Polaris Market Research today announced findings from its latest report, projecting the global electrical steel market to grow from USD 24.89 billion in 2023 to USD 37.92 billion by 2032, at a CAGR of 4.80%. The report profiles seven leading companies across two key market segments, covering product, application, and region across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Electrical steel is prized for its high permeability, electrical resistivity, low hysteresis loss, and low magneto-striction, properties that make it the material of choice for transformers, motors, generators, and other equipment tied to electricity generation, distribution, and consumption.
Analyst Commentary on Electrical Steel Market Growth
"Every new electric vehicle on the road needs a motor, and every motor needs electrical steel in its rotor and stator, which is why EV production has become one of the strongest tailwinds this market has seen in years," said a senior analyst at Polaris Market Research. "For buyers and investors, the clearest opportunity is in grain-oriented electrical steel for transformers, since grid modernization and EV charging infrastructure are both expanding demand at once.
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Electrical Steel Market Statistics at a Glance
- 2023 Market Size: USD 24.89 Billion
- 2024 Market Size: USD 25.74 Billion
- 2032 Projected Size: USD 37.92 Billion
- CAGR (2024–2032): 4.80%
- Largest Region (2023): North America
Key Growth Drivers, Major Companies and Segments Covered
Growth Drivers: Increasing electricity demand and rising usage in power distribution systems and related electromagnetic devices are the primary forces behind the market's expansion, alongside surging growth in the electric vehicle industry. The United States ranks as the second-largest electricity generator globally, producing approximately 4,000 TWh from utility-scale generators, with renewables contributing a 16.7% increase in power generation, while electrical steel's magnetic properties make it essential for EV motor rotors and stators by reducing core energy losses and improving vehicle range and performance. Global plug-in vehicle sales reached approximately 3.24 million units in 2020, a jump of more than 43% over 2019, and manufacturers have been expanding production capacity in response to the resulting surge in demand. In May 2021, JSW Steel and JFE Steel Corp. signed an MoU to study a joint venture for manufacturing electrical steel sheets in India.
Major Companies Covered: ArcelorMittal, Cleveland-Cliffs Corp., JFE Steel, Nippon Steel Corp., POSCO, Tata Steel, and thyssenkrupp.
Segments Covered: By Product (Grain-Oriented Electrical Steel, Non-Grain-Oriented Electrical Steel), By Application (Transformer, Motor, Inductor, Other), and By Region.
Recent Developments in the Electrical Steel Market
- December 2025: ArcelorMittal France will commission a new electrical steel production line at its Mardyck site, investing USD 582 million to supply high-grade electrical steel for EVs, motors, generators, and transformers, raising European capacity to 295,000 metric tons per year.
- February 2024: JSW Steel and JFE Steel jointly invested ₹5,500 crore in an Indian electrical-grade grain-oriented steel plant, strengthening domestic production capabilities.
- January 2024: POSCO completed the first phase of its eco-friendly non-oriented electrical steel sheet plant (Hyper No) at Gwangyang Steel Works, targeting demand from the EV and premium appliance sectors.
Regional Snapshot: North America Leads, Europe Gaining Share
North America dominated the global market, driven by increasing focus on power generation and electric vehicle production, which has spurred demand for electric motors and charging stations; in March 2021, Foxconn revealed plans to manufacture EVs in North America, backed by an NTD 10 billion (approximately USD 354 million) investment over three years. Europe is expected to gain substantial share as the region's EV market continues to expand rapidly, having accounted for roughly 45% of global EV sales with approximately 1.4 million units sold in a single year, a trend that has attracted foreign investment such as Nidec's JPY 200 billion (approximately USD 1.9 billion) commitment to a new EV motor factory in Serbia with a planned annual capacity of 300,000 motors.
Why It Matters for Buyers Evaluating Market Entry
For stakeholders researching top electrical steel producers and the market forecast through 2032, the underlying report benchmarks market share, company positioning, and segment-level forecasts across product and application to support sourcing, partnership, and investment decisions. With non-grain-oriented electrical steel commanding the largest current share thanks to its use in transformers and EV charging infrastructure, and grain-oriented electrical steel positioned for the fastest growth as transformer production accelerates, buyers gain a clear view of where near-term capacity investment is concentrated and where grid modernization and EV expansion are likely to drive the next wave of demand.
About Polaris Market Research
Polaris Market Research is a B2B syndicated market research and consulting firm offering 5,000+ published reports across 20+ industry verticals, delivering data-backed insights to help businesses make informed decisions.
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