Market Overview
Global Grain Oriented Electrical Steel Market size and share is currently valued at USD 13.02 billion in 2024 and is anticipated to generate an estimated revenue of USD 22.71 billion by 2034, according to the latest study by Polaris Market Research. Besides, the report notes that the market exhibits a robust 5.7% Compound Annual Growth Rate (CAGR) over the forecasted timeframe, 2025 – 2034
The grain oriented electrical steel (GOES) market is experiencing steady growth due to increasing demand for energy-efficient transformers and electrical equipment in power generation, transmission, and distribution. GOES is a specialized type of steel with excellent magnetic properties, high permeability, and low core loss, making it ideal for transformer cores, electrical machines, and generators.
Growth in renewable energy, industrialization, and expansion of power grids globally is driving adoption of GOES. The material is essential for energy-efficient transformer manufacturing, reducing energy losses, and improving grid reliability. Technological advancements in steel processing, coating, and grain orientation enhance performance and application range.
The rising demand for smart grids, modernization of aging electrical infrastructure, and growth in renewable energy generation further fuel market expansion. GOES also supports sustainability initiatives by improving energy efficiency and reducing carbon emissions.
𝐄𝐱𝐩𝐥𝐨𝐫𝐞 𝐓𝐡𝐞 𝐂𝐨𝐦𝐩𝐥𝐞𝐭𝐞 𝐂𝐨𝐦𝐩𝐫𝐞𝐡𝐞𝐧𝐬𝐢𝐯𝐞 𝐑𝐞𝐩𝐨𝐫𝐭 𝐇𝐞𝐫𝐞: https://www.polarismarketresearch.com/industry-analysis/grain-oriented-electrical-steel-market
Growth Drivers
Key drivers supporting the grain oriented electrical steel market include:
- Increasing Energy Efficiency Requirements
- GOES reduces core losses in transformers and electrical machines, enhancing energy savings.
- Growth of Power Generation and Transmission Infrastructure
- Expanding electricity networks in emerging and developed regions drive demand.
- Technological Advancements in Steel Production
- Innovations in coating, annealing, and grain orientation improve magnetic performance and efficiency.
- Rising Renewable Energy Integration
- Wind, solar, and hydroelectric projects require energy-efficient transformers and generators.
- Smart Grid and Industrial Electrification
- Adoption of smart grid technologies and industrial automation increases GOES utilization.
- Environmental and Sustainability Initiatives
- Energy-efficient electrical components support regulatory compliance and carbon reduction goals.
𝐌𝐚𝐣𝐨𝐫 𝐊𝐞𝐲 𝐂𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬:
- ArcelorMittal
- Arnold Magnetic Technologies
- Baosteel Group Corporation
- Cleveland-Cliffs Inc.
- JFE Steel Corporation
- NIPPON STEEL CORPORATION
- POSCO
- Stalprodukt S.A.
- thyssenkrupp Steel
- VIZ-Steel
Market Challenges and Opportunities
Challenges
- High Manufacturing Costs: Production of high-grade GOES involves complex processing and quality control.
- Raw Material Price Volatility: Fluctuations in steel and alloy costs impact profitability.
- Competition from Non-Oriented Electrical Steel (NOES): NOES is preferred in some applications due to lower cost.
- Technical Expertise Requirement: Advanced processing and coating require skilled labor and specialized facilities.
Opportunities
- Expansion in Emerging Markets: Rapid electrification and renewable energy projects in Asia-Pacific, Latin America, and Africa.
- Technological Innovation: Development of high-permeability, low-loss GOES grades for advanced transformers.
- Growth in Renewable Energy Projects: Increasing wind and solar capacity drives demand for energy-efficient transformers.
- Electrification of Transportation: EV chargers and electric motors create additional market opportunities.
- Strategic Partnerships with Utilities and Manufacturers: Collaboration supports large-scale deployment and innovation.
Market Segmentation
The grain oriented electrical steel market can be segmented as follows:
- By Product Type
- Fully Processed GOES
- Semi-Processed GOES
- By Thickness
- <0.23 mm
- 0.23–0.27 mm
- 0.27 mm
- By Application
- Power Transformers
- Distribution Transformers
- Generators and Motors
- Others
- By End-User
- Power Utilities
- Electrical Equipment Manufacturers
- Renewable Energy Companies
- Industrial Manufacturing
Regional Analysis
Regional adoption trends for grain oriented electrical steel include:
- North America
- Leading market due to established power infrastructure, renewable energy projects, and energy efficiency initiatives.
- Europe
- Growth supported by environmental regulations, smart grid adoption, and transformer modernization.
- Germany, France, and UK are key markets.
- Asia-Pacific
- Fastest-growing region due to industrialization, expanding power grids, and renewable energy investments.
- China, Japan, India, and Southeast Asia drive demand.
- Latin America
- Moderate growth fueled by grid expansion, electrification projects, and renewable energy deployment.
- Brazil and Mexico are major contributors.
- Middle East & Africa
- Gradual adoption driven by infrastructure modernization and renewable energy initiatives.
- Limited technical expertise and investment may constrain rapid growth.
Summary
The grain oriented electrical steel market is expanding as the global power sector emphasizes energy-efficient transformers, electrical machines, and renewable energy integration. Growth is driven by technological advancements, infrastructure development, energy efficiency regulations, and sustainability initiatives.
Challenges such as high manufacturing costs, raw material price volatility, competition from non-oriented steel, and technical complexity exist, but opportunities in emerging markets, renewable energy projects, technological innovation, and electrification of transport provide strong growth potential.
Segmentation highlights various product types, thicknesses, applications, and end-users, reflecting the critical role of GOES in modern electrical infrastructure. North America currently leads adoption, while Asia-Pacific demonstrates the fastest growth trajectory due to industrialization, grid expansion, and renewable energy investments.
Overall, the grain oriented electrical steel market is poised for sustained growth, driven by energy efficiency, technological advancement, and global electrification initiatives.
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