Grain Oriented Electrical Steel Market (2026 - 2033)

Grain Oriented Electrical Steel Market Summary

The grain oriented electrical steel market size was valued at USD 9.0 billion in 2025 and is projected to grow from USD 9.5 billion in 2026 to USD 13.5 billion by 2033, at a CAGR of 5.1% from 2026 to 2033. Asia Pacific dominated the grain oriented electrical steel market with the largest revenue share of 69.0% in 2025. The growth of the grain oriented electrical steel (GOES) industry is primarily driven by the increasing demand for electricity and the need for efficient electrical components.

Source: Grand View Research, IR Documents, Primary Interviews, Paid Databases

To learn more about this report, Download Free Sample Report

GOES is a crucial material used in manufacturing transformers, which are fundamental in the distribution of electrical power. With the global rise in urbanization and industrialization, the demand for electrical infrastructure has surged.

As countries invest in power grids, renewable energy projects, and transmission networks, the demand for transformers and grain-oriented electrical steel has grown significantly. Additionally, expanding emerging markets, such as those in Asia Pacific, further propels demand as these regions continue to invest in infrastructure development and electrification efforts.

To learn more about this report, Download Free Sample Report

Modern technologies, such as high-efficiency transformers and smart grid solutions, demand higher-performance materials such as GOES. These technological upgrades ensure the minimization of energy losses during transmission and distribution, directly contributing to the need for high-quality electrical steel. Furthermore, advancements in material processing and manufacturing methods, such as grain-oriented steel with optimized magnetic properties, are boosting the efficiency of transformers and other electrical devices, leading to an overall increase in the material's demand.

The growing focus on energy efficiency and sustainability is driving the expansion of the GOES market. Stricter energy regulations worldwide are pushing the use of GOES to reduce power losses and enhance energy efficiency in transformers, helping to lower energy consumption and carbon emissions. Additionally, the rise of renewable energy sources like wind and solar power increases the demand for GOES, as transformers used in these systems rely on it for efficient energy conversion and distribution. As renewable energy adoption grows, the need for GOES will continue to rise.

Market Dynamics

The growth of the grain oriented electrical steel (GOES) market is primarily driven by rising investments in power transmission and distribution infrastructure across both developed and emerging economies. Increasing electricity demand, rapid urbanization, and the integration of renewable energy sources are driving strong demand for high-efficiency power transformers, in which GOES is the preferred core material due to its superior magnetic permeability and low core loss. Governments and utilities are upgrading aging electrical grids while expanding high-voltage transmission networks to support renewable energy projects and improve grid reliability. These developments have significantly increased GOES consumption in transformer manufacturing, making the power sector the largest revenue-generating application for the market.

Analyst Perspective

The grain oriented electrical steel market is entering a period of sustained growth as countries invest heavily in modernizing power infrastructure and improving grid efficiency. The increasing deployment of renewable energy projects, the expansion of high-voltage transmission networks, and the replacement of aging transformers are driving strong demand for premium GOES grades that offer lower core losses and superior magnetic performance. At the same time, stricter energy efficiency standards and decarbonization goals are encouraging utilities and transformer manufacturers to adopt advanced electrical steel solutions that minimize transmission losses and improve overall system reliability.

End Use Insights

Based on end use, transformers segment led the market with the largest revenue share of 52.6% in 2025. With the rising urbanization, industrialization, and economic development, the demand for electrical energy has expanded, boosting the need for more efficient power transformers. GOES is a key material used in manufacturing transformers, as it allows for improved magnetic properties, leading to better efficiency in energy transmission and a reduction in energy losses. As the world's electrical infrastructure grows, there is a need for high-quality transformers with grain oriented electrical steel.

Motors are anticipated to register the fastest CAGR over the forecast period. As energy efficiency becomes a priority for environmental and economic reasons, the demand for electrical steels with superior magnetic properties is expected to rise. GOES helps minimize energy losses in motor systems by reducing the hysteresis and eddy current losses, making it an ideal material choice for electric motors. This shift is particularly evident in sectors like consumer electronics, home appliances, and HVAC systems, where manufacturers increasingly opt for motors that contribute to lower energy consumption and greater overall performance.

Regional Insights

Asia Pacific dominated the grain oriented electrical steel market with the largest revenue share of 69.0% in 2025. Countries like China and Japan are advancing greener transportation options in response to the growing demand for EVs. Grain-oriented electrical steel plays a crucial role in the production of traction motors and other key components vital to EV performance. According to IEA report, over 14 million electric vehicles were sold globally in 2023, a substantial portion of these sales occurring in Asia Pacific. This trend is expected to continue, further propelling the demand for high-quality electrical steel used in EV manufacturing.

To learn more about this report, Download Free Sample Report

China Grain Oriented Electrical Steel Market Trends

The grain oriented electrical steel market in the China held the largest share in the Asia Pacific region in 2025.

North America Grain Oriented Electrical Steel Market Trends

The North America grain oriented electrical steel industry is anticipated to grow at a CAGR of 6.1% over the forecast period. Governments across the region are investing heavily in renewable energy projects such as wind and solar power plants. These initiatives require efficient transformers and generators, which utilize grain oriented electrical steel due to its superior magnetic properties. The increasing focus on reducing carbon emissions and enhancing energy efficiency aligns with the growing need for advanced materials to optimize power generation and distribution systems, propelling market growth.

U.S. Grain Oriented Electrical Steel Market Trends

The demand for clean energy is expanding rapidly, and wind turbines, which rely heavily on high-quality electrical steel for their generators, are a key component of this shift. Solar energy installations reached a record 31 gigawatts (GW), a 55% increase from 2022, making it the fastest-growing power source and representing half of all new utility-scale generating capacity through Q3 2023. EV sales also hit a record of 1.2 million, accounting for 7.6% of total vehicle sales in the country, further boosting demand for GOES.

Europe Grain Oriented Electrical Steel Market Trends

Europe is a global leader in renewable energy production, especially wind power, and the demand for GOES is directly linked to this growth. Wind turbines, a core part of Europe’s renewable energy strategy, rely heavily on high-quality electrical steel for their generators. As European countries expand their renewable energy capacity, the demand for GOES in wind turbine manufacturing is projected to increase. In addition, government policies, such as the European Green Deal, which aims to accelerate the transition to clean energy, are expected further to boost investments in wind and solar energy infrastructure, driving the demand for GOES.

Central & South America Grain Oriented Electrical Steel Market Trends

Industrialization is accelerating in Central & South America, particularly in the manufacturing, mining, and transportation sectors. These industries require advanced electrical equipment to support their operations and GOES is a key material in producing high efficiency transformers and motors. As industrial processes become more energy-conscious, the demand for energy-efficient electrical equipment, and by extension GOES, is rising.

Middle East & Africa Grain Oriented Electrical Steel Market Trends

Rapid urbanization across MEA proliferates the growth of the grain oriented electrical steel industry. As cities expand, there is an increasing need for reliable electricity supply to support residential, commercial, and industrial sectors. The construction of new buildings, metro systems, and industrial parks requires efficient power distribution networks that utilize GOES in transformers.

Key Grain Oriented Electrical Steel Company Insights

Some of the key players operating in the market include ArcelorMittal and POSCO.

• ArcelorMittal is one of the world’s leading steel and mining companies. It operates in more than 60 countries and has a presence in all major markets. It produces a wide range of steel products for various industries, including automotive, construction, and appliances. The company produces GOES, specifically designed for use in transformers and other electrical applications where high magnetic permeability is essential.

• POSCO is a South Korean multinational steel-making company recognized as one of the largest steel producers in the world. The company operates globally, providing a wide range of steel products that cater to various industries, including automotive, construction, shipbuilding, and energy. The company specializes in producing grain oriented electrical steel with superior magnetic properties due to its uniform crystal orientation.

Recent Developments

• In June 2024, JFE Steel's JGreeX green steel, a grain oriented electrical steel with a reduced environmental footprint, has been selected by Eaton Corporation, a leading U.S. transformer manufacturer, for use in IT data center transformers.

• In February 2024, JSW Steel formed a joint venture with Japan's JFE Steel to produce grain oriented electrical steel in India. The new company, JSW JFE Electrical Steel, will be based in Bellary, Karnataka, with a planned investment of INR 5,500 crore (~USD 633 million). The facility is set to begin production in 2027, addressing India's rising demand for energy-efficient transformers.

Global Grain Oriented Electrical Steel Market Report Segmentation

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global grain oriented electrical steel market report based on end use and region:

To learn more about this report, Download Free Sample Report

• End Use Outlook (Volume, Kil0tons; Revenue, USD Million, 2021 - 2033)

  • Transformers

  • Motors

  • Inductors

  • Others

• Regional Outlook (Volume, Kil0tons; Revenue, USD Million, 2021 - 2033)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • Italy

    • Russia

    • Turkey

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Iran

Research Methodology

The grain oriented electrical steel market figures in this report are based on a proven research process that combines executive interviews with secondary research from proprietary databases, company filings, and recognized regulatory and institutional sources. Market size is built through value-chain sizing - reconciling supply-side and demand-side estimates - and triangulated with bottom-up and top-down approaches. Every estimate passes multiple levels of expert validation before publication, with each grain oriented electrical steel market segment quantified using the revenue-capture definitions in the table below.

Delivered Customizations

This report has been delivered with the following In-depth customizations