The global electrical steel market is projected to generate USD 47.8 billion in 2025 and is expected to reach USD 88.9 billion by 2035, expanding at a CAGR of 6.3% during the forecast period. Electrical steel, a specialty steel known for its high magnetic permeability and low energy loss, is a crucial material in modern power and energy systems. It is primarily used in transformers, motors, and generators to optimize energy efficiency. While most reports focus on its role in conventional power distribution, a lesser-explored yet transformative area is its application in smart energy infrastructure, where electrical steel is emerging as a key enabler of the global shift toward sustainable and intelligent energy networks.
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Market Context
Electrical steel, also referred to as silicon steel or transformer steel, is designed to minimize energy loss during magnetic flux changes. Its market growth is largely driven by increasing electricity demand, renewable energy integration, and the expansion of power grids in emerging economies. With global energy consumption expected to rise by over 25% by 2035, the demand for high-efficiency transformers and electric motors will significantly boost the electrical steel market.
Grain-oriented electrical steel (GOES) and non-grain-oriented electrical steel (NGOES) dominate the product landscape. GOES is widely used in transformer cores for its superior magnetic properties, while NGOES finds applications in rotating machines such as EV motors and industrial equipment. However, beyond these conventional roles, electrical steel is gaining traction in next-generation smart grids and digital power infrastructure, where the focus is on minimizing transmission losses and improving energy efficiency through advanced materials.
