The global electrical steel market, a core segment of the transformer steel industry, is valued at an estimated USD 47.09 billion in 2024. Projections indicate the market will grow to USD 50.44 billion by 2025 and further expand to USD 93.51 billion by 2034, achieving a CAGR of 7.10% from 2025 to 2034.
Key Takeaways in the Transformer Steel Market
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Market revenue in 2025: USD 50.44 billion.
Projected value in 2034: USD 93.51 billion.
CAGR (2025–2034): 7.10%.
By product, non-grain oriented electrical steel (NGOES) dominates with over 71% market share in 2024.
By application, the transformer segment — heavily dependent on grain-oriented transformer steel — accounts for 53% of total market share in 2024.
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By end-user, the energy sector leads with 34% market share.
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Asia Pacific holds over 72% of revenue in 2024, while North America accounts for 9%.
Asia Pacific Transformer Steel & Electrical Steel Market Outlook
The Asia Pacific market is estimated at USD 36.32 billion in 2025, with expectations to reach USD 67.79 billion by 2034 at a CAGR of 7.17%. The region’s rapid growth stems from its position as the world’s largest market for power transformers, driving strong demand for grain-oriented transformer steel.
Asia Pacific Electrical Steel Market Size 2025 to 2034（USD Billion）
China remains the top global manufacturer of power transformers, while India is experiencing fast growth fueled by renewable energy expansion, rising electricity demand, and urbanization. Indonesia and other Southeast Asian markets are also contributing to the surge in transformer steel consumption.
Electrical Steel Market Share,By Region,2024（%）
North American Transformer Steel Trends
North America is set for steady growth, driven by:
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Expanding machinery and automotive sectors, both heavy users of transformer steel in motors, generators, and transformers.
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Infrastructure upgrades, including smart grids and renewable integration.
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Rising electric and hybrid vehicle adoption, which increases demand for advanced grades of transformer steel.
In the U.S., transformer steel is essential for manufacturing transformers, motors, and industrial equipment, resulting in high consumption levels.
Market Overview
While the pandemic temporarily slowed the transformer steel supply chain, recovery is underway. Electrical steel — a soft magnetic alloy with 0.8–4.8% silicon content — reduces heat dissipation, improving efficiency in transformers, motors, and generators. With governments prioritizing energy efficiency, transformer steel demand is further bolstered by:
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Replacement of aging transformers.
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Development of smart grids and high-efficiency transmission lines.
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Sustainability initiatives under the UN framework.
Growth Drivers in the Transformer Steel Industry
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Rising electricity demand from industrialization, population growth, and urbanization.
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International standardization of transformer steel grades, enhancing competitiveness and market access.
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EV adoption driving motor-grade non-grain oriented transformer steel demand.
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High-performance properties — such as abrasion resistance, strength, and vibration control — reduce production costs and improve quality.
Emerging Trends
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Demand for high magnetic strength transformer steel sheets in EV motors and stators.
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Development of sustainable, low-CO₂ production methods.
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Advanced manufacturing technologies like Spatially Optimized Diffusion Alloying (SODA).
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Use of grain-oriented transformer steel in wind turbine generators for renewable energy transmission.
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Enhanced coatings improving insulation and reducing power loss.
Type Insights
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Grain-Oriented Silicon Steel : fastest-growing segment due to grid upgrades, smart transformer initiatives, and large power transformer demand. CAGR of 4.6% (volume).
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Non-Oriented Silicon Stee : critical for efficient hybrid and electric vehicle motors.
Application Insights
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Motors: Largest growth potential, driven by EV adoption in Europe and North America.
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Transformers: Heavy reliance on grain-oriented transformer steel for optimal performance in power distribution.
MOOPEC: Your End-to-End Expert in Electrical Steel and Precision Processing
As global energy efficiency standards continue to rise, so do expectations for transformer core materials and processing technology. MOOPEC is committed to providing high-performance electrical steels—both CRGO and amorphous alloys—along with comprehensive processing services, including:
✅ Grain-oriented silicon steel (CRGO) material supply
✅ High-precision slitting and shearing
✅ Custom lamination cutting
✅ Automated core winding (planar)
✅ Amorphous alloy cutting and stacking
✅ Flexible batch production support
Whether you’re developing high-efficiency power transformers or require reliable material processing services, MOOPEC delivers premium materials and precision-engineered solutions to help enhance your product competitiveness.