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

Key Insights

The Non-Grain Oriented Electrical Steel Marketsize was valued at USD 17.50 USD Billion in 2023 and is projected to reach USD 24.79 USD Billion by 2032, exhibiting a CAGR of 5.1 % during the forecast period. Various reasons are driving the Non-Grain Oriented Electrical Steel Market to strong growth. Energy efficiency and sustainability have become key considerations for many industries which has led to an increased need for electrical steels used in power generation, transmission, and distribution. Particularly versatile across various applications due to its outstanding magnetic properties, non-grain-oriented electrical steel is increasingly gaining popularity. In motor production, transformer manufacturing, and generator construction where it is necessary to reduce energy waste, these types of steel cannot be done without. The expanding renewable sector mainly propelled by wind power as well solar energy systems also contributes greatly towards this demand while the automotive industry’s shift towards electric vehicles has significantly fueled market growth since electric steels are required for making motors among other components used in them. With continuous technological improvements and strict regulations on saving power, the Non-Grain Electrical Steel Market will expand further in the coming years.

Non-Grain Oriented Electrical Steel Trends

• Increasing investment in renewable energy sources
• Growing demand for energy-efficient appliances
• Adoption of advanced manufacturing technologies

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

• Rising demand from the automotive industry: Non-grain-oriented electrical steel is used in electric motors and generators for electric vehicles (EVs). The increasing global adoption of EVs is driving up demand for electrical steel.
• Growth in the renewable energy sector: Electrical steel is used in transformers and other electrical components for renewable energy systems such as wind and solar power. The expansion of the renewable energy sector is creating new opportunities for electrical steel manufacturers.
• Government support for energy efficiency: Governments around the world are implementing regulations to promote energy efficiency. This is leading to increased demand for more efficient electrical appliances and infrastructure, which utilize electrical steel.

Challenges and Restraints in Non-Grain-Oriented Electrical Steel Market

• Fluctuating raw material prices: Iron ore and other raw materials used in the production of electrical steel are subject to price volatility. This can impact the profitability of electrical steel manufacturers.
• Competition from alternative materials: Non-grain-oriented electrical steel faces competition from other magnetic materials, such as amorphous and nanocrystalline metals. These materials offer superior properties but can be more expensive.
• Environmental concerns: The production of electrical steel involves energy-intensive processes that can lead to environmental pollution. Manufacturers are facing pressure to reduce their environmental impact.

Emerging Trends in Non-Grain-Oriented Electrical Steel

• Development of high-performance grades: Electrical steel manufacturers are developing new grades with improved magnetic properties and lower core losses.
• Adoption of advanced manufacturing techniques: Continuous annealing and other advanced manufacturing techniques are being used to improve the quality and efficiency of electrical steel production.
• Focus on sustainability: Manufacturers are investing in technologies to reduce the environmental impact of electrical steel production.

Growth Catalysts in Non-Grain Oriented Electrical Steel Industry

• Increasing urbanization: Rapid population growth in urban areas is leading to a surge in electricity consumption, driving up the demand for electrical steel in transformers, motors, and other electrical infrastructure.
• Technological advancements: Innovations in smart grids, electric vehicles, and renewable energy technologies are creating new applications for electrical steel. Advanced power electronics and motor designs are further enhancing the efficiency of electrical equipment, increasing the demand for Non-Grain Oriented (NGO) electrical steel.
• Government incentives: Governments worldwide are actively promoting energy efficiency and sustainability through incentives and regulations. These measures favor the adoption of energy-saving technologies, including the use of NGO electrical steel in transformers, motors, and generators.
• Growing demand for energy efficiency: Rising energy costs and concerns about climate change are driving demand for energy-efficient appliances and industrial equipment. NGO electrical steel plays a vital role in reducing energy losses in transformers and motors, contributing to overall energy savings.

Market Segmentation: Non-Grain-Oriented Electrical Steel Analysis

By Thickness:

• 0.35 mm
• 0.5 mm
• 0.65 mm
• Others

By Type:

• Semi-processed
• Fully Processed

By Application:

• Household Appliances
• AC Motor
• Power Generation
• Others

Leading Players in the Non-Grain-Oriented Electrical Steel Market

• Benxi Steel Group Co., Ltd (China)
• CSC Steel Sdn. Bhd. (Malaysia)
• Tata Steel (India)
• Nucor Corporation (U.S.)
• NLMK (Russia)
• ArcelorMittal S.A. (Luxembourg)
• Shougang Group (China)
• thyssenkrupp Steel (Germany)
• Baosteel Group Corporation (China)
• POSCO (South Korea)
• NIPPON STEEL CORPORATION (Japan)
• Voestalpine Group (Austria)
• Yieh Corporation (Taiwan)
• Aperam S.A. (Luxembourg)
• Arnold Magnetic Technologies (U.S.)

Significant Developments in Non-Grain Oriented Electrical Steel Sector

• In 2019, Nucor Corporation announced a $100 million investment to upgrade its electrical steel production facility in Indiana, U.S.
• In 2018, Tata Steel launched a new range of non-grain-oriented electrical steel grades with improved magnetic properties.
• In 2017, ArcelorMittal S.A. opened a new electrical steel production line in China with an annual capacity of 500,000 tons.

Regional Insight

• Asia-Pacific Dominates: The Asia-Pacific region holds the largest market share for non-grain-oriented electrical steel, significantly outpacing North America and Europe. This dominance is fueled by robust economic growth, rapid industrialization, and a surge in infrastructure development projects across several key nations within the region.
• Emerging Economies Fuel Growth: The burgeoning economies of Asia-Pacific, characterized by expanding urbanization and rising energy consumption, are primary drivers of increased demand. Significant investments in manufacturing, transportation, and power generation sectors further contribute to this heightened demand.
• North America and Europe: Steady Growth with Focus on Renewables: While possessing a smaller market share compared to Asia-Pacific, North America and Europe are projected to experience steady and consistent growth. This growth is largely attributed to ongoing investments in upgrading existing energy infrastructure and the expanding renewable energy sector. The focus on energy efficiency and sustainable technologies is particularly bolstering demand within these mature markets.
• Varying Growth Trajectories: It's important to note that growth trajectories within each region will vary based on factors such as government policies supporting renewable energy, economic fluctuations, and technological advancements in electrical steel manufacturing.

Consumer Side Analysis

• Electrical steel is primarily consumed by manufacturers of transformers, motors, and generators.
• Increasing adoption of energy-efficient appliances and industrial equipment is driving up demand from the consumer electronics and industrial sectors.

Demand Side Analysis

• The demand for non-grain-oriented electrical steel is expected to grow in line with the increasing demand for electricity worldwide.
• Industrialization, urbanization, and population growth are key factors driving the electricity demand.

Import And Export Analysis

• China is the largest exporter of non-grain-oriented electrical steel, followed by Japan and India.
• The United States is the largest importer of electrical steel, followed by Germany and Mexico.

Pricing Strategies

• Electrical steel prices are influenced by factors such as raw material costs, production costs, and demand-supply dynamics.
• Manufacturers adopt various pricing strategies to maintain profitability and market share.

Segmentation

By Geography:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East and Africa