Motor Non-Oriented Silicon Steel in Malaysia Trends and Forecast
The future of the motor non-oriented silicon steel market in Malaysia 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 Malaysia 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 Malaysia
Malaysia’s motor non-oriented silicon steel (NGOES) market is expanding in tandem with the country’s drive toward energy efficiency, electric mobility, digital manufacturing, and sustainability. Crucial sectors like industrial motors, electric vehicles, automation, and renewable energy are fueling the need for high-performance electrical steel. Government-backed incentives, climate targets, and industry 4.0 adoption are reshaping production and demand dynamics. The intersection of local manufacturing ambitions, amplified by foreign investment and policy support for green technologies, is creating new prospects. The following highlights five emerging trends that define Malaysia’s evolving NGOES market.
• Rise of EV Ecosystem Development: Malaysia is attracting significant investment in electric mobility infrastructure and component manufacturing, positioning itself as a regional EV hub. This momentum includes battery and metal substrate production, which drives demand for high-quality motor steel for EV traction systems. NGOES is being upgraded to meet torque, efficiency, and thermal criteria demanded by local OEMs. As the EV ecosystem matures—with increased assembly plants and charging networks—NGOES suppliers can scale up tailored product lines and supply into domestic and export supply chains.
• Expansion of Renewable Energy Projects: Renewable energy growth in Malaysia is amplifying demand for efficient generators and frequency converters that rely on NGOES . As wind, solar, and energy storage installations scale, motor-grade steel with low core loss becomes vital for optimized performance. Steelmakers are responding by adapting existing grades and collaborating with equipment OEMs to qualify NGOES in renewable energy systems. This trend broadens applications and supports export potential, aligning NGOES supply chains with regional clean-energy infrastructure expansion.
• Smart Manufacturing and Industry 4.0 Adoption: Malaysia’s drive toward Industry 4.0 with smart factories and digital production extends into its steel sector. NGOES producers are implementing process automation, real-time quality monitoring, and predictive maintenance. These technologies ensure sheet uniformity and precise coating control, which are essential for motor performance. Smart manufacturing reduces scrap rates, improves yield, and enables the production of high-spec grades. This creates a stronger foundation for consistent NGOES output and fosters confidence among OEMs sourcing high-quality electrical steels.
• Energy Efficiency Programs and Incentives: National initiatives such as MGTC’s Energy Efficiency Movement and regulatory frameworks like the Energy Efficiency and Conservation Act are pushing industries to upgrade to efficient motors. This drive prioritizes motors with premium NGOES to reduce energy consumption in industrial plants and utilities. The shift is generating stable, long-term demand for low-loss steel grades and incentivising producers to enhance product portfolios. As adoption expands across sectors, NGOES become a core input for national energy-efficiency strategies.
• Localization of Supply Chains: Malaysia’s ambition to serve as a regional technology and manufacturing hub is prompting localization across EV, automation, and electronics value chains. Establishing NGOES production and processing facilities alongside OEMs, particularly in semiconductor and power equipment clusters, reduces lead times and improves supply chain control. This trend allows local steelmakers to become preferred motor-core material suppliers, catalysing collaborative innovation. Regionalized NGOES ecosystems enhance competitiveness and resilience in key manufacturing segments.
The convergence of EV ecosystem development, renewable energy growth, smart manufacturing adoption, energy efficiency programs, and regional supply chain localization is redefining Malaysia’s NGOES market. These trends are elevating quality expectations and enabling local suppliers to integrate more deeply across industrial segments. As production becomes more digitized and application-driven, NGOES manufacturers can scale sustainably while meeting evolving demand. This transformation positions Malaysia not only as a domestic growth market but also as a strategic regional supplier of high-performance electrical steel, aligned with wider industrial and environmental objectives.
Recent Developments in the Motor Non-Oriented Silicon Steel Market in Malaysia
Malaysia’s motor non-oriented silicon steel (NGOES) market has experienced notable developments, propelled by national strategies toward green production, electrification, and smart manufacturing. With increasing foreign investment in high-tech industries and governmental focus on Industry 4.0 and decarbonisation, NGOES producers are expanding capacity, enhancing processes, and improving product quality. These changes are creating fresh opportunities in applications such as electric vehicles, renewable energy, and industrial motors. The following developments show how Malaysia is elevating its electrical steel landscape to meet growing strategic and technological demands.
• Accelerated Green Steel Initiatives: The Malaysian government has prioritised decarbonisation of the steel sector under its Industrial Master Plan, supporting the shift toward greener production methods. NGOs in production are moving to reduce emissions through process optimisation, energy efficiency, and higher scrap usage. This development aligns NGOES production with sustainability objectives, positioning Malaysian steelmakers to supply lower-carbon materials to environmentally conscious markets. Cleaner operations help domestic producers comply with regional regulations and attract OEMs seeking greener supply chains, supporting NGOES uptake in sectors where environmental credentials are critical.
• Surge in Foreign Investment in High Tech Manufacturing: Malaysia has seen a surge in advanced manufacturing investment, including in EV components and semiconductor fabrication. This influx enhances the demand for precision-engineered electrical steels used in motors and power electronics. NGOES suppliers are responding by upgrading production lines and quality control to meet OEM requirements. The presence of foreign battery and EV component producers drives the localisation of NGOES supply chains. As high-spec manufacturing grows, domestic steelmakers are discovering stable markets for tailored steel grades, reinforcing Malaysia’s strategic role in Asia-Pacific industrial supply networks.
• Adoption of Smart Manufacturing Techniques: The Industry4WRD initiative is driving digital transformation across Malaysia’s manufacturing sector. NGOES plants are adopting process automation, real-time monitoring, and predictive maintenance to improve grade consistency and minimise scrap. These investments are raising production standards and enabling alignment with international electrical steel specifications. Smart manufacturing not only boosts operational efficiency but also supports rapid grade customisation in response to evolving motor and transformer designs. As local mills become more digitally enabled, they gain credibility with global OEMs and improve competitiveness in value-added markets.
• Expanded Demand from EV and Mobility Infrastructure: Malaysia’s ambition to serve as a regional mobility hub is driving demand for EV components, including high-performance motor cores.NGOES producers are collaborating with automotive OEMs to qualify their steels for traction motor applications. Localised supply chains reduce dependency on imports and spur R&D in steel composition and lamination techniques. As EV production capacity grows, steelmakers are improving product traceability and consistency. This development supports NGOES integration into national mobility strategies and primes Malaysian mills for opportunities in emerging electric mobility export markets.
• Heightened Need for Energy-Efficient Electrical Machinery: Government-supported energy efficiency programmes are accelerating the adoption of premium motors in industrial and utility sectors. NGOES is essential for enabling low-loss operation in industrial drives, HVAC systems, and transformers. In response, steel producers are focusing on product quality and marketing tailored grades for energy-sensitive applications. This initiative expands NGOES demand beyond mobility and elevates awareness of its role in energy consumption reduction. Improved market education and regulation support are encouraging wider NGOES use in industrial upgrades and sustainable infrastructure projects.
These recent developments in Malaysia’s NGOES market, including green production, foreign high-tech investment, smart manufacturing, EV supply chain expansion, and efficiency-driven motor upgrades, are collectively transforming the sector. By raising standards, enhancing local capabilities, and aligning with strategic national goals, Malaysian producers are positioning themselves as credible suppliers of performance-grade electrical steel. As these forces converge, they are elevating industrial sophistication, reducing import dependency, and enabling the integration of NGOES in advanced motor and energy applications. The result is a more resilient, sustainable, and technologically advanced steel ecosystem.
Strategic Growth Opportunities for Motor Non-Oriented Silicon Steel Market in Malaysia
The motor non-oriented silicon steel (NGOES) market in Malaysia is experiencing significant momentum due to the country’s evolving industrial landscape and push towards sustainable technologies. Applications in electric vehicles, energy-efficient appliances, industrial automation, and renewable energy systems are creating new pathways for growth. This momentum is further supported by government policies encouraging energy efficiency and local manufacturing. As these sectors expand, strategic application-specific opportunities are emerging, allowing NGOES producers to tailor offerings and strengthen their position in Malaysia’s growing green and high-tech economy.
• Electric Vehicle (EV) Motors: The rising interest in EV manufacturing and infrastructure in Malaysia is driving demand for high-performance NGOES in traction motors. These motors require materials with excellent magnetic properties and energy efficiency. Local steel producers can align with automotive OEMs to develop grades that optimize motor performance while meeting regional environmental and performance standards. By becoming a critical material supplier in the EV value chain, NGOES producers can secure long-term growth and contribute to the country’s ambitions of becoming a hub for clean mobility technologies.
• Renewable Energy Equipment: Malaysia’s investment in wind and solar energy systems opens up significant demand for NGOES in generators and inverters. These systems depend on low-loss electrical steel to maintain consistent power output and operational efficiency. This provides a strategic opportunity for steel manufacturers to co-develop solutions tailored for renewable energy equipment. Offering steel with stable magnetic performance and durability will enhance the reliability of these systems, encouraging adoption and supporting Malaysia’s energy transition goals. This trend allows NGOES producers to embed themselves in long-term national energy infrastructure development.
• Energy-Efficient Appliances: As regulatory standards for appliance energy efficiency tighten in Malaysia, manufacturers are seeking advanced materials that improve motor performance in products such as refrigerators, washing machines, and air conditioners. NGOES with high permeability and minimal energy loss are vital in enabling compliance with these standards. Steel producers can capitalize on this by partnering with appliance brands to create customized steel grades. This not only enhances product performance but also supports brands aiming for international market compliance, creating steady demand for value-added NGOES across consumer segments.
• Industrial Automation and Robotics: Malaysia’s industrial sector is undergoing digital transformation under national initiatives to modernize manufacturing. This trend is increasing the use of smart motors in automation and robotic systems. NGOES with tight dimensional control and low core loss is essential in these compact, high-frequency motors. By focusing on supplying materials that meet the demanding requirements of automation applications, steelmakers can integrate into the smart manufacturing value chain. This opportunity aligns with Malaysia’s push for advanced manufacturing and allows NGOES producers to play a key role in technology-driven growth.
• Public Transport Electrification: Government efforts to expand and electrify public transportation systems, including electric buses and rail systems, offer another key growth area. These applications demand NGOES that can perform reliably under high-stress, high-frequency conditions. Steel producers can collaborate with transport manufacturers and infrastructure developers to provide tailored solutions that meet safety and performance criteria. By supporting national electrification goals and sustainable urban development, NGOES suppliers can benefit from long-term public sector contracts and consistent demand from large-scale transit projects.
These five growth opportunities in EVs, renewable energy, energy-efficient appliances, industrial automation, and electrified public transport are redefining the motor non-oriented silicon steel market in Malaysia. By aligning with evolving application needs and collaborating with downstream industries, NGOES producers can drive innovation and gain a competitive advantage. These strategic areas not only ensure consistent demand but also position Malaysian manufacturers to contribute meaningfully to sustainability and industrial modernization goals. The future of NGOES in Malaysia lies in application-specific customization and deeper integration into value chains.
Motor Non-Oriented Silicon Steel Market in Malaysia Driver and Challenges
The motor non-oriented silicon steel market in Malaysia is influenced by a combination of technological advancements, economic growth, and regulatory reforms. As the country shifts towards industrial automation and green mobility, demand for energy-efficient and high-performance materials like NGOES continues to grow. However, this growth is accompanied by challenges including high production costs, global competition, and policy compliance. Understanding these drivers and challenges is critical for stakeholders seeking to capitalize on emerging opportunities. This analysis explores five primary market drivers and three key challenges shaping the future of Malaysia‘s NGOES sector, highlighting the implications for manufacturers, investors, and policy makers.
The factors responsible for driving the motor non-oriented silicon steel market in Malaysia include:
• Rising Demand for Electric Vehicles: Malaysia‘s growing commitment to electric vehicle development has intensified the demand for motor components with high energy efficiency. NGOES is vital in producing electric traction motors due to its magnetic properties and performance under high-speed operation. As EV assembly plants expand and local component manufacturing increases, NGOES suppliers are presented with strong domestic market potential. This trend supports long-term material innovation and encourages partnerships between steel producers and automotive stakeholders. The EV movement positions NGOES as a critical enabler in Malaysia‘s clean transport ecosystem, opening new avenues for product development and regional integration.
• Government Support for Energy Efficiency: Malaysia‘s policies promoting energy efficiency across industries and appliances act as a catalyst for increased use of high-grade NGOES. Regulatory initiatives such as minimum energy performance standards require appliance manufacturers to integrate materials that optimize performance while minimizing energy losses. NGOES fulfills this requirement in motors used in air conditioners, refrigerators, and fans. This regulatory push not only boosts domestic demand but also helps Malaysian products meet global efficiency benchmarks. For steel manufacturers, this creates an incentive to invest in quality improvements and R and D that align with national and international standards.
• Expansion of Industrial Automation: The transformation of Malaysia‘s industrial sector through automation is increasing the deployment of smart motors in manufacturing facilities. NGOES plays a key role in ensuring these motors operate efficiently and reliably under varied conditions. As factories adopt robotics, conveyor systems, and process automation, demand for consistent and specialized electrical steel rises. This presents a growth opportunity for local producers to offer precision-processed NGOES. With automation becoming integral to productivity and competitiveness, NGOES becomes indispensable to sustaining energy efficiency and operational reliability across modern industrial setups.
• Growth in Renewable Energy Systems: The integration of wind, solar, and hydroelectric systems in Malaysia‘s power generation mix is another strong driver for NGOES. This material is widely used in generators, inverters, and other energy conversion equipment where magnetic efficiency is crucial. NGOES supports low core losses and enhanced magnetic permeability, contributing to consistent power generation. The development of localized renewable energy solutions, especially in rural or decentralized regions, creates demand for distributed energy technologies using NGOES. As renewable projects expand, steel producers aligned with this sector gain access to long-term contracts and the opportunity to develop specialized grades.
• Regional Integration and Export Potential: Malaysia‘s strategic trade position within ASEAN and strong ties to regional markets provide an export-oriented growth path for NGOES manufacturers. Regional demand from countries engaged in EV production, appliance exports, and industrial development strengthens market confidence. Malaysia‘s participation in trade agreements and regional supply chains offers steel producers access to larger markets with harmonized standards. This positioning not only encourages capacity expansion but also motivates compliance with advanced technical specifications. As producers upgrade to meet both domestic and export expectations, NGOES becomes a material of strategic economic value.
Challenges in the motor non-oriented silicon steel market in Malaysia are:
• High Capital Investment and Operating Costs: Producing high-grade NGOES involves complex processing and stringent quality controls, leading to significant capital and operational expenses. Malaysian producers must balance cost-efficiency with the technical demands of customers across applications such as EVs and automation. These financial barriers limit entry for smaller manufacturers and can deter large-scale investment in production upgrades. Without adequate economies of scale, maintaining competitive pricing while delivering high-quality materials becomes difficult. This challenge requires strategic partnerships, technology sharing, and potential government support to ensure local firms remain viable and competitive.
• Dependence on Imported Raw Materials: Malaysia relies heavily on imported raw materials and processing equipment for producing NGOES, which exposes the industry to global supply chain risks. Price volatility, geopolitical tensions, and logistic disruptions can significantly affect input costs and production timelines. This dependence restricts the flexibility of local manufacturers and makes long-term planning difficult. Developing upstream capabilities or regional sourcing networks can help mitigate this challenge, but such initiatives require time, investment, and coordination across the value chain. Without diversification, the market remains vulnerable to external shocks.
• Stringent Technical Specifications: Applications such as electric vehicle motors and high-frequency industrial devices require NGOES that meets extremely tight tolerances for magnetic and mechanical performance. Meeting these specifications involves advanced manufacturing processes and continuous quality assurance. For many Malaysian firms, reaching and consistently maintaining such standards is a major challenge. Any deviation may lead to product rejection or failure in performance-critical environments. This increases production pressure and necessitates constant investment in technology and skill development. Overcoming this barrier is essential for entering high-margin application markets and competing with global leaders.
The motor non-oriented silicon steel market in Malaysia is shaped by a dynamic interplay of supportive government policies, rising clean energy demand, and industrial modernization. While growth drivers create exciting opportunities, challenges such as high production costs, import reliance, and quality compliance hinder immediate gains. Addressing these issues through investment, innovation, and collaboration is critical for long-term competitiveness. Overall, the market shows strong potential to become a regional leader in advanced NGOES production, particularly as sustainability and energy efficiency become central to national and regional priorities.
List of Motor Non-Oriented Silicon Steel Market in Malaysia 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 Malaysia by Segment
The study includes a forecast for the motor non-oriented silicon steel market in Malaysia by type and application.
Motor Non-Oriented Silicon Steel Market in Malaysia by Type [Analysis by Value from 2019 to 2031]:
• Hot Rolled
• Cold Rolled
Motor Non-Oriented Silicon Steel Market in Malaysia 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 Malaysia
Market Size Estimates: Motor non-oriented silicon steel in Malaysia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Motor non-oriented silicon steel in Malaysia market size by type and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different type and application for the motor non-oriented silicon steel in Malaysia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the motor non-oriented silicon steel in Malaysia.
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 Malaysia?
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 Malaysia?
Answer: The future of the motor non-oriented silicon steel market in Malaysia 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 Malaysia 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 Malaysia 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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