Non-oriented Electrical Steel Market Size, Share, Growth, and Industry Analysis, By Types (Fully Processed Non-oriented Electrical Steel, Semi-processed Non-oriented Electrical Steel) , Applications (Power Generation, AC Motor, Household Appliances, Others) and Regional Insights and Forecast to 2033

Non-oriented Electrical Steel Market Size

The Non-Oriented Electrical Steel Market was valued at USD 22,025 million in 2024 and is expected to grow to USD 23,149 million in 2025, reaching USD 34,463 million by 2033. This growth reflects a compound annual growth rate (CAGR) of 5.1% during the forecast period from 2025 to 2033.

The U.S. Non-Oriented Electrical Steel Market is witnessing strong growth due to increasing demand for energy-efficient electrical components. Advancements in manufacturing and rising applications in transformers, motors, and generators are driving market expansion.

The non-oriented electrical steel market is characterized by its critical role in energy efficiency applications across various industries. Non-oriented electrical steel, known for its isotropic magnetic properties, is primarily used in electric motors, generators, and transformers. This steel type’s consistent grain orientation enhances magnetic flux, reducing energy losses and optimizing performance. The market is witnessing growing demand due to the electrification of transportation and advancements in renewable energy systems. With the rise of electric vehicles (EVs) and renewable energy installations, non-oriented electrical steel remains pivotal in reducing energy consumption and supporting global decarbonization goals.

Non-oriented Electrical Steel Market Trends

The non-oriented electrical steel market is experiencing significant growth due to increasing demand from multiple sectors, including automotive, energy, and industrial machinery. A key trend shaping the market is the growing adoption of electric vehicles (EVs). Non-oriented electrical steel plays a crucial role in the development of efficient motors for EVs, where its superior magnetic properties reduce core losses and improve motor efficiency. According to recent industry data, global EV sales surpassed 10 million units in 2022, with projections indicating further growth in the coming years.

Additionally, the global shift toward renewable energy sources, such as wind and solar power, is driving the demand for efficient transformers and generators that rely on this material. For example, the International Energy Agency (IEA) reported that wind power capacity reached 837 GW globally in 2022, requiring advanced electrical steel for turbines and generators. The industrial sector’s focus on reducing energy consumption further boosts the demand for non-oriented electrical steel. Smart grid implementation and energy-efficient infrastructure upgrades also contribute to market expansion. Asia-Pacific dominates the market, with China producing over 50% of the world’s electrical steel annually. Europe and North America are also significant markets due to stringent energy efficiency regulations.

Non-oriented Electrical Steel Market Dynamics

The dynamics of the non-oriented electrical steel market revolve around its growing role in supporting the global shift towards energy-efficient technologies. Increasing electrification trends, particularly in transportation and renewable energy sectors, are reshaping the market landscape. The rise in electric vehicle (EV) adoption and renewable energy installations has driven demand for high-performance electrical steel to optimize energy conversion and minimize losses. Technological innovations are enhancing the material's magnetic properties, expanding its applications across various industries. However, challenges such as production costs and competition from alternative materials remain integral to the market’s evolution.

Drivers of Market Growth

"Rising demand for electric vehicles (EVs)"

The increasing shift towards electrification in the automotive sector is a major growth driver for the non-oriented electrical steel market. Global EV sales surpassed 10 million units in 2022 and are expected to grow rapidly, spurring demand for energy-efficient motors. Non-oriented electrical steel’s ability to minimize core losses enhances motor performance and battery efficiency, making it indispensable for EV manufacturers. Additionally, renewable energy installations, such as wind turbines, grew by 9% globally in 2022, requiring efficient generators and transformers made from this material. These trends underscore the critical role of non-oriented electrical steel in supporting energy efficiency goals.

Market Restraints

"High production costs of non-oriented electrical steel"

One significant restraint is the high production cost associated with non-oriented electrical steel. The manufacturing process requires advanced technology and specialized equipment to achieve the desired magnetic properties. For instance, the addition of silicon to improve performance increases material costs, with silicon prices rising by 15% in 2022. Additionally, the volatility of iron ore prices impacts production expenses. These factors increase the overall cost of non-oriented electrical steel, limiting its adoption in cost-sensitive markets. Furthermore, the complexity of recycling electrical steel poses additional challenges, hindering its widespread usage. Manufacturers are focusing on optimizing production methods to address these cost-related barriers.

Market Opportunities

"Growth in renewable energy installations"

The global push toward renewable energy creates significant opportunities for the non-oriented electrical steel market. According to the International Renewable Energy Agency (IRENA), global wind power installations are projected to reach 2,000 GW by 2030, driving demand for advanced transformers and generators. Similarly, solar energy capacity additions exceeded 190 GW in 2022, further increasing the need for efficient electrical components. Government incentives, such as tax credits for renewable energy projects, are also accelerating adoption. Innovations in material design, such as high-silicon non-oriented electrical steel, are expected to capitalize on these opportunities, enhancing the market’s growth prospects.

Market Challenges

"Rising competition from alternative materials"

The non-oriented electrical steel market faces challenges from the increasing adoption of alternative materials, such as amorphous steel and advanced composites. These materials offer similar or superior magnetic properties while addressing certain limitations of non-oriented electrical steel, such as energy losses and weight. For example, amorphous steel reduces energy losses by up to 70% compared to traditional electrical steel. Additionally, the research and development costs associated with improving non-oriented electrical steel’s performance add to the competitive pressures. Manufacturers must invest in innovation to retain market share and address emerging needs. Balancing cost-effectiveness with enhanced product performance remains a critical challenge for industry players in the coming years.

Segmentation Analysis

Segmentation analysis plays a crucial role in understanding the dynamics of the electrical steel market, offering insights into various market divisions based on type and application. By categorizing the market, stakeholders can identify growth opportunities, trends, and challenges specific to each segment. The segmentation by type and application reveals how different categories contribute to the overall market demand. Moreover, this analysis facilitates targeted strategies for manufacturers and suppliers to cater to niche markets and meet evolving customer requirements. Each segment, whether defined by type or application, influences the market uniquely, providing a comprehensive view of its potential and challenges.

By Type

• Fully Processed Non-oriented Electrical Steel Fully processed non-oriented electrical steel is designed for use in rotating machinery, such as motors and generators, where magnetic properties are crucial. This type of steel is processed to achieve uniform magnetic properties in all directions, making it highly efficient for applications requiring low energy loss. For instance, this steel is extensively used in high-performance motors in the automotive industry and industrial machinery. According to industry reports, fully processed non-oriented electrical steel accounts for a significant portion of the market share, driven by the increasing demand for energy-efficient electrical devices and renewable energy systems.
• Semi-processed Non-oriented Electrical Steel Semi-processed non-oriented electrical steel is primarily used in applications where cost-efficiency is prioritized over magnetic performance. This steel requires additional annealing by the end-user to achieve the desired magnetic properties. It is commonly utilized in smaller motors, household appliances, and transformers. Market studies indicate that the semi-processed segment has seen steady growth, driven by its affordability and suitability for diverse applications. Additionally, the rising demand for low-cost appliances in emerging economies has contributed to the growth of this segment.

By Application

• Power Generation Electrical steel is essential in the power generation sector, particularly in manufacturing transformers and generators. The growing emphasis on renewable energy sources, such as wind and solar power, has increased the demand for efficient transformers made from electrical steel. For example, modern wind turbines rely heavily on electrical steel to enhance energy conversion efficiency. This segment has seen substantial investment globally, as countries aim to meet their renewable energy targets and reduce carbon emissions.
• AC Motor AC motors, widely used in industrial and commercial applications, represent one of the largest markets for electrical steel. Non-oriented electrical steel is integral to improving motor efficiency and reducing energy losses, which are critical in industrial automation and electric vehicles. Recent advancements in motor technology, combined with stringent energy efficiency regulations, have driven the demand for high-grade electrical steel in this segment.
• Household Appliances Household appliances, such as refrigerators, washing machines, and air conditioners, are significant consumers of electrical steel. The demand for energy-efficient appliances, driven by consumer preferences and regulatory standards, has boosted the adoption of advanced electrical steel in this segment. For instance, inverter-based appliances require electrical steel for their efficient operation, contributing to the segment's growth.
• Others This segment includes niche applications such as robotics, medical devices, and specialized machinery. While smaller in scale compared to other segments, these applications represent high-growth opportunities, especially in technologically advanced regions. For example, the increasing use of robotics in manufacturing and healthcare has fueled demand for precision-engineered electrical steel components.

Regional Outlook

The regional outlook for the electrical steel market highlights significant variations in demand and growth across different geographical areas. Key regions such as North America, Europe, and Asia-Pacific exhibit diverse trends, influenced by factors such as industrial development, energy policies, and technological advancements. Regional analysis provides insights into how local market conditions and regulatory frameworks impact the production and consumption of electrical steel. Each region's unique characteristics, including infrastructure development and economic conditions, play a pivotal role in shaping its market dynamics.

North America

North America is a prominent market for electrical steel, driven by advancements in energy infrastructure and the rising adoption of electric vehicles. The United States, in particular, has witnessed significant investments in renewable energy projects, boosting the demand for transformers and generators made from electrical steel. Additionally, the modernization of the power grid and the implementation of energy-efficient regulations have supported market growth. According to recent data, North America's share in the global electrical steel market is substantial, with the automotive and energy sectors acting as key growth drivers.

Europe

Europe's electrical steel market is characterized by its strong emphasis on sustainability and energy efficiency. The European Union's stringent energy regulations and commitment to achieving carbon neutrality have propelled the adoption of high-grade electrical steel in various applications. Countries like Germany and France have been at the forefront of integrating renewable energy systems, increasing the demand for transformers and generators. Moreover, the region's well-established automotive industry has contributed to the growing use of electrical steel in electric and hybrid vehicles.

Asia-Pacific

Asia-Pacific is the fastest-growing region in the electrical steel market, driven by rapid industrialization, urbanization, and increasing energy consumption. Countries like China, India, and Japan are significant contributors, with substantial investments in infrastructure development and renewable energy projects. For instance, China's focus on expanding its wind energy capacity and India's initiatives for solar power generation have significantly boosted the demand for electrical steel. Additionally, the growing manufacturing sector in the region has further fueled the market, making Asia-Pacific a key hub for electrical steel production and consumption.

Middle East & Africa

The Middle East & Africa region represents a growing market for electrical steel, primarily driven by increasing investments in energy infrastructure and industrialization. Countries in the Gulf Cooperation Council (GCC), such as Saudi Arabia and the UAE, are focusing on diversifying their economies, leading to significant investments in renewable energy projects like solar and wind power. South Africa has also emerged as a key contributor, with its expanding energy sector and industrial activities. The demand for electrical steel in the region is further fueled by the development of smart grids and energy-efficient systems to support sustainable growth.

LIST OF KEY Non-oriented Electrical Steel Market COMPANIES PROFILED

• Baowu

• ArcelorMittal

• TISCO

• JFE Steel

• Shougang Group

• NSSMC

• NLMK

• Ansteel

• AK Steel

• Thyssen Krupp

• Voestalpine

• Masteel

• Posco

• TATA Steel

• BX Steel

• Nucor

• CSC

• Baosteel

Top Companies with Highest Market Share:

• Baowu - Holding a significant portion of the global market share, Baowu stands as a leader in the electrical steel sector, known for its high-quality products and advanced manufacturing capabilities.

• ArcelorMittal - As a global steel giant, ArcelorMittal commands a substantial share in the electrical steel market, driven by its diverse product portfolio and extensive distribution network.

Investment Analysis and Opportunities

The electrical steel market presents immense investment opportunities, driven by the increasing demand for energy-efficient solutions and advancements in renewable energy infrastructure. Manufacturers are focusing on upgrading their production facilities to meet the growing demand for high-grade non-oriented electrical steel. For example, recent investments in automated production lines and advanced technologies have significantly enhanced output quality and efficiency. Additionally, governments worldwide are implementing policies to promote the use of energy-efficient appliances and systems, further boosting market growth. Key opportunities exist in emerging economies, where rapid industrialization and urbanization are driving demand for electrical steel in infrastructure and energy projects. Furthermore, collaborations between manufacturers and end-users, particularly in the automotive and renewable energy sectors, are opening new avenues for growth.

NEW PRODUCTS Development

The development of new products in the non-oriented electrical steel market has been a key driver of innovation and growth. Leading companies are investing in research and development to create advanced steel grades with superior magnetic properties and energy efficiency. For instance, high-silicon electrical steels have recently been introduced to enhance performance in electric motors and generators. These innovations address the growing demand for energy-efficient appliances and electric vehicles. Additionally, manufacturers are focusing on sustainability by developing eco-friendly production processes and recyclable materials. New product launches targeting specific applications, such as transformers and high-performance motors, have further diversified the market. Such advancements are expected to play a critical role in meeting future energy efficiency and environmental standards.

Recent Developments by Manufacturers in Non-oriented Electrical Steel Market

• Baowu announced the launch of a new high-grade electrical steel designed for next-generation electric vehicles in 2023.

• ArcelorMittal introduced an advanced silicon steel product line in 2024, focusing on enhanced energy efficiency for industrial motors.

• Posco expanded its production capacity in 2024 to meet the growing demand for non-oriented electrical steel in the Asia-Pacific region.

• JFE Steel invested in upgrading its manufacturing facilities in 2023 to improve the quality and efficiency of its electrical steel products.

• TATA Steel launched a new series of non-oriented electrical steel tailored for household appliances and renewable energy systems in 2023.

REPORT COVERAGE of Non-oriented Electrical Steel Market

The report provides a comprehensive analysis of the non-oriented electrical steel market, covering key aspects such as market size, segmentation, and regional dynamics. It includes detailed insights into the types and applications of electrical steel, highlighting growth opportunities and challenges. The report also profiles leading manufacturers, offering an in-depth analysis of their strategies, market positions, and recent developments. Additionally, it explores investment trends and emerging opportunities, particularly in renewable energy and automotive sectors. The coverage extends to regional outlooks, examining the unique dynamics and growth drivers in North America, Europe, Asia-Pacific, and other regions. By offering actionable insights, the report serves as a valuable resource for stakeholders looking to navigate the evolving electrical steel market.