Grain Oriented Electrical Steel Sheet Market Trends and Forecast
The future of the global grain oriented electrical steel sheet market looks promising with opportunities in the transformer, power generator, motor, and inductor markets. The global grain oriented electrical steel sheet market is expected to grow with a CAGR of 5.6% from 2025 to 2031. The major drivers for this market are the growing application in industrial machinery & consumer electronic, the rising government initiatives & policy promoting energy-efficient technology, and the increasing use of electric vehicle requiring advanced electrical steel.
• Lucintel forecasts that, within the product type category, domain refined is expected to witness the highest growth over the forecast period.
• Within the application category, transformer is expected to witness the highest growth.
• In terms of region, APAC is expected to witness the highest growth over the forecast period.
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Emerging Trends in the Grain Oriented Electrical Steel Sheet Market
The grain oriented electrical steel sheet market is experiencing a significant transformation driven by technological advancements, evolving energy efficiency standards, and increasing demand from the renewable energy sector. As industries seek more efficient electrical components, manufacturers are innovating to meet these needs while addressing environmental concerns. The markets growth is also influenced by regional developments, regulatory policies, and the push for sustainable solutions. These factors collectively shape the competitive landscape, prompting companies to adopt new strategies and technologies. Understanding these emerging trends is crucial for stakeholders aiming to capitalize on opportunities and navigate challenges in this dynamic market environment.
• Increasing adoption of energy-efficient electrical steel: The demand for energy-efficient electrical steel sheets is rising due to stricter energy regulations and the global push for sustainability. These sheets reduce energy losses in transformers and motors, leading to improved performance and lower operational costs. Manufacturers are investing in R&D to develop advanced grain-oriented steels with better magnetic properties, which are essential for high-efficiency electrical devices. This trend is expected to continue as governments and industries prioritize energy conservation, making energy-efficient steel sheets a key differentiator in the market.
• Technological innovations in steel manufacturing: Advances in manufacturing processes, such as improved annealing techniques and coating technologies, are enhancing the quality and performance of grain-oriented electrical steel sheets. These innovations enable the production of steels with higher magnetic permeability, lower core losses, and better mechanical properties. The integration of automation and digitalization in manufacturing also improves efficiency and consistency. Such technological progress allows producers to meet the increasing demand for high-performance steel sheets across various applications, thereby strengthening their market position and expanding their product portfolios.
• Growing demand from renewable energy: The expansion of renewable energy projects, such as wind turbines and solar power systems, is driving the need for specialized electrical steel sheets with superior magnetic properties. Similarly, the rise of electric vehicles (EVs) requires high-quality steel sheets for efficient motors and transformers. These sectors demand materials that can withstand high magnetic flux and reduce energy losses, fueling innovation and production in the market. As these industries grow, the market for grain-oriented electrical steel sheets is expected to see sustained expansion, creating new opportunities for manufacturers.
• Regional market dynamics and regulatory influences: Asia-Pacific remains the dominant market due to rapid industrialization and infrastructure development, especially in China and India. North America and Europe are focusing on stricter energy efficiency standards and environmental regulations, which influence product specifications and manufacturing practices. Regulatory policies promoting renewable energy and energy conservation are encouraging the adoption of advanced steel sheets. Regional differences in demand, standards, and technological adoption are shaping market strategies, with companies tailoring their offerings to meet local requirements and capitalize on regional growth opportunities.
• Sustainability and environmental considerations: The market is increasingly emphasizing sustainable manufacturing practices, including the use of eco-friendly coatings and recycling of steel scrap. Manufacturers are adopting greener processes to reduce carbon footprints and comply with environmental regulations. The development of low-loss steel sheets also contributes to sustainability by improving energy efficiency. This trend is influencing product development, supply chain management, and corporate strategies, aligning the market with global sustainability goals. As environmental concerns become more prominent, sustainable practices are expected to become a key differentiator and driver of innovation in the industry.
In summary, these emerging trends are collectively reshaping the grain oriented electrical steel sheet market by fostering innovation, enhancing energy efficiency, and aligning with global sustainability goals. They are driving market growth, expanding application areas, and prompting companies to adopt advanced technologies and sustainable practices, ultimately leading to a more competitive and environmentally conscious industry landscape.
Recent Development in the Grain Oriented Electrical Steel Sheet Market
The grain oriented electrical steel sheet market has experienced significant shifts driven by technological advancements, evolving energy efficiency standards, and increasing demand from the electrical and automotive sectors. As industries seek more efficient and sustainable solutions, the market is adapting rapidly to meet these needs. Recent developments reflect a focus on innovation, sustainability, and expanding applications, which are shaping the future landscape of this industry. These changes are not only influencing production and supply chains but also impacting global competitiveness and market growth trajectories. Understanding these key developments is essential for stakeholders aiming to capitalize on emerging opportunities and navigate challenges effectively.
• Technological Innovation: Introduction of advanced manufacturing processes has improved magnetic properties and reduced energy losses, enhancing product efficiency and performance. This development boosts competitiveness by enabling manufacturers to produce higher-quality steel sheets that meet stringent energy standards, thereby expanding their market share and application scope.
• Sustainability Initiatives: Increased emphasis on eco-friendly production methods and the use of recycled materials has gained momentum. These initiatives reduce carbon footprints and align with global environmental regulations, attracting environmentally conscious consumers and investors, and fostering sustainable growth within the market.
• Growing Automotive Sector Demand: The rising adoption of electric vehicles (EVs) and hybrid vehicles has increased demand for grain-oriented electrical steel sheets used in motors and transformers. This trend significantly boosts market revenues and encourages manufacturers to innovate tailored solutions for automotive applications.
• Expansion in emerging markets: Rapid industrialization and urbanization in regions like Asia-Pacific and Latin America have led to increased infrastructure development, boosting demand for electrical steel sheets in power generation and distribution. This expansion opens new growth avenues and diversifies market sources.
• Regulatory and Standardization Changes: Implementation of stricter energy efficiency standards and safety regulations worldwide has prompted manufacturers to upgrade product specifications. Compliance with these standards enhances market credibility, drives innovation, and ensures sustained market growth.
In summary, these recent developments are transforming the grain oriented electrical steel sheet market by fostering innovation, promoting sustainability, and expanding application areas. They are driving increased demand, improving product standards, and opening new regional opportunities, thereby shaping a dynamic and competitive industry landscape.
Strategic Growth Opportunities in the Grain Oriented Electrical Steel Sheet Market
The grain oriented electrical steel sheet market is experiencing rapid growth driven by increasing demand for energy-efficient electrical devices, advancements in manufacturing technologies, and expanding infrastructure projects worldwide. As industries seek to optimize performance and reduce energy consumption, the market presents numerous opportunities for strategic expansion across various applications. Key growth areas include power transformers, distribution transformers, motors, generators, and other electrical equipment. These applications are critical to modern electrical infrastructure, and innovations in steel sheet technology are enabling enhanced efficiency, durability, and cost-effectiveness. Exploring these opportunities will help stakeholders capitalize on emerging trends and strengthen their market positions.
• Increasing demand for efficient power transmission drives growth: The need for high-performance electrical steel sheets in power transformers enhances energy efficiency, reduces losses, and supports the expansion of renewable energy integration, thereby boosting market growth.
• Rising urbanization and infrastructure development fuel demand: As urban areas expand, the requirement for reliable and efficient distribution transformers increases, creating opportunities for advanced grain-oriented steel sheets to improve performance and longevity.
• Growing adoption in industrial and consumer sectors: The automotive, manufacturing, and appliance industries are adopting grain-oriented electrical steel sheets to enhance motor efficiency, reduce energy consumption, and meet stringent regulatory standards.
• Expansion of renewable energy projects accelerates growth: Wind and hydroelectric power projects require durable, high-quality steel sheets for generator manufacturing, supporting the transition to cleaner energy sources and expanding market opportunities.
• Increasing investments in smart grids and infrastructure: The deployment of smart grid technologies and electrical infrastructure upgrades demands specialized steel sheets, fostering innovation and growth in this segment.
In summary, these key growth opportunities are significantly impacting the grain oriented electrical steel sheet market by driving innovation, expanding application scopes, and supporting the global shift toward sustainable and energy-efficient electrical systems. This evolution is expected to foster competitive advantages and stimulate long-term market expansion.
Grain Oriented Electrical Steel Sheet Market Driver and Challenges
The grain oriented electrical steel sheet market is influenced by a variety of technological, economic, and regulatory factors that shape its growth trajectory. Advances in manufacturing processes and material science drive innovation, while economic conditions such as infrastructure development and industrial expansion increase demand. Regulatory standards related to energy efficiency and environmental impact also play a crucial role in shaping market dynamics. Additionally, global trade policies and supply chain stability impact availability and pricing. Navigating these drivers and challenges is essential for stakeholders aiming to capitalize on market opportunities and mitigate risks in this evolving sector.
The factors responsible for driving the grain oriented electrical steel sheet market include:-
• Technological Innovation: The continuous development of advanced manufacturing techniques enhances the quality and performance of electrical steel sheets. Innovations such as improved lamination processes and coating technologies increase efficiency and reduce energy losses, making these materials more attractive for electrical applications. This technological progress supports the expansion of markets like transformers, motors, and generators, fostering higher demand. Moreover, R&D investments lead to the development of specialized grades tailored for specific applications, further boosting market growth. As industries seek energy-efficient solutions, technological advancements in electrical steel sheets are pivotal in meeting these demands and maintaining a competitive advantage.
• Growing Demand for Energy-Efficient Devices: Increasing global emphasis on energy conservation and sustainability drives demand for high-performance electrical steel sheets. These materials are essential in manufacturing energy-efficient transformers, motors, and other electrical equipment, which are critical for reducing power consumption. Governments and regulatory bodies are setting stricter standards for energy efficiency, encouraging industries to adopt advanced materials. The rising adoption of renewable energy sources and smart grid technologies further amplifies this demand. As industries and consumers prioritize sustainability, the market for grain-oriented electrical steel sheets is expected to expand significantly, supporting the transition to greener energy solutions.
• Infrastructure Development and Urbanization: Rapid urbanization and infrastructure projects worldwide are fueling the need for electrical infrastructure, including transformers, power distribution systems, and electrical machinery. Grain oriented electrical steel sheets are vital components in these applications due to their superior magnetic properties and efficiency. The expansion of power grids, renewable energy projects, and industrial facilities directly correlates with increased demand for these materials. Governments investing in infrastructure modernization and urban development initiatives further stimulate market growth. This trend ensures a steady demand pipeline, especially in emerging economies where infrastructure expansion is a priority, thereby bolstering the market’s long-term prospects.
• Rising Investment in Renewable Energy: The global shift towards renewable energy sources such as wind and solar power significantly impacts the demand for electrical steel sheets. These materials are crucial in manufacturing transformers and generators used in renewable energy systems, which require high efficiency and durability. Increased investments by governments and the private sector in renewable projects are driving the need for advanced electrical steel products. Additionally, the development of offshore wind farms and large-scale solar installations necessitates specialized electrical components, including grain-oriented steel sheets. This trend not only boosts current market demand but also encourages innovation in material properties to meet the specific needs of renewable energy infrastructure.
• Expansion of Electric Vehicle Industry: The rapid growth of electric vehicles (EVs) and their associated charging infrastructure is creating new opportunities for electrical steel sheets. These materials are essential in manufacturing electric motors, transformers, and power electronics that underpin EV technology. The push for cleaner transportation and government incentives for EV adoption is accelerating market growth. As automakers focus on lightweight, energy-efficient motors, the demand for high-grade electrical steel increases. Furthermore, the expansion of EV charging stations requires reliable electrical components, further driving the market. This sector’s growth is expected to sustain demand for grain-oriented electrical steel sheets, fostering innovation and specialization in the material.
The challenges facing this market include:-
• Fluctuating Raw Material Prices: The market heavily depends on raw materials such as iron ore and alloying elements, whose prices are subject to volatility due to geopolitical tensions, supply chain disruptions, and global economic fluctuations. Rising raw material costs can increase manufacturing expenses, leading to higher product prices and potential reduced competitiveness. Conversely, price drops may impact profit margins for producers. Managing these fluctuations requires strategic sourcing and inventory management, but unpredictability remains a significant challenge. Additionally, price volatility can hinder long-term planning and investment, affecting overall market stability and growth prospects.
• Stringent Regulatory Standards: Increasing regulations related to energy efficiency, environmental impact, and safety standards impose compliance costs on manufacturers. Meeting these standards often requires significant investments in R&D, new equipment, and process modifications, which can be financially burdensome, especially for smaller players. Non-compliance risks, penalties, and market restrictions create barriers to entry and expansion. Evolving standards across different regions add complexity to manufacturing and supply chain operations. Navigating these regulatory landscapes demands continuous adaptation, which can slow innovation and increase operational costs, thereby impacting overall market growth.
• Competition and market Saturation: The market faces intense competition from established players and emerging manufacturers, leading to price wars and reduced profit margins. Market saturation in developed regions limits growth opportunities, compelling companies to seek new markets or innovate further. Additionally, the availability of alternative materials and technological substitutes can threaten demand for traditional grain-oriented electrical steel sheets. Companies must invest heavily in R&D and marketing to maintain their market share, which can strain resources. This competitive environment necessitates strategic differentiation and cost management to sustain profitability amid evolving industry dynamics.
In summary, the grain oriented electrical steel sheet market is shaped by technological advancements, increasing demand for energy efficiency, infrastructure development, renewable energy investments, and the growth of electric vehicles. However, it faces challenges such as raw material price volatility, stringent regulatory requirements, and intense competition. These drivers and challenges collectively influence market growth, requiring stakeholders to innovate, adapt, and strategize effectively. The market’s future hinges on balancing technological progress with regulatory compliance and competitive positioning, ensuring sustainable expansion in a rapidly evolving energy and industrial landscape.
List of Grain Oriented Electrical Steel Sheet Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies grain oriented electrical steel sheet companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the grain oriented electrical steel sheet companies profiled in this report include-
• Nippon Steel Corporation
• JFE Steel Corporation
• AK Steel Holding Corporation
• ThyssenKrupp AG
• ArcelorMittal S.A.
• Baosteel Group Corporation
• POSCO
• Tata Steel Limited
• NLMK Group
• Voestalpine AG
Grain Oriented Electrical Steel Sheet Market by Segment
The study includes a forecast for the global grain oriented electrical steel sheet market by product type, application, end use, and region.
Grain Oriented Electrical Steel Sheet Market by Product Type [Value from 2019 to 2031]:
• High-Grade
• Conventional
• Domain Refined
Grain Oriented Electrical Steel Sheet Market by Application [Value from 2019 to 2031]:
• Transformers
• Power Generators
• Motors
• Inductors
Grain Oriented Electrical Steel Sheet Market by End Use [Value from 2019 to 2031]:
• Energy
• Automotive
• Manufacturing
• Electronics
• Others
Grain Oriented Electrical Steel Sheet Market by Region [Value from 2019 to 2031]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Grain Oriented Electrical Steel Sheet Market
The grain oriented electrical steel sheet market has experienced significant shifts driven by technological advancements, evolving energy policies, and increasing demand for efficient electrical components worldwide. Countries are investing in research and development to enhance steel quality, reduce production costs, and meet sustainability goals. The markets growth is also influenced by the expansion of renewable energy infrastructure, electric vehicles, and smart grid systems. As nations prioritize energy efficiency and technological innovation, the competitive landscape continues to evolve, with key players focusing on product customization and eco-friendly manufacturing processes. These developments reflect a global push toward more sustainable and efficient electrical steel solutions.
• United States: The U.S. market has seen increased adoption of grain-oriented electrical steel sheets driven by the expansion of renewable energy projects and electric vehicle manufacturing. Innovations in coating technologies have improved corrosion resistance and efficiency, boosting demand. Additionally, government incentives for energy-efficient appliances and infrastructure have further propelled market growth. Leading companies are investing in R&D to develop high-grade, low-loss steel products, aligning with sustainability goals. The U.S. also emphasizes recycling and eco-friendly production methods, contributing to a more sustainable industry landscape.
• China: China remains the largest producer and consumer of grain-oriented electrical steel sheets, with rapid industrialization fueling demand. The country has invested heavily in modernizing steel manufacturing facilities and adopting advanced production techniques to reduce energy consumption and emissions. Domestic companies are focusing on developing high-efficiency, low-loss steel products to meet both local and export market needs. The Chinese government’s policies promoting energy efficiency and green manufacturing have further supported market expansion. Additionally, China is increasing its focus on sustainable practices, including recycling and waste reduction, to align with global environmental standards.
• Germany: Germanys market is characterized by high-quality, technologically advanced grain-oriented electrical steel sheets used primarily in transformer manufacturing and electrical infrastructure. The country’s emphasis on energy efficiency and renewable energy integration has driven demand for superior steel products. German manufacturers are investing in innovative coating and lamination technologies to improve performance and durability. The focus on sustainability is evident through efforts to reduce carbon footprints and adopt eco-friendly production processes. Germany’s strong industrial base and commitment to technological innovation position it as a leader in high-performance electrical steel solutions within Europe.
• India: The Indian market is experiencing rapid growth due to expanding electrical infrastructure, renewable energy projects, and urbanization. Domestic steel producers are increasing capacity and adopting advanced manufacturing techniques to meet rising demand. The government’s initiatives promoting renewable energy and smart grid development are significant growth drivers. Indian companies are also focusing on producing cost-effective, high-quality grain-oriented electrical steel sheets to compete globally. Efforts to improve supply chain efficiency and reduce import dependence are ongoing, with a strong emphasis on sustainable and environmentally friendly manufacturing practices to support long-term growth.
• Japan: Japan’s market is driven by its advanced technological landscape and focus on energy efficiency. The country is investing in high-performance, low-loss grain-oriented electrical steel sheets for use in transformers and electrical equipment. Japanese manufacturers are pioneering innovations in coating technologies and lamination processes to enhance product performance. The government’s policies promoting renewable energy and smart grid systems have further stimulated demand. Japan emphasizes sustainable manufacturing practices, including recycling and energy conservation, to maintain its competitive edge. The market remains highly innovative, with a focus on developing next-generation steel products that meet stringent quality and environmental standards.
Features of the Global Grain Oriented Electrical Steel Sheet Market
Market Size Estimates: Grain oriented electrical steel sheet market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
Segmentation Analysis: Grain oriented electrical steel sheet market size by product type, application, end use, and region in terms of value ($B).
Regional Analysis: Grain oriented electrical steel sheet market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different product type, application, end use, and regions for the grain oriented electrical steel sheet market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the grain oriented electrical steel sheet market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
FAQ
Q1. What is the growth forecast for grain oriented electrical steel sheet market?
Answer: The global grain oriented electrical steel sheet market is expected to grow with a CAGR of 5.6% from 2025 to 2031.
Q2. What are the major drivers influencing the growth of the grain oriented electrical steel sheet market?
Answer: The major drivers for this market are the growing application in industrial machinery & consumer electronic, the rising government initiatives & policy promoting energy-efficient technology, and the increasing use of electric vehicle requiring advanced electrical steel.
Q3. What are the major segments for grain oriented electrical steel sheet market?
Answer: The future of the grain oriented electrical steel sheet market looks promising with opportunities in the transformer, power generator, motor, and inductor markets.
Q4. Who are the key grain oriented electrical steel sheet market companies?
Answer: Some of the key grain oriented electrical steel sheet companies are as follows:
• Nippon Steel Corporation
• JFE Steel Corporation
• AK Steel Holding Corporation
• ThyssenKrupp AG
• ArcelorMittal S.A.
• Baosteel Group Corporation
• POSCO
• Tata Steel Limited
• NLMK Group
• Voestalpine AG
Q5. Which grain oriented electrical steel sheet market segment will be the largest in future?
Answer: Lucintel forecasts that, within the product type category, domain refined is expected to witness the highest growth over the forecast period.
Q6. In grain oriented electrical steel sheet market, which region is expected to be the largest in next 5 years?
Answer: In terms of region, APAC is expected to witness the highest growth over the forecast period.
Q7. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the grain oriented electrical steel sheet market by product type (high-grade, conventional, and domain refined), application (transformers, power generators, motors, and inductors), end use (energy, automotive, manufacturing, electronics, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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