Polaris Market Research today announced findings from its latest report, projecting the global grain oriented electrical steel market to grow from USD 13.75 billion in 2025 to USD 22.71 billion by 2034, at a CAGR of 5.7% from 2026 to 2034. The report profiles 10 leading companies across four major market segments, covering product type, thickness, application, and region.

Grain-oriented electrical steel is engineered with its grain structure aligned in a specific direction to enhance magnetic properties, and it is widely used in the cores of transformers and electric motors to cut energy losses. Rising urbanization, grid modernization, and the buildout of renewable energy capacity are together lifting demand for this specialized steel worldwide.

Analyst Commentary on Grain Oriented Electrical Steel Market Growth

“Grid modernization programs and the rapid buildout of renewable energy capacity are pushing utilities and manufacturers toward higher-efficiency transformer cores, and that is the single biggest driver behind current market growth,” said a senior analyst at Polaris Market Research. “Buyers evaluating long-term supply agreements should pay close attention to capacity expansions in Europe and the new joint-venture capacity coming online in India, since both will reshape regional supply in the next two to three years.”

Grain Oriented Electrical Steel Market Statistics at a Glance

• 2025 Market Size: USD 13.75 Billion
• 2026 Market Estimate: USD 14.04 Billion
• 2034 Projected Size: USD 22.71 Billion
• CAGR (2026–2034): 5.7%
• Largest Region (2025): North America, 37.9% share

Industry Dynamics Shaping the Market

• Growing global energy demand is increasing the need for efficient transformers, contributing directly to market expansion.
• Rising global sales of electric vehicles are driving demand for high-efficiency motors built with grain-oriented electrical steel.
• The rising construction of hyperscale data centers is creating additional opportunities for the market.
• Complex manufacturing processes and dependence on high-grade silicon steel supply may present ongoing market challenges.

Key Growth Drivers, Major Companies and Segments Covered

Growth Drivers: rising global electricity demand, the fast-growing sales of electric vehicles, and stricter government energy-efficiency regulations are the primary forces behind the market's expansion, alongside growing demand for low core-loss transformer steel. According to the International Energy Agency, global electricity consumption grew 2.2% in 2023 versus 2022, while 14 million new electric cars were registered the same year — both trends that are increasing reliance on efficient transformers and motors built with grain-oriented electrical steel. In April 2026, JSW Steel and JFE Steel Corporation unveiled JSW JFE Steel Limited, a 50:50 joint venture covering integrated steel operations at Sambalpur, Odisha, underscoring the scale of new capacity being committed to this segment.

Major Companies Covered: ArcelorMittal, POSCO, Stalprodukt S.A., Baosteel Group Corporation, NIPPON STEEL CORPORATION, JFE Steel Corporation, thyssenkrupp Steel, Cleveland-Cliffs Inc., Arnold Magnetic Technologies, and VIZ-Steel.

Segments Covered: By Product Type (Conventional, High Magnetic Strength Sheets, Domain Refinement), By Thickness (0.2 mm and Below, 0.23 mm, 0.27 mm, 0.30 mm, 0.35 mm and Above), By Application (Transformer, Power Generator, Electric Motor, Others), By Region.

👉 Download a Free Sample of the Grain Oriented Electrical Steel Market Report → 

https://www.polarismarketresearch.com/industry-analysis/grain-oriented-electrical-steel-market 

Recent Developments in the Grain Oriented Electrical Steel Market

• April 2026: JSW Steel and JFE Steel Corporation officially unveiled JSW JFE Steel Limited, a 50:50 joint venture covering integrated steel operations at Sambalpur, Odisha.
• March 2026: ArcelorMittal showcased new electrical steels at Coiltech Germany 2026 and announced a capacity expansion at Mardyck to meet demand tied to the energy transition and e-mobility.

Regional Snapshot: North America Leads, India Fastest-Growing

North America led with 37.9% share in 2025, supported by continued investment in grid modernization and energy-efficient infrastructure across the U.S. and Canada, while Asia Pacific followed closely with a 34.6% share on the back of rapid industrialization. Within the region, India is projected to register the fastest CAGR of 6.5% through 2034, driven by rising investment in power transmission networks and infrastructure development. In Europe, ArcelorMittal's March 2026 capacity expansion at Mardyck signals continued investment in electrical steel production to support the region's energy transition and growing e-mobility sector.

Segment Analysis: Conventional Steel and Transformers Lead Demand

By product type, the conventional segment held the largest market share of 68.4% in 2025, favored for its cost-effectiveness and dependable performance in transformers and electrical equipment. By application, the transformer segment dominated with a 72.1% revenue share in 2025, as grain-oriented electrical steel's superior magnetic properties help minimize energy losses and improve efficiency in transformer cores — a critical requirement for reliable electricity distribution.

Why It Matters for Buyers Evaluating Market Entry

For stakeholders researching market forecasts and top companies in this space, the underlying report benchmarks grain oriented electrical steel market share, company positioning, and segment-level forecasts to support sourcing, partnership, and investment decisions through 2034. The transformer application segment, which held a 72.1% revenue share in 2025, and the conventional product segment, which held 68.4% share, remain the clearest starting points for demand-side planning.

About Polaris Market Research

Polaris Market Research is a B2B syndicated market research and consulting firm offering 5,000+ published reports across 20+ industry verticals, delivering data-backed insights to help businesses make informed decisions.

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