon Steel has developed a broader portfolio of non-oriented steels and application technologies for diversified hybrid and electric-vehicle motor requirements. Its work addresses high efficiency, power density and differing motor topologies.
- thyssenkrupp Steel continues to develop powercore traction grades combining low loss with mechanical performance for high-speed electric motors. Its portfolio covers industrial and automotive applications.
- ArcelorMittal expanded its electrical-steel platform for industrial motors, generators and e-mobility. The portfolio emphasizes power density, thermal stability, durability, and adaptation to different core-assembly methods.
- Motor-core manufacturers are increasing adhesive bonding and advanced interlocking as alternatives to conventional welding. These processes can reduce distortion, noise, and interlaminar damage when matched with suitable steel coatings.
Strategic Takeaways
- Separate traction grades from standard industrial steel. Their thickness, high-frequency loss, strength, qualification and pricing structures are materially different.
- Evaluate usable motor-core performance, not catalog strip data alone. Punching, burrs, welding, bonding, and residual stress can erase a portion of the magnetic advantage.
- Secure regional supply before vehicle ramps. New capacity requires grade-by-grade qualification, and installed tonnage does not guarantee immediate availability of approved traction material.
- Coordinate steel, stamping and motor design early. Slot geometry, bridge strength, coating and assembly method influence yield, loss, torque and noise.
- Include carbon intensity in sourcing decisions. Electricity, furnace route, scrap input and logistics will increasingly affect automotive material approval and reported product emissions.
- Protect against thickness-driven yield loss. Thin gauges improve efficiency but demand tighter handling, slitting, punching and lamination control.
- Use lifecycle electricity savings to justify premium grades. Material price comparisons
The global non-grain oriented electrical steel market report would provide approximately 69 tables, 77 figures and 290 Pages.
