Grain Oriented Electrical Steel Market Size & Share, By Thickness (0.35 mm & Above, 0.3 mm, 0.27 mm, 0.23 mm, 0.2 mm & Below), Application (Electric Motor, Power Generator, Transformer), Product Type (High Magnetic Strength Steels, Conventional, Domain Refinement) - Growth Trends, Regional Insights (U.S., Japan, South Korea, UK, Germany), Competitive Positioning, Global Forecast Report 2025-2034

Market Outlook:

Grain Oriented Electrical Steel Market size is expected to expand from USD 1.32 billion in 2024 to USD 2.45 billion by 2034, demonstrating a CAGR of more than 6.4% between 2025 and 2034. In 2025, the industry revenue is estimated to reach USD 1.39 billion.

• Base Year Value (2024): USD 1.32 billion
• CAGR (2025-2034): 6.4%
• Forecast Year Value (2034): USD 2.45 billion
• Historical Data Period: 2019-2024
• Largest Region: Asia Pacific
• Forecast Period: 2025-2034

Market Dynamics:

Growth Drivers & Opportunities:

The Grain Oriented Electrical Steel market is poised for significant growth due to a combination of factors that favor its increased adoption in various applications. One of the major growth drivers is the rising demand for energy-efficient electrical devices, particularly in the power generation sector. As industries seek to reduce energy consumption and improve efficiency, the need for high-performance electrical steel becomes more pronounced. Grain Oriented Electrical Steel is specifically engineered to enhance magnetic properties, making it an ideal choice for transformers and electric motors.

Furthermore, the global shift toward renewable energy sources presents a substantial opportunity for the market. As the installation of wind turbines, solar inverters, and other renewable technologies increases, so does the demand for high-quality electrical steel capable of maximizing efficiency and performance. The ability of Grain Oriented Electrical Steel to minimize energy losses contributes to an overall increase in the viability of these renewable energy systems.

Technological advancements also play a crucial role in driving market growth. Innovations in manufacturing processes and material science have led to the development of superior grades of Grain Oriented Electrical Steel, enhancing its marketability. Enhanced properties such as higher permeability and lower core losses expand its use beyond traditional applications, including electric vehicles and advanced consumer electronics.

Moreover, the growing focus on automation and smart technology in industrial production lines is contributing to an increased consumption of electrical steel. As industries adopt more automated systems, the demand for high-performance motors and transformers will rise, creating more opportunities for suppliers of Grain Oriented Electrical Steel. The growing automotive sector, particularly with the rise of electric vehicles, is set to further bolster market expansion.

Report Scope

Report Coverage	Details
Segments Covered	Thickness, Application, Product Type
Regions Covered	• North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	ArcelorMittal, POSCO, Tata Steel, Nippon Steel, JFE Steel, Baosteel, AK Steel, Voestalpine, Wuhan Iron & Steel, Shougang Group

Industry Restraints:

Despite the positive outlook for the Grain Oriented Electrical Steel market, several restraints could impede its growth trajectory. One of the major challenges faced by manufacturers is the high cost of production and raw materials. The complexities involved in processing high-quality electrical steel often lead to increased operational costs, which may deter smaller players from entering the market or limit expansion for existing businesses. This cost factor may also compel manufacturers to pass on expenses to consumers, thereby affecting demand.

Additionally, fluctuating demand in end-use sectors such as automotive and consumer electronics can create uncertainty for manufacturers. Economic instability, changes in government policies regarding energy and manufacturing, and shifts in consumer preferences can lead to unpredictability in sales volumes. Such conditions may compel companies to adopt cautious investment strategies, stunting the potential for growth and innovation in the sector.

Market competition is another significant restraint. The presence of well-established players with strong brand recognition can create barriers to entry for new entrants. These dominant companies often benefit from economies of scale that allow them to offer competitive pricing and extensive distribution networks. Consequently, smaller companies may struggle to find their foothold in the market, limiting overall competitiveness and innovation in the sector.

Regional Forecast:

North America

In North America, the Grain Oriented Electrical Steel market is primarily driven by the United States, which boasts a well-developed manufacturing base for electrical equipment and machinery. The demand for high-performance electrical steel in transformers and other electrical applications is causing significant growth in this region. Canada, while smaller in terms of market size, is also witnessing an increase in demand due to its expanding renewable energy sector and initiatives focusing on improving energy efficiency. Overall, the U.S. is expected to remain the dominant player in North America, with robust growth anticipated from investments in energy infrastructure.

Asia Pacific

The Asia Pacific region is anticipated to exhibit the largest growth in the Grain Oriented Electrical Steel market, with China, Japan, and South Korea leading the charge. China, being the largest consumer and producer of electrical steel, is driven by its vast manufacturing capabilities and the rapid expansion of its power generation capacity. Japan's focus on advanced technology and high-quality electrical steel products positions it as a key player, especially in sectors like electric vehicles and high-efficiency transformers. South Korea is also making strides in this market, thanks to its strong emphasis on electrification and investments in smart grid technologies. This region's growth potential is unmatched, with increasing urbanization and industrialization fueling demand.

Europe

In Europe, the Grain Oriented Electrical Steel market is characterized by strong demand from countries like Germany, the UK, and France. Germany stands out as a manufacturing powerhouse, emphasizing renewable energy developments which require efficient electrical steel for transformers and wind turbine applications. The UK is seeing significant growth as well, driven by rising investments in offshore and onshore wind energy initiatives. France, with its commitment to nuclear and renewable energy, also contributes to the demand for high-quality electrical steel. The region is increasingly focused on sustainability, leading to a favorable environment for the growth of electrical steel applications in energy-efficient technologies.

Segmentation Analysis:

In terms of segmentation, the global Grain Oriented Electrical Steel market is analyzed on the basis of Thickness, Application, Product Type.

Thickness

In the Grain Oriented Electrical Steel Market, thickness is a crucial segment influencing both performance and application. The market is typically divided into various thickness categories, including ultra-thin, thin, and standard thickness grades. Ultra-thin electrical steel, often used in applications that require high performance in limited space, is expected to witness substantial growth due to the ongoing miniaturization trends in electrical components. Thin gauges also have notable demand in transformer and motor manufacturing, reflecting a balanced growth trajectory. Standard thickness categories continue to hold significant market share, supporting traditional applications in large power transformers and industrial equipment, thus demonstrating stability in market demand.

Application

The application segment of the Grain Oriented Electrical Steel Market is extensive, encompassing transformers, motors, generators, and other electrical equipment. Among these, the transformer segment is anticipated to exhibit the largest market size, driven by the increasing demand for electricity and the need for efficient transmission systems. Motors, particularly in the automotive and industrial sectors, are also set for rapid growth as industries emphasize energy efficiency and eco-friendly solutions. The generator application segment, driven by the growth of renewable energy sources, is expected to see a marked increase as well, especially with the rise of wind and solar power. This diverse application landscape highlights the critical role of grain-oriented electrical steel in facilitating advancements in electrical efficiency across various sectors.

Product Type

When examining product types, the Grain Oriented Electrical Steel Market can be categorized into various forms, including non-oriented and oriented electrical steel. The oriented electrical steel segment is projected to grow more rapidly as it provides superior magnetic properties and is essential for high-performance applications. This segment is critical for energy-efficient transformer designs and is being increasingly adopted in advanced technology applications such as electric vehicles and renewable energy systems. Non-oriented electrical steel, while having a significant market share, is generally used in applications that do not require the same level of magnetic performance. Nevertheless, it remains vital for a multitude of industrial and consumer products, solidifying its presence in the overall market. The ongoing advancements in technology and rising energy efficiency requirements across various industries are likely to further elevate the demand for oriented products.

Competitive Landscape:

The competitive landscape in the Grain Oriented Electrical Steel Market is characterized by a mix of global and regional players striving to enhance their product offerings and technological capabilities. Major companies are focusing on research and development to improve magnetic properties and reduce production costs, while also addressing environmental sustainability through innovative manufacturing processes. Strategic mergers and acquisitions, along with collaborations for developing high-performance steel grades, are prevalent as industry leaders aim to strengthen their market position. Geographic diversification and investment in emerging markets are also key strategies employed by these companies to capture a larger share of the growing demand in the energy and electrical sectors.

Top Market Players

1. Nippon Steel Corporation

2. AK Steel Corporation

3. Thyssenkrupp AG

4. JFE Steel Corporation

5. POSCO

6. ArcelorMittal

7. Baosteel Group

8. United States Steel Corporation

9. Shanghai Liangxing Group

10. NLMK Group