Introduction

The grain oriented electrical steel market sits at the center of how electricity is transmitted and distributed. Grain oriented electrical steel (GOES) is steel with its grain aligned in one direction to enhance magnetic properties, and it is used in transformer and electric motor cores to reduce energy losses. For utilities, equipment makers, and procurement teams, understanding where demand originates is essential to sourcing and capacity planning. This article draws on the Polaris Market Research report to explain the regulatory, infrastructure, and product factors behind that demand.

Market Snapshot from Polaris Market Research

According to Polaris Market Research, the global market was valued at USD 13.75 billion in 2025, with a 2026 market estimate of USD 14.04 billion. It is projected to reach USD 22.71 billion by 2034, expanding at a CAGR of 5.7% from 2026 to 2034. North America was the largest market in 2025.

Regulation Is Pushing Manufacturers Toward GOES

Governments are tightening energy-efficiency regulations for power transmission, transformers, and motors, which is pushing manufacturers toward GOES. The logic is practical. Transformers are critical to efficient power transmission, and GOES minimizes core energy losses, which improves transformer efficiency. That is why the transformer application held a 72.1% revenue share in 2025, the largest among applications. The report also covers power generators, electric motors, and other applications.

For buyers, this means material specifications are increasingly tied to compliance and operating performance rather than purchase price alone. Producers able to document low-loss performance in transformer cores are better placed to meet these requirements.

Urbanization and Electricity Demand

The report points to two demand signals. The World Bank reported that 57% of the global population lived in urban areas in 2023, increasing demand for power grids, electrical systems, and industrial machinery. In addition, the International Energy Agency reported that global electricity consumption grew 2.2% in 2023 versus 2022, which drives demand for efficient transformers and grid modernization.

Renewable energy projects and grid modernization are also raising demand for GOES, so manufacturers are expanding capacity and strengthening supply chains. Steel, silicon, and energy prices affect manufacturing costs and profitability, which makes supply planning a competitive factor.

𝐁𝐫𝐨𝐰𝐬𝐞 𝐌𝐨𝐫𝐞 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬:

https://www.polarismarketresearch.com/industry-analysis/grain-oriented-electrical-steel-market 

Product Type and Thickness Segmentation

By product type, conventional GOES held the largest share at 68.4% in 2025, valued for its cost-effectiveness and reliable performance in transformers and electrical equipment. The report also covers high magnetic strength sheets as part of its product segmentation.

Thickness is a second segmentation lens. The report covers 0.2 mm and below, 0.23 mm, 0.27 mm, 0.30 mm, and 0.35 mm and above. For engineering and purchasing teams, this range reflects the different core designs that GOES must serve.

Regional Demand Patterns

North America held a 37.9% share in 2025, driven by demand for energy-efficient systems. The report cites grid modernization and energy-efficiency demand, with the US and Canada investing in infrastructure and renewable energy, and electric vehicle adoption also boosting demand.

Asia Pacific held a 34.6% share in 2025, supported by urbanization and industrialization in emerging economies. The report highlights China, Japan, and South Korea, and notes that the region is a major power generation and distribution hub where growth in wind and solar is increasing the need for efficient transmission.

India is projected to grow at a 6.5% CAGR, driven by infrastructure and power transmission investment, a growing industrial sector, and renewable energy projects. The report also points to government initiatives for efficiency and grid upgrades. The report additionally covers Europe, Latin America, and the Middle East & Africa.

Competitive Intensity and Restraints

The report's Porter's Five Forces assessment rates rivalry among existing firms as high, the threat of new entrants as low, and the bargaining power of suppliers, the bargaining power of buyers, and the threat of substitutes as moderate. High initial investment is listed as a restraint and challenge. Together, these ratings describe a market where capital requirements limit new entry, while established producers compete closely for the same utility and equipment customers.

For procurement teams, the practical implication is to evaluate suppliers on documented magnetic performance, delivery reliability, and exposure to raw material and energy costs, since the report notes that these costs influence manufacturing profitability.

Key Players in the Grain Oriented Electrical Steel Market

The report names ArcelorMittal, POSCO, Stalprodukt S.A., Baosteel Group Corporation, NIPPON STEEL CORPORATION, JFE Steel Corporation, thyssenkrupp Steel, Cleveland-Cliffs Inc., Arnold Magnetic Technologies, and VIZ-Steel as key players.

NIPPON STEEL CORPORATION is based in Tokyo and described as Japan's largest steel producer. Its ORIENTCORE HI-B grain-oriented silicon iron is used in transformers for reduced core loss and noise. ArcelorMittal S.A., based in Luxembourg and described as the second-largest steel producer in the world, was formed in 2007 through the merger of Mittal Steel and Arcelor and operates in 16 countries.

Conclusion

Demand for grain oriented electrical steel is tied to efficiency, power infrastructure, and cleaner energy. Energy-efficiency regulations shape specifications, core energy losses and transformer efficiency define product value, and grid modernization keeps utilities investing. With conventional GOES leading product types, Polaris Market Research insights offer B2B stakeholders a clear reference for supplier and investment decisions.

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