Grain Oriented Electrical Steel Market Report: Trends, Forecast and Competitive Analysis to 2031

Grain Oriented Electrical Steel Market Trends and Forecast

The future of the global grain oriented electrical steel market looks promising with opportunities in the transformer and motor markets. The global grain oriented electrical steel market is expected to grow with a CAGR of 4.5% from 2025 to 2031. The major drivers for this market are the rising demand for energy-efficient transformers and the growing focus on renewable energy integration.

• Lucintel forecasts that, within the type category, high magnetic strength is expected to witness higher growth over the forecast period.
• Within the application category, transformer is expected to witness higher growth.
• In terms of region, APAC is expected to witness the highest growth over the forecast period.

Gain valuable insights for your business decisions with our comprehensive 150+ page report. Sample figures with some insights are shown below.

Emerging Trends in the Grain Oriented Electrical Steel Market

The grain oriented electrical steel Industry is changing dramatically based on a number of major trends that are reshaping its dynamics and future growth pattern. These trends are determined by the world's emphasis on sustainability, the use of new technology, and changing needs of various end-user industries.

• Increasing Demand for Energy-Efficient Transformers: Increasing focus on mitigating energy losses during power transmission and distribution is fueling the demand for grain oriented electrical steel with excellent magnetic characteristics. High-efficiency transformers, which employ new grades of this steel, reduce energy dissipation in voltage transformation, resulting in cost savings and environmental advantages. This trend is compounded by tight energy efficiency standards globally.
• Growing Adoption in Electric Vehicles (EVs): The expanding electric vehicle industry is generating a new string of demand for grain oriented electrical steel. This product plays a pivotal role in the production of efficient electric motors and onboard transformers in EVs, leading to better vehicle performance and range. With the worldwide transition to electric mobility increasing at a rapid pace, demand for high-performance electrical steel in the automotive industry is likely to intensify.
• Smart Grid Technology Integration: The establishment and implementation of smart grid infrastructure require sophisticated electrical equipment that can manage varying power flows and provide grid stability. Grain oriented electrical steel is crucial in the transformers and other magnetic devices employed in smart grids to provide efficient and effective power management. The rising investment in smart grid projects worldwide is fueling the demand for this specialized steel.
• Emphasis on Green and Sustainable Technologies: There is increasing focus on sustainable production procedures and the application of green materials. The grain oriented electrical steel market is seeing a drive towards minimizing its carbon footprint through energy-efficient production and the creation of recyclable steel grades. This coincides with worldwide sustainability objectives and buyers' demands for more environmentally friendly items.
• Asia-Pacific Market Expansion: The Asia-Pacific market, with the fast-paced industrialization and urbanization processes taking place in China and India, is emerging as a key growth center for the grain oriented electrical steel market. Growing investments in power infrastructure and rising demand for energy-saving electrical equipment in the Asia-Pacific region are presenting huge market expansion opportunities.

All these trends are converging to re-shape the grain oriented electrical steel market by fueling innovation, higher demand for high-performance materials, and a more intensified focus on sustainability. The market is anticipated to continue its growth and transformation as these trends build further pace.

Recent Developments in the Grain Oriented Electrical Steel Market

The grain oriented electrical steel market is subject to ongoing changes that drive its growth and trajectory. Such changes range from technological advancements, strategic business operations, to shifting market needs.

• Technological Advances in Steel Production Technologies: Research and development activities are resulting in new production methods that improve the magnetic properties and lower the core losses of grain oriented electrical steel. Developments like laser domain refinement and high-permeability grade production are enhancing the efficiency of electrical equipment and creating market demand for such superior materials.
• Strategic Alliances and Partnerships: Dominant players in the grain oriented electrical steel industry are pursuing strategic alliances, merger and acquisitions to diversify their product offerings, increase their technology base, and increase their market share. 1 These developments are intended to promote innovation and respond to the mounting international demand for high-grade electrical steel.
• Heightened Emphasis on Energy Efficiency Regulations: Governments and regulatory authorities across the globe are enforcing stricter energy efficiency regulations on electrical devices, mainly transformers. This regulatory impetus is forcing manufacturers to use superior-grade grain oriented electrical steel to satisfy these standards, hence fueling its usage across different applications.
• Increasing Investment in Renewable Energy Infrastructure: The worldwide shift to renewable energy sources, including wind and solar energy, requires major investments in power transmission and distribution infrastructure. Grain oriented electrical steel is an important material in the transformers of these systems, and the rising installation of renewable energy projects is driving demand for the material.
• Supply Chain Optimization Initiatives: In order to provide a reliable supply of high-quality grain oriented electrical steel, producers are making efforts to optimize their supply chains. This involves acquiring dependable sources of raw materials and having effective production and distribution processes in place to address the increasing global demand and avoid any possible disruptions.

These are pivotal developments that are having a dramatic effect on the grain oriented electrical steel market by driving technology advancements, facilitating market consolidation, raising demand for energy-efficient products under the push of regulations, and synchronizing with the build-out of renewable energy infrastructure.

Strategic Growth Opportunities in the Grain Oriented Electrical Steel Market

The grain oriented electrical steel market offers a number of strategic growth opportunities across its key applications, fueled by the worldwide emphasis on energy efficiency and the growth of electrical infrastructure.

• High-Efficiency Transformers: One of the most promising growth opportunities exists in the rising demand for high-efficiency transformers employed in power transmission and distribution. Stringent energy laws and the pressure to lower transmission losses are propelling the use of superior grain-oriented electrical steel grades that have low core losses, which bring appreciable energy savings and environmental advantages.
• Electric Motor and Components for EVs: The fast growing market of electric vehicles provides an immense growth opportunity. Grain-oriented electrical steel plays a crucial role in producing efficient and high-performance electric motors and onboard transformers used in EVs. Rising EV production and uptake around the world will hugely improve the demand for the niche steel.
• Smart Grid Infrastructure: The deployment and development of smart grids offer a primary growth opportunity. Smart grids demand sophisticated transformers and other magnetic devices that are capable of controlling bidirectional power flow and changing loads efficiently. Grain oriented electrical steel is instrumental in these applications, providing grid stability and efficient management of energy.
• Industrial Motors and Equipment: There is increasing demand for more energy-efficient industrial motors and equipment for cutting costs and meeting sustainability goals. Grain oriented electrical steel increases the efficiency of motors, which means energy savings in industrial applications, a high-growth area.
• Renewable Energy Systems: The growth of renewable energy sources, including wind turbines and solar power inverters, demands effective transformers for power conversion and grid integration. Grain oriented electrical steel plays a crucial role in these applications, providing efficient transmission of clean energy and facilitating the development of the renewable energy industry.

These strategic growth opportunities in key applications underscore the growing significance of grain oriented electrical steel in an energy-efficient world and a clean energy future.

Grain Oriented Electrical Steel Market Driver and Challenges

The grain oriented electrical steel market is driven by a multifaceted mix of drivers and challenges arising from technological progress, economic factors, and regulatory environments. These factors are essential to comprehend in order to navigate the market's dynamics.

The factors responsible for driving the grain oriented electrical steel market include:

1. Increasing Demand for Energy Efficiency: Growing world focus on energy saving and carbon reduction is a major force for the grain oriented electrical steel market. The better magnetic properties of this material make more efficient transformers and electrical apparatus possible, reducing energy losses, and helping achieve sustainability targets.

2. Renewable Energy Sector Growth: The swift growth of renewable energy resources such as wind and sunlight requires effective power distribution and transmission. Grain oriented electrical steel plays a crucial role in the renewable energy system's transformers, increasing its demand in this expanding sector.

3. Rising Use of Electric Vehicles: The growing electric vehicle industry is contributing significantly to the demand for grain oriented electrical steel. It is a critical part of the onboard charging systems and electric motors in EVs, which makes them efficient and high-performing.

4. Power Infrastructure Modernization: Most countries are carrying out the modernization of their old power grid to enhance efficiency and reliability. This modernization of infrastructure demands high-quality transformers manufactured using grain-oriented electrical steel.

5. Industrialization and Urbanization in the Emerging Economies: Industrialization and urbanization in the emerging economies are growing very fast, resulting in higher electricity consumption, which calls for the growth of power transmission and distribution infrastructure, thus driving the demand for grain oriented electrical steel.

Challenges in the grain oriented electrical steel market are:

1. Fluctuating Raw Material Prices: The volatility of raw material prices, particularly steel, can have a significant effect on the production costs of grain oriented electrical steel, which is likely to challenge manufacturers and influence market prices.

2. Substitution Materials: Continued R&D efforts focused on finding substitute materials that have equivalent or better magnetic characteristics could be a future challenge to the prevailing use of grain oriented electrical steel in some applications.

3. Supply Chain Constraints: Global supply chain disruptions can influence the availability of grain oriented electrical steel, and hence cause delays in production as well as prolonged lead times, especially for strategic components such as transformers.

In brief, the grain oriented electrical steel market is mostly fueled by the world-wide thrust towards energy efficiency, increased use of renewable energy and electric vehicles, and power infrastructure modernization. Nonetheless, the market is also exposed to raw material price volatility risks, possible advancement of substitute products, and weaknesses in supply chains. Coping with these drivers and challenges will be pivotal in the long-term growth and stability of the market.

List of Grain Oriented Electrical Steel 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 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 companies profiled in this report include-

• Baowu Group
• Nippon Steel
• NLMK
• Shougang
• AK Steel
• ThyssenKrupp
• Posco
• JFE Steel
• Stalprodukt
• Chongqing Wangbian

Grain Oriented Electrical Steel Market by Segment

The study includes a forecast for the global grain oriented electrical steel market by type, application, and region.

Grain Oriented Electrical Steel Market by Type [Value from 2019 to 2031]:

• High Magnetic Strength
• Conventional

Grain Oriented Electrical Steel Market by Application [Value from 2019 to 2031]:

• Transformer
• Motor
• Others

Grain Oriented Electrical Steel 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 Market

Recent trends in the grain oriented electrical steel market are driven by a worldwide movement towards increased energy efficiency and development of renewable energy infrastructure. Grain oriented electrical steel's enhanced magnetic properties make it essential for reducing energy loss in transformers and electrical equipment. Recent developments in key economies show a vibrant scenario driven by rising demand, technological progress, and strategic investment strategies focused on increasing production capacities and addressing changing energy requirements.

• United States: The US market is experiencing growing demand fueled by the requirement to upgrade old power infrastructure and the increasing usage of renewable energy sources. Investment is being directed towards increasing domestic production of electrical steel for energy-efficient transformers to satisfy the surging demand for these products. Developing an upgraded energy grid and assisting in renewable energy transmission is a primary impetus.
• China: China accounts for a large percentage of the worldwide grain oriented electrical steel market. Industrialization and urbanization are still driving demand for effective power delivery. There is emphasis on raising production capacity and technological innovations in high-performance electrical steel to meet the country's growing energy demands and infrastructure developments.
• Germany: Germany, an important market in Europe, is witnessing growth based on investment in renewable energy and the upgrading of its power infrastructure. Demand for grain oriented electrical steel is fostered by strict energy efficiency requirements and the development of electric mobility, which needs efficient electrical parts.
• India: India is one of the most rapidly developing markets for grain-oriented electrical steel due to rising demand for electricity through industrialization and urbanization. Power transmission and distribution infrastructure development and the widespread use of electric vehicles are raising the demand for this high-performance steel. Plans for new power transformer plants signify this growth.
• Japan: Japan's market is defined by technological advancement and energy savings. Demand for high-grade grain oriented electrical steel is spurred by the demand for sophisticated transformers and electrical equipment that reduce energy loss. Research and development investments are directed towards developing even more efficient products.

Features of the Global Grain Oriented Electrical Steel Market

Market Size Estimates: Grain oriented electrical steel 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 market size by type, application, and region in terms of value ($B).

Regional Analysis: Grain oriented electrical steel market breakdown by North America, Europe, Asia Pacific, and Rest of the World.

Growth Opportunities: Analysis of growth opportunities in different type, application, and regions for the grain oriented electrical steel market.

Strategic Analysis: This includes M&A, new product development, and competitive landscape of the grain oriented electrical steel market.

Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

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 market by type (high magnetic strength and conventional), application (transformer, motor, 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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