Introduction
The grain oriented electrical steel market is shaped as much by material science and manufacturing choices as by end-use demand. GOES has its grains aligned in one direction, giving higher magnetic efficiency along the rolling direction. Polaris Market Research values the market at USD 13.75 billion in 2025 and projects USD 22.71 billion by 2034, growing at a CAGR of 5.7% from 2026 to 2034, with a 2026 estimate of USD 14.04 billion.
GOES Compared with Non-Grain-Oriented Steel
The report contrasts GOES with non-grain-oriented electrical steel (NGOES). In NGOES, grains are randomly ordered, giving uniform magnetic properties in all directions. It has higher core losses and is used in motors, generators, and rotating machines. It is also easier and cheaper to manufacture.
GOES, by contrast, has lower core loss and is used in power transformers, distribution transformers, and reactors, though it is generally more expensive and complex to manufacture. For buyers, the choice between the two reflects equipment design rather than interchangeability. Transformers prioritize low loss along a defined magnetic path, while rotating machines need properties that hold in every direction. Manufacturers and specifiers therefore treat the two materials as complementary categories, each suited to a different class of electrical equipment.
Product Innovation and Segmentation
The report segments GOES by product type into conventional, high magnetic strength sheets, and domain refinement. The conventional type held a 68.4% share in 2025, due to its cost-effectiveness and dependable performance, and the report describes it as valued in transformers and electrical equipment. By application, the transformer segment held 72.1% in 2025, since GOES lowers energy losses and improves how efficiently transformers operate. Power generators, electric motors, and other applications are also covered.
Thickness segmentation spans 0.2 mm and below, 0.23 mm, 0.27 mm, 0.30 mm, and 0.35 mm and above, giving buyers a range of options for core design.
Electrification and Motor Demand
The International Energy Agency reported that 14 million new electric cars were registered in 2023. According to the report, electric vehicle motors rely on GOES to improve efficiency and reduce losses, which links the market to electrification trends beyond the utility sector.
Raw Materials and Supply Chain
GOES depends on high-grade silicon steel and efficient global supply chains. Steel, silicon, and energy prices affect manufacturing costs and profitability. Because renewable energy projects and grid upgrades are raising demand, manufacturers are expanding capacity and strengthening supply chains.
The report lists high initial investment as a restraint and challenge, underscoring that capacity additions are capital-intensive decisions.
AI in Manufacturing
AI is used to optimize rolling, annealing, and coating for better magnetic properties and lower energy loss. It supports quality control by detecting defects and verifying specifications, and it improves efficiency through real-time process monitoring and production automation. The report adds that AI supports supply chain planning, product development, and data-driven decisions.
𝐁𝐫𝐨𝐰𝐬𝐞 𝐌𝐨𝐫𝐞 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬:
https://www.polarismarketresearch.com/industry-analysis/grain-oriented-electrical-steel-market
India and Regional Momentum
India is projected to grow at a 6.5% CAGR, driven by investment in power transmission and distribution, a growing industrial sector, renewable energy projects, and government efficiency initiatives. North America held a 37.9% share in 2025, while Asia Pacific held 34.6%, supported by urbanization and industrialization in emerging economies.
Recent Developments and Key Players
In April 2026, JSW Steel and JFE Steel Corporation unveiled the name JSW JFE Steel Limited for their 50:50 joint venture, which includes integrated operations at Sambalpur, Odisha. In March 2026, ArcelorMittal showcased electrical steels at Coiltech Germany 2026 and announced capacity expansion at Mardyck to meet growing energy transition and e-mobility demand.
Key players named in the report are ArcelorMittal, POSCO, Stalprodukt S.A., Baosteel Group Corporation, NIPPON STEEL CORPORATION, JFE Steel Corporation, thyssenkrupp Steel, Cleveland-Cliffs Inc., Arnold Magnetic Technologies, and VIZ-Steel. NIPPON STEEL CORPORATION was formed in 1970 through a merger, merged with Sumitomo Metal Industries in 2012, and reverted to its original name in 2019. It operates four segments (steelmaking and fabrication, engineering and construction, chemicals and materials, and system solutions) with production in Japan and over 15 countries.
ArcelorMittal S.A., based in Luxembourg, is described as the second-largest steel producer in the world. It was formed in 2007 through the merger of Mittal Steel and Arcelor and operates in 16 countries, producing flat and long steel products as well as pipes and tubes, with over 200 automotive-grade steel grades. About 39% of its steel production is in the Americas, 50% in Europe, and 11% elsewhere.
How Buyers Can Use These Insights
The report's structure offers a useful checklist for sourcing teams. Start with the application, since transformers and motors have different material needs. Then consider product type and thickness, and finally the supplier's raw material exposure and capacity plans. Because the report notes that manufacturers are expanding capacity and strengthening supply chains, supplier announcements such as those above are worth tracking alongside pricing.
Conclusion
Material choices define competitiveness in this Grain Oriented Electrical Steel market. Understanding non-grain-oriented electrical steel, domain refinement, silicon steel inputs, and electric vehicle motors alongside power transmission and distribution investment helps B2B stakeholders weigh suppliers and capacity plans, using the Polaris Market Research report as a factual reference.
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