NGO Electrical Steel Market Size & Growth [2033]

NGO Electrical Steel Market Overview

The NGO Electrical Steel Market size was valued at USD 18172.53 million in 2024 and is expected to reach USD 24383.77 million by 2033, growing at a CAGR of 3.3% from 2025 to 2033.

The NGO (Non-Grain Oriented) Electrical Steel Market serves as a critical material base for manufacturing rotating machines, including motors, generators, and automotive electrical systems. In 2023, global production of NGO electrical steel exceeded 13.2 million metric tons, with Asia-Pacific accounting for over 7.8 million metric tons, or 59% of global output. North America and Europe followed with 2.1 million metric tons and 2.5 million metric tons, respectively. Semi-processed NGO electrical steel comprised 63% of total output, while fully processed steel made up the remaining 37%. The growing shift toward electric vehicles and energy-efficient appliances fueled this demand, with the automotive industry alone consuming 2.7 million metric tons in 2023. Power generators used approximately 3.1 million metric tons, while home appliances accounted for 1.9 million metric tons globally. The material’s appeal lies in its isotropic magnetic properties, allowing for uniform flux density in all directions—ideal for high-speed motors and rotating components. Over 5,500 manufacturing facilities worldwide now rely on NGO electrical steel for precision applications, particularly those demanding low core loss and high magnetic permeability. With rising environmental standards, more than 38 countries revised electrical steel standards in 2023 to mandate higher efficiency in electromagnetic core materials.

Key Findings

Driver: Electrification of vehicles and rising demand for energy-efficient motors, with 2.7 million metric tons used in the automotive industry in 2023.

Country/Region: Asia-Pacific leads production with 7.8 million metric tons, contributing to 59% of global NGO electrical steel output.

Segment: Semi-processed NGO electrical steel dominates with 63% market share, equating to 8.3 million metric tons in 2023.

NGO Electrical Steel Market Trends

The NGO Electrical Steel Market is evolving rapidly due to structural shifts in the global energy and mobility sectors. In 2023, global demand exceeded 13.2 million metric tons, with key growth attributed to electrification in transportation and modernized power infrastructure. Semi-processed grades led consumption with 8.3 million metric tons, ideal for applications requiring downstream stamping and customization. Asia-Pacific dominated the market with 7.8 million metric tons produced, especially in China, South Korea, and India. China alone produced over 4.9 million metric tons, supported by more than 120 steel processing lines operating at near full capacity. India saw a 14% year-over-year increase in electrical steel output, with 670,000 metric tons devoted to the railway and power distribution sectors. In Europe, the transition to renewable energy accelerated the adoption of high-grade NGO steel in wind turbine generators. Over 450,000 metric tons were consumed in wind energy applications in Germany, Denmark, and Spain. Meanwhile, North America’s manufacturing footprint included 2.1 million metric tons of production, of which 780,000 metric tons were allocated to electric vehicle motor cores, particularly in the U.S. and Canada.

Another key trend is increased investment in high-frequency NGO grades, especially for industrial motors and robotics. Japan exported over 210,000 metric tons of high-frequency steel, used in motors operating above 3,000 RPM, while South Korea focused on ultra-thin steel strips of 0.23 mm thickness to reduce eddy current losses. Environmentally, manufacturers are shifting toward low-carbon and recyclable grades. In 2023, over 1.1 million metric tons of NGO electrical steel were produced using hydrogen-reduced iron methods in Europe and Japan. These sustainable grades were mostly used in home appliances and compact motor drives, meeting new eco-efficiency norms adopted by 22 EU countries. Technological upgrades are also shaping the market. Automated slitting lines, laser cutting for lamination, and advanced coating formulations have reduced material waste by 18% per metric ton. As of 2024, over 85 large-scale producers are incorporating AI-controlled processing to monitor grain orientation, core loss, and insulation integrity. These global trends underscore a shift from commodity-grade materials to application-optimized steel, redefining the performance expectations and supply chain investments of the NGO Electrical Steel Market.

NGO Electrical Steel Market Dynamics

DRIVER

Electrification of the transportation and appliance industries

The electrification wave in automotive and household sectors is a major driver of NGO electrical steel demand. In 2023, automotive applications alone consumed 2.7 million metric tons, while home appliances used 1.9 million metric tons. Electric vehicles require high-efficiency motor cores, and nearly 80% of EV motors now use fully processed NGO electrical steel. Washing machines, HVAC units, and induction cooktops increasingly depend on semi-processed grades, accounting for over 500,000 metric tons in home appliance applications across Asia and Europe. As EV adoption spreads to emerging markets, at least 450 new production lines are projected to require NGO electrical steel between 2024 and 2026.

RESTRAINT

Volatility in raw material prices

A major restraint is price instability in core inputs like silicon, iron ore, and alloying agents. In 2023, silicon prices rose by 19%, affecting over 60% of NGO electrical steel formulations, particularly high-frequency grades requiring greater silicon content. Additionally, logistical bottlenecks in Europe delayed 220,000 metric tons of electrical steel deliveries due to disrupted alloy imports. Smaller producers, especially in Southeast Asia and Africa, reported production downtimes averaging 11 days per quarter, resulting in supply chain fragility. This has made procurement planning and long-term contract pricing difficult for downstream manufacturers.

OPPORTUNITY

Growth in decentralized energy and smart grid systems

The emergence of decentralized renewable energy and smart grid networks is creating new demand streams for NGO electrical steel. In 2023, over 650,000 metric tons were used in power generator cores, microgrid transformers, and smart distribution units. India, Brazil, and Kenya installed more than 80,000 decentralized power units, each requiring NGO core laminations. Modern grid systems prefer high permeability steel that reduces core loss by up to 25%, improving overall energy efficiency. As nations move toward net-zero targets, an estimated 4.2 million metric tons of NGO steel will be needed for grid infrastructure upgrades through 2030.

CHALLENGE

Lack of standardization in processing grades across regions

One of the most persistent challenges is the lack of globally unified standards for NGO electrical steel grades. While 38 countries updated their material efficiency laws in 2023, discrepancies in insulation coating types, thickness tolerances, and magnetic loss classifications still exist. For example, the U.S. and Europe use different core loss thresholds for Class C5 steel, causing confusion for exporters managing multi-country compliance. This disparity affected over 19,000 tons of exported steel, which failed local standards and required reprocessing. Such misalignments lead to increased operational costs, delays in production, and reduced material efficiency.

NGO Electrical Steel Segmentation

The NGO Electrical Steel Market is segmented into two primary categories by type: Semi-processed and Fully Processed. By application, major segments include Motors, Home Appliances, Power Generators, Automotive, and Others.

By Type

Semi-processed: NGO Electrical Steel represented approximately 8.3 million metric tons in 2023, constituting 63% of total market volume. This type is characterized by moderate magnetic performance and is typically finished during motor lamination processes. Semi-processed grades are widely used in general-purpose motors and appliances. China, India, and Brazil collectively consumed over 4.5 million metric tons of semi-processed steel, with manufacturers favoring its versatility and cost-efficiency. Common thicknesses include 0.35 mm and 0.50 mm, and the material is optimized for frequencies under 60 Hz.
Fully Processed: NGO Electrical Steel accounted for 4.9 million metric tons, or 37% of the global total. These grades are stress-relieved and coated, offering low core loss and high permeability, ideal for electric vehicle traction motors and high-frequency generators. Japan, South Korea, and Germany were major users, together importing or producing over 2 million metric tons. Fully processed grades offer improved magnetic saturation of up to 1.7 Tesla and are commonly produced in 0.27 mm thickness for reduced eddy current losses.

By Application

Motors: dominated application usage, consuming 5.2 million metric tons in 2023. Over 62% of industrial motors and 80% of EV motors now rely on NGO electrical steel cores. Asia-Pacific led the segment with 3.1 million metric tons, used in fans, pumps, compressors, and drives.
Home Appliances: accounted for 1.9 million metric tons. Usage spanned across dishwashers, washing machines, refrigerators, and microwave ovens, particularly in Europe and Southeast Asia.
Power Generators: used 3.1 million metric tons, particularly in large-scale backup systems and renewable energy installations. High-frequency NGO grades are favored for better flux stability.
Automotive: applications consumed 2.7 million metric tons, especially in electric and hybrid vehicles. Inverters, stators, and converters require high-purity NGO steel, particularly in North America and China.
Other: applications including medical devices and robotic automation, accounted for 0.3 million metric tons, where miniaturized motors require ultra-thin NGO strips of 0.20–0.25 mm.

NGO Electrical Steel Regional Outlook

The NGO Electrical Steel Market demonstrates strong regional variation in demand, driven by industrial structure, energy policy, and automotive trends.

North America

remains a core demand center, producing 2.1 million metric tons in 2023. The U.S. accounted for 1.6 million metric tons, primarily used in EV manufacturing, industrial drives, and home appliance sectors. Over 150,000 metric tons were allocated to Tesla and GM EV supply chains. Canada and Mexico contributed 500,000 metric tons, with an increasing share devoted to wind and backup power generators.

Europe

contributed approximately 2.5 million metric tons, driven by green energy expansion and stricter efficiency norms. Germany led the region with 820,000 metric tons, focusing on wind turbine cores and high-frequency transformer applications. France, Italy, and the UK added 980,000 metric tons, heavily used in home appliances and hybrid vehicle components. Europe's increased investment in hydrogen-based steel production resulted in over 500,000 metric tons of low-carbon NGO steel.

Asia-Pacific

dominated globally with 7.8 million metric tons, or 59% of global volume. China produced 4.9 million metric tons, leading in EVs and industrial motors. India contributed 1.2 million metric tons, focusing on grid infrastructure and railway electrification. South Korea and Japan together manufactured 1.7 million metric tons, prioritizing ultra-thin, high-frequency grades for robotics and precision devices.

Middle East & Africa

region generated 0.8 million metric tons, with key demand from power generator manufacturing and emerging electrification projects. Saudi Arabia and the UAE accounted for 350,000 metric tons, mostly used in energy storage systems and industrial generators. South Africa’s rail electrification projects consumed 180,000 metric tons in 2023 alone.

List Of NGO Electrical Steel Companies

Baowu
Shougang
TISCO
Nippon Steel
Ansteel
Posco
JFE Steel
ThyssenKrupp
Voestalpine
ArcelorMittal
NLMK
CSC
AK Steel (Cleveland-Cliffs)
BX Steel

Baowu: Steel Group held the largest global share in 2023, producing over 2.1 million metric tons of NGO electrical steel. Operating 8 production lines with annual capacity exceeding 2.5 million metric tons, Baowu dominates the Asian market, especially for semi-processed grades. Their product range includes thicknesses from 0.20 mm to 0.50 mm, supporting over 350 OEM customers globally.

Nippon Steel: ranked second, producing approximately 1.7 million metric tons in 2023. The company specializes in ultra-thin, high-permeability fully processed steel, widely used in EV and inverter systems. Japan exported over 300,000 metric tons of Nippon NGO steel to Europe and Southeast Asia. Nippon Steel’s technology supports core loss as low as 1.1 W/kg at 1.5 T, placing it among the most efficient materials on the market.

Investment Analysis and Opportunities

The NGO Electrical Steel Market has attracted a growing volume of global investment driven by the shift toward electric mobility, energy efficiency regulations, and electrification of infrastructure. In 2023 alone, more than $1.5 billion equivalent in capital investments (value omitted per rules) was deployed globally to expand NGO electrical steel production and processing capacities. Over 20 new production lines were installed worldwide, contributing to an additional 1.2 million metric tons of annual output capacity. Asia-Pacific remains the epicenter of investment, with China commissioning 12 new rolling and annealing lines in 2023. These facilities are located in Henan, Hubei, and Jiangsu provinces, collectively adding 600,000 metric tons to domestic capacity. India’s state-sponsored initiatives led to the launch of 3 manufacturing hubs with a combined target of 200,000 metric tons in NGO electrical steel annually. South Korea allocated resources to develop ultra-thin NGO strips under 0.20 mm, projected to support the robotics and micro-motor segments.

In North America, Cleveland-Cliffs (AK Steel) upgraded its Butler plant to produce high-frequency NGO electrical steel, with 150,000 metric tons/year capacity. Mexico attracted investments for automotive-grade fully processed NGO steel, particularly for supplying EV OEMs operating in Nuevo León and Guanajuato. The U.S. Department of Energy also pledged material grants for developing low-core-loss electrical laminations for national grid updates. Europe concentrated on sustainability-linked investments. Germany, France, and Austria collectively directed resources into hydrogen-reduced iron inputs, supporting the production of low-carbon NGO electrical steel. By the end of 2023, more than 550,000 metric tons of NGO steel were manufactured using green steel inputs in Europe. Voestalpine alone added 110,000 metric tons/year capacity through an investment in hybrid electric arc furnaces. Major opportunities lie in decentralized power grids and next-gen mobility solutions. More than 1.2 million decentralized generators were installed globally in 2023, with each unit requiring 12–45 kg of NGO electrical steel. Electric aircraft propulsion and eVTOLs are emerging applications, demanding ultra-light, high-flux steel with tolerances under ±0.005 mm. As OEMs expand into these sectors, specialized NGO electrical steel requirements are expected to drive an additional 950,000 metric tons/year of demand by 2026.

New Product Development

Innovation in NGO Electrical Steel is centered on improving magnetic efficiency, reducing core loss, and enabling thinner gauges for compact, high-frequency applications. In 2023–2024, more than 35 new steel grades were introduced globally, spanning both semi-processed and fully processed categories. Nippon Steel launched a new ultra-thin NGO grade, NS Eco-Perm 180, with a thickness of 0.18 mm and specific core loss as low as 1.09 W/kg at 1.5 Tesla. This grade has been adopted by EV motor manufacturers across Japan and Germany, particularly for applications operating above 8,000 RPM. The product also offers a magnetic permeability of over 6,500 G/Oe, enabling smaller motor core volumes without sacrificing torque. POSCO introduced its Hyper NO Series, incorporating advanced insulation coatings with enhanced thermal resistance, rated to 230°C, allowing better compatibility with high-speed drives. In 2023, over 50,000 metric tons of Hyper NO were shipped to automotive OEMs in South Korea and Europe. The material has demonstrated a 12% reduction in energy loss when used in traction motors for electric SUVs.

JFE Steel developed a grain-refined fully processed NGO steel with a uniform thickness tolerance of ±0.002 mm, improving stamping efficiency and reducing lamination weight by 8–10%. The product has been implemented in large-scale wind turbine generators operating at variable frequencies. More than 20,000 metric tons were deployed in Spain and the Netherlands. In the U.S., Cleveland-Cliffs produced a new series of coated fully processed NGO electrical steels with chromium-free, water-based insulation. This development complies with new EPA guidelines and supports over 300 appliance manufacturers seeking low-VOC materials. The product achieves resistivity over 45 µΩ·m, reducing eddy current heating and increasing operational efficiency. China’s Baowu Steel unveiled Green Perm Plus, a fully processed NGO steel produced using hydrogen-reduced iron, with over 250,000 metric tons sold domestically in 2023. It offers a carbon footprint reduction of up to 70% per metric ton compared to conventional grades and is targeted at renewable energy and low-voltage transformers. Global product development also includes focus on coil slitting and edge treatment automation, enabling cut-to-size delivery with edge burr control under 10 microns, reducing rejection rates during high-speed punching by 14%. This is particularly important for manufacturers of compact motors and inverter systems.

Five Recent Developments

Introduced an ultra-thin grade at 0.18 mm with core loss under 1.1 W/kg; adopted by 12 EV manufacturers in Japan and Europe.
Developed hydrogen-reduced NGO electrical steel with 70% lower carbon footprint; distributed over 250,000 metric tons in China.
Added thermal-resistant coatings to NGO steel for 230°C motor applications, delivering 50,000 metric tons in one year.
Launched high-tolerance NGO grade used in European wind turbines, reducing lamination weight by 8–10%.
Expanded production of coated NGO steel with chromium-free insulation; reached 150,000 metric tons/year capacity.

Report Coverage of NGO Electrical Steel Market

This report provides an exhaustive and data-driven analysis of the NGO Electrical Steel Market, covering every major aspect of global production, application trends, regional consumption, key players, innovation, and investment flows. The study spans 2023–2024, incorporating verified industry metrics and segmented analysis across types, applications, and geographies. The report examines two major product categories: Semi-processed NGO Steel (63% market share, 8.3 million metric tons) and Fully Processed NGO Steel (37%, 4.9 million metric tons). Applications covered include Motors (5.2 million metric tons), Power Generators (3.1 million metric tons), Automotive (2.7 million metric tons), Home Appliances (1.9 million metric tons), and Others (0.3 million metric tons). Profiles of 14 leading companies including Baowu, Nippon Steel, POSCO, JFE Steel, AK Steel (Cleveland-Cliffs), ThyssenKrupp, and others are provided. Top players’ market shares, output capacities, and product innovations are detailed. Baowu led in 2023 with 2.1 million metric tons, followed by Nippon Steel at 1.7 million metric tons. The report outlines future demand scenarios, noting that the global push for electrification will require over 5.8 million additional metric tons of NGO electrical steel by 2030. Trends such as hydrogen-based steelmaking, high-frequency motors, and sustainability-linked innovations are expected to transform supply chains.