Motor Non-Oriented Silicon Steel in Indonesia Trends and Forecast
The future of the motor non-oriented silicon steel market in Indonesia looks promising with opportunities in the home appliance, power generator, and new energy vehicle markets. The global motor non-oriented silicon steel market is expected to grow with a CAGR of 5.0% from 2025 to 2031. The motor non-oriented silicon steel market in Indonesia is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the increasing demand for energy-efficient motors and the advancements in electric vehicle technology.
• Lucintel forecasts that, within the type category, hot rolled is expected to witness higher growth over the forecast period.
• Within the application category, home appliance is expected to witness the highest growth.
Emerging Trends in the Motor Non-Oriented Silicon Steel Market in Indonesia
Indonesia is experiencing a surge in demand for motor non-oriented silicon steel, driven by the rapid electrification of transport, expansion of renewable energy, and domestic industrial growth. These factors are complemented by Indonesia’s position as a major nickel producer, which supports downstream manufacturing. In parallel, manufacturers are focusing on sustainability and digital technologies to improve product quality and environmental credentials. With regional investment in manufacturing hubs and government support for localization, new opportunities are emerging. The following five trends reflect how the Indonesian NGOES market is evolving to meet the changing demands of both domestic and export-oriented sectors.
• Advanced Alloy Development and Coating Integration: Producers in Indonesia are upgrading silicon steel grades by increasing silicon content and applying advanced coatings to reduce core loss and boost magnetic performance. These improvements are crucial for use in EV traction motors, renewable-energy generators, and high-speed industrial drives. Higher silicon alloys and coating technologies enhance energy efficiency and thermal stability. This trend positions Indonesian NGOES to better compete with imported premium grades and supports integration into advanced applications, such as smart vehicles and power electronics
• Rise of Automation and Smart Manufacturing: The introduction of Industry 4.0 practices is enhancing production precision and consistency in NGOES plants. Digital monitoring, predictive maintenance, and real-time analytics are being used to reduce defects and maintain tight thickness tolerances. By improving quality control, manufacturers can meet the demanding specifications required by high-performance motors. As Indonesia invests in industrial modernization, localized upgrade of steel mills is creating a stronger manufacturing base and supporting exports to markets where quality and reliability are critical
• Localization of Supply Chains through Nickel Integration: Indonesia’s growing nickel-processing capacity, especially in regions like Morowali, supports vertical integration. Nickel-rich motor steels are being explored for corrosion resistance in humid climates and specialized industrial environments. Local profiling of alloy and supply chain integration reduces import dependency and logistical complexity. It also aligns with national goals for industrial value-addition and green supply chains. This trend strengthens the competitiveness of Indonesian-made NGOES, especially for automotive and infrastructure applications .
• Sustainability Initiatives and Circular Economy: Driven by global environmental commitments, steelmakers in Indonesia are exploring recycled content, renewable energy use, and energy-efficient production methods. This includes reducing waste, improving furnace efficiency, and exploring green energy for operations. NGOES producers adopting these practices are better positioned to enter international markets with eco-certified materials. Sustainability is also becoming a differentiator in domestic procurement, particularly in industries such as oil, gas, and renewable energy, which require greener material solutions
• R&D Collaboration with OEMs and Academia: Manufacturers are increasing investment in research partnerships to develop application-specific NGOES grades. Joint efforts with universities and OEMs focus on tailoring materials for motors in the automotive, energy, and industrial automation sectors. Targeted R&D helps calibrate magnetic properties, optimize coating systems, and adapt to local operating conditions. Collaboration accelerates product adoption and fosters an innovation culture within Indonesia’s emerging steel sector, building pathways for export-grade materials and higher market recognition \
These emerging trends, advanced alloy and coating development, smart manufacturing integration, supply chain localization via nickel, sustainability commitments, and R&D partnerships, are transforming Indonesia’s motor non-oriented silicon steel market. They are elevating product performance, quality, and global competitiveness while reducing dependency on imports. As the country modernizes its industrial capacity and deepens linkages with the automotive and energy sectors, NGOES are being positioned as a strategic material. These shifts are promoting innovation, value addition, and resilience, and are reshaping Indonesia’s role in the regional and global electrical steel ecosystem.
Recent Developments in the Motor Non-Oriented Silicon Steel Market in Indonesia
Indonesia’s motor non-oriented silicon steel (NGOES) market is evolving rapidly under the influence of industrial expansion, electrification, and environmental imperatives. Domestic manufacturers are enhancing alloy compositions and coatings, while governments promote localization and infrastructure modernization. Smart manufacturing is taking root, and renewable energy and EV sectors are driving NGOES demand. These developments collectively reflect Indonesia’s ambition to become a regional hub for value-added electrical steel, meeting both domestic and export needs. The following five recent advancements are reshaping the industry with performance, sustainability, and competitiveness in mind.
• Enhanced Alloy and Coating Technologies: Indonesian steelmakers are advancing silicon steel formulations with higher silicon content and sophisticated ceramic or organic coatings. These improvements reduce core energy losses and improve magnetic permeability, critical for high-frequency motor applications in EVs, renewable energy generators, and advanced automation systems. By boosting the performance characteristics of domestic NGOES, this development not only raises product competitiveness but also reduces dependence on imported premium grades. It is driving collaboration with motor and transformer OEMs to validate these materials for high-efficiency industrial and mobility applications.
• Industry 4.0 Adoption in Manufacturing: Indonesia’s steel sector is increasingly incorporating smart manufacturing techniques, real-time process monitoring, predictive maintenance, and automation. These digital practices help maintain tight thickness tolerances, minimize production defects, and consistently meet stringent magnetic property standards. By improving operational efficiency and reproducibility, manufacturers can serve high-value motor supply chains with reliable, localized grades. This digital transformation is essential for scaling NGOES production while aligning with industry demands for quality and traceability.
• Supply-Chain Localization via Nickel Integration: As a major nickel producer, Indonesia is leveraging its raw material advantage by exploring the incorporation of nickel in NGOES alloys, enhancing corrosion resistance in humid or coastal environments found in local infrastructure and EV applications. This vertical integration not only reduces raw material import dependence but also adds distinct performance benefits to domestic steel. It supports national goals for resource value-adding and may open niche export markets in tropical and marine regions requiring durable electrical steels.
• Sustainability and Circular-Economy Initiatives: Environmental stewardship is gaining priority, with NGOs adopting recycled-scrap feedstocks, improving furnace energy efficiency, and integrating renewable energy into production. These steps reduce carbon emissions and support eco-product certification, which is increasingly demanded in export markets and government procurement. By emphasizing greener steelmaking, Indonesian producers enhance their global market appeal and align with national policies. This creates a competitive edge in regions prioritizing green supply chains and environmental compliance.
• Collaboration in R&D with Academia and Industry: Strategic partnerships between steel mills, universities, and OEMs are increasing, focused on co-developing NGOES grades optimized for local conditions and motor specifications. Joint R&D efforts accelerate the development of alloys with tailored coating systems and grain structures suited to both domestic and export applications. This collaboration establishes a framework for continuous innovation, builds local expertise, and supports long-term competitiveness. It also enables Indonesia to integrate into global value chains by offering validated, high-performance electrical steel.
Recent developments in Indonesia’s motor NGOES market, such as advanced alloy/coating technologies, digital manufacturing, nickel-based localization, sustainable production, and R&D collaboration, are collectively transforming the sector. These shifts are enhancing domestic capabilities, reducing import dependence, and improving product quality and traceability. By aligning with global trends in electrification and green supply chains, Indonesia is establishing itself as a credible producer of high-performance electrical steel. These efforts are driving industrial modernization, supporting strategic sectors like EVs and renewables, and positioning the country for a stronger role in regional and global markets.
Strategic Growth Opportunities for Motor Non-Oriented Silicon Steel Market in Indonesia
Indonesia’s motor non-oriented silicon steel (NGOES) market is poised for rapid expansion as the nation advances in electrification, renewable energy, industrial automation, and infrastructure modernization. With strong domestic demand supported by nickel-based alloy potential and sustainability goals, NGOES is emerging as a critical enabler across a diverse spectrum of applications. Strategic opportunities now exist for local steel producers to develop market-specific grades, form OEM partnerships, and support Indonesia’s rising role as a regional manufacturing hub. The following outlines five key application-driven growth prospects shaping the landscape.
• Electric Vehicle Traction Systems: The accelerating adoption of electric vehicles in Indonesia presents a significant opportunity for the usage of traction motor cores. These motors require low-loss, high-permeability steel to maximise efficiency and thermal performance. By developing customized NGOES grades tailored for Indonesian climate and operational profiles, local mills can become preferred suppliers to both domestic and export-focused EV OEMs. This not only supports the national EV supply chain but also encourages investment in precision production capacities. Such development will help to localise key inputs and reduce reliance on imports.
• Renewable Energy Generation Equipment: Indonesia’s expanding wind, solar, and hydropower projects need efficient generators and converters made with NGOES to reduce energy loss and ensure long-term reliability. Steel producers can capitalize by providing high-performance grades optimized for renewable energy machinery. Partnering with equipment manufacturers will enable validation of steel performance in field conditions. Servicing this sector aligns NGOES suppliers with national clean energy goals and opens export potential to similar emerging markets. This application area offers a stable demand base and aligns steel manufacturing with Indonesia’s green growth trajectory.
• Industrial Automation and Robotics: As Indonesian industries embrace Industry 4.0, demand is rising for precise, high-frequency motors used in automation systems, CNC machines, and robotics. These applications require NGOES with uniform magnetic properties, minimal losses, and excellent thermal stability. By investing in smart manufacturing and quality control technologies, steelmakers can meet these stringent requirements. Supplying customized steel to OEMs in key manufacturing clusters—such as electronics, automotive, and consumer goods will deepen domestic integration while providing premium pricing. This opportunity enhances the strategic relevance of NGOES in advancing national industrial competitiveness.
• Energy-Efficient Commercial HVAC and Appliance Motors: Rising energy efficiency standards in commercial buildings and the appliance sector are driving demand for motors using NGOES to minimize power consumption. Steel optimized for low hysteresis and eddy current losses can help appliance OEMs meet regulatory requirements and consumer expectations. By working closely with motor manufacturers for refrigerators, air conditioners, and fans, producers can ensure the supply of application-specific grades. This will create volume demand and encourage product bundling strategies. The alignment of NGOES with energy-saving initiatives enhances market potential across Indonesia’s expanding residential and commercial infrastructure.
• Electrified Rail and Urban Transit Systems: Indonesia’s investment in rail electrification and metro systems offers NGOES growth potential in traction motors, auxiliary systems, and regenerative braking modules. These rail applications need durable, high-frequency steel capable of withstanding high mechanical and thermal stress. By tailoring NGOES grades to meet rail-industry specifications, domestic suppliers can enter long-term infrastructure programs. Participation in these major projects supports the localization agenda and positions NGOES makers as strategic infrastructure partners. Long project timelines also promise sustained demand and opportunities for co-engineering partnerships.
The emerging application-based opportunities in Indonesia from EV traction and renewable energy to automation, efficient HVAC, and rail electrification are creating a broader and deeper demand profile for NGOES. By aligning product development with sector-specific performance needs and forging strategic partnerships, local steelmakers can scale technically advanced capacities and reduce dependence on imports. These opportunities not only support industrial modernization and infrastructure expansion but also position Indonesia as an advanced electrical steel hub within the region. The market is moving toward greater customization, quality, and integrated value chains.
Motor Non-Oriented Silicon Steel Market in Indonesia Driver and Challenges
The motor non-oriented silicon steel market in Indonesia is being driven by technological innovation, government ambitions, infrastructure development, and evolving industrial demands. Advances in electric vehicles, smart manufacturing, renewable energy, and sustainability are intensifying the need for high-performance electrical steel. At the same time, economic pressures and regulatory directives are shaping production models and material specifications. However, the market also faces challenges related to supply chain integration, technological capability, and environmental compliance. Understanding the interplay of these drivers and challenges is essential for stakeholders aiming to invest, innovate, or expand in the Indonesian electrical steel sector.
The factors responsible for driving the motor non-oriented silicon steel market in Indonesia include:
• Technological Innovation in e-Mobility: Indonesia is ramping up electric vehicle adoption, which relies on low-loss, high magnetic performance steel in traction motors. This driver is encouraging producers to upgrade alloy formulations and adopt advanced coating processes. Improved NGOES grades contribute directly to EV efficiency, range, and overall performance. The trend is also promoting partnerships between steel mills and automotive OEMs for material validation and co-development. This enhances localization, reduces import dependency, and positions local producers as key enablers of the national e-mobility transition.
• Expansion of Renewable Energy Industry: The growth of Indonesia’s renewable energy sector—including wind, solar, and hydropower—has increased demand for NGOES in generator cores and power converters. These applications prioritize materials that deliver consistent magnetic properties under variable frequency and load conditions. Steel producers are responding by refining processing technologies and surface treatments to meet renewable sector requirements. This trend anchors NGOES as a critical input in Indonesia’s energy transition, and enables diversification beyond automotive, opening the steel industry to long-term project-based consumption.
• Shift Towards Smart Manufacturing Practices: The adoption of Industry 4.0 in Indonesian steel mills is enhancing product quality and manufacturing efficiency. Technologies such as digital monitoring, predictive maintenance, and automation allow better control over lamination thickness and magnetic consistency. Smarter production systems reduce defects and production variability while enabling customization for specific motor applications. This driver supports competitiveness in high-value markets and builds capacity for future innovation. It is creating pathways for local mills to produce export-grade electrical steel, and aligns with the broader industrial modernization agenda across Indonesia.
• Localization and Resource Integration: Indonesia’s nickel-rich economy provides an opportunity to integrate nickel in NGOES alloys to improve corrosion resistance in coastal and tropical applications. Localizing raw material sourcing reduces import costs and strengthens supply chain resilience. It also supports national value-addition strategies and improves positioning in regional electrical steel markets. By leveraging domestic raw material advantages, producers can offer differentiated products suited for local environments. This local integration further promotes sustainability and enhances the strategic independence of the steel and motor industries in Indonesia.
• Policy Support and Economic Incentives: Government initiatives focused on self-reliance, industrial investment, and export led growth are benefiting the NGOES sector. Policies designed to incentivize local steel production, such as tax breaks and infrastructure support, are encouraging capital investment. These measures help reduce entry barriers and promote research in advanced materials. Access to public tenders in transportation and energy systems favors domestically produced steel. Overall, this policy environment fuels growth by connecting material development with national industrial and environmental goals.
Challenges in the motor non-oriented silicon steel market in Indonesia are:
• Technological Limitations and Quality Assurance: Despite investments, many local mills lack access to advanced production equipment required for ultra-low loss NGOES. This limits their ability to meet the exacting specifications needed for high-performance applications like EVs and automation. Quality consistency remains a challenge due to gaps in process control and magnetic testing capabilities. Without better equipment and technical expertise, meeting global standards and securing OEM contracts will be difficult. Continued industrial collaboration and foreign investment will be essential to bridge these technological gaps and improve quality assurance.
• Raw Material Price Volatility: Prices for core inputs such as nickel, iron alloys, and energy feedstocks are subject to volatility in global commodity markets. This impacts production costs and pricing stability. Limestone regulations, energy tariffs, and trade policies further amplify the risk. For mills that rely on imported components, these cost fluctuations can erode margins and hinder long-term planning. Developing integrated supply channels and forward contracting strategies could partially mitigate this risk, but market unpredictability remains a significant operational challenge.
• Environmental Compliance and Sustainability: As environmental standards evolve, steel makers must invest in lower carbon production methods, waste management systems, and emissions controls. Facilities operating with older technology may need capital upgrades to comply with regulations and access global markets. Balancing environmental responsibility with cost efficiency is difficult, especially when demand for eco-certified materials is rising. Compliance costs can constrict profitability and delay project implementation. The industry will need supportive policies and sustainable financing to further modernize production while maintaining competitive offerings.
Indonesia’s motor non-oriented silicon steel sector is evolving through strong technological, industrial, and policy drivers, including e-mobility adoption, renewable energy growth, smart manufacturing, local resource integration, and economic support. However, overcoming challenges such as limited technical capacity, raw material volatility, and environmental compliance will determine the industry’s trajectory. These dynamics are reshaping strategic priorities in material innovation, quality assurance, and sustainability. Success will depend on coordinated efforts between industry, government, and academia to enhance capabilities, stabilize supply chains, and align production with Indonesia’s industrial and environmental objectives.
List of Motor Non-Oriented Silicon Steel Market in Indonesia 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. Through these strategies, motor non-oriented silicon steel companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the motor non-oriented silicon steel companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
Motor Non-Oriented Silicon Steel Market in Indonesia by Segment
The study includes a forecast for the motor non-oriented silicon steel market in Indonesia by type and application.
Motor Non-Oriented Silicon Steel Market in Indonesia by Type [Analysis by Value from 2019 to 2031]:
• Hot Rolled
• Cold Rolled
Motor Non-Oriented Silicon Steel Market in Indonesia by Application [Analysis by Value from 2019 to 2031]:
• Home Appliances
• Power Generator
• New Energy Vehicles
• Others
Features of the Motor Non-Oriented Silicon Steel Market in Indonesia
Market Size Estimates: Motor non-oriented silicon steel in Indonesia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Motor non-oriented silicon steel in Indonesia market size by type and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different type and application for the motor non-oriented silicon steel in Indonesia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the motor non-oriented silicon steel in Indonesia.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the motor non-oriented silicon steel market in Indonesia?
Answer: The major drivers for this market are the increasing demand for energy-efficient motors and the advancements in electric vehicle technology.
Q2. What are the major segments for motor non-oriented silicon steel market in Indonesia?
Answer: The future of the motor non-oriented silicon steel market in Indonesia looks promising with opportunities in the home appliance, power generator, and new energy vehicle markets.
Q3. Which motor non-oriented silicon steel market segment in Indonesia will be the largest in future?
Answer: Lucintel forecasts that hot rolled is expected to witness the higher growth over the forecast period.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the motor non-oriented silicon steel market in Indonesia by type (hot rolled and cold rolled), and application (home appliances, power generator, new energy vehicles, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. 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.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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