Non-Grain Oriented Electrical Steel Market Size & Share, By Grade (M3, M4, M5, M6, M7, M8), Core Loss (Below 1.3 W/kg, 1.3 - 1.55 W/kg, above 1.55 W/kg), Application (Transformers, Motors, Generators), End User Industry (Power Generation, Transportation, Industrial) - Growth Trends, Regional Insights (U.S., Japan, South Korea, UK, Germany), Competitive Positioning, Global Forecast Report 2025-2034

Market Outlook:

Non-Grain Oriented Electrical Steel Market size is predicted to grow from USD 10.17 billion in 2024 to USD 13.94 billion by 2034, reflecting a CAGR of over 3.2% from 2025 through 2034. The industry revenue is forecasted to reach USD 10.43 billion in 2025.

• Base Year Value (2024): USD 10.17 Billion
• CAGR (2025-2034): 3.2%
• Forecast Year Value (2034): USD 13.94 Billion
• Historical Data Period: 2021-2024
• Largest Region: Asia Pacific
• Forecast Period: 2025-2034

Market Dynamics:

Growth Drivers & Opportunities

The Non-Grain Oriented Electrical Steel market is experiencing significant growth driven by the increasing demand for energy-efficient electrical equipment and machinery. This demand is primarily fueled by the global shift towards renewable energy sources and the need for enhanced performance in transformers and electric motors. As industries strive to reduce energy consumption and improve operational efficiency, the adoption of non-grain oriented electrical steel, known for its superior magnetic properties, becomes crucial.

Additionally, technological advancements in manufacturing processes have led to improved quality and consistency of non-grain oriented electrical steel products. Innovations such as the development of thinner sheets and advanced coatings are expanding their applications in various sectors, thereby enhancing their market appeal. Moreover, the growing automotive industry, especially with the rise of electric vehicles, is creating new opportunities for the use of non-grain oriented electrical steel in electric drivetrains and battery systems.

The expansion of infrastructure projects and urbanization in developing economies is set to further propel market growth. As countries invest in smart grid technologies and modernize electrical systems, the demand for high-performance electrical steel will continue to rise. Furthermore, collaborations between manufacturers and research institutions are fostering the development of next-generation materials, which are expected to capture new market segments and drive overall growth.

Report Scope

Report Coverage	Details
Segments Covered	Grade, Core Loss, Application, End User Industryal.
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	Shougang, Voestalpine AG, Nippon Steel, JFE Steel, Baosteel Group, POSCO, thyssenkrupp AG, Hyundai Steel, Maanshan Iron and Steel, Handan Iron and Steel, Benxi Iron and Steel Group, Tata Steel, ArcelorMittal, Shandong Iron and Steel Group.

Industry Restraints:

Despite the promising growth potential, the Non-Grain Oriented Electrical Steel market faces several restraints that could hinder its progress. One of the significant challenges is the high cost of raw materials and production processes. The prices of essential components, such as iron and alloying materials, can be volatile, which impacts the overall pricing and affordability of electrical steel products. This volatility poses a risk to manufacturers, making it difficult to maintain competitive pricing in a fluctuating market.

Another notable restraint is the stringent regulatory environment surrounding electrical steel production. Compliance with environmental regulations and sustainability standards often requires substantial investment in cleaner technologies and processes, which can strain smaller manufacturers with limited resources. Additionally, the market is characterized by a high degree of competition, with numerous established players and new entrants vying for market share. This competitive landscape can lead to pricing pressures, affecting profitability across the industry.

Lastly, the market's dependence on cyclical industries, such as construction and automotive, makes it susceptible to economic downturns. During periods of reduced capital expenditure, the demand for non-grain oriented electrical steel may decline, impacting overall market growth. These factors combined create an intricate landscape for market participants as they navigate growth opportunities while mitigating the associated risks.

Regional Forecast:

North America

In North America, the Non-Grain Oriented Electrical Steel Market is primarily driven by the United States and Canada. The U.S. holds a dominant position due to its advanced manufacturing base and significant demand from the electrical machinery and automotive sectors. The increasing emphasis on energy efficiency in electrical devices has prompted manufacturers to adopt high-performance steel grades, contributing to market growth. Canada, while smaller in market size, is also witnessing a steady rise in demand, particularly in renewable energy applications. The shift towards electric vehicles and advancements in power generation technologies are further enhancing opportunities in this region.

Asia Pacific

The Asia Pacific region is anticipated to be the fastest-growing market for Non-Grain Oriented Electrical Steel, with China, Japan, and South Korea leading the charge. China’s colossal manufacturing sector and its focus on upgrading electrical infrastructure are pivotal factors driving growth. The country is also making significant investments in renewable energy technologies, which require high-efficiency electrical steel. Japan remains a key player, known for its technological advancements and high-quality production standards. South Korea, with its emerging electric vehicle market and substantial industrial base, is expected to witness rapid growth, aided by government initiatives promoting energy-efficient solutions and smart grids in the region.

Europe

In Europe, the Non-Grain Oriented Electrical Steel Market is significantly influenced by Germany, the UK, and France. Germany stands out as the largest market, bolstered by its robust automotive and manufacturing sectors, where the demand for high-performance electrical steel is consistently rising. The country is also a frontrunner in renewable energy technology, enhancing its prospects in the electrical steel domain. The UK is adopting measures towards decarbonization which is driving investments in efficient electrical architectures and, consequently, boosting demand for electrical steel. France, while slightly behind, is making strides focused on sustainable energy and electric mobility, contributing to its market growth. Each of these countries is poised to leverage advancements in technologies to drive the application of Non-Grain Oriented Electrical Steel in various sectors.

Segmentation Analysis:

In terms of segmentation, the global Non-Grain Oriented Electrical Steel market is analyzed on the basis of Grade, Core Loss, Application, End User Industryal..

Market Analysis of Non-Grain Oriented Electrical Steel

By Grade

The Non-Grain Oriented Electrical Steel market is categorized into several grades, including M3, M4, M5, M6, M7, and M8. Among these, grades M4 and M5 are expected to exhibit the largest market sizes owing to their superior magnetic properties and lower core losses, making them ideal for various applications. M6 and M7 grades are anticipated to show the fastest growth rates, driven by increasing energy efficiency requirements and advancements in manufacturing capabilities.

By Core Loss

This segment classifies electrical steel based on core loss ratings into three categories: below 1.3 W/kg, 1.3 - 1.55 W/kg, and above 1.55 W/kg. The core loss below 1.3 W/kg is projected to dominate the market due to the rising demand for energy-efficient solutions. The range of 1.3 - 1.55 W/kg is also expected to grow rapidly as it balances performance and cost, making it particularly appealing for various industries. The category above 1.55 W/kg, while growing, may have slower growth due to lower efficiency.

By Application

Non-Grain Oriented Electrical Steel finds applications primarily in transformers, motors, and generators. The transformers segment is predicted to hold the largest market size due to the increasing investments in power infrastructure and renewable energy sources. The motor application segment is likely to witness the fastest growth as electric vehicles gain traction and industries seek to enhance performance and energy efficiency. Generators will also see a steady demand, particularly in the renewable energy sector.

By End User Industry

The end-user industries for Non-Grain Oriented Electrical Steel include power generation, transportation, and industrial applications. The power generation sector is expected to showcase the largest market size, driven by the global shift towards renewable energy and modernization of electrical grids. The transportation sector, particularly with the rise of electric vehicles, is likely to experience the fastest growth, as high-efficiency motors become essential for performance. The industrial segment will continue to grow steadily, influenced by overall industrial automation trends and energy efficiency mandates.

Competitive Landscape:

The competitive landscape of the Non-Grain Oriented Electrical Steel Market is characterized by several key players who dominate the industry through innovation, production capacity, and strategic partnerships. These companies focus on high-quality manufacturing processes to enhance the magnetic properties of electrical steel, which is critical for applications in transformers, electric motors, and generators. The market is witnessing increasing demand for energy-efficient electrical steel, prompting leading manufacturers to invest in advanced technologies and sustainable practices. Additionally, geographic expansion is a prominent strategy, with companies exploring growth opportunities in emerging markets to capitalize on the rising electricity consumption and renewable energy projects.

Top Market Players

1. ArcelorMittal

2. Nippon Steel Corporation

3. BaoSteel Group

4. JFE Steel Corporation

5. ThyssenKrupp AG

6. POSCO

7. AK Steel Holding Corporation

8. Severstal

9. United States Steel Corporation

10. Steel Authority of India Limited (SAIL)