The comprehensive report provides an in-depth analysis of the US Electrical Steel industry. This 10th edition is developed based on our meticulous research of primary and secondary data sources, ensuring accuracy and reliability. The analytical study covers market size across By Type (Grain-oriented, Non-grain-oriented), By End-User (Energy, Automotive, Household Appliances, Manufacturing, Others), By Application (Transformers, Motors, Inductors, Others). It offers key drivers, challenges, and growth forecasts into the market current state and future prospects from 2018 to 2034. Leading companies and their market shares are included in the study.
The U.S. electrical steel market is experiencing steady growth due to the increasing demand for electrical steel in various applications, particularly in the manufacturing of electric motors, transformers, and generators. Electrical steel, also known as silicon steel, is a key material used in the production of electrical equipment because of its high magnetic permeability and low core loss, making it ideal for energy-efficient motors and transformers. The market is driven by the growing demand for energy-efficient equipment, as electrical steel is essential in improving the performance of motors and power transformers used in industrial applications, renewable energy systems, and electric vehicles. The rise in renewable energy sources such as wind and solar power, which require transformers and generators made from electrical steel, is contributing to the market’s growth. Additionally, as the electric vehicle market expands, there is an increasing need for electrical steel in the production of electric motors and other key vehicle components. The demand for energy-efficient appliances, industrial machinery, and power distribution equipment is further fueling the growth of the electrical steel market. With ongoing technological advancements and increased adoption of energy-efficient systems, the U.S. electrical steel market is expected to continue expanding, driven by the need for high-performance, sustainable materials in energy production and consumption.
Electrical steel is used in transformers, motors, and generators for its magnetic properties and energy efficiency. A IEEE Transactions on Magnetics study noted that grain-oriented electrical steel has reduced transformer energy losses by 15%. https://ieeexplore.ieee.org/xpl/RecentIssue.jsp?punumber=20
The US electrical steel market is witnessing a surge in demand due to the growing adoption of energy-efficient transformers, electric vehicle (EV) motors, and wind turbine generators. Non-grain-oriented (NGO) electrical steel is increasingly used in EV motors, with major automakers such as Tesla and GM investing in high-silicon steel for improved electromagnetic performance. Meanwhile, grain-oriented (GO) electrical steel is essential for upgrading aging power infrastructure, as utilities modernize the grid with smart transformers and high-efficiency power distribution systems. US-based steel producers like Cleveland-Cliffs and AK Steel are expanding domestic production capacity to reduce reliance on imports, supported by government incentives under the Infrastructure Investment and Jobs Act (IIJA).
The increasing electrification of infrastructure and transportation is driving demand for electrical steel, particularly in transformers, electric motors, and EV powertrains. Leading producers such as Cleveland–Cliffs, AK Steel, and Nippon Steel are expanding production of grain–oriented electrical steel (GOES) for high–efficiency transformers, as utilities upgrade aging power grids to accommodate renewable energy integration. In the automotive sector, the demand for non–grain–oriented electrical steel (NGOES) is rising due to its crucial role in high–efficiency EV traction motors. The push for higher power density and lower core losses in next–generation EV drivetrains is prompting material innovations, including thinner electrical steel laminations with advanced coating technologies to improve magnetic properties and energy efficiency.
The US electrical steel market is divided into grain-oriented and non-grain-oriented steel, each serving specific industrial applications. Grain-oriented electrical steel (GOES) is primarily used in transformers due to its superior magnetic properties, low energy loss, and high efficiency. The demand for GOES is increasing as utilities upgrade aging power grids to improve energy transmission efficiency. Non-grain-oriented electrical steel (NGOES) is widely used in electric motors, generators, and household appliances, with growing demand from the automotive sector, particularly for EV motors that require high-efficiency electrical steel to improve power output and reduce heat generation.
The energy sector is the largest consumer of electrical steel, driven by demand for high-performance transformers, generators, and grid infrastructure upgrades. The automotive industry is another key segment, with rising EV production fueling demand for non-grain-oriented electrical steel in traction motors. Household appliances, including refrigerators, washing machines, and air conditioners, rely on electrical steel for efficient motor performance, contributing to steady market growth. The manufacturing sector also utilizes electrical steel in industrial motors, compressors, and high-frequency applications, further supporting market expansion.
Transformers represent the largest application for electrical steel, particularly in power distribution and grid modernization projects. The increasing deployment of renewable energy sources is also driving demand for transformers with advanced electrical steel to improve efficiency and minimize power losses. Motors are another significant application, with high-performance electrical steel enabling better energy efficiency in industrial machinery, HVAC systems, and electric vehicles. Inductors, used in various electronic and electrical circuits, rely on electrical steel for efficient electromagnetic performance, making them a critical component in power conversion and distribution systems.
US consumers remain optimistic about the economy but caution around spending continue to persist across segments. The US GDP is forecast to register 2.7% y-o-y growth in 2025 and around 2.1% in 2026. Leading contributors to the economy including California, Texas, New York, Florida, Illinois, Pennsylvania, Ohio, Georgia, Washington, New Jersey and others remain key markets in 2025. On the other hand, ten states are likely to register rapid GDP growth rate of 4.2% to 7% including Arkansas, Alabama, Mississippi, Wyoming, Idaho, Utah, New Hampshire, Vermont, West Virginia, and Wisconsin according to the Bureau of Economic Analysis. With inflation rate forecasts to remain around 2%, the country presents robust market prospects for Electrical Steel companies.
ArcelorMittal is a key supplier of electrical steel in the US, focusing on high-grade grain-oriented (GO) and non-grain-oriented (NGO) electrical steels used in transformers, motors, and EV components. The company’s Oriented Electrical Steel (OES) line is known for low core loss and high magnetic permeability, which enhances energy efficiency in power grids and industrial applications. ArcelorMittal is investing in next-generation ultra-thin electrical steel, aiming to support the rapid expansion of the US renewable energy and electric vehicle (EV) industries.
U.S. Steel plays a significant role in the domestic production of electrical steel, particularly for automotive and power distribution sectors. The company has been expanding its investment in advanced NGO electrical steel, ensuring high saturation induction and improved thermal stability. With the increasing demand for EV traction motors and grid infrastructure upgrades, U.S. Steel is positioning itself as a major supplier for sustainable energy solutions.
The US Electrical Steel Market is highly competitive with key players including AK Steel (Cleveland-Cliffs, US), Nucor (US), POSCO (South Korea, US plants), JFE Steel (Japan, US plants), ATI (US), ArcelorMittal (Luxembourg, US plants), Big River Steel (US), Tempel Steel (US). Companies investing in strong distribution networks and brand recognition continue to gain steady revenue growth in the industry. Analysis of the leading US Electrical Steel companies identifies that widening portfolio through new launches and catering to niche segments remains the most potential growth strategy.
A specialized steel alloy designed to minimize energy loss in electrical applications. Also known as silicon steel, it is used in the cores of transformers, motors, and generators due to its high magnetic permeability and low hysteresis loss. Electrical steel is essential for improving energy efficiency in power distribution and electrical devices.
By Type
Grain-oriented
Non-grain-oriented
By End-User
Energy
Automotive
Household Appliances
Manufacturing
Others
By Application
Transformers
Motors
Inductors
Others
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1. Executive Summary
1.1 US Electrical Steel Market Overview
1.1.1 Key Findings
1.1.2 Market Size and Growth Projections, 2019 to 2034
1.1.3 Key Trends and Drivers
1.1.4 Competitive Landscape Snapshot
1.1.5 What’s new in the current 10th edition?
2. Introduction to US Electrical Steel Markets in 2025
2.1 Market Definition
2.2 The role of Electrical Steel Market in the US
2.3 Report Scope and Segmentation
By Type
Grain-oriented
Non-grain-oriented
By End-User
Energy
Automotive
Household Appliances
Manufacturing
Others
By Application
Transformers
Motors
Inductors
Others
2.4 Companies Profiled
2.5 Study Period and Units
3. US Electrical Steel Market Share Analysis
3.1 US Electrical Steel Market Share by Type, 2024
3.2 US Electrical Steel Market Share by Application, 2024
3.3 US Electrical Steel Market Share by Sales Channel, 2024
4. US Electrical Steel Market Size Outlook
4.1 Current Market Size, 2025
4.2 Historical Market Size, $ Million, 2019 to 2024
4.3 Historical Market Growth Rate, %, 2019 to 2024
4.4 Forecast Market Size, $ Million, 2025 to 2044
4.5 Forecast Market Growth Rate, %, 2019 to 2024
5. US Electrical Steel Market- Strategic Analysis Review
5.1 US Electrical Steel Market Dynamics
5.1.1 Key Market Trends to Shape the Market Outlook
5.1.2 Major Market Drivers
5.1.3 Potential Growth Opportunities
5.1.4 Potential Challenges
5.2 Porter’s Five Force Analysis
5.2.1 Threat of New Entrants
5.2.2 Intensity of Competitive Rivalry
5.2.3 Bargaining Power of Buyers
5.2.4 Bargaining Power of Suppliers
5.2.5 Threat of Substitutes
5.3 Value Chain Analysis
5.3.1 Key Segments across the Value Chain
5.3.2 Leading Companies in each Value Chain Segment
6. Scenario Analysis and Risk Assessment
6.1 Low Growth Case Scenario
6.1.1 Definition and Assumptions
6.1.2 Market Size outlook, 2024- 2034
6.2 Reference Case Scenario
6.2.1 Definition and Assumptions
6.2.2 Market Size outlook, 2024- 2034
6.3 High Growth Case Scenario
6.3.1 Definition and Assumptions
6.3.2 Market Size outlook, 2024- 2034
7. US Electrical Steel Market Size – Historical Data
7.1 US Market Size by Type, $ Million, 2019-2024
7.2 US Market Size by Application, $ Million, 2019-2024
7.3 US Market Size by Sales Channel, $ Million, 2019-2024
By Type
Grain-oriented
Non-grain-oriented
By End-User
Energy
Automotive
Household Appliances
Manufacturing
Others
By Application
Transformers
Motors
Inductors
Others
8. US Electrical Steel Market Size- Forecast Data
8.1 US Market Size by Type, $ Million, 2025- 2034
8.2 US Market Size by Application, $ Million, 2025- 2034
8.3 US Market Size by Sales Channel, $ Million, 2025- 2034
9. Competitive Landscape
9.1 Major Players and Market Share Analysis
9.2 Company Profiles (Strengths, Weaknesses, Strategies)
9.3 Competitive Strategies and Differentiation
9.4 Mergers and Acquisitions
10. Recommendations and Strategic Insights
Market Entry Strategies
Product Development Recommendations
Marketing and Sales Strategies
Investment Opportunities
11. Appendix
Data Sources and Methodology
Glossary of Terms
List of Organizations and Associations
By Type
Grain-oriented
Non-grain-oriented
By End-User
Energy
Automotive
Household Appliances
Manufacturing
Others
By Application
Transformers
Motors
Inductors
Others
The US Electrical Steel Market size is estimated at $15.96 Billion in 2025. Further, the market is poised to reach $35.8 Billion in 2034, registering a growth rate (CAGR) of 9.4%.
EV motors and power transformers prioritize grain-oriented steel for magnetic efficiency.
Type (Grain-oriented, Non-grain-oriented), End-User (Energy, Automotive, Household Appliances, Manufacturing, Others), Application (Transformers, Motors, Inductors, Others)
Key strategies include product innovation, strategic partnerships, mergers and acquisitions, and focus on sustainable and high-performance solutions.
With 2024 data as actuals, the report features historic data from 2019 and forecast is for 2025 to 2034. Units are in USD and volume and pricing data is available upon request.