Table of Contents
Introduction
The Global Non-Grain-Oriented Electrical Steel Market is projected to reach approximately USD 29.1 billion by 2033, up from USD 17.7 billion in 2023, reflecting a compound annual growth rate (CAGR) of 5.1% during the forecast period from 2024 to 2033.
Non-Grain-Oriented Electrical Steel (NGOES) is a critical material used primarily in electric motors, generators, and transformers due to its superior magnetic properties and energy efficiency. Unlike grain-oriented electrical steel, which is optimized for specific directional properties, NGOES exhibits uniform magnetic characteristics in all directions, making it highly suitable for rotating machinery.
The Non-Grain-Oriented Electrical Steel Market encompasses the production, distribution, and utilization of NGOES across various industries, including automotive, power generation, and consumer electronics. The market is experiencing significant growth, driven by the rising adoption of electric vehicles (EVs), increased investment in renewable energy infrastructure, and the expanding industrial sector’s demand for efficient energy solutions.
The growing need for energy-efficient electrical components in smart grids and industrial automation is further propelling market expansion. Additionally, government regulations promoting energy conservation and carbon emission reduction are fostering higher adoption rates. Demand for NGOES is accelerating due to the surge in EV production, as automakers require high-performance electrical steel for motors, leading to increased consumption.
Moreover, the rapid expansion of renewable energy projects, particularly wind and hydroelectric power, is creating substantial demand for NGOES in generator applications. The market also presents lucrative opportunities in emerging economies, where industrialization and urbanization are leading to heightened electricity consumption and infrastructure development.
Furthermore, advancements in material technology, such as improved insulation coatings and enhanced processing techniques, are expected to drive innovation and increase product efficiency, fostering long-term market growth. As the world transitions toward electrification and sustainability, the NGOES market is poised for robust expansion in the coming years.
Key Takeaways
- The Non-Grain-Oriented Electrical Steel (NGOES) market is expected to expand from USD 17.7 billion in 2023 to USD 29.1 billion by 2033, registering a CAGR of 5.1%.
- The 0.35mm thickness category dominated the market in 2023 with a 38% share, attributed to its widespread use in high-efficiency motors and transformers.
- Semi-Processed NGOES accounted for 53% of the market share in 2023, owing to its cost-effectiveness and adaptability, making it a preferred choice for manufacturers.
- The Power Generation sector held over 40% of the market share in 2023, driven by the increasing demand for renewable energy infrastructure and grid modernization efforts.
- Asia-Pacific emerged as the leading market with a 36.2% share in 2023, supported by rapid industrialization, rising EV adoption, and significant renewable energy investments, particularly in China and India.
Report Scope
| Report Features | Description |
|---|---|
| Market Value (2023) | USD 17.7 Billion |
| Forecast Revenue (2033) | USD 29.1 Billion |
| CAGR (2024-2033) | 5.1% |
| Segments Covered | By Thickness (0.35mm, 0.50mm, 0.65mm), By Type (Semi-Processed, Fully Processed), By Application (Household Appliances, Power Generation, AC Motors) |
| Competitive Landscape | Longbank Steel, Tata Steel, Nucor Corporation NLMK, ArcelorMittal S.A., Shougang Group, thyssenkrupp Steel, Baosteel Group Corporation, POSCO, Nippon Steel Corporation, Voestalpine Group, Yieh Corporation, Aperam S.A., Arnold Magnetic Technologies, Other Key Players |
Emerging Trends
- Increased Adoption of Electric Vehicles (EVs): The global shift towards sustainable transportation has led to a surge in EV production. NGOES is a critical material in EV motors due to its superior magnetic properties, contributing to the efficiency and performance of these vehicles.
- Advancements in Manufacturing Technologies: Technological innovations, such as improved rolling techniques and eco-friendly coatings, have enhanced the performance of NGOES. These advancements result in reduced energy losses and improved efficiency in electrical applications.
- Expansion of Renewable Energy Infrastructure: The global emphasis on renewable energy sources, like wind and solar power, has increased the demand for NGOES in generators and transformers, essential components in renewable energy systems.
- Urbanization and Industrialization: Rapid urbanization and industrial growth, especially in emerging economies, have escalated the demand for energy-efficient appliances and infrastructure, thereby boosting the NGOES market.
- Government Regulations on Energy Efficiency: Stringent energy efficiency standards imposed by governments worldwide have propelled the adoption of NGOES in various applications to meet regulatory requirements.
Top Use Cases
- Electric Motors: NGOES is extensively used in manufacturing electric motors for industrial machinery, household appliances, and electric vehicles, owing to its isotropic magnetic properties.
- Transformers: Distribution and power transformers utilize NGOES to ensure efficient energy transmission and reduce core losses, which is vital for energy conservation.
- Generators: In power generation, NGOES is employed in generators to enhance efficiency and performance, particularly in renewable energy applications.
- Household Appliances: Appliances such as refrigerators, air conditioners, and washing machines incorporate NGOES in their motors to improve energy efficiency and performance.
- Automotive Industry: Beyond EVs, NGOES is used in conventional vehicles for components like alternators and starters, contributing to overall vehicle efficiency.
Major Challenges
- Volatility in Raw Material Prices: Fluctuations in the prices of raw materials, such as iron ore and alloys, can impact the production costs of NGOES, affecting market stability.
- Intense Market Competition: The presence of numerous players in the NGOES market leads to competitive pricing, which can pressure profit margins.
- Environmental Regulations: Stringent environmental laws regarding emissions and waste management in steel production pose challenges for NGOES manufacturers to comply without incurring additional costs.
- Technological Barriers: Continuous advancements require significant investment in research and development, which can be a hurdle for smaller manufacturers.
- Supply Chain Disruptions: Global events disrupting supply chains can lead to shortages of raw materials or delays in product delivery, affecting the NGOES market.
Top Opportunities
- Emerging Markets Expansion: Developing countries present significant growth opportunities for NGOES due to increasing industrialization and infrastructure development.
- Technological Collaborations: Partnerships between NGOES manufacturers and technology firms can lead to innovative solutions, enhancing product performance and opening new market avenues.
- Sustainable Manufacturing Practices: Adopting eco-friendly production methods can attract environmentally conscious consumers and comply with global sustainability trends.
- Product Diversification: Developing specialized NGOES products tailored for specific applications can meet diverse industry needs and reduce market saturation.
- Government Initiatives: Leveraging government incentives and subsidies aimed at promoting energy-efficient technologies can boost the NGOES market.
Key Player Analysis
The Global Non-Grain-Oriented (NGO) Electrical Steel Market in 2024 is characterized by intense competition among major players, each leveraging advanced manufacturing capabilities and strategic expansions to strengthen market positioning. Longbank Steel, Tata Steel, and Nucor Corporation continue to enhance production efficiency and innovate in high-performance electrical steel, catering to the growing demand from the energy and automotive sectors.
NLMK, ArcelorMittal S.A., and Shougang Group are expanding their footprints in emerging markets while investing in sustainable production processes to align with evolving regulatory norms. Thyssenkrupp Steel, Baosteel Group, and POSCO remain industry leaders with strong R&D initiatives, focusing on reducing core losses and improving magnetic properties.
Nippon Steel Corporation, Voestalpine Group, and Aperam S.A. emphasize specialty steel solutions, targeting high-efficiency motors and renewable energy applications. Meanwhile, Arnold Magnetic Technologies and Yieh Corporation contribute niche innovations, while other key players enhance regional supply chain resilience. This competitive landscape underscores technological advancements, capacity expansions, and sustainability as critical growth drivers.
Top Key Players
- Longbank Steel
- Tata Steel
- Nucor Corporation NLMK
- ArcelorMittal S.A.
- Shougang Group
- thyssenkrupp Steel
- Baosteel Group Corporation
- POSCO
- Nippon Steel Corporation
- Voestalpine Group
- Yieh Corporation
- Aperam S.A.
- Arnold Magnetic Technologies
- Other Key Players
Regional Analysis
Asia-Pacific Dominates the Non-Grain-Oriented Electrical Steel Market with the Largest Market Share of 36.2% in 2024
Asia-Pacific holds the largest share in the Non-Grain-Oriented (NGO) Electrical Steel Market, accounting for 36.2% of the global revenue in 2024, valued at approximately USD 6.4 billion. The region’s market dominance is driven by rapid industrialization, expanding power generation infrastructure, and increasing adoption of electric vehicles (EVs) across key economies such as China, Japan, India, and South Korea.
China, in particular, remains the largest consumer and producer of NGO electrical steel, benefiting from strong government policies supporting renewable energy and electric mobility. Additionally, the rising demand for energy-efficient electrical appliances and transformers further fuels market expansion. The presence of major steel manufacturers and technological advancements in steel processing further strengthen the region’s leadership in the global NGO electrical steel industry.
Recent Developments
- In 2023, United States Steel Corporation (NYSE: X) revealed plans to launch production of InduX™, a specialized electrical steel, at its Big River Steel facility. Set to commence in the summer, this non-grain oriented (NGO) steel is designed for electric vehicles, generators, and transformers. With its ultra-thin and lightweight composition, InduX™ enhances motor efficiency, contributing to improved EV mileage. By manufacturing this advanced material domestically, U.S. Steel strengthens the local supply chain and creates job opportunities in the industry.
- In January 2024, nearly 1.2 million U.S. consumers opted for electric vehicles, marking a significant milestone in EV adoption. Data from Kelley Blue Book highlighted a rise in market share, with EVs accounting for 7.6% of total vehicle sales, up from 5.9% in 2022. The final quarter of 2023 set a record in EV sales, surging 52% from the previous year. Between October and December, 317,168 electric vehicles were sold, making up 8.1% of total new car purchases. The average price for an EV in December stood at $50,789.
- In February 2024, ArcelorMittal confirmed its plans to construct a cutting-edge non-grain-oriented electrical steel (NOES) production facility in Alabama. This plant, solely owned by the company, will have the capacity to produce up to 150,000 metric tons annually. The new production line is expected to support industries such as automotive, renewable energy, and commercial applications that require efficient electric motors and generators.
Conclusion
The Non-Grain-Oriented Electrical Steel (NGOES) market is poised for significant growth, driven by the increasing demand for energy-efficient electrical components across various sectors. The rising adoption of electric vehicles (EVs), expansion of renewable energy infrastructure, and rapid industrialization are key factors propelling this market. Advancements in manufacturing technologies and supportive government regulations further enhance the market’s potential. As industries continue to prioritize efficiency and sustainability, the NGOES market is expected to experience robust expansion in the coming years.
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