The global non-grain oriented electrical steel market is positioned for steady growth over the next decade, driven by growth in industrial automation, rising demand for electric vehicles, expansion of renewable energy sources, regulatory support for energy efficiency, and technological innovations in manufacturing. Valued at approximately USD 10.71 billion in 2024, the market is projected to grow from USD 11.05 billion in 2025 to USD 15.05 billion by 2035, reflecting a compound annual growth rate (CAGR) of 3.14% during the forecast period. This growth trajectory underscores the critical role of non-grain oriented electrical steel as a specialized material enabling efficient electromagnetic performance in motors, transformers, and generators across power generation, transportation, and industrial applications.
Non-grain oriented electrical steel (NGOES) is a specialized steel grade with uniform magnetic properties in all directions, achieved through precise control of chemical composition and processing. Unlike grain-oriented electrical steel, which has optimized magnetic properties in the rolling direction, NGOES exhibits isotropic magnetic behavior, making it ideal for applications with rotating magnetic fields such as electric motors and generators. The market encompasses various grades including M3, M4, M5, M6, M7, and M8, classified by core loss values that determine energy efficiency. Lower core loss grades offer superior efficiency and are increasingly demanded for high-performance applications. As industries worldwide prioritize energy efficiency, electrification, and sustainability, the demand for advanced non-grain oriented electrical steel is set to rise significantly.
Key Market Drivers
Growth in Industrial Automation
The rise of industrial automation is a significant driver for the non-grain oriented electrical steel market. As industries increasingly adopt automated systems, the demand for efficient electrical components, including motors and transformers, is on the rise. Non-grain oriented electrical steel is essential for these applications due to its superior magnetic properties, which enhance the performance of electrical devices. The industrial automation market is projected to grow at a robust CAGR, indicating a strong demand for high-quality electrical steel. This trend suggests that as automation technologies advance, the need for non-grain oriented electrical steel will likely increase, further solidifying its role in modern manufacturing.
Rising Demand for Electric Vehicles
The increasing adoption of electric vehicles (EVs) is a pivotal driver for the non-grain oriented electrical steel market. As automakers pivot towards electrification, the demand for high-performance electrical steel, which enhances motor efficiency, is expected to surge. EVs require 15–20% more NGOES per vehicle than internal combustion engine vehicles due to the high-performance traction motors and lightweight transformer components needed for battery systems. This steel type is crucial for manufacturing electric motors, which are integral to EV performance. Consequently, the growth in the EV sector is likely to bolster the demand for non-grain oriented electrical steel, positioning it as a key material in the automotive industry.
Expansion of Renewable Energy Sources
The transition towards renewable energy sources is significantly influencing the non-grain oriented electrical steel market. As countries strive to meet sustainability goals, investments in wind and solar energy are escalating. Wind turbines, which utilize non-grain oriented electrical steel for their generators, are becoming increasingly prevalent. High-efficiency motors and generators require low core-loss grades, driving demand for thinner, higher-grade NGOES. The efficiency and performance of electrical components in renewable energy systems are paramount, and non-grain oriented electrical steel plays a critical role in enhancing these attributes, thus supporting the industry’s expansion.
Regulatory Support for Energy Efficiency
Regulatory frameworks aimed at enhancing energy efficiency are driving the non-grain oriented electrical steel market. Governments worldwide are implementing stringent regulations to reduce energy consumption in electrical devices. These regulations often mandate the use of high-efficiency materials, such as non-grain oriented electrical steel, in the production of transformers and motors. As a result, manufacturers are increasingly adopting this type of steel to comply with energy efficiency standards. The market for energy-efficient electrical equipment is expected to expand significantly, with non-grain oriented electrical steel being a key component in meeting these regulatory requirements.
Technological Innovations in Manufacturing
Technological advancements in the manufacturing processes of non-grain oriented electrical steel are propelling the market forward. Innovations such as advanced coating techniques and improved alloy compositions are enhancing the magnetic properties of electrical steel, leading to better energy efficiency. These improvements are crucial as industries seek to reduce energy losses in electrical applications. The market is witnessing a shift towards higher-grade electrical steels, which are essential for applications requiring superior performance. As manufacturers adopt these technologies, the overall quality and efficiency of non-grain oriented electrical steel are expected to improve, thereby increasing its market appeal.
Market Trends
Sustainability Initiatives
The non-grain oriented electrical steel market is increasingly influenced by sustainability initiatives. Manufacturers are focusing on producing materials that minimize environmental impact, aligning with global efforts to reduce carbon footprints. This trend is likely to drive innovation in production processes, leading to more eco-friendly options. The development of thinner, high-permeability grades is enabling higher efficiency with less material usage, supporting sustainability goals.
Technological Advancements
Technological advancements are playing a crucial role in the evolution of the non-grain oriented electrical steel market. Innovations in manufacturing techniques are enhancing the performance characteristics of electrical steel, making it more efficient for various applications. This trend suggests a continuous improvement in product quality, with manufacturers investing in advanced coating technologies and precision processing methods.
Growing Demand in Renewable Energy
The demand for non-grain oriented electrical steel is growing in the renewable energy sector. As the world shifts towards sustainable energy sources, the need for efficient electrical components in wind turbines and solar inverters is increasing. This trend indicates a promising future for the market as it adapts to new energy paradigms, with offshore wind expansion driving demand for high-grade NGOES.
Segment Insights
By Grade: M4 Largest, M5 Fastest-Growing
In the non-grain oriented electrical steel market, the M4 grade is the largest segment, commanding a significant share due to its versatile applications in electric motors and transformers. M4 grade electrical steel is recognized for its superior magnetic properties and is widely employed in transformer cores and electrical motors. Its dominance in the market stems from its ability to operate efficiently at high frequencies, making it ideal for power generation and distribution applications. M5 grade is emerging rapidly due to its enhanced performance in specific applications, particularly in electric vehicles and wind turbine generators. M5 offers better efficiency and reduced losses, thus gaining traction among manufacturers focusing on innovation and sustainability. The competition between M4 and M5 highlights the industry’s shift towards more advanced materials to meet evolving technological demands.
By Core Loss: Below 1.3 W/kg Largest, Above 1.55 W/kg Fastest-Growing
The segment of core loss below 1.3 W/kg commands the largest share, indicating a strong market preference for energy-efficient materials. This range caters significantly to manufacturers seeking optimal performance in applications like electric motors and transformers. The core loss segment below 1.3 W/kg is favored for its cost-effectiveness and energy efficiency. Manufacturers often prefer this segment for standard applications, including industrial motors and generators, due to its lower operational losses and reliable performance. The segment above 1.55 W/kg, while emerging, is gaining traction owing to advancements in technology and changing regulations favoring high-efficiency products. This segment targets niche markets, such as high-frequency transformers and specialized electrical equipment, where performance thresholds are critical.
By Application: Transformers Largest, Motors Fastest-Growing
Transformers dominate the market, consuming the largest share of this segment, due to their critical role in electrical distribution networks. Transformers have established themselves as the dominant application in the non-grain oriented electrical steel market. Their robust performance and efficiency in energy transmission make them indispensable in various sectors, including renewable energy and large industrial installations. Motors are emerging as a significant player, driven by technological advancements and an increasing need for improved performance in electric vehicles and industrial automation. The market position of motors is strengthening as manufacturers focus on developing energy-efficient solutions that harness advanced materials, thus presenting a growing opportunity for suppliers in this segment.
By End-User Industry: Transportation Largest, Industrial Fastest-Growing
The transportation sector holds the largest market share, driven by the increasing demand for electric vehicles and the need for high-performance electrical steel in EV motors. This segment benefits significantly from the growing electrification trend. The industrial sector is emerging as a fast-growing segment, driven by the increasing adoption of energy-efficient motors and automation systems in manufacturing. The growth trends within this segment indicate a robust trajectory, particularly for the industrial sector, which is predicted to showcase strong growth rates. This is primarily driven by increasing demands for high-efficiency motors and the growing emphasis on industrial automation.
Competitive Landscape
The non-grain oriented electrical steel market is characterized by a competitive landscape that is increasingly shaped by innovation, capacity expansion, and strategic partnerships. Key players such as Nippon Steel Corporation (Japan), ArcelorMittal (Luxembourg), and POSCO (South Korea) are actively pursuing strategies that emphasize technological advancements and regional expansion. Other significant players include Thyssenkrupp AG (Germany), JFE Steel Corporation (Japan), United States Steel Corporation (US), AK Steel Holding Corporation (US), Baowu Steel Group Corporation Limited (China), and Tata Steel Limited (India). Nippon Steel Corporation is a leading producer of non-grain-oriented electrical steel with a wide range of products that meet customer needs. POSCO is also a leading producer with a strong commitment to research and development.
Recent developments highlight the industry’s focus on capacity expansion and innovation. Nippon Steel announced an investment to expand its non-grain oriented electrical steel production capacity at its Setouchi Works . Nucor Corporation commenced operations at its new electrical steel facility in Brandenburg, Kentucky, which will produce non-grain oriented electrical steel for the North American automotive and energy markets . ArcelorMittal secured a multi-year supply agreement to provide non-grain oriented electrical steel to a leading European electric vehicle manufacturer .
Future Outlook
Steady Growth Through 2035
The non-grain oriented electrical steel market is projected to grow at a 3.14% CAGR from 2025 to 2035, driven by increasing demand for energy-efficient electrical equipment and advancements in manufacturing technologies. The market is expected to achieve robust growth, positioning itself as a leader in energy-efficient solutions.
Expansion into Renewable Energy Sector Applications
Expansion into renewable energy sector applications represents a significant opportunity in the market. Companies that invest in developing high-performance NGOES grades for wind turbine generators and solar power inverters will capture growing demand from the clean energy transition. The growth of offshore wind capacity is driving demand for M3-grade steel.
Development of High-Performance Electrical Steel Grades
Development of high-performance electrical steel grades offers a business model evolution opportunity. Companies that develop thinner, higher-permeability grades with lower core loss can differentiate themselves and capture value from the growing demand for premium efficiency motors and generators.
Strategic Partnerships with Electric Vehicle Manufacturers
Strategic partnerships with electric vehicle manufacturers present substantial growth potential. Companies that establish long-term supply agreements with EV manufacturers and develop specialized grades for traction motor applications will capture value from the rapid growth of the electric vehicle market.
Conclusion
The non-grain oriented electrical steel market stands at the intersection of critical industrial trends, including the demand for energy-efficient electrical equipment, the growth of electric vehicles, the expansion of renewable energy, and the increasing emphasis on industrial automation. With a projected 3.14% CAGR and steady growth to USD 15.05 billion by 2035, the market offers significant opportunities for manufacturers, suppliers, and technology providers. Success in this dynamic landscape will require continuous innovation, strategic partnerships, and a commitment to developing high-performance, energy-efficient solutions that address evolving industrial needs while supporting sustainability objectives.
