Grain Oriented Electrical Steel Market Insightful Analysis: Trends, Competitor Dynamics, and Opportunities 2025-2033

Key Insights

The Grain Oriented Electrical Steel Marketsize was valued at USD 11.78 USD Billion in 2023 and is projected to reach USD 42.70 USD Billion by 2032, exhibiting a CAGR of 20.2 % during the forecast period. Grain Oriented Electrical Steel (GOES) is a variety of electrical steel having improved magnetic characteristics along the direction of rolling. it has been designed to possess low core loss and high magnetic permeability and is mainly applied in transformers and large electrical machines. GOES is available in two primary types: giving rise to two different types of grain-oriented electrical steels, namely, the conventional grain-oriented (CGO) and the high permeability grain-oriented (HGO). CGO presents more adequate performance than HGO, but the latter offers gross magnetic features mainly in high-efficiency transformers. Some of the features are the grain structure of GOES that offers less energy loss during magnetization and demagnetization, and high silicon content which increases the electrical resistivity of the steel. Its uses are largely confined to power transformers, distribution transformers, and reactors required for energy transmission.

Grain Oriented Electrical Steel Trends

• Increasing demand for energy-efficient appliances and electric vehicles is driving the growth of the grain oriented electrical steel market.
• Government regulations promoting the adoption of energy-efficient technologies are also contributing to the market growth.
• The development of new technologies, such as amorphous and nanocrystalline materials, is expected to further boost the market growth.

Driving Forces: What's Propelling the Grain Oriented Electrical Steel Market

• Rising demand for energy-efficient appliances: Grain oriented electrical steel is a crucial component in energy-efficient appliances like refrigerators, air conditioners, and washing machines. The surging demand for these appliances is propelling the market's growth.
• Booming electric vehicle industry: Electric vehicles are gaining immense popularity due to their environmental advantages. Grain oriented electrical steel is utilized in electric motors, a key component of these vehicles. The burgeoning electric vehicle industry is driving the market's growth.
• Government regulations and incentives: Governments worldwide are implementing regulations and offering incentives to encourage the adoption of energy-efficient technologies. These initiatives are stimulating the demand for grain oriented electrical steel.
• Growing demand for renewable energy sources: The increasing integration of renewable energy sources, such as wind and solar, into the grid is driving the demand for highly efficient transformer cores. Grain oriented electrical steel is used in these transformers, leading to market expansion.
• Infrastructure development and modernization: As developing countries invest in infrastructure and modernize electrical grids, the demand for grain oriented electrical steel for transformers and distribution networks is expected to surge.

Challenges and Restraints in Grain Oriented Electrical Steel Market

• High cost of production: Grain oriented electrical steel is a relatively expensive material to produce. This can be a challenge for manufacturers, especially in developing countries.
• Competition from other materials: Grain oriented electrical steel faces competition from other materials, such as amorphous and nanocrystalline materials. These materials offer similar properties to grain oriented electrical steel, but they can be less expensive to produce.
• Volatile raw material prices: The prices of raw materials used to produce grain oriented electrical steel can be volatile. This can make it difficult for manufacturers to plan their production costs.

Emerging Trends in Grain Oriented Electrical Steel

• Development of new technologies: New technologies, such as amorphous and nanocrystalline materials, are being developed to improve the performance of grain oriented electrical steel. These materials offer higher magnetic permeability and lower losses than traditional grain oriented electrical steel.
• Increasing use of grain oriented electrical steel in electric vehicles: The growing popularity of electric vehicles is driving the demand for grain oriented electrical steel. Grain oriented electrical steel is used in electric motors, which are a key component of electric vehicles.
• Government regulations: Governments around the world are implementing regulations to promote the adoption of energy-efficient technologies. These regulations are driving the demand for grain oriented electrical steel.

Growth Catalysts in Grain Oriented Electrical Steel Industry

• Increasing demand for energy-efficient appliances: Rising energy costs and growing environmental awareness have heightened the demand for energy-efficient appliances, which heavily utilize grain oriented electrical steel as a core component.
• Surging adoption of electric vehicles: The environmental benefits of electric vehicles have led to their increasing popularity. Grain oriented electrical steel is essential for the manufacturing of electric motors, a vital component of electric vehicles.
• Government incentives and regulations: Governments worldwide are implementing regulations and providing incentives to promote the adoption of energy-efficient technologies, driving up the demand for grain oriented electrical steel.
• Technological advancements: Ongoing research and development in materials science have resulted in improved grain oriented electrical steel grades with enhanced magnetic properties and reduced core losses, further boosting market demand.

Market Segmentation: Grain-Oriented Electrical Steel Analysis

By Product Type:

• Conventional
• High Magnetic Strength Sheets
• Domain Refinement

By Thickness:

• 0.2 mm and Below
• 0.23 mm
• 0.27 mm
• 0.30 mm
• 0.35 mm and Above

By Application:

• Transformer
• Power Generator
• Electric Motor
• Others

Leading Players in the Grain-Oriented Electrical Steel Market

• ArcelorMittal (Luxembourg)
• POSCO (South Korea)
• Baosteel Group Corporation (China)
• Nippon Steel Corporation (Japan)
• JFE Steel Corporation (Japan)
• ThyssenKrupp Steel (Germany)
• Cleveland-Cliffs Inc. (U.S.)
• Arnold Magnetic Technologies (U.S.)
• VIZ-Steel (U.S.)

Significant Developments in Grain Grain-Oriented Electrical Steel Sector

• March 2022: ArcelorMittal announced an investment of more than USD 295 million to set up a new production unit for electrical steels at the Mardyck manufacturing site in North France. The new industrial unit will have a 200-kiloton production capacity and strengthen the French electro-mobility sector.
• March 2021: JFE Steel Corporation signed a MoU to conduct a viability study with JSW Steel Limited to launch a grain-oriented electrical steel sheet-producing and sales joint-venture company in India. The company planned to complete the feasibility study by 2021 and take appropriate steps to set up a joint venture company.

Regional Insight

• Asia-Pacific: Boasting a dominant market share, the Asia-Pacific region is driven by the growing demand for energy-efficient appliances and electric vehicles in emerging economies like China and India.
• Europe: A mature market, Europe maintains a sizable presence due to stringent energy efficiency regulations and the presence of major manufacturers.
• North America: With a strong focus on energy conservation, North America is witnessing steady growth in the demand for grain oriented electrical steel.
• South America: The growing adoption of energy-efficient appliances is fueling demand in South America, particularly in Brazil and Argentina.
• Middle East & Africa: Despite being a smaller market, the Middle East and Africa are experiencing growth due to infrastructure development and the increasing use of air conditioners in hot climates.

Consumer Side Analysis

• Consumer behavior
• Consumer preferences
• Consumer segmentation

Demand Side Analysis

• Demand drivers
• Demand constraints
• Demand forecast

Import And Export Analysis

• Import data
• Export data
• Trade balance

Pricing Strategies

• Pricing models
• Pricing strategies
• Price trends

Segmentation

• Geographic segmentation
• Demographic segmentation
• Psychographic segmentation
• Behavioral segmentation