Cold Rolled Grain Oriented Steel Global Market Insights 2025, Analysis and Forecast to 2030, by Manufacturers, Regions, Technology, Application

Cold Rolled Grain Oriented Steel Market Summary

Market Overview

Cold Rolled Grain Oriented (CRGO) Steel is a highly specialized electrical steel primarily used in the manufacturing of transformers, shunt reactors, wound cores, and power generators. The material is designed to exhibit superior magnetic properties, including low core loss and high permeability, which make it indispensable for energy-efficient power distribution and transmission systems. Its grain-oriented crystalline structure is engineered through a controlled rolling and annealing process, ensuring optimal alignment of magnetic domains.

As global demand for electricity rises and grids transition toward higher efficiency standards, CRGO steel has become a strategic material for both advanced economies and rapidly industrializing countries. With governments and private players emphasizing grid modernization, renewable integration, and efficient energy transmission, CRGO steel’s role has become more critical than ever. In 2024, the global CRGO steel market is estimated at 7.6–13.1 billion USD, with projected compound annual growth of 4–7% through the forecast period. Growth is primarily supported by expanding power infrastructure, increasing adoption of renewable energy, electrification of transportation, and investments in grid resilience.

Region

North America: CAGR of 3–5%, with the U.S. focusing on grid modernization, replacement of aging transformer infrastructure, and improved efficiency standards for energy distribution.

Europe: CAGR of 4–6%, driven by the EU’s emphasis on energy transition, renewable integration, and efficient power transmission systems in Germany, France, and the UK.

Asia-Pacific: CAGR of 5–8%, led by China, India, and Japan, where rapid electrification, urbanization, and infrastructure investment are driving significant demand for CRGO steel in transformers and reactors.

Latin America: Growth at 3–5% CAGR, with Brazil and Mexico at the forefront of investment in power infrastructure to support industrial expansion and rural electrification.

Middle East & Africa: CAGR of 4–6%, supported by rising demand for energy-efficient transformers in GCC countries and investments in renewable power generation projects across Africa.

Application

Transformer: CAGR of 4–7%, as transformers remain the largest application segment, with increasing installations of energy-efficient units in power grids worldwide.

Shunt Reactor: Growth of 3–6% CAGR, reflecting rising demand for voltage stabilization and efficiency improvements in transmission networks.

Wound Core: CAGR of 4–6%, driven by precision engineering in compact transformers and efficient energy conversion systems.

Power Generator: CAGR of 3–5%, reflecting the integration of CRGO steel in high-capacity generators used for both conventional and renewable power plants.

Others: CAGR of 2–4%, including specialized uses in niche electrical and industrial equipment.

Type

CRGO steel is primarily segmented by thickness and grade, ranging from conventional grades to high-permeability and domain-refined steels. High-permeability grades are expected to grow at a faster pace, with CAGR of 5–8%, supported by their use in ultra-efficient transformers designed to reduce energy losses in power grids. Conventional grades will continue to account for a significant share but grow more modestly at 3–5% CAGR, as utilities transition toward advanced efficiency requirements.

Key Market Players

ThyssenKrupp: A major European producer of electrical steels, with investments in high-efficiency CRGO and non-grain oriented steels. Its Bochum plant expansion highlights its focus on EV motors and transformer-grade steels.

AK Steel Corporation: A leading North American producer, supplying CRGO steels for transformers and power infrastructure projects, leveraging strong distribution in the U.S. market.

Stalprodukt s.a.: Specializes in CRGO production with significant exports across Europe, focusing on transformer cores and energy-efficient electrical steels.

JFE Steel Corporation: A Japanese leader in CRGO and advanced electrical steels, known for high-permeability grades designed for premium transformers and reactors.

Nippon Steel Corporation: Supplies CRGO steels globally, with a reputation for advanced R&D and high-quality domain-refined steels.

Aperam: A European producer with growing specialization in stainless and electrical steels, focusing on efficiency and sustainability.

POSCO: A global leader in CRGO steels with strong supply capabilities in Asia, emphasizing renewable energy infrastructure and advanced efficiency grades.

China Baowu Group: The largest steelmaker globally, with expanding CRGO production capacity to meet China’s growing power infrastructure and transformer demand.

Shougang: A key Chinese producer supplying CRGO for domestic grid projects and exports.

OJSC Novolipetsk Steel: A Russian producer focusing on supplying CRGO steels for regional power transmission and industrial applications.

VIZ Steel: Known for domain-refined and high-permeability CRGO steels, serving advanced transformer markets.

Steel Authority of India Limited (SAIL): Supplies CRGO and related products within India’s expanding power sector, contributing to grid modernization.

Jindal Steel & Power Limited (JSPL): Expanding into electrical steels to capture demand from India’s power infrastructure growth.

TATA Steel: Diversifying into CRGO steels with growing investment in advanced steel production for energy applications.

Market Share & Trends Analysis

The CRGO steel market is witnessing increasing competition among global and regional producers as countries prioritize energy efficiency. A clear trend is the transition toward high-permeability grades and domain-refined CRGO steels, which support ultra-low core loss transformers demanded by modern grids. Asia-Pacific is leading capacity expansion projects, notably in India and China, as domestic demand grows alongside renewable integration and urbanization. Another emerging trend is backward integration, as companies seek to secure raw material supply chains and reduce reliance on imports. Strategic collaborations and joint ventures between global steel giants and local firms are reshaping the competitive landscape.

Segment Forecasts

By Application: Transformers will remain dominant, accounting for the largest growth, while wound core and shunt reactor applications also expand steadily.

By Type: High-permeability grades are expected to show the fastest growth, driven by energy efficiency regulations and transformer modernization.

By Region: Asia-Pacific will experience the highest growth rate, followed by Europe and North America, reflecting both demand growth and technological advancements.

Value Chain Analysis

The CRGO steel value chain begins with raw materials such as iron ore and coking coal, which are processed into specialized silicon steel. The cold rolling and annealing processes create the grain-oriented properties necessary for transformer and reactor applications. Manufacturers add value through domain refinement and coating technologies to reduce energy losses. Distribution channels include direct supply to transformer OEMs, power equipment manufacturers, and regional distributors. The downstream segment involves utilities, renewable energy developers, and industrial consumers who depend on CRGO steels for efficient energy conversion. Increasingly, the value chain emphasizes circularity and recycling of electrical steels, reflecting sustainability targets in major markets.

Opportunities

Rising global electricity demand and the modernization of aging power grids.

Expansion of renewable energy generation and integration into grids, requiring efficient transformers and reactors.

Strong growth in Asia-Pacific, with India and China as major drivers of CRGO steel consumption.

Increasing focus on high-permeability and domain-refined CRGO steels to meet global energy efficiency standards.

Trump-era tariffs and potential protectionist measures may incentivize domestic CRGO production in the U.S., driving investments in local capacity and reducing reliance on imports.

Challenges

High capital investment requirements for advanced CRGO production lines.

Intense competition among global and regional producers, leading to pricing pressures.

Dependence on raw material price volatility, particularly for iron ore and coking coal.

Regulatory barriers and quality certification requirements for electrical steel products.

Trump-era tariffs and similar trade measures could increase costs of imported CRGO steel, impacting transformer manufacturers and power utilities dependent on global supply chains.

Recent Market Developments

29 January 2025, Thyssenkrupp Steel enhanced its non-grain oriented electrical steel production by commissioning a new annealing and isolating line at its Bochum plant, investing €150 million ($156m) with capacity of 218,000 tonnes per year. The line supports the production of thin sheets with superior magnetic properties, designed for efficient motors and EV applications.

January 30, 2025, Transformers & Rectifiers (India) Ltd (TARIL) acquired a controlling 51% stake in Posco-Poggenamp Electrical Steel Pvt Ltd (PPESPL), achieving backward integration and strengthening its supply of CRGO steels.

August 4, 2025, JSW Steel and JFE Steel announced a joint venture to invest 58.45 billion rupees ($669 million) to expand CRGO steel production across two Indian plants, aiming to meet growing domestic demand. The capacity expansion will be commissioned in phases starting in fiscal year 2028. Show more