Non-Grain Oriented Electrical Steel Sheet Market Report

Non-Grain Oriented Electrical Steel Sheet Market Overview

The Non-Grain Oriented Electrical Steel Sheet Market size was valued at USD 19311 million in 2024 and is expected to reach USD 24057.74 million by 2033, growing at a CAGR of 2.5% from 2025 to 2033.

The Non-Grain Oriented Electrical Steel Sheet Market plays a vital role in supporting global industries such as automotive, energy, household appliances, and industrial machinery. In 2023, global production volumes of non-grain oriented (NGO) electrical steel reached 14 million metric tons. Asia-Pacific accounted for approximately 9 million metric tons, while Europe and North America combined contributed nearly 4.2 million metric tons. Non-grain oriented electrical steel exhibits isotropic magnetic properties, allowing for high-efficiency performance across rotating equipment such as motors and generators. The demand for non-grain oriented electrical steel has surged as global motor production exceeded 1.2 billion units in 2023, with electric vehicles accounting for over 100 million motors. Global energy infrastructure modernization projects, including wind turbines, hydropower plants, and nuclear power stations, increasingly rely on non-grain oriented electrical steel for generator cores. The shift towards high-efficiency electrical appliances led to over 450 million household appliances incorporating NGO steel in their motors, compressors, and transformers. Manufacturers are responding by expanding production capacities, with Baowu Steel producing over 3.8 million metric tons annually, followed closely by Nippon Steel at 2.5 million metric tons. Technological advancements have improved core loss levels, with high-grade NGO steel now achieving core losses below 1.0 W/kg at 50 Hz and 1.5 Tesla magnetic flux density.

Key Findings

Driver: Growing demand for energy-efficient electric motors across electric vehicles and industrial sectors.

Country/Region: Asia-Pacific dominates global consumption with over 9 million metric tons of NGO steel utilized in 2023.

Segment: The motor segment leads, consuming over 6.5 million metric tons of non-grain oriented electrical steel.

Non-Grain Oriented Electrical Steel Sheet Market Trends

The Non-Grain Oriented Electrical Steel Sheet Market has experienced significant transformation driven by global electrification trends. In 2023, global electric vehicle (EV) sales surpassed 14 million units, each vehicle incorporating an average of 40 to 50 kg of non-grain oriented steel in its traction motors and auxiliary systems. This surge resulted in an incremental demand of 700,000 metric tons of NGO steel exclusively from the EV sector. Wind turbine installations increased global NGO steel demand by 1.2 million metric tons in 2023, as each 3 MW wind turbine incorporates 25 to 35 metric tons of electrical steel for its generator and transformer components. Additionally, data centers added 300,000 metric tons of demand, as global hyperscale data center capacity surpassed 900 hyperscale facilities requiring efficient cooling and power supply systems.

Technological innovation continues to improve the magnetic properties of NGO steel. High-grade non-grain oriented steel now achieves permeability values above 1,800 at 50 Hz, significantly reducing energy losses. In 2023, over 3 million metric tons of high-efficiency grades (high silicon content above 3.0%) were consumed, especially in high-speed motors and aerospace applications. Environmental regulations also play a growing role. The International Energy Agency (IEA) estimates that higher-efficiency electric motors can reduce global CO2 emissions by 400 million metric tons annually if fully adopted. Consequently, appliance manufacturers have shifted to NGO steel-based motors for refrigerators, air conditioners, and washing machines, adding 800,000 metric tons of NGO steel demand in 2023. Asian producers led capacity expansions with Baowu’s 800,000 metric ton capacity addition in Jiangsu and Nippon Steel’s 500,000 metric ton expansion in Kyushu. Meanwhile, European and North American producers invested in upgrading their facilities to meet demand for EV motors and energy-efficient industrial equipment, contributing 400,000 metric tons of new high-grade production capacity in 2023.

Non-Grain Oriented Electrical Steel Sheet Market Dynamics

DRIVER

Rising demand for energy-efficient electric motors.

The demand for high-efficiency motors used in electric vehicles, HVAC systems, and industrial equipment has risen sharply. In 2023, global electric motor production exceeded 1.2 billion units, of which more than 450 million were high-efficiency models utilizing non-grain oriented electrical steel. Electric vehicle traction motors consumed over 700,000 metric tons of NGO steel in 2023 alone, driven by 14 million new EVs entering the market. The shift to high-efficiency motors in industrial automation resulted in 1.5 million metric tons of additional NGO steel consumption, as factories upgraded to minimize operational energy costs. Government regulations such as the EU’s Ecodesign Directive and the U.S. Department of Energy’s energy efficiency standards have accelerated these trends.

RESTRAINT

Dependence on costly raw material inputs.

The production of non-grain oriented electrical steel is heavily dependent on silicon, manganese, and high-purity iron, all of which are subject to volatile pricing. Silicon prices surged by 30% in 2023, while high-purity iron costs rose by 15% due to supply chain disruptions. This price volatility has raised manufacturing costs, limiting the ability of some manufacturers to invest aggressively in capacity expansion. Small and mid-sized producers with limited raw material supply contracts are especially vulnerable to these price fluctuations, impacting their profit margins and competitiveness.

OPPORTUNITY

Growing renewable energy installations.

Renewable energy projects such as wind and hydropower are creating significant new opportunities for non-grain oriented electrical steel. In 2023, 110 GW of new wind capacity was installed globally, requiring an estimated 1.2 million metric tons of NGO steel for turbine generators. Hydropower expansions, particularly in Southeast Asia, Brazil, and Africa, consumed an additional 400,000 metric tons. Governments in Europe, China, and the U.S. have allocated $100 billion in new clean energy infrastructure funding that will sustain long-term demand growth for high-efficiency electrical steel sheets across the next decade.

CHALLENGE

Rising energy costs in production.

NGO electrical steel manufacturing is energy-intensive, requiring temperatures above 1,200°C during annealing and decarburization processes. In 2023, average industrial electricity costs increased by 20% globally, adding significant expense for steelmakers. European producers faced electricity rates exceeding $150 per MWh, forcing some to temporarily curtail operations or pass costs onto customers. The ongoing transition toward greener steel production methods also requires capital-intensive investments, including hydrogen-based reduction methods and carbon capture technology, which are still in early commercialization stages.

Non-Grain Oriented Electrical Steel Sheet Market Segmentation

By Type

Fully Processed: Fully processed non-grain oriented electrical steel accounts for 65% of total market production, totaling approximately 9 million metric tons in 2023. Fully processed grades offer superior magnetic properties, achieving core losses as low as 1.0 W/kg and permeability values above 1,800 at 50 Hz. This type is primarily used in high-efficiency motors for EVs, industrial automation, and advanced power generators. The automotive sector alone consumed 3 million metric tons of fully processed NGO steel in 2023.
Semi-processed: Semi-processed grades account for 35% of total production, equaling approximately 5 million metric tons. Semi-processed NGO steel is primarily used in low to medium-efficiency motors for household appliances, smaller transformers, and HVAC systems. These grades require further annealing during motor core assembly but offer lower upfront costs for appliance and equipment manufacturers. Asia-Pacific, especially China and India, remains the largest consumer of semi-processed NGO steel, utilizing 3.5 million metric tons in 2023.

By Application

Motor: The motor segment remains the largest application, consuming approximately 6.5 million metric tons in 2023. Electric vehicles, industrial automation, HVAC systems, robotics, and medical equipment all drive demand for high-performance motors utilizing non-grain oriented steel.
Household Appliances: Household appliances consumed around 2.2 million metric tons of NGO steel in 2023. Refrigerators, air conditioners, washing machines, and dryers incorporate high-efficiency motors to comply with global energy efficiency standards, especially in Europe and Asia.
Power Generator: Power generators used approximately 1.8 million metric tons in 2023. NGO steel is integral to wind turbines, hydropower stations, and backup generators supporting growing energy demands and grid stability.
Automotive: The automotive sector consumed nearly 2.5 million metric tons, driven by electric vehicles, hybrid systems, and onboard auxiliary motors for power steering, window regulators, and climate control.
Others: Other applications accounted for around 1 million metric tons, including medical equipment, aerospace systems, industrial drives, and specialty robotics.

Non-Grain Oriented Electrical Steel Sheet Market Regional Outlook

North America

accounted for approximately 2.5 million metric tons of non-grain oriented electrical steel consumption in 2023. The United States alone consumed 2.1 million metric tons, primarily driven by electric vehicle manufacturing, which surpassed 1.8 million EVs produced domestically. Canada contributed another 400,000 metric tons through industrial automation and renewable energy projects. North American appliance manufacturers such as Whirlpool and GE Appliances consumed 600,000 metric tons for high-efficiency household products.

Europe

consumed approximately 1.7 million metric tons in 2023. Germany led consumption with 600,000 metric tons, followed by France, Italy, and the UK. European electric vehicle production exceeded 4 million units, contributing nearly 1 million metric tons of NGO steel demand. Wind power installations added another 300,000 metric tons. EU regulations pushing for energy-efficient appliances and industrial motors have increased high-grade NGO steel usage across industrial zones.

Asia-Pacific

remained the dominant consumer with over 9 million metric tons utilized in 2023. China led global consumption with 6.5 million metric tons, followed by Japan’s 1.2 million and South Korea’s 800,000 metric tons. China’s electric vehicle production reached 8 million units in 2023, accounting for nearly 2.5 million metric tons of NGO steel. Massive expansion in data centers, high-speed railways, and renewable energy projects in Asia-Pacific further fueled strong demand.

Middle East & Africa

consumed approximately 800,000 metric tons, with Saudi Arabia, UAE, and South Africa leading the region. Growth was primarily fueled by infrastructure modernization, industrial expansion, and energy diversification projects, which collectively added over 300,000 metric tons of incremental demand between 2022 and 2023.

List Of Non‑Grain Oriented Electrical Steel Sheet Companies

Baowu
Thyssen Krupp
Nippon Steel
JFE Steel
Posco
ArcelorMittal
Chun Yuan Steel Industrial

Baowu: China Baowu Steel Group is the world’s largest integrated steel producer, with global crude steel output peaking at 95 million metric tons in 2023.

Thyssen Krupp: Thyssen Krupp Steel Europe commissioned a €150 million annealing and insulating line at its Bochum plant in 2024, adding 218,000 metric tons of advanced NGO steel capacity.

Investment Analysis and Opportunities

Global investments in the Non-Grain Oriented Electrical Steel Sheet Market surpassed $5 billion between 2022 and 2024. Significant capacity expansion projects have been announced by major producers to meet surging demand from electric vehicles, renewable energy, and industrial automation. In Asia-Pacific, Baowu Steel invested approximately $1.2 billion into expanding its Jiangsu facility, adding 800,000 metric tons of fully processed NGO steel capacity in 2023. Nippon Steel committed $750 million to upgrade its Kyushu plant, installing advanced continuous annealing lines capable of producing high-grade NGO steel with core losses below 1.0 W/kg. JFE Steel allocated $400 million to its Chiba facility to supply precision-grade NGO steel for high-speed EV motors and aerospace generators. Europe attracted significant investment from ThyssenKrupp, which dedicated over $600 million to retrofit its Bochum facility for hydrogen-ready electric steel production. ArcelorMittal invested $350 million in upgrading its Spanish plant to produce high-grade NGO steel for wind turbine and data center applications. Government support in Europe under the Green Deal framework has provided favorable financing for energy-efficient steel production, including carbon-neutral initiatives. In North America, U.S.-based companies committed $900 million to expand NGO steel production capacity. Cleveland-Cliffs invested $450 million in Ohio to upgrade its fully processed electrical steel lines, targeting 250,000 metric tons of annual capacity specifically for EV applications. Canada’s Stelco committed $200 million for capacity expansion, focusing on supplying domestic wind power projects and data center applications. New opportunities are emerging as global electric vehicle penetration increases. EV motor demand alone is forecasted to require an additional 2 million metric tons of NGO steel annually by 2026. Simultaneously, global data center capacity is expected to grow at an annual rate exceeding 20%, driving further demand for highly efficient NGO steel-based cooling and backup power systems. Additionally, the growing adoption of distributed renewable energy generation (solar + storage) presents a long-term opportunity. Small-scale grid transformers and battery storage systems increasingly rely on NGO electrical steel cores to reduce losses. Governments are actively promoting these systems, allocating more than $150 billion in cumulative subsidies by 2024.

New Product Development

Technological advancements in non-grain oriented electrical steel have accelerated over the past two years, focusing on improved magnetic properties, higher silicon content, and advanced annealing processes. In 2023, Baowu Steel introduced a next-generation high-efficiency fully processed grade that achieved core losses of 0.9 W/kg at 50 Hz and 1.5 T flux density, surpassing existing performance benchmarks. This new grade enabled electric vehicle motors to reduce power loss by 15%, increasing driving range by 8%. Nippon Steel’s R&D division launched its advanced thin-gauge NGO steel with 0.15 mm thickness, significantly improving energy density for compact motors in robotics, drones, and aerospace systems. This ultra-thin material achieved permeability levels exceeding 2,000, enabling quieter, smaller, and more efficient designs. ThyssenKrupp successfully piloted hydrogen-based annealing for non-grain oriented electrical steel production in 2023, reducing CO2 emissions by 85% during decarburization processes. This breakthrough attracted strong interest from automakers seeking to reduce the embedded carbon footprint of their electric drivetrains. In the appliance sector, JFE Steel developed specialized NGO steel formulations with optimized frequency responses for variable-speed compressors used in high-end HVAC and refrigeration systems. These innovations led to 12% greater energy efficiency, aligning with stricter appliance energy labels introduced in Europe and Japan in 2024. Artificial Intelligence (AI)-driven quality control systems have also revolutionized the production process. By 2023, several producers deployed AI-based inspection lines capable of identifying surface defects at micron-level accuracy, reducing defect rates by 30%. These systems enabled higher yield and consistent production of ultra-high-grade NGO steel for demanding applications. Additionally, the industry saw breakthroughs in coating technologies. Advanced organic insulation coatings with higher thermal resistance allowed NGO steel to operate reliably at higher motor speeds, opening new markets in high-speed trains, wind turbines, and aviation. These coatings improved lamination stacking and reduced eddy current losses by up to 5%.

Five Recent Developments

Baowu Steel expanded its Jiangsu facility by 800,000 metric tons in late 2023, becoming the world’s largest NGO steel producer with a total capacity exceeding 3.8 million metric tons. The expansion directly supplies major Chinese EV manufacturers producing over 8 million units annually.
Nippon Steel announced its Kyushu facility upgrade in 2023, launching production of 0.15 mm ultra-thin NGO steel targeted at high-speed electric aviation motors. The plant added 500,000 metric tons of high-grade capacity by early 2024.
ThyssenKrupp completed its pilot hydrogen-based annealing line in early 2024, reducing CO2 emissions by 85%. This breakthrough positioned ThyssenKrupp as a global leader in sustainable NGO steel production, attracting major orders from EU automakers.
JFE Steel secured a multi-year supply agreement in 2023 to deliver 300,000 metric tons annually to a consortium of Japanese data center developers. The contract supports Japan’s growing hyperscale data center industry, which expanded by 15% in 2023.
Cleveland-Cliffs began operations of its upgraded Ohio plant in Q4 2023, targeting 250,000 metric tons of fully processed NGO steel annually for EV applications in North America, supported by new contracts with Tesla and Ford.

Report Coverage of Non-Grain Oriented Electrical Steel Sheet Market

This comprehensive report on the Non-Grain Oriented Electrical Steel Sheet Market provides in-depth analysis covering global production, demand drivers, regional trends, investment patterns, technological innovations, and competitive dynamics. The study captures data from 2020 to 2024 and projects forward-looking scenarios shaped by electrification trends, industrial modernization, and environmental regulations. The report details production volumes exceeding 14 million metric tons globally in 2023, with Asia-Pacific contributing over 9 million metric tons. Regional performance is analyzed across North America’s 2.5 million metric tons, Europe’s 1.7 million metric tons, and the Middle East & Africa’s 800,000 metric tons. Comprehensive segmentation analysis covers fully processed (9 million metric tons) and semi-processed (5 million metric tons) product types, highlighting their respective applications. Application segmentation spans the motor segment (6.5 million metric tons), household appliances (2.2 million metric tons), power generators (1.8 million metric tons), automotive (2.5 million metric tons), and others (1 million metric tons). Market dynamics are extensively covered, addressing key growth drivers such as the 14 million electric vehicles produced globally in 2023, creating over 700,000 metric tons of incremental NGO steel demand. The report outlines major restraints including raw material price volatility and rising energy costs that increased by 20% globally. Opportunities are mapped in growing renewable energy projects requiring 1.2 million metric tons annually for wind turbines and additional volumes for hydropower. Detailed profiles of market leaders such as Baowu, Nippon Steel, ThyssenKrupp, JFE Steel, Posco, and ArcelorMittal highlight strategic investments exceeding $5 billion since 2022. The report tracks cutting-edge product developments including ultra-thin 0.15 mm gauges, AI-powered quality control, and hydrogen-based production processes that are reshaping the industry. Finally, the report presents five major developments from 2023-2024, offering granular insights into facility expansions, technology breakthroughs, and new supply contracts with electric vehicle, aerospace, and data center clients. This data-rich report offers actionable intelligence for investors, manufacturers, suppliers, government regulators, and policymakers navigating the evolving global Non-Grain Oriented Electrical Steel Sheet Market.