Non Grain-oriented Electrical Steel for Electric Vehicle Navigating Dynamics Comprehensive Analysis and Forecasts 2025-2033

Key Insights

The global market for non-grain-oriented electrical steel (NGO) used in electric vehicles (EVs) is experiencing robust growth, driven by the burgeoning EV industry and increasing demand for energy-efficient motor systems. The market, estimated at $2.5 billion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033, reaching approximately $8 billion by 2033. This expansion is fueled by several factors. Firstly, the global shift towards electric mobility is accelerating, leading to a significant rise in EV production. Secondly, advancements in motor technology are increasing the efficiency and performance of EV motors, which in turn demands higher-quality NGO steel. Thirdly, government regulations promoting electric vehicles and stringent emission standards are further bolstering market growth. The market is segmented by steel grade (medium/low and high grade) and EV type (Battery Electric Vehicles and Hybrid Electric Vehicles), with high-grade NGO steel dominating due to its superior magnetic properties and suitability for high-efficiency motors. The Asia Pacific region, particularly China, currently holds the largest market share, followed by North America and Europe, reflecting the concentration of EV manufacturing and technological advancements in these regions. However, the market is expected to witness growth across all regions as the EV adoption expands globally. Competitive dynamics within the industry are shaped by a mix of established steel giants like ThyssenKrupp, ArcelorMittal, and Posco, alongside other significant players. These companies are investing heavily in research and development to improve NGO steel properties and meet the evolving needs of the EV sector. Challenges include fluctuations in raw material prices and the need for sustainable steel production processes.

The future of the NGO electrical steel market for EVs is bright, with several key trends shaping its trajectory. The demand for high-performance, lightweight materials in EVs will drive innovation in NGO steel production, leading to the development of improved grades with enhanced magnetic properties and reduced core losses. Further technological advancements in electric motor design will also fuel demand. Strategic partnerships and collaborations between steel manufacturers and EV producers are expected to become more common, creating vertically integrated supply chains. Furthermore, increasing focus on sustainable and environmentally friendly steel production is crucial to meet the growing demand while minimizing the environmental footprint. This will involve exploring eco-friendly manufacturing processes and recycling initiatives. The market will likely witness further regional diversification as EV manufacturing expands beyond its current hubs. However, careful management of raw material costs and maintaining a robust supply chain will be vital for sustained growth in the coming years.

Non Grain-oriented Electrical Steel for Electric Vehicle Trends

The global market for non-grain-oriented electrical steel (NGO) in electric vehicles (EVs) is experiencing robust growth, driven by the burgeoning EV industry. Between 2019 and 2024, the historical period analyzed, the market witnessed significant expansion, with consumption value exceeding several billion USD. Our estimations for 2025 indicate continued market expansion, with the forecast period (2025-2033) projecting even more substantial growth, potentially reaching tens of billions of USD in consumption value by 2033. This expansion is largely attributed to the increasing demand for EVs globally, necessitating a parallel rise in the production of high-efficiency motors and power electronics which rely heavily on NGO steel. The shift towards electric mobility is a major force, impacting not only the volume of NGO steel consumed but also the types demanded. High-grade NGO steel is steadily gaining market share due to its superior performance characteristics and ability to improve motor efficiency, leading to extended EV range and reduced charging times. Competition among major steel producers is also intensifying, with companies investing in R&D to improve the quality and cost-effectiveness of their NGO steel offerings. This competitive landscape is further fueling innovation and driving down prices, creating a positive feedback loop for EV adoption and NGO steel market growth. The market is segmented by both grade (medium/low, high) and application (BEV, HEV), with high-grade NGO steel finding significant use in battery electric vehicles (BEVs) to maximize efficiency. The geographical distribution of consumption is diverse, reflecting the global nature of EV production and sales.

Driving Forces: What's Propelling the Non Grain-oriented Electrical Steel for Electric Vehicle

The surging demand for electric vehicles is the primary driver fueling the growth of the non-grain-oriented electrical steel market. Governments worldwide are implementing stringent emission regulations and offering substantial incentives to promote EV adoption, creating a significant pull for manufacturers. This increased production translates directly into higher demand for NGO steel, a critical component in EV motors and power electronics. The ongoing improvements in battery technology, leading to increased driving range and faster charging times, are further boosting EV sales and, consequently, the demand for NGO steel. Moreover, advancements in the production of NGO steel itself are enhancing its performance characteristics, such as reduced core losses and improved magnetic properties. This allows for the design of smaller, lighter, and more efficient EV motors and power electronics, making EVs more attractive to consumers. The ongoing development of hybrid electric vehicles (HEVs) also contributes to market growth, albeit at a slower pace than BEVs, as they still utilize internal combustion engines alongside electric motors. Finally, the increasing focus on sustainable transportation solutions and reducing carbon emissions globally provides a strong long-term tailwind for the entire EV sector and its associated materials, including NGO steel.

Challenges and Restraints in Non Grain-oriented Electrical Steel for Electric Vehicle

Despite the positive growth trajectory, the NGO steel market for EVs faces several challenges. Fluctuations in raw material prices, particularly iron ore and coking coal, can significantly impact the cost of NGO steel production and affect profitability. The steel industry is also energy-intensive, making it vulnerable to energy price volatility and environmental regulations. Meeting increasingly stringent environmental standards for steel production, including reducing carbon emissions, necessitates substantial investments in cleaner technologies, potentially increasing production costs. Furthermore, intense competition among steel manufacturers creates pressure on pricing, requiring companies to constantly innovate and improve efficiency to maintain profitability. The global geopolitical landscape also plays a role, with trade disputes and supply chain disruptions potentially impacting the availability and cost of NGO steel. Finally, technological advancements in alternative materials for EV motors and power electronics, though currently limited, could pose a long-term threat to the dominance of NGO steel in this sector.

Key Region or Country & Segment to Dominate the Market

The market is geographically diverse, but several regions stand out due to their significant EV adoption rates and established manufacturing bases. China, with its massive EV market and robust domestic steel industry, is poised to remain a dominant player. Europe, focusing on ambitious EV targets and stricter emission regulations, will also drive significant NGO steel consumption. North America, witnessing increasing EV sales, is another key market.

• High-Grade NGO Steel: This segment is experiencing the fastest growth, driven by the demand for higher efficiency in BEVs. The higher cost is offset by the improved performance and extended range it provides. This segment accounts for a significant portion of the overall consumption value in the market. By 2033, high-grade NGO steel is projected to dominate the market share, surpassing medium and low-grade steel considerably. The continuous advancement in the production and properties of high-grade steel is expected to bolster this dominance in the forecast period.

• Battery Electric Vehicles (BEVs): The majority of NGO steel consumption is currently attributed to BEVs, as they require more powerful and efficient motors compared to HEVs. The rapid growth in BEV sales is directly translating into increased demand for high-grade NGO steel to meet the requirements for performance and efficiency. By 2033, BEVs are likely to continue being the leading application segment, with their market share potentially exceeding that of HEVs significantly. The market will experience substantial growth in the BEV segment as more automobile manufacturers turn to fully electric models.

Growth Catalysts in Non Grain-oriented Electrical Steel for Electric Vehicle Industry

Several factors are catalyzing the growth of the NGO steel industry for EVs. The increasing affordability of EVs, coupled with improving battery technology, is driving mass adoption. Simultaneously, supportive government policies and infrastructure development for charging stations are removing barriers to EV ownership. Technological advancements in NGO steel production are enhancing its properties, making it a more attractive material for EV manufacturers. This combination of factors ensures the continued expansion of the NGO steel market within the EV sector.

Leading Players in the Non Grain-oriented Electrical Steel for Electric Vehicle

• ThyssenKrupp
• Voestalpine
• TATA Steel
• ArcelorMittal
• Posco
• Nippon Steel
• JFE Steel
• AK Steel
• NLMK Group
• Shougang
• CSC
• TISCO
• Baowu
• Ansteel

Significant Developments in Non Grain-oriented Electrical Steel for Electric Vehicle Sector

• 2021: Several major steel manufacturers announced significant investments in upgrading their NGO steel production facilities to meet the growing demand from the EV industry.
• 2022: New alloys and processing techniques for improved NGO steel properties were unveiled at industry conferences.
• 2023: Several partnerships were formed between steel manufacturers and EV component suppliers to ensure a secure supply chain for NGO steel.

Comprehensive Coverage Non Grain-oriented Electrical Steel for Electric Vehicle Report

This report provides a comprehensive analysis of the non-grain-oriented electrical steel market for electric vehicles, covering market trends, driving forces, challenges, key players, and significant developments. The detailed segmentation by type and application allows for a granular understanding of the market dynamics, while the forecast to 2033 offers valuable insights for strategic planning and investment decisions. The report is an invaluable resource for stakeholders across the entire EV ecosystem, from steel manufacturers and component suppliers to policymakers and investors.

Non Grain-oriented Electrical Steel for Electric Vehicle Segmentation

• 1. Type
  • 1.1. Overview: Global Non Grain-oriented Electrical Steel for Electric Vehicle Consumption Value
  • 1.2. Medium and Low Grade
  • 1.3. High Grade
• 2. Application
  • 2.1. Overview: Global Non Grain-oriented Electrical Steel for Electric Vehicle Consumption Value
  • 2.2. Battery Electric Vehicle
  • 2.3. Hybrid Electric Vehicle

Non Grain-oriented Electrical Steel for Electric Vehicle 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