The global grain oriented electrical steel market size was valued at USD 6.42 billion in 2025 and is projected to grow from USD 6.79 billion in 2026 to USD 10.66 billion by 2034, registering a CAGR of 5.80% during the forecast period (2026–2034). Asia Pacific dominated the grain oriented electrical market with a share of 61.19% in 2025.
Grain oriented electrical steel is a specialized silicon-alloy steel with magnetic grains aligned predominantly in the rolling direction to provide high magnetic permeability and low core losses. Grain oriented electrical steel is tracked under HSN Code 7225 (flat-rolled products of other alloy steel, of a width of 600 mm or more) and SIC Code 3312 (steel works, blast furnaces, and rolling mills).
The grain oriented electrical steel market demand is driven by high electricity consumption, expanding power transmission & distribution infrastructure, and requirements for energy-efficient electrical equipment. Investments in grid modernization and renewable energy integration contribute to the grain oriented electrical steel market growth.
By Product Type
By Thickness
By Magnetic Performance
By Form
By Application
By End User
Download a Free Sample To learn more about this report,
Shift toward Domain-Refined Grain Oriented Electrical Steel
The grain oriented electrical steel market analysis shows that the need for lower energy losses in transformers supports the use of domain-refined GOES with improved magnetic properties. Technologies such as laser scribing control magnetic domains and help reduce core losses during transformer operation.
Focus on Decarbonization Targets in Steel Industry
Decarbonization targets in the steel industry are encouraging manufacturers to reduce emissions associated with grain oriented electrical steel (GOES) production. Cleaner energy sources, lower-emission production methods, and greater process efficiency are supporting the development of lower-carbon GOES products. This results in a reduced environmental footprint for electrical steel manufacturing without focusing on changes to its magnetic performance.
Supply chain disruptions are expected to have a highly exposed impact on the grain oriented electrical steel market share, as production depends on specialized steelmaking capacity, high-purity inputs, controlled processing, and a limited number of qualified producers. The market is likely to follow a capacity-constrained recovery pattern, as transformer demand can remain strong while limited GOES production capacity, long qualification cycles, and delayed capacity additions can restrict the pace at which supply responds to disruptions. The market is expected to grow at a CAGR of 5.80%, but supply chain constraints could approximately lower this by 1.1 percentage points, resulting in short-term growth of around 4.7%. As supply conditions normalize through additional GOES production capacity, improved specialty steel availability, diversified sourcing, and more stable transformer supply chains, grain oriented electrical steel market growth is expected to gradually return to a growth rate of 5.80%.
The grain oriented electrical steel market forecasts strategic investment activity driven by GOES capacity expansion for electrical engineering, transformer-grade steel production, manufacturing modernization, and growing demand from power-grid and renewable-energy infrastructure.
Key Investment and Funding Activities in the Grain Oriented Electrical Steel Market, 2025
Cleveland-Cliffs
~USD 400 Million
In 2025, Cleveland-Cliffs was awarded a maximum of USD 400 million, a five-year U.S. government contract for domain-refined GOES for the U.S. military.
JFE Steel + JSW Steel — Vijayanagar
~USD 177 Million
In August 2025, an additional ~USD 177 million will increase the planned Vijayanagar GOES facility from 62,000 to 100,000 tons/year.
Energy Network Expansion and Aging Transformer Replacement Drives Market Demand
The expansion of energy transmission networks increases demand for new power transformers at substations and grid interconnections. Each additional transformer requires a transformer core and transformer laminations made from grain oriented electrical steel (GOES). Ongoing grid development supports the consumption of electrical steel across new energy infrastructure.
Aging transformer infrastructure creates replacement demand as utilities retire older units and install more efficient equipment. Replacement programs require new cores made from silicon steel and high-permeability steel to support better transformer efficiency. This recurring replacement activity sustains demand across transmission and power distribution networks.
Strict Manufacturing Tolerances and Small Supplier Base Restrain Market Expansion
Strict manufacturing tolerances make GOES production more complex because small variations in thickness, grain orientation, magnetic properties, or surface quality can affect transformer performance. Tight specifications can increase inspection requirements, production losses, and rejected material.
Limited production capacity for specialized GOES grades can restrict supply flexibility when transformer manufacturers require specific magnetic properties or thickness levels. A small supplier base can make alternative sourcing difficult and increase dependence on qualified producers. Such capacity constraints can create supply bottlenecks and delay transformer manufacturing schedules.
Shunt Reactor Applications and Specialized Processing Services Create New Application Areas
The expansion of GOES use in shunt reactors is creating opportunities for grain oriented electrical steel (GOES) suppliers to serve high-voltage grid equipment beyond traditional transformer cores. Specialized magnetic materials and transformer lamination can support reactor manufacturing, opening additional sales opportunities in energy infrastructure.
The growth of specialized GOES processing services is creating opportunities for processors offering precision slitting, cutting, coating, and related services for electrical steel. These value-added services help transformer and electrical equipment manufacturers obtain material in application-ready forms, creating additional revenue for specialized suppliers.
Trade Policy Uncertainty and Volatile Manufacturing Conditions Affect Sales
Changing trade policies and import measures can make international sales and sourcing of grain oriented electrical steel (GOES) less predictable. For instance, the European Commission opened a safeguard investigation in March 2026 after reporting strong increases in GOES imports, creating uncertainty for both steel producers and transformer manufacturers. Such policy shifts can alter market access, pricing structures, and investment decisions for GOES suppliers.
Volatility in transformer manufacturing conditions can make demand planning difficult for GOES producers because transformer projects depend on long manufacturing cycles, project schedules, and equipment availability. Fluctuations in transformer orders can create uneven demand for electrical steel and transformer lamination across suppliers. Uncertain project timing can make order forecasting and production planning more difficult for electrical steel manufacturers.
The conventional grain oriented electrical steel segment accounted for a share of 48.5% in 2025, supported by its established use in power transformers, distribution transformers, and other magnetic core applications. Its proven magnetic performance, established manufacturing infrastructure, and broad availability continue to support demand from utilities and electrical equipment manufacturers.
The domain-refined grain oriented electrical steel segment is expected to grow at a CAGR of 7.1% during the forecast period, driven by the need for lower core losses and improved transformer efficiency. The emphasis on energy-efficient power transmission equipment and grid modernization also drives segment growth.
Request Customizationto receive a tailored report.
The 0.20–0.23 mm segment accounted for a share of 31.8% in 2025, owing to its balanced combination of magnetic efficiency, mechanical strength, and manufacturing suitability. Established demand from transformer manufacturers and electrical equipment producers for reliable core materials with controlled thickness continues to support this range.
The below 0.20 mm segment is expected to grow at a CAGR of 7.2% during the forecast period, fueled by the focus on minimizing core losses in high-efficiency transformers.
The standard core-loss grade segment accounted for a share of 42.6% in 2025 due to its established use in power and distribution transformers where dependable magnetic performance and cost efficiency remain important. Broad utilization across conventional transformer designs and the availability of compatible manufacturing processes continue to sustain demand for the standard core-loss grade segment.
The ultra-low core-loss grade segment is expected to grow at a CAGR of 7.4% during the forecast period, propelled by stricter energy-efficiency requirements for transformer systems and greater emphasis on reducing electricity losses during power transmission.
The mother coil segment accounted for a share of 46.8% in 2025, supported by its suitability for high-volume transformer core production and efficient material handling during manufacturing. Consistent demand from large transformer manufacturers and electrical steel processors for continuous coil formats contributes to the segment’s leading position.
The cut-to-length sheet segment is expected to grow at a CAGR of 6.5% during the forecast period, driven by the need for precisely dimensioned electrical steel components in transformer core fabrication. Preference for application-specific core dimensions and improved material utilization supports demand for pre-cut sheets, leading to segment growth.
The power transformers segment accounted for a share of 39.8% in 2025. Grid reinforcement projects, expanding electricity generation capacity, and long-distance power transmission infrastructure continue to sustain demand for grain oriented electrical steel in this application.
The distribution transformers segment is expected to grow at a CAGR of 5.7% during the forecast period, fueled by expanding electricity access, grid decentralization, and replacement of aging distribution equipment.
The electric utilities segment accounted for a share of 35.6% in 2025, supported by extensive requirements for transformers used across electricity transmission and distribution networks.
The renewable energy segment is expected to grow at a CAGR of 7.5% during the forecast period, driven by the integration of solar and wind power into electricity grids.
The direct sales segment accounted for a share of 57.4% in 2025, supported by the large-volume procurement practices of transformer manufacturers and electrical equipment producers. Long-term supplier relationships and bulk-order requirements contribute to the strong position of direct sales.
The processors and converters segment is expected to grow at a CAGR of 6.6% during the forecast period, propelled by the need for specialized processing of grain oriented electrical steel into application-ready formats.
Speak to an Analystto discuss market opportunities.
Market Dominance Led by Grid Expansion and Large Transformer Manufacturing
The Asia Pacific grain oriented electrical steel market accounted for 61.19% of the global market in 2025, supported by large-scale electricity networks, transformer production, renewable-power integration, and ongoing upgrades to transmission and distribution systems.
The Japan grain oriented electrical steel market accounted for a share of 28.0% in 2025. The country's electrical steel market is supported by high-efficiency transformer manufacturing and advanced power-grid infrastructure. Japanese steelmakers maintain strong expertise in high-grade electrical steel, while utilities are upgrading aging grid equipment, creating demand for GOES used in transformer cores.
The China grain oriented electrical steel market accounted for an estimated 45.0% of the Asia Pacific market in 2025. The market benefits from its large transformer manufacturing base and rapid expansion of power transmission infrastructure. The continued development of ultra-high-voltage transmission lines and renewable-energy connections requires high-performance transformer cores, directly supporting consumption of grain oriented electrical steel.
The India grain oriented electrical steel market accounted for an estimated 15.0% of the Asia Pacific market in 2025. India’s grain oriented electrical steel market is gaining from rapid expansion of transmission networks, transformer capacity, and renewable-power infrastructure. The government’s Revamped Distribution Sector Scheme is supporting the modernization and strengthening of electricity distribution systems, increasing demand for efficient magnetic-core materials.
Unlock Regional Insightsto access country-level data, & regional trends.
Fastest Growth Driven by Robust Production Base of Transformers and Grid Components
The North America grain oriented electrical steel market is projected to expand at a CAGR of 14.20% during the forecast period, supported by rising transformer requirements and efforts to strengthen domestic supply chains for critical electrical components.
The U.S. grain oriented electrical steel market was valued at an estimated USD 1.85 billion in 2025. The U.S. Department of Energy's planned program of up to USD 375 million aims to strengthen domestic production of transformers, materials, and related grid components. According to the U.S. Department of Energy, the Transformer Resilience and Advanced Components (TRAC) program is also developing advanced transformers to meet future grid demand and reinvigorate domestic transformer manufacturing.
The Canada grain oriented electrical steel market was valued at an estimated USD 0.42 billion in 2025. The Canadian Electricity Association’s Net-Zero Electricity Sector strategy promotes grid expansion, replacement of aging infrastructure, and increased electrification, raising requirements for transformers and related magnetic-core materials such as GOES.
Market Demand Led by Grid Expansion
The Europe grain oriented electrical steel market is expected to grow at a CAGR of 5.2% during the forecast period. In March 2026, the European Commission launched a safeguard investigation into imports of grain-oriented electrical steel, responding to pressure on EU producers and potentially reshaping regional sourcing and competitive conditions for transformer-grade GOES.
The UK grain oriented electrical steel market was valued at an estimated USD 0.86 billion in 2025. The country's electricity network expansion creates additional transformer requirements. According to the Office of Gas and Electricity Markets (Ofgem), RIIO-3 will unlock USD 37.9 billion in energy-network investment between 2026 and 2031, supporting grid expansion and upgrades that require transformers and GOES.
The Germany grain oriented electrical steel market was valued at an estimated USD 1.12 billion in 2025. Germany’s north-to-south power corridors create a distinct source of transformer demand, particularly as renewable electricity is moved toward major consumption centers. The Bundesnetzagentur reported that around 2,000 km of power lines received approval in 2025, strengthening the country’s high-voltage network and associated transformer infrastructure, leading GOES market growth.
Market Demand Supported by Favorable Electrificaiton Initiatives
The Latin America grain oriented electrical steel market is expected to grow at a CAGR of 4.8% during the forecast period, supported by the expansion of energy infrastructure and substation upgrades.
According to Brazil’s Ministry of Mines and Energy (MME), around USD 22.5 billion is projected for expansion of the country’s electricity transmission system through 2035, supporting demand for transformers and other electrical equipment that use grain oriented electrical steel. Mexico’s 2025–2039 grid modernization program is reinforcing national transmission and distribution networks, increasing the need for magnetic materials and silicon steel in new and upgraded electrical installations.
Market Growth Led by Expansion of High-voltage Networks
The Middle East & Africa grain oriented electrical steel market is expected to grow at a CAGR of 4.6% during the forecast period, supported by renewable power integration. Saudi Energy focuses on enlarging its electricity network to support industrial projects and renewable generation. Eskom’s Transmission Development Plan of South Africa is also driving a major expansion of the high-voltage network, requiring new substations and transmission equipment while strengthening the country’s electricity transmission infrastructure.
The grain oriented electrical steel market competitive landscape is concentrated among specialized electrical-steel producers and diversified steel manufacturers, with competition also involving precision processing companies, magnetic-material suppliers, and regional steelmakers. Key players such as Cleveland-Cliffs Inc., Arnold Magnetic Technologies, Tempel Steel, JFE Shoji Corporation, and Nippon Steel Corporation accounts for approximately 25–30% of the global grain oriented electrical steel market share.
Established participants compete primarily through magnetic loss performance, permeability, steel-grade consistency, production scale, and coating technology. Emerging, niche, and regional companies in the grain oriented electrical steel market ecosystem compete through customized dimensions, small-batch production, and localized supply.
April 2026: thyssenkrupp Steel Europe publicly supported the European Commission's safeguard investigation and called for rapid measures against low-cost Asian imports.
October 2025: Cleveland-Cliffs disclosed a U.S. government contract covering up to 53,000 net tons of grain-oriented electrical steel for the national-security stockpile.
Customize This Report to Match Your Strategic Objectives
Author's Details
Research Head
Ismail Sutaria is a market intelligence and strategy professional with over 12 years of experience advising organizations across the chemicals, packaging, industrial machinery, and energy & power sectors. He specializes in delivering data-driven market assessments, commercial due diligence, industry benchmarking, demand forecasting, competitive strategy, and growth advisory that enable businesses to make confident investment and expansion decisions in complex industrial markets.
His expertise spans specialty and commodity chemicals, advanced and sustainable packaging solutions, industrial automation, manufacturing equipment, process engineering, renewable energy, conventional power generation, electrical infrastructure, and industrial technologies. Ismail has developed deep domain knowledge in evaluating market ecosystems, technology evolution, regulatory frameworks, supply-demand dynamics, pricing trends, value chain structures, and competitive landscapes across global and regional markets.
Diamond Market Size, Share, Growth, Analysis, Report, 2034
Europe Aluminum Die Casting Market Size, Share, Growth & Forecast 2034
Aluminum Die Casting Market Size, Share, Growth, Analysis, 2034
Cobalt Market Size, Share, Growth, Opportunities, Analysis, 2034
Automotive Metal Market Size, Share, Growth, Forecast, 2034
Electrical Steel Market Size, Share, Growth, Forecast, 2034
We are featured on:
sales@straitsresearch.com