Non-Grain Oriented Electrical Steel Market Size, Share & Industry Analysis, By Thickness (0.35 mm, 0.5 mm, 0.65 mm, and Others), By Type (Semi-processed and Fully Processed), By Application (Household Appliances, AC Motor, Power Generation, and Others), and Regional Forecast, 2024-2032

The global non-grain oriented electrical steel market size was valued at USD 17.39 billion in 2023 and is projected to grow from USD 18.15 billion in 2024 to USD 26.88 billion by 2032, exhibiting a CAGR of 5.0% during the forecast period. Asia Pacific dominated the non-grain oriented electrical steel market with a market share of 45.08% in 2023. Moreover, the non-grain oriented electrical steel market in the U.S. is projected to grow significantly, reaching an estimated value of USD 5.46 billion by 2032, driven by increasing electricity demand globally, escalating urbanization, and rising infrastructure development.

Non-grain oriented electrical steel (NGOES) is often referred to as lamination steel or silicon steel. It is a specialty steel fabricated to deliver magnetic properties such as high permeability and low hysteresis loss to electrical applications. The increasing electricity demand globally, escalating urbanization, and rising infrastructure development are driving product adoption. Hence, such factors, along with the increasing consumption of hybrid electric vehicles, will contribute to the market growth during the review period.

Government-issued policies in countries impacted by COVID-19 led to disruptions in steel production for manufacturing companies. Additionally, lower demand for electricity from industrial and commercial sectors resulted in a decline in power generator consumption. This, in turn, led to lower demand for non-grain oriented electrical steel, which is essential in manufacturing high-efficiency power generation motors. Thus, all these factors disrupted the supply and demand for the product.

Non-Grain Oriented Electrical Steel Market Trends

Rapid Increase in Adoption of Hybrid Electric Vehicles (HEVs) to Create Market Growth Opportunities

The steel industry has been growing at a moderate rate in recent years, but the introduction of hybrid electric vehicles has increased product demand. The use of non-grain oriented electrical steel in producing EV motors is expected to create growth opportunities for the market, particularly in developing countries. Non-grain oriented electrical steel is broadly used in the production of EV rotors, traction motors, and other electrical appliances. Additionally, electrical steel finds application in engines, traction motors, high-speed rotors, and electric motors for conventional and electric vehicles. The shift toward hybrid EVs is a key driver for the increased consumption of non-grain oriented electrical steel, creating market opportunities during the forecast period.

Non-Grain Oriented Electrical Steel Market Growth Factors

Increased Demand from Various Industries is Expected to Drive the Consumption of Non-Grain Oriented Electrical Steel

Non-grain oriented steel is an essential magnetic and structural material due to its excellent punching workability, stronger magnetic flux, and high efficiency. These properties make the metal suitable for producing electrical instruments, including power generation motors, electrical appliances, and rotors. The constant demand for power generation motors and rotors has increased the consumption of electrical steel in their production. Moreover, non-oriented grain electrical steel provides various advantages over grain-oriented steel as it enhances punchability and acts as the lubricating agent during the stamping, making it suitable for big rotating equipment, including power generators and AC alternators. The rapid growth of the automotive industry is another factor driving the market, as non-oriented grain electric steel serves as a core material in motor production, vital for the high performance of electric vehicles. The high product demand from the electrical & electronics and automotive industries is driving the non-grain oriented electrical steel market growth.

RESTRAINING FACTORS

Fluctuation in Steel Prices to Hinder the Market Growth 

The variation in prices of raw materials for steel, such as coal, iron steel, and scrap, is expected to hinder market growth. The price of raw materials fluctuates with supply and demand, exhibiting highly volatility. Additionally, crude oil prices, production costs, and storage capacity influences the steel prices. Therefore, these factors are anticipated to hinder the expansion of the market.

Non-Grain Oriented Electrical Steel Market Segmentation Analysis

By Thickness Analysis

0.5 mm Segment Dominated due to Growing Consumption from Large Power Generators and Transformers

Based on thickness, the market for non-grain oriented electrical steel is segmented into 0.35 mm, 0.5 mm, 0.65 mm, and others.

The 0.5 mm segment held a dominant share of the overall market, in 2023. It delivers optimum performance in terms of magnetic properties and the weight of electrical devices constructed using this sheet size.

Thicker non-grain oriented electrical sheets, typically of 0.5 mm and above, find usage in heavy-duty electrical equipment such as large transformers and power generators. Space and weight of electrical equipment are less prominent concerns in such devices, while the primary focus is given to the material performance.

Thinner sheets that range from 0.35 to 0.5 mm are used in smaller-size motors and generators. These thinner sheets are mainly used in electrical components where the weight and space of the electrical device are significant constraints.

By Type Analysis

Semi-Processed Segment Dominated the Market due to High Demand from Electrical Devices Manufacturers

Based on type, the market is segmented into semi-processed and fully-processed.

The semi-processed segment accounted for the highest non-grain oriented electrical steel market share in 2023. The semi-processed type is heat-treated at an optimum temperature to obtain the required microstructure. This temperature can change according to the final application of steel. Being able to customize the final properties of electrical steel via heat treatment enables electrical equipment manufacturers to optimize the performance of electrical devices. The high customizability presented by the semi-processed type makes it an ideal choice among electrical device manufacturers that use it to build rotors and stators of electric motors.

The fully-processed type of electrical steel is manufactured with ideal characteristics for its final application without any need for additional processing. Although made in comparatively less volume, it finds use in limited applications requiring a unidirectional magnetic field, such as a core used in large transformers.

By Application Analysis

Power Generation Segment Held the Largest Share due to Rising Applications of Non-Grain Oriented Electrical Steel

By application, the market is categorized into household appliances, AC motor, power generation, and others.

The power generation segment held the largest share of the market in 2023 and is anticipated to grow at the highest CAGR during the forecast period. The product is mainly utilized in the form of punched, wound, and laminated sheets and is an essential material in small transformers, distribution transformers, and power transformers. The rising demand for transformers due to high energy consumption is driving the segment growth.

In AC motors, the product is used as laminations. The growing adoption of electric vehicles has surged the adoption of electric motors in the automotive industry, thereby fueling the demand for raw materials. Non-grain oriented steel is a critical component used in small high-speed motors for home appliances such as vacuum cleaners, fans, and water pumps. Additionally, with rising demand for energy efficient motors used in home appliances, the steel market is anticipated to create new growth opportunities during the review period.

REGIONAL INSIGHTS

Based on region, the market is studied across Europe, North America, the Asia Pacific, Latin America, and the Middle East & Africa.

The Asia Pacific accounted for the leading non-grain oriented electrical steel market size, which stood at USD 7.84 billion in 2023. Developing countries such as India and China possess substantial untapped economic growth potential that is likely to be realized during the review period. The demand for infrastructure, especially in power distribution, generation, and transmission, is projected to increase alongside economic expansion in these countries.  NGOES plays a vital role in every electrical equipment used in power infrastructure. Thus, growing product demand from the electrical power industry is anticipated to drive market growth in Asia Pacific. China is the leading country in Asia Pacific due to the larger demand for electrical power from various industries.

The market in North America is expected to rise significantly during the forecast period. This region is heavily industrialized with a high demand for energy. The region has an established infrastructure for power generation and transmission that requires continuous maintenance and upgrades. Further, the preference for EVs and rapidly growing HEV sales in the region are likely to drive market growth during the forecast period.

Moreover, numerous European countries have specified their commitment to reduce carbon emissions during the review period. As a result, the major industrial countries in the region are shifting toward renewable energy. Thus, the product demand is expected to rise, creating new market growth opportunities.

The growth in Latin America is anticipated to be driven by increasing product demand from the electrical power generation and distribution industry. NGOES is a critical component in the production of transformer cores that are critical in stepping up and down voltage during the distribution and transmission of electric power. This, in turn, is anticipated to drive market growth in the region.

The Middle East & Africa region is home to a prominent share of the world’s oil and gas reserves. In order to run the facilities that extract these resources, power plants, and other energy production units need electrical devices such as power generators, transformers, and motors. In addition, several countries in this region have witnessed rapid urbanization over the past few years, and this trend is anticipated to continue during the forecast period.

List of Key Companies in Non-Grain Oriented Electrical Steel Market

Companies Focus on Business Expansion in the Construction Industry to Boost their Position

Key players include ArcelorMittal, Nucor Corporation, Nippon Steel Corporation, and ThyssenKrupp Steel Europe. These companies are engaged in product innovation, capacity improvement, collaborations, and acquisition in the market. Nucor Corporation has a strong presence across North America through its strong and diversified steel and steel products. The company offers non-oriented electrical steel sheets for electrical equipment and motor lamination applications. Further, Nucor Corporation is engaged in steel acquisitions, research and development, and innovation to satisfy consumer demands.

LIST OF KEY COMPANIES PROFILED

• Benxi Steel Group Co., Ltd (China)


• CSC Steel Sdn. Bhd. (Malaysia)


• Tata Steel (India)


• Nucor Corporation (U.S.)


• NLMK (Russia)


• ArcelorMittal S.A. (Luxembourg)


• Shougang Group (China)


• thyssenkrupp Steel (Germany)


• Baosteel Group Corporation (China)


• POSCO (South Korea)


• NIPPON STEEL CORPORATION (Japan)


• Voestalpine Group (Austria)


• Yieh Corporation (Taiwan)


• Aperam S.A. (Luxembourg)


• Arnold Magnetic Technologies (U.S.)

KEY INDUSTRY DEVELOPMENTS

• January 2024: POSCO completed the construction of the new electrical sheet plant at Gawangyang. The newly constructed plant has the capacity to produce high-efficiency, environment-friendly non-grain oriented electrical steel sheets. Thus, the company has entered into the competition of green products to achieve net zero carbon emissions by 2050.


• March 2023: ArcelorMittal S.A. invested USD 317.90 million to establish the production plant for electrical steel at the Mardyck site located in northern France. The purpose of the investment is to increase production capacity to maximize revenue.


• November 2022: POSCO announced boosting the production of the non-grain oriented electrical steel sheets to fulfil consumer demand. The company decided to invest USD 848.6 million in order to produce 300,000 tons of steel plate per year.


• August 2020: NLMK announced that it would supply the low magnetic losses electrical steel to Rusleprom, one of the biggest electrical equipment manufacturers. This advanced steel offers 30% less magnetic losses over the traditional steel.


• July 2022: Following the business strategy, the NLMK Group announced the continuation of the construction of an electrical steel plant in Maharashtra, India.  The plant would have a production capacity of 64,000 tons of electrical steel annually.

REPORT COVERAGE

The research report delivers a detailed market analysis and focuses on crucial aspects such as thickness, types, applications, and leading companies. The report covers quantitative data in terms of value and volume, research methodology used for estimating the market data, and insights into market overview and market trends. It provides an analysis of the regulatory scenario and the latest industry developments. In addition, the report includes various driving factors for the growth in the respective segments. 

Report Scope & Segmentation