Non Grain Electric Steel Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Global Non Grain Electric Steel Market Trends and Insights

Rising Demand for Energy-Efficient Electrical Appliances

Appliance makers are incorporating premium motors that comply with EU IE4 rules covering 75 kW to 200 kW ratings that took effect in 2024. Efficiency-driven redesigns lift Non Grain Electric Steel market demand because high-frequency losses drop by up to 15% when superior magnetic laminations are used. As multinational brands harmonize product portfolios, the same high-grade steel is specified across North America and Asia. Variable-speed drives add another layer of volume since these systems rely on laminations that hold permeability across widening frequency ranges. Industrial motors consume nearly two-thirds of factory electricity, making every incremental efficiency gain material to corporate decarbonization plans.

Growth in Electric-Vehicle Production

Traction motors in battery electric cars require thin gauges in the 0.20 mm to 0.35 mm band to cut eddy-current losses, a need met by Thyssenkrupp’s powercore grades. Design shifts toward reluctance motors in cost-sensitive models place extra emphasis on material permeability, raising silicon content specifications. Output expansion in premium electrical steel is not keeping pace with vehicle rollouts, lengthening supply lead-times beyond normal auto-industry planning cycles. This imbalance is forcing automakers to secure multi-year contracts directly with mills, underpinning the Non Grain Electric Steel market.

Increasing NGOES Use in Motors, Generators & Transformers

Smart-grid buildouts and distributed generation rely on electrical machines that operate under variable load and temperature swings. Wind turbines illustrate the scale: every megawatt of capacity needs 120–180 t of total steel, with electrical grades forming the magnetic circuit that governs conversion efficiency. Utilities upgrading aging distribution transformers gain loss reductions of 60% when shifting from conventional cores to amorphous designs, yet the bulk of forecast installations still specify high-grade NGOES because of cost and mechanical advantages^{[1]Environmental and Energy Study Institute, “Transformer Efficiency Standards,” eesi.org} . Renewable-energy inverters are now designed for higher switching frequencies, favoring thinner laminations and tighter domain control.

Renewable-Energy Build-Out (Wind-Turbine Generators)

Offshore projects move to direct-drive units above 15 MW that dispense with gearboxes but require outsized generator diameters filled with electrical steel. Supply-chain localization conditions in Europe, China, and the United States push developers to source laminations domestically, motivating regional mills to expand capacity. The expected 50% rise in global renewable power capacity by 2026 channels a sizeable share of incremental steel demand into the Non Grain Electric Steel market.

Volatile Silicon & Energy Costs

Electrical steel production needs about 3.6 MWh per ton, so power tariffs drive regional cost curves^{[2]International Energy and Environment Foundation, “Energy Consumption in Steelmaking,” ieefoundation.org} . Silicon metal supply is concentrated in China, where environmental crackdowns sporadically curtail output, triggering price spikes that mills struggle to offset in fixed-price transformer tenders. Producers respond by relocating capacity to areas with surplus renewable power, investing in solar or hydro projects to cut both cost and carbon intensity. Hedging remains imperfect because silicon tracks semiconductor demand, introducing basis risk into steel procurement strategies.

Competing Soft-Magnetic Materials (Amorphous, Nanocrystalline)

Amorphous alloys slash core losses to one-third of conventional NGOES under high-frequency loads, improving motor efficiency by more than 3% in selected duty cycles. Nanocrystalline options strike a compromise between loss reduction and manufacturability, extending reach beyond niche segments. Production volumes remain modest and processing brittleness raises scrap rates, keeping price points high. As a result, penetration is confined to premium appliances, EV inductors, and aerospace power electronics, limiting immediate threat but forcing continuous R&D investment by steelmakers.

Segment Analysis

By Type: Fully-Processed Dominates Through Manufacturing Efficiency

Fully processed grades held a 55.23% Non Grain Electric Steel market share in 2024. The segment’s 5.34% CAGR through 2030 is underpinned by OEM demand for coils that arrive with final magnetic properties, removing in-house annealing steps that add cost and variability. In automotive traction motors, consistent permeability and low noise are primary selection criteria, traits that fully processed sheet delivers out of the box. Product development now focuses on sub-0.23 mm gauges where insulation coating integrity and flatness are critical. 

Semi-processed material remains relevant for transformer manufacturers that own large annealing furnaces able to tune domain orientation for specific duty cycles. Its uptake is shrinking in mass-production motors because Tier-1 suppliers aim to minimize process complexity. Thin-gauge capability is the chief battleground; mills that master web handling below 0.20 mm win long-term supply contracts, reinforcing the Non Grain Electric Steel market.

By Application: Motors Lead Amid Electrification Surge

Motors accounted for 45.12% of demand in 2024, and the segment is projected to grow at 4.88% CAGR to 2030. The Non Grain Electric Steel market size for motor laminations benefits from electrification of passenger cars, buses, and two-wheelers, each traction system using around 30 kg of laminations. Industrial motors add steady volume as more countries phase in IE4 rules. 

Transformer cores are increasingly in demand due to grid-upgrade programs and renewable-energy interconnections, which emphasize the need for high-efficiency units with reduced no-load losses. Generator requirements are tied to wind farm installations; direct-drive offshore designs shift the mass balance toward larger single orders but lower unit counts. Power-electronics inductors and reactors form a smaller yet fast-growing niche driven by charging infrastructure and solar inverters.

By End-User Industry: Utilities Anchor Demand, Automotive Accelerates

Energy and Utilities held 33.23% of Non Grain Electric Steel market size in 2024. Substation refurbishment and high-efficiency transformer mandates sustain base-load demand year after year. Automotive applications, though a smaller slice today, represent the fastest path forward at 5.70% CAGR as battery electric platforms scale production. 

Industrial machinery remains a diversified consumer spanning compressors, pumps, and machine tools that migrate to premium motor classes to curb electricity bills. Consumer appliances add stable replacement demand, especially in HVAC and refrigeration, while aerospace and eVTOL start to source specialized laminations for lightweight propulsion motors, positioning a future growth pocket for the Non Grain Electric Steel market.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Asia-Pacific led with 45.31% share in 2024 and is forecast to grow at 5.45% CAGR through 2030. China supplies majority of global oriented steel capacity, with Baowu and Shougang investing in ultra-low-loss lines to serve domestic renewables expansion. India is on a parallel trajectory; JSW and JFE are commissioning an integrated facility in Karnataka that will substitute imports and diversify regional supply. Government incentives promote local EV production, multiplying traction-motor steel demand. 

Europe confronts high energy prices that contributed to a 3.1% drop in apparent steel consumption in early 2024, yet efficiency policy keeps NGOES volumes resilient. Updated transformer rules have already avoided 5.7 TWh of losses and target 17 TWh by 2030^{[3]European Commission, “Eco-Design Transformer Impact Study,” europeancommission.europa.eu} . The European Steel Association calls for expanded trade safeguards as mills face cheaper imports.

North America mitigates supply-chain exposure by adding capacity. ArcelorMittal is building a 150,000 t electrical-steel plant in Alabama that will feed both transformer and EV sectors. Persistent transformer import dependence, at roughly 65% of US demand, spurs policy support for domestic steel grades. Latin America and the Middle East and Africa start from smaller bases but post above-average growth tied to renewable-energy rollouts and industrial diversification plans.