North America Electrical Steel Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

Electrical Steel Market Size

• The North America electrical steel market size was valued at USD 4.22 billion in 2024 and is expected to reach USD 6.94 billion by 2032, at a CAGR of 6.4% during the forecast period
• The market growth is primarily driven by increasing demand for energy-efficient electrical equipment, advancements in electric vehicle (EV) production, and the expansion of renewable energy infrastructure
• In addition, the rising focus on reducing core losses in transformers and motors, coupled with technological advancements in electrical steel manufacturing, is accelerating market adoption across various industries

Electrical Steel Market Analysis

• Electrical steel, known for its high magnetic permeability and low core losses, is a critical material used in the production of motors, transformers, and power generators, supporting energy efficiency and performance in electrical systems
• The growing demand for electrical steel is fueled by the rapid expansion of the automotive sector, particularly in electric vehicles, and the increasing deployment of renewable energy sources such as wind and solar power
• Canada dominated the North America electrical steel market with the largest revenue share of 45.12% in 2024, driven by its robust energy and power sector, significant investments in renewable energy, and a well-established manufacturing base
• The U.S. is expected to be the fastest-growing country in the North America electrical steel market during the forecast period, propelled by the rising adoption of electric vehicles, government incentives for clean energy, and innovations in electrical steel applications
• The Non-Grain Oriented Electrical Steel segment dominated the largest market revenue share of 56.49% in 2023, driven by its versatile applications in electric motors, generators, and household appliances, particularly in the U.S., where demand for electric vehicles (EVs) and energy-efficient devices is surging

Report Scope and Electrical Steel Market Segmentation      

Electrical Steel Market Trends

“Increasing Integration of Advanced Materials and Manufacturing Technologies”

• The North America electrical steel market is experiencing a significant trend toward the integration of advanced materials and innovative manufacturing technologies
• These advancements, such as improved alloy formulations and enhanced processing techniques such as thin slab casting and continuous annealing, optimize magnetic properties, including high permeability and low core losses
• Advanced electrical steel solutions enable more efficient energy conversion, reducing energy losses in applications such as transformers and electric motors.
  • For instance, manufacturers are developing high-grade non-grain oriented electrical steel (NGOES) with superior magnetic properties to meet the demands of high-performance electric vehicle (EV) motors and renewable energy systems
• This trend enhances the efficiency and sustainability of electrical steel applications, making them increasingly attractive to industries such as automotive and energy
• New insulating coatings and varnishes with improved thermal and electrical properties are being developed to further reduce core losses and enhance the performance of electrical steel laminations

Electrical Steel Market Dynamics

Driver

“Rising Demand for Electric Vehicles and Renewable Energy Infrastructure”

• The growing consumer and industrial demand for electric vehicles (EVs) and renewable energy sources, such as wind and solar power, is a major driver for the North America electrical steel market
• Electrical steel is critical for manufacturing energy-efficient transformers, motors, and generators, which are essential components in EVs and renewable energy systems
• Government mandates, particularly in Canada and the U.S., promoting energy efficiency and sustainable energy solutions, are accelerating the adoption of electrical steel
• The proliferation of smart grid technologies and the modernization of electrical infrastructure in North America further support the expansion of electrical steel applications, enabling efficient power distribution and transmission
• Automakers and energy companies are increasingly incorporating high-performance electrical steel, such as NGOES, to meet stringent efficiency standards and enhance system performance
• Canada dominates the market due to its leadership in renewable energy adoption and infrastructure development, while the U.S. is the fastest-growing country, driven by robust EV production and power generation advancements

Restraint/Challenge

“High Production Costs and Supply Chain Volatility”

• The significant initial investment required for producing high-quality electrical steel, including advanced manufacturing equipment and raw materials such as ferrosilicon, poses a barrier to market growth, particularly in cost-sensitive regions
• The complexity of producing thin-gauge electrical steel with precise magnetic properties increases production costs, which can deter adoption in some applications
• Supply chain disruptions, such as fluctuations in raw material availability and prices, further complicate production and impact market stability
• In addition, concerns over environmental regulations and compliance with sustainability standards add complexity to manufacturing processes, increasing operational costs
• These factors can limit market expansion, particularly in emerging applications where cost sensitivity is a significant concern
• Despite these challenges, ongoing advancements in manufacturing efficiency and recycling methods are helping to mitigate some of these constraints, aligning with North America’s focus on sustainability

Electrical Steel market Scope

The market is segmented on the basis of type, thickness, core losses, flux density, application, and end-user.

• By Type

On the basis of type, the North America electrical steel market is segmented into Non-Grain Oriented Electrical Steel (NGOES) and Grain Oriented Electrical Steel (GOES). The Non-Grain Oriented Electrical Steel segment dominated the largest market revenue share of 56.49% in 2023, driven by its versatile applications in electric motors, generators, and household appliances, particularly in the U.S., where demand for electric vehicles (EVs) and energy-efficient devices is surging. Its isotropic magnetic properties make it ideal for rotating machinery, enhancing efficiency and performance.

The Grain Oriented Electrical Steel segment is expected to witness the fastest growth rate of 6.7% from 2025 to 2032, fueled by increasing demand for energy-efficient transformers in power distribution networks. Technological advancements in GOES, such as improved magnetic properties and reduced core losses, further drive its adoption in high-performance applications such as large transformers and generators.

• By Thickness

On the basis of thickness, the North America electrical steel market is segmented into 0.23 MM, 0.27 MM, 0.30 MM, 0.35 MM, 0.5 MM, 0.65 MM, and others. The 0.23 MM segment is expected to dominate with a market share of 42.52% in 2024, owing to its widespread use in small transformers, motors, and household appliances such as refrigerators and air conditioners, where superior efficiency in reducing core losses is critical.

The 0.30 MM segment is anticipated to experience the fastest growth rate of 7.2% from 2025 to 2032, driven by increasing demand in the automotive industry, particularly for electric vehicle motors, where this thickness offers a balance of magnetic performance and mechanical strength.

• By Core Losses

On the basis of core losses, the North America electrical steel market is segmented into Less than 0.9 W/KG, 0.90 W/KG to 0.99 W/KG, 1.00 W/KG to 1.29 W/KG, 1.30 W/KG to 1.39 W/KG, and Above 1.39 W/KG. The Less than 0.9 W/KG segment is expected to hold the largest market share of 43.14% in 2024, as low core loss electrical steel is critical for high-efficiency applications such as transformers and EV motors, aligning with the region’s focus on energy efficiency and sustainability.

The 0.90 W/KG to 0.99 W/KG segment is projected to grow rapidly from 2025 to 2032, driven by its use in cost-effective, high-performance motors and generators, particularly in Canada’s renewable energy sector, where energy-efficient materials are in high demand.

• By Flux Density

On the basis of flux density, the North America electrical steel market is segmented into Above 1.76 Tesla, 1.73 Tesla to 1.76 Tesla, 1.69 Tesla to 1.73 Tesla, 1.65 Tesla to 1.69 Tesla, and Less than 1.65 Tesla. The Above 1.76 Tesla segment is expected to dominate with a market share of 605.04% in 2024, driven by its critical role in power generation industries, particularly in the U.S., where high flux density materials are used in advanced transformers and generators to support grid modernization.

The 1.73 Tesla to 1.76 Tesla segment is expected to witness significant growth from 2025 to 2032, as it caters to the growing demand for efficient electrical steel in EV motors and renewable energy applications, where high magnetic performance is essential.

• By Application

On the basis of application, the North America electrical steel market is segmented into Motors, Transformers, Power Generators, Inductors, Electrical Ballasts, Battery, Convertors, Shunt Reactors, Wound Cores, and Others. The Motors segment held the largest market share of 245.23% in 2023, driven by the rising adoption of electric vehicles and industrial automation, particularly in the U.S., where electrical steel enhances motor efficiency by minimizing energy losses.

The Transformers segment is anticipated to grow at the fastest rate of 7.1% from 2025 to 2032, fueled by increasing investments in grid modernization and renewable energy projects, especially in Canada, where high-efficiency transformers are critical for integrating wind, solar, and hydroelectric power.

• By End-User

On the basis of end-user, the North America electrical steel market is segmented into Energy and Power, Engineering, Automotive, Building and Construction, Household Appliances, and Others. The Energy and Power segment dominated with a market share of 35% in 2023, driven by the extensive use of electrical steel in transformers and generators for power generation and distribution, particularly in Canada’s renewable energy sector.

The Automotive segment is expected to witness the fastest growth rate of 7.9% from 2025 to 2032, propelled by the surging production of electric vehicles in the U.S., where electrical steel is essential for high-efficiency motors and other electrified components, aligning with the region’s push for sustainable mobility.

Electrical Steel Market Regional Analysis

• Canada dominated the North America electrical steel market with the largest revenue share of 45.12% in 2024, driven by its robust energy and power sector, significant investments in renewable energy, and a well-established manufacturing base
• The U.S. is expected to be the fastest-growing country in the North America electrical steel market during the forecast period, propelled by the rising adoption of electric vehicles, government incentives for clean energy, and innovations in electrical steel applications

U.S. Electrical Steel Market Insight

The U.S. is the fastest-growing country in the North America electrical steel market, fuelled by strong demand in the automotive sector, particularly for EV motors, and growing investments in renewable energy infrastructure. The trend towards energy efficiency and increasing regulations promoting sustainable materials further boost market expansion. Automakers’ growing use of electrical steel in high-performance motors complements aftermarket sales, creating a diverse product ecosystem.

Canada Electrical Steel Market Insight

Canada dominated the North America electrical steel market with the highest revenue share of 78.9% in 2024, driven by its advanced energy and power sector and increasing adoption of electrical steel in transformers and motors. The focus on upgrading outdated electrical infrastructure and rising demand for energy-efficient solutions encourage market growth. Strong domestic manufacturing and government initiatives promoting clean energy further enhance market penetration.

Electrical Steel Market Share

The electrical steel industry is primarily led by well-established companies, including:

• ArcelorMittal (Luxembourg)
• Cleveland-Cliffs Inc. (U.S.)
• Nippon Steel Corporation (Japan)
• POSCO (South Korea)
• Voestalpine AG (Austria)
• Thyssenkrupp AG (Germany)
• JFE Steel Corporation (Japan)
• United States Steel Corporation (U.S.)
• Aperam (Luxembourg)
• Baosteel Group Corporation (China)
• Tata Steel (India)
• AK Steel (U.S.)
• NLMK Group (Russia)
• Steel Authority of India Limited (India)
• Cogent Power Limited (U.K.)

What are the Recent Developments in North America Electrical Steel Market?

• In April 2024, ArcelorMittal revealed plans to build a USD 1.2 billion advanced manufacturing facility in Calvert, Alabama, dedicated to producing 150,000 metric tons of non-grain-oriented electrical steel (NOES) annually. This specialty steel is vital for electric vehicle (EV) motors, generators, and renewable energy systems. The initiative addresses a critical gap in the U.S. supply chain, reducing reliance on imports and supporting the Biden administration’s net-zero emissions goals. Backed by the U.S. Department of Energy, the project received $280.5 million in investment tax credits under the Inflation Reduction Act’s 48C program, recognizing electrical steel as a critical material for clean energy technologies
• In December 2023, Nippon Steel Corporation, via its subsidiary NIPPON STEEL NORTH AMERICA, INC., announced the acquisition of United States Steel Corporation (U.S. Steel) for USD 14.9 billion, marking one of the largest foreign takeovers in U.S. manufacturing history. The deal, finalized in June 2025, positions Nippon Steel as a dominant player in North America’s steel market, particularly in the production of electrical steel—a critical material for EV motors, transformers, and renewable energy systems
• In October 2023, United States Steel Corporation (U.S. Steel) inaugurated a new non-grain-oriented (NGO) electrical steel production line at its Big River Steel facility in Osceola, Arkansas. With an annual capacity of 200,000 metric tons, this line is the largest of its kind in the U.S., surpassing other domestic producers in volume. The facility utilizes up to 90% recycled scrap steel, reducing carbon emissions by 70–80% compared to traditional methods. The line produces InduX™, a steel grade essential for EV motors, generators, and renewable energy systems, reinforcing U.S. Steel’s role in advancing clean energy infrastructure
• In May 2023, JFE Shoji Power Canada, a division of JFE Holdings, announced a major expansion initiative in collaboration with strategic partners to meet surging demand for electrical steel components used in power and distribution transformers. The company committed to significant investments in new machinery and workforce development, aiming to boost production capacity by at least 40% for distribution transformer cores and more than double for large power transformer cores by the end of 2023. This move supports the rapid growth of clean energy infrastructure across North America, including grid modernization and electrification efforts
• In January 2023, Cleveland-Cliffs Inc. introduced the MOTOR-MAX® product line—high-frequency non-oriented electrical steels (HF NOES) engineered for EV traction motors, generators, and other rotating equipment. These steels are optimized for low core loss and high energy efficiency at frequencies above 60 Hz, making them ideal for electric vehicles and renewable energy systems. As the only U.S.-based producer of automotive-quality electrical steels, Cleveland-Cliffs designed MOTOR-MAX to support domestic manufacturing, reduce supply chain risks, and lower greenhouse gas emissions through electric arc furnace (EAF) production using recycled materials

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