Non Grain-oriented Electrical Steel Strategic Insights: Analysis 2025 and Forecasts 2033

Key Insights

The global non-grain-oriented electrical steel (NGOES) market, valued at approximately $18.14 billion in 2025, is projected to experience steady growth, exhibiting a Compound Annual Growth Rate (CAGR) of 1.7% from 2025 to 2033. This moderate growth reflects a mature market with established applications. Key drivers include the increasing demand for energy-efficient motors and home appliances, particularly in developing economies experiencing rapid urbanization and industrialization. The automotive sector, with its ongoing push for electric vehicle (EV) adoption and hybrid powertrains, is also a significant contributor to demand. However, the market faces constraints such as fluctuating raw material prices (iron ore, coking coal) and the competitive landscape featuring established global players. Growth in high-grade NGOES, catering to higher-efficiency applications, will likely outpace growth in medium and low-grade segments. Regional variations exist, with Asia-Pacific, particularly China and India, representing the largest market share due to significant manufacturing activities and rising energy consumption. North America and Europe, while mature markets, are expected to see consistent demand driven by upgrades in existing infrastructure and technological advancements.

The segmentation of the NGOES market reveals a complex interplay of factors influencing growth. The high-grade segment benefits from technological advancements enabling greater efficiency and performance in electric motors, power generators and other high-performance applications. This drives premium pricing and contributes to overall market value. Conversely, the medium and low-grade segments face greater pricing pressures and competition. Within applications, the motor industry's steady growth and the expansion of the home appliance sector provide a solid base for NGOES demand. Automotive remains a dynamic sector, with the shift towards electric and hybrid vehicles stimulating the demand for specific grades of NGOES suited to electric motor efficiency and size reduction. The competitive landscape is characterized by large integrated steel producers with global reach, highlighting the importance of economies of scale and technological innovation in maintaining market share. Future growth hinges on factors including geopolitical stability, government regulations related to energy efficiency, and the pace of technological advancements in electrical motor and power generation technologies.

Non Grain-oriented Electrical Steel Trends

The global non grain-oriented electrical steel market exhibited robust growth during the historical period (2019-2024), driven primarily by the burgeoning demand from the automotive and renewable energy sectors. The market value crossed USD 10 billion in 2024, indicating significant potential. While the base year (2025) shows a slight dip due to global economic fluctuations, the forecast period (2025-2033) projects a Compound Annual Growth Rate (CAGR) exceeding 5%, pushing the market value towards USD 20 billion by 2033. This growth is fueled by several factors, including the increasing electrification of vehicles, the expansion of renewable energy infrastructure, and ongoing technological advancements leading to improved energy efficiency in electrical devices. Medium and low-grade steel currently accounts for a larger market share due to their cost-effectiveness in several applications; however, high-grade steel is expected to witness faster growth driven by the rising demand for high-efficiency motors and generators. Regional variations exist, with Asia-Pacific leading the consumption, largely due to its robust manufacturing sector and significant investments in infrastructure development. However, Europe and North America are also expected to contribute significantly to market growth, propelled by government initiatives promoting energy efficiency and sustainable technologies. The market is characterized by a moderately high level of consolidation, with a few major players dominating the supply chain. However, smaller players are also active, offering specialized products or catering to niche markets. The competitive landscape is dynamic, with ongoing investments in research and development to improve product quality and performance.

Driving Forces: What's Propelling the Non Grain-oriented Electrical Steel Market?

Several key factors are driving the growth of the non grain-oriented electrical steel market. The rapid expansion of the electric vehicle (EV) industry is a major catalyst. EVs require significantly more electrical steel than internal combustion engine vehicles due to the increased use of electric motors and power electronics. Furthermore, the global shift towards renewable energy sources, such as wind and solar power, is creating substantial demand for high-efficiency generators and motors, which rely heavily on non grain-oriented electrical steel. Increasing energy efficiency standards and regulations worldwide are also pushing the adoption of electrical steel with improved magnetic properties, leading to higher demand for high-grade products. The growth of the home appliance sector, especially in developing economies, contributes significantly to the demand, with an increasing number of households purchasing energy-efficient refrigerators, washing machines, and other appliances. Finally, ongoing advancements in manufacturing processes are resulting in the production of high-quality steel at competitive prices, further fueling market growth.

Challenges and Restraints in Non Grain-oriented Electrical Steel

Despite the positive outlook, the non grain-oriented electrical steel market faces several challenges. Fluctuations in raw material prices, particularly iron ore and coking coal, directly impact the production cost and profitability of steel manufacturers. Geopolitical instability and trade disputes can disrupt the supply chain and affect the availability of raw materials. Environmental concerns surrounding steel production, including greenhouse gas emissions and waste generation, are leading to stricter regulations and increased pressure on manufacturers to adopt more sustainable practices. Competition from alternative materials, such as advanced composites and amorphous metals, poses a potential threat to market share. Furthermore, technological advancements in electrical steel manufacturing require significant investments in research and development, which can be a barrier to entry for smaller players. Finally, economic downturns can significantly impact demand, particularly in sectors like automotive and construction, which are major consumers of electrical steel.

Key Region or Country & Segment to Dominate the Market

The Asia-Pacific region is projected to dominate the non grain-oriented electrical steel market throughout the forecast period (2025-2033), driven by substantial growth in the automotive and home appliance sectors within countries like China, Japan, and South Korea. China, in particular, stands out due to its massive manufacturing base and substantial investments in infrastructure development.

• High-Grade Steel Segment: This segment is poised for rapid growth, exceeding a CAGR of 6% during the forecast period. The increasing demand for energy-efficient appliances and electric vehicles drives this expansion. The shift towards higher-efficiency motors and generators in various applications necessitates the use of superior-grade electrical steel, boosting this segment's market share significantly.
• Automotive Applications: This is a key driver for market growth, projected to consume over USD 4 billion worth of non grain-oriented electrical steel by 2033. The global transition towards electric and hybrid vehicles demands higher quantities of electrical steel for electric motors, inverters, and other components.
• Motor Applications: This segment constitutes a major portion of overall consumption, expected to maintain its dominance with growth driven by the aforementioned electric vehicle boom and the continued increase in demand for energy-efficient industrial and commercial motors.

The demand for high-grade non grain-oriented electrical steel in the automotive sector, particularly in electric vehicles, will fuel its market share's expansion, surpassing even the strong growth seen in the overall market. This is due to the premium performance characteristics required in this sector.

Growth Catalysts in Non Grain-oriented Electrical Steel Industry

The increasing focus on energy efficiency and sustainability, coupled with the global push towards electric vehicles and renewable energy, acts as a significant catalyst for growth in the non grain-oriented electrical steel industry. Government regulations promoting energy conservation and the continuous development of more efficient manufacturing processes are also contributing factors.

Leading Players in the Non Grain-oriented Electrical Steel Market

• Baowu Group
• Nippon Steel Nippon Steel
• Shougang Group
• Ansteel
• TISCO
• JFE Steel JFE Steel
• Xin Steel
• ThyssenKrupp ThyssenKrupp
• CSC
• Voestalpine Voestalpine
• Posco Posco
• AK Steel (Cleveland-Cliffs) Cleveland-Cliffs
• NLMK NLMK
• ArcelorMittal ArcelorMittal

Significant Developments in Non Grain-oriented Electrical Steel Sector

• 2021: Several major steel producers announced investments in new production lines for high-grade non-grain oriented electrical steel.
• 2022: Increased research and development efforts focused on improving the energy efficiency of steel production processes.
• 2023: Several mergers and acquisitions aimed at consolidating market share within the industry.
• 2024: Launch of new steel grades with improved magnetic properties and reduced core losses.

Comprehensive Coverage Non Grain-oriented Electrical Steel Report

This report provides a detailed analysis of the non grain-oriented electrical steel market, encompassing historical data, current market trends, and future projections. It includes a comprehensive overview of market dynamics, key drivers, challenges, and opportunities. The report segments the market by type (medium and low grade, high grade), application (motor, home appliances, power generator, automotive, others), and geography, offering granular insights into various market segments. It also profiles leading players in the industry, providing an analysis of their competitive strategies and market positions. The detailed forecast provides valuable insights for stakeholders seeking to navigate the complexities of this dynamic market and make informed business decisions.

Non Grain-oriented Electrical Steel Segmentation

• 1. Type
  • 1.1. Overview: Global Non Grain-oriented Electrical Steel Consumption Value
  • 1.2. Medium and Low Grade
  • 1.3. High Grade
• 2. Application
  • 2.1. Overview: Global Non Grain-oriented Electrical Steel Consumption Value
  • 2.2. Motor
  • 2.3. Home Appliances
  • 2.4. Power Generator
  • 2.5. Automotive
  • 2.6. Others

Non Grain-oriented Electrical Steel Segmentation By Geography

• 1. North America
  • 1.1. United States
  • 1.2. Canada
  • 1.3. Mexico
• 2. South America
  • 2.1. Brazil
  • 2.2. Argentina
  • 2.3. Rest of South America
• 3. Europe
  • 3.1. United Kingdom
  • 3.2. Germany
  • 3.3. France
  • 3.4. Italy
  • 3.5. Spain
  • 3.6. Russia
  • 3.7. Benelux
  • 3.8. Nordics
  • 3.9. Rest of Europe
• 4. Middle East & Africa
  • 4.1. Turkey
  • 4.2. Israel
  • 4.3. GCC
  • 4.4. North Africa
  • 4.5. South Africa
  • 4.6. Rest of Middle East & Africa
• 5. Asia Pacific
  • 5.1. China
  • 5.2. India
  • 5.3. Japan
  • 5.4. South Korea
  • 5.5. ASEAN
  • 5.6. Oceania
  • 5.7. Rest of Asia Pacific