Electrical steel market seen reaching $31.5 billion by 2033

By AI, Created 10:20 AM UTC, May 26, 2026, /AGP/ – Allied Market Research expects the global electrical steel market to grow from $18.1 billion in 2023 to $31.5 billion by 2033, driven by EV motors, renewable energy and industrial automation. Asia-Pacific is projected to lead the market as grid, transportation and manufacturing investment accelerates across the region.

Why it matters: - Electrical steel is a core input for motors, generators and transformers used in electric vehicles, renewable energy systems and power infrastructure. - The market’s projected rise to $31.5 billion by 2033 signals sustained demand for higher-efficiency materials that reduce energy loss. - Automakers, utilities and industrial manufacturers are likely to face stronger pressure to improve efficiency and lower operating costs.

What happened: - Allied Market Research released a study on the global electrical steel market on May 26, 2026. - The report projects the market will reach $31.5 billion by 2033. - The market was valued at $18.1 billion in 2023. - The forecast calls for 5.7% annual growth from 2024 to 2033. - The study covers market segments by type, application and end-use industry. - The report is available as a sample PDF here. - The full summary report is available here.

The details: - Process optimization and automation technologies are helping producers improve efficiency, cut waste and lower manufacturing costs. - Digital monitoring tools support real-time process control, quality assurance and predictive maintenance. - Demand for electric motors used in EVs is increasing demand for electrical steel because these motors help conduct electricity and minimize energy loss. - Raw material price swings are still a drag on market growth. - Grain-oriented electrical steel laminations are improving magnetic properties and reducing core losses. - Thinner laminations are further cutting energy loss and supporting more compact device designs. - New insulating coatings and varnishes are improving thermal and electrical performance and reducing core losses. - Machine learning and neural networks are being used to predict and optimize material behavior for lower core loss and better magnetic properties. - Ongoing research into new alloy formulations is expected to improve magnetic performance and efficiency.

Between the lines: - The report points to a market shifting from commodity steel production toward more specialized, high-performance material engineering. - Efficiency gains appear to be the main competitive lever, not just volume growth. - The emphasis on EVs, renewable power and compact devices suggests the strongest demand will come from electrification trends rather than traditional industrial use alone. - The regional outlook also suggests infrastructure buildout is becoming a major demand driver, not just vehicle electrification.

What’s next: - Asia-Pacific is expected to hold the largest market share during the forecast period. - Rapid growth in renewable energy infrastructure is one reason for the region’s lead. - Industrialization and urbanization across Asia-Pacific are adding demand for electrical steel. - Investment in infrastructure, including transportation networks, power grids and industrial facilities, is creating new opportunities in Indonesia and Vietnam. - The report says company profiles, R&D spending and strategic initiatives are included for leading players such as NIPPON STEEL CORPORATION, JFE Steel Corporation, Tata Steel, voestalpine Stahl GmbH, Baosteel Co.,Ltd., Cleveland-Cliffs Inc., ArcelorMittal, POSCO and Aperam. - Allied Market Research also says the study includes interviews with stakeholders and market participants to guide new entrants.

The bottom line: - Electrical steel demand is being pulled by electrification, grid investment and efficiency gains, with Asia-Pacific positioned to capture the biggest share of the growth.