MARKET AI OVERVIEW

The Non Grain-oriented Electrical Steel Market size was valued at USD 18.6 billion in 2025 and is projected to reach USD 27.4 billion by 2033, growing at a CAGR of 5.1% during the forecast period. Non grain-oriented electrical steel (NGOES) is an essential material used in the manufacturing of motors, generators, and transformers due to its high magnetic permeability and efficiency in alternating current (AC) applications. The market growth is driven by increasing demand for electric vehicles, renewable energy projects, and industrial automation. Rising investments in smart grid infrastructure and energy-efficient appliances are also boosting adoption. Industries are focusing on NGOES grades with reduced core loss and enhanced performance to meet global energy efficiency standards. Moreover, the transition toward electrification in transportation, combined with the rapid expansion of the power sector, is expected to create significant opportunities. The market is witnessing continuous innovations in production processes, such as advanced rolling and coating technologies, to enhance product efficiency while reducing environmental impact.

DRIVER:-

The surge in electric vehicle (EV) production is one of the key drivers of the NGOES market. In 2025, global EV sales are projected to exceed 18 million units, all requiring high-performance motors built using NGOES. The push toward energy-efficient systems in household appliances, industrial machinery, and renewable energy equipment further boosts demand. Governments are implementing strict energy efficiency regulations, encouraging manufacturers to adopt materials with low energy losses. Additionally, the growth of urbanization and electrification projects in developing economies is expanding the market base. The automotive and renewable energy sectors are expected to remain the most significant consumers, as NGOs provide excellent performance in variable-frequency operations. Technological advancements are also enabling the production of high-grade NGOES for demanding applications, improving operational efficiency across industries.

COUNTRY/REGION:-

China dominates the NGOES market in 2025, accounting for over 45% of global production and consumption, driven by its vast EV industry and large-scale industrial base. Europe follows, with strong demand from Germany, France, and the UK due to electric mobility adoption and renewable energy integration. The U.S. market is also expanding rapidly, supported by grid modernization projects and incentives for EV manufacturers. Emerging economies in Southeast Asia, such as India, Vietnam, and Thailand, are expected to see robust growth due to industrial expansion and rising electricity demand. The Middle East is focusing on renewable energy and industrial diversification, while Africa’s demand is increasing due to infrastructure development.

SEGMENT:-

The market is segmented by type into Fully Processed and Semi-Processed NGOES. Fully processed steel dominates in 2025 due to its superior magnetic properties and use in high-performance motors and transformers. By application, the automotive sector leads, accounting for over 40% of market share due to increasing EV production. Power generation equipment, household appliances, and industrial machinery are other major application areas. The demand for premium-grade NGOES is growing, particularly in renewable energy and high-speed rail applications, where efficiency and reduced energy loss are critical.

KEY FINDINGS

1. Market size projected to reach USD 27.4 billion by 2033.

2. CAGR of 5.1% from 2025–2033.

3. Automotive sector accounts for over 40% market share.

4. China leads production with 45% global share.

5. Fully processed NGOES dominates the product segment.

6. Renewable energy projects driving significant demand growth.

7. Strong growth in Southeast Asia due to industrial expansion.

8. Grid modernization in the U.S. boosts NGOES adoption.

9. Rising use in energy-efficient household appliances.

10. Innovations in rolling and coating enhance performance.

MARKET TRENDS

The NGOES market is experiencing rapid advancements in material technology, such as high-grade coatings and reduced core loss designs. EV penetration continues to accelerate demand, particularly for traction motors. The shift toward renewable energy, including wind and solar projects, is another key trend, as generators and transformers require NGOES. There is a notable trend of capacity expansion among leading steel manufacturers to meet rising global demand. Sustainability initiatives are influencing production techniques, with more manufacturers investing in low-carbon steelmaking processes. Furthermore, automation and robotics are driving the need for high-performance motors, indirectly boosting NGOES consumption.

MARKET DYNAMICS

DRIVER-

The rising production of EVs and renewable energy installations is a major driver, requiring efficient electrical steel for motors and generators.

RESTRAINT-

Volatility in raw material prices, particularly iron ore and alloying elements, poses challenges for cost stability.

OPPORTUNITY-

Growing investments in grid infrastructure modernization present strong opportunities for NGOES suppliers.

CHALLENGE-

High competition and technological barriers in producing premium-grade NGOES challenge new entrants in the market.

MARKET SEGMENTATION

By Type-

Fully Processed NGOES dominates due to superior magnetic efficiency in industrial and automotive applications. Semi-processed steel is mainly used in low-to-medium performance equipment.

By Application-

Automotive motors lead application demand, followed by transformers, household appliances, and industrial machinery. Renewable energy projects are an emerging segment.

REGIONAL OUTLOOK

North America-

Growth driven by EV adoption, renewable energy expansion, and grid modernization projects.

Europe-

Strong demand from automotive hubs in Germany, France, and the UK, supported by energy transition policies.

Asia-Pacific-

Largest market share led by China, Japan, India, and South Korea due to EV and industrial growth.

Middle East & Africa-

Gradual growth driven by renewable energy investments in UAE, Saudi Arabia, and South Africa.

List of Top NGOES Companies-

1. Nippon Steel Corporation – Leader in high-grade NGOES for automotive and energy sectors.

2. POSCO – Major supplier with strong focus on EV motor steel.

3. ArcelorMittal – Offers advanced NGOES for industrial and renewable applications.

4. Baowu Steel Group – Dominates Chinese production with large-scale capacity.

5. JFE Steel Corporation – Specializes in precision-engineered NGOES.

6. Thyssenkrupp AG – Strong presence in European automotive sector.

7. AK Steel (Cleveland-Cliffs) – Major supplier to North American automotive and power sectors.

8. Tata Steel – Expanding NGOES portfolio in Asia-Pacific.

9. Voestalpine AG – Focused on premium NGOES for high-performance motors.

10. Shougang Group – Significant producer in the Chinese market.

Investment Analysis and Opportunities-

Investments in green steel production, EV motor manufacturing, and renewable energy infrastructure present strong returns.

New Product Development-

Manufacturers are introducing NGOES with ultra-thin gauges, advanced coatings, and higher energy efficiency for EV and renewable applications.

Five Recent Developments-

1. Nippon Steel launched advanced NGOES for EV traction motors (2025).

2. POSCO expanded NGOES production facility in South Korea.

3. Thyssenkrupp announced sustainable steelmaking processes for NGOES.

4. JFE Steel partnered with EV manufacturers for high-grade NGOES supply.

5. Baowu Steel initiated R&D on ultra-low loss NGOES grades.

Report Coverage-

The report covers market size, trends, drivers, restraints, segmentation by type and application, regional analysis, competitive landscape, and investment opportunities for 2025–2033.