Grain Oriented Electrical Steel Market By Type (Conventional Grain Oriented, High Magnetic Permeability); By Application (Transformers, Motors, Reactors); By End User (Energy Utilities, Industrial Manufacturing, EV and Railway OEMs, Commercial Developers); By Geography, Segment Revenue Estimation, Forecast, 2024–2030

Introduction And Strategic Context

The Global Grain Oriented Electrical Steel Market will witness a moderate CAGR of 5.3% , valued at $12.4 billion in 2024 , and expected to reach around $17 billion by 2030 , confirms Strategic Market Research.

 

Grain oriented electrical steel (GOES) is an essential material in the global shift toward energy efficiency. It’s a specialized type of silicon steel engineered to have superior magnetic properties in one direction, making it ideal for core applications in transformers and high-efficiency motors. With grid modernization, renewable integration, and energy loss reduction top of mind globally, GOES has quietly become a critical backbone of next-gen power infrastructure.

 

Over the 2024–2030 period, the strategic relevance of GOES is climbing sharply. Aging transmission systems in North America and Europe are undergoing upgrades that require advanced transformer designs. At the same time, Asia Pacific—especially China and India—is scaling up its power grids to match urban and industrial growth. In both cases, GOES plays a starring role due to its low core loss and high permeability, directly supporting energy savings.

 

Three macro forces are shaping this market’s direction. First, global decarbonization targets are pushing governments to invest in grid efficiency—and that includes mandating or incentivizing the use of energy-efficient materials like GOES. Second, electric vehicle (EV) adoption is pressuring OEMs to use GOES in traction motors and charging infrastructure. Third, rising energy demand from data centers and manufacturing means higher deployment of high-voltage transformers—again dependent on GOES cores.

 

But it’s not just policy and power that matter. Technology is shifting too. Manufacturers are investing in thinner gauge GOES with sharper grain orientation to enhance performance under high-frequency operations. This is vital for smart grid applications and compact transformer designs. At the same time, geopolitical concerns around critical material sourcing (particularly grain silicon supply chains) are influencing sourcing strategies across North America and Europe.

 

Stakeholders across the value chain are repositioning themselves. Steel manufacturers are focused on advanced cold rolling and annealing techniques to increase production yields. Transformer OEMs are pushing for tighter tolerances and consistent magnetic properties. Energy utilities are standardizing GOES-based solutions for substation retrofits. Governments and regulators are integrating GOES use into energy-efficiency policies. And institutional investors are eyeing GOES as a stable, infrastructure-linked growth opportunity, particularly in emerging economies.

 

To be candid, this market doesn’t make headlines—but it powers the infrastructure that will define the next decade of energy resilience. As nations double down on efficient transmission, grain oriented electrical steel isn’t just relevant—it’s foundational.

 

Market Segmentation And Forecast Scope

The grain oriented electrical steel (GOES) market breaks down into a few high-impact segments. Each one reflects the engineering demands of power distribution, grid modernization, and next-gen energy infrastructure. For clarity and strategic focus, we’ve framed this market into four primary dimensions:

By Type

• Conventional Grain Oriented Steel (CGO): This is the industry’s workhorse. It’s typically used in distribution transformers and general-purpose energy equipment. While not optimized for high-efficiency performance, CGO holds the largest market share by volume—especially in cost-sensitive regions.

• High Magnetic Permeability Grain Oriented Steel (Hi-B): This premium grade is engineered for power transformers requiring reduced core losses. Hi-B material has been gaining traction thanks to growing demand for ultra-efficient grid systems in Europe and East Asia. In 2024, Hi-B grades account for roughly 38% of total market value—up from the previous cycle.

Hi-B is also the fastest-growing product segment, thanks to evolving utility specs and stricter energy loss standards in major economies.

 

By Application

• Transformers (Power & Distribution): Far and away the core application. GOES is critical for reducing no-load losses in transformer cores. Demand is rising for both utility-grade and industrial-scale transformers, particularly in grid modernization programs across China, the U.S., and the EU.

• Motors (Traction & Industrial): While this remains a smaller slice of the market, it’s heating up. High-efficiency motor designs—especially for electric vehicles, trains, and compressors—are beginning to integrate GOES to minimize magnetization losses. That said, motor use is still nascent and may take a few cycles to scale.

• Reactors & Inductors: Specialized power electronics in high-voltage systems also use GOES cores to manage high-frequency switching. This is a niche but growing application, especially in the context of renewable integration and power smoothing equipment.

Expect the transformer segment to retain more than 75% of total market value through 2030 , with motor and reactor use cases inching upward in tandem with electrification efforts.

 

By End User

• Energy & Utility Companies

• Industrial Manufacturing

• Railways & EV OEMs

• Commercial Infrastructure Developers

Energy utilities dominate here, not just in volume but in procurement power. They’re the primary buyers of large-format GOES cores for substations and power transformers. But the industrial sector is a quiet force—particularly manufacturers of automation-heavy systems and HVACs, where energy loss equals cost overrun. The rail and EV segments are emerging as strategic growth targets but aren’t mature buyers—yet.

 

By Region

• Asia Pacific

• Europe

• North America

• LAMEA (Latin America, Middle East, Africa)

Asia Pacific leads the pack, driven by massive utility expansion in China, India, and Southeast Asia. Europe follows, thanks to aggressive grid modernization and stringent energy-efficiency regulations. The U.S. is ramping up spending through its grid resilience programs, but supply chain reshoring may pose near-term friction. LAMEA remains a patchy landscape: some GCC nations are piloting smart grids, but Africa and parts of Latin America are still underinvested.

Bottom line: transformer demand keeps this market grounded, but higher-performance GOES types and motor-grade use cases are where the momentum lies. If energy savings remain a policy and procurement priority, segmentation will skew increasingly toward Hi-B and non-traditional end users.

 

Market Trends And Innovation Landscape

Grain oriented electrical steel isn’t usually the headline-grabber in materials science, but behind the scenes, it’s undergoing a quiet transformation. Innovation in metallurgy, pressure from clean energy goals, and reshoring trends are all forcing a fresh look at how this steel is made—and where it's heading.

Efficiency is Everything

Across the globe, governments and utilities are being pushed to do more with less—especially in power transmission. That’s driving demand for high-permeability GOES grades with significantly reduced core losses. OEMs are asking steelmakers for thinner gauge sheets, sharper magnetic orientation, and tighter consistency between batches.

One emerging trend? The rise of low core loss Hi-B materials optimized for ultra-high voltage (UHV) transformers. These aren't just lab-scale products anymore—multiple steel producers are running pilot production lines to meet the stricter EU Ecodesign and China GB standards set for transformer losses. As one industry engineer put it, “Efficiency used to be a cost add-on. Now it’s a compliance requirement.”

 

Green Steel and Decarbonized Production

Steel production has a carbon problem—and GOES is no exception. But some producers are starting to pivot. Japanese and Korean manufacturers are investing in hydrogen-based steelmaking for electrical grades. European firms are testing EAF (electric arc furnace) processes specifically for GOES slabs. While these products are not yet widely commercialized, the move is clear: utilities don’t want energy-efficient transformers made from carbon-intensive steel.

In 2025 and beyond, expect “green GOES” certifications to emerge, giving vendors in Europe and North America a potential edge when bidding for public-sector energy contracts.

 

Automation-Ready Cold Rolling and Annealing

Precision matters in GOES production. To meet tighter energy efficiency specs, manufacturers are adopting AI-assisted rolling mills and predictive annealing processes to maintain optimal grain orientation across coil batches. These systems detect magnetic flux deviations early, reducing scrap and stabilizing output quality.

One R&D director recently noted: “Our lab can now spot orientation drift before it becomes a manufacturing loss. That’s the difference between meeting a 1.05 W/kg loss threshold— or missing a tender entirely.”

 

Localized Supply Chains and National Reshoring Programs

Global instability is reshaping how GOES is sourced. The U.S. and EU are actively pushing for onshore electrical steel capacity to reduce reliance on imports, particularly from East Asia. This has resulted in new GOES capacity announcements across North America and Eastern Europe. At the same time, China is doubling down on self-sufficiency, restricting exports of certain silicon feedstocks and redirecting capacity to domestic grid development.

This shift is already disrupting global trade flows—and it’s not just about cost. Governments now treat GOES as part of national security-linked infrastructure materials, alongside semiconductors and rare earths.

 

Design Shifts in Transformer Architecture

Transformer makers aren’t just passive users of GOES anymore. They’re now co-developing new core geometries that squeeze more power density from every ton of steel. Some are testing multi-layer core stacking , while others are blending GOES with amorphous materials to optimize loss curves across varying load profiles. These hybrid designs are opening new engineering frontiers—though they demand tighter material tolerances and better predictability in grain structure.

 

Bottom line: GOES isn’t standing still. It’s becoming leaner, cleaner, and smarter—both in how it’s made and how it's used. Whether it's AI-guided annealing or “green-certified” steel for public grids, the innovation story is accelerating. And while it may not have the flash of AI chips or EV batteries, this steel is just as essential to keeping the lights on in a decarbonized world.

 

Competitive Intelligence And Benchmarking

The GOES market isn’t overcrowded. It’s a specialized segment within the electrical steel industry—and only a handful of global players have the technical infrastructure to produce it at scale and quality. What makes this space unique is that competition is less about flashy differentiation and more about precision, reliability, and meeting strict energy performance specs.

Let’s break down the current state of play:

Nippon Steel Corporation

A long-standing leader in GOES production, Nippon Steel has consistently led in innovation, especially with its Hi-B and super Hi-B grades. They’ve invested heavily in R&D around low- loss materials that exceed international efficiency standards. Their material is often the benchmark in UHV transformer tenders across Japan, South Korea, and parts of Southeast Asia.

They’ve also been early adopters of hydrogen-based steelmaking trials, signaling their intent to lead in green-certified GOES within the next decade.

 

POSCO

South Korea-based POSCO is another heavyweight. The company operates one of the most advanced electrical steel mills in the world, with a focus on process automation and vertical integration. They’ve been aggressively expanding their GOES portfolio, targeting both power transformers and industrial motor markets.

Their competitive edge lies in consistent sheet flatness, excellent surface insulation coatings, and reliable lead times—which is critical for transformer OEMs operating on just-in-time production models.

 

Baowu Steel Group

As the largest steel producer in China, Baowu is quickly scaling its presence in GOES. The company supplies a major share of the domestic transformer market, particularly as China ramps up UHV transmission projects.

Baowu is also leveraging state support to fast-track its transformation into a global supplier. Recent capacity expansions and improved grain refinement technology have helped them close the gap with Japanese and South Korean competitors. However, export volumes remain subject to government quotas and trade policy swings.

 

AK Steel (a Cleveland-Cliffs Company)

AK Steel , now under Cleveland-Cliffs , is the only significant U.S. producer of GOES. The company supplies much of North America’s demand, especially for transformers and utility applications.

Their edge? Proximity to U.S.-based transformer makers, deep regulatory experience (especially with U.S. Department of Energy compliance), and recent investments to upgrade coating lines for higher energy-efficiency specs.

That said, AK Steel has faced operational volatility in the past. The company is now under pressure to increase consistency and compete with imports from Asia and Europe, especially on high-grade Hi-B equivalents.

 

JFE Steel Corporation

Japanese firm JFE Steel is a technical powerhouse, known for its innovation in magnetic property control. It often supplies GOES for critical infrastructure applications in both Japan and select export markets.

Unlike some rivals, JFE places strong emphasis on tight tolerances and minimal thickness variation. This makes their material especially desirable for compact, high-efficiency transformer designs where real estate is constrained.

They’ve also been building relationships with European transformer OEMs looking to diversify away from Chinese and Indian sourcing.

 

Tata Steel Europe

Tata Steel Europe plays a niche role, primarily serving European customers with mid-to-high-grade GOES material. They’ve positioned themselves around sustainability, with active involvement in low-carbon steelmaking trials and energy-efficient production pathways.

However, they face stiff competition from Asian imports on cost—and from other EU-based players on performance specs.

 

Competitive Themes at a Glance:

• Innovation Focus: Japanese firms lead in metallurgical advances. South Korean and Chinese players are catching up quickly.

• Green Credentials: EU and Japan-based producers are pivoting fast toward green GOES certification—this could reshape procurement policies by 2026.

• Domestic Advantage: U.S. and Chinese firms benefit from policy protection and local demand, but must continually upgrade tech to remain competitive.

• Global Reach vs. Precision Niche: Some players (like POSCO) push for global expansion, while others (like JFE) focus on owning precision niches in select markets.

In short: this isn’t a free-for-all—it’s a strategic chessboard. A few highly specialized producers are vying for market share in a field where one missed energy threshold can cost a transformer contract. Winning here is all about consistency, compliance, and knowing exactly what your utility customer values most.

 

Regional Landscape And Adoption Outlook

The demand for grain oriented electrical steel is deeply tied to national energy infrastructure—so adoption patterns vary widely across regions. Some markets are focused on efficiency upgrades, while others are just building out the basics. Below is a closer look at how GOES is performing across key geographies and where white space still exists.

Asia Pacific

This region leads global consumption—by a wide margin. China and India, in particular, are driving large-scale demand thanks to rapid utility expansion and industrial electrification. In China, the national focus on ultra-high voltage (UHV) grid development has made GOES an essential input, especially Hi-B and super Hi-B grades.

India is also investing heavily in grid reliability. However, most of its GOES is imported, with local production still under development. As one regional analyst put it, “We’re building grids as fast as we can. GOES isn’t a luxury—it’s mandatory.”

Southeast Asian countries like Vietnam and Indonesia are following similar trends but at smaller scales. Japan and South Korea, while mature, continue to generate demand through ongoing upgrades of aging substation networks and support for green infrastructure.

Asia Pacific accounts for over 45% of total GOES consumption in 2024 , and is expected to remain the fastest-growing region through 2030.

 

Europe

Europe is all about energy efficiency. Countries like Germany, France, and the Netherlands have embraced stricter regulations under the EU’s Ecodesign Directive. This has pushed transformer OEMs to adopt premium-grade GOES to meet lower no-load loss targets.

Eastern Europe is another active zone, where grid modernization funds—particularly from the EU’s Green Deal—are supporting substation retrofits and new HV installations. That said, competition from cheaper imports has made sourcing strategy a hot topic, with the European Commission considering stricter trade measures.

Environmental sustainability is also a major procurement factor. One utility executive shared, “We’re no longer just asking: Does it meet spec? We’re asking: What’s the carbon footprint of this steel?”

Europe holds about 25% of the market by value , thanks to higher adoption of Hi-B grades and advanced applications.

 

North America

The U.S. and Canada are finally catching up after years of underinvestment in grid infrastructure. The 2021 Infrastructure Investment and Jobs Act and other federal-level energy resilience programs have opened the door to a wave of transformer upgrades—particularly in rural and high-load urban zones.

 

AK Steel (Cleveland-Cliffs) remains the primary local supplier, though imports—especially from Japan and South Korea—still account for a sizable share, particularly for high-performance applications.

GOES adoption in the U.S. is also being shaped by national security concerns. The Biden administration has floated measures to localize electrical steel supply, which may drive new domestic capacity investments over the next 2–3 years.

North America represents roughly 18% of the global market , but its share could grow if reshoring efforts gain traction.

 

LAMEA (Latin America, Middle East, Africa)

This is the most underdeveloped region for GOES adoption—but it’s also where future opportunity lies.

In Latin America , countries like Brazil and Chile are starting to deploy GOES in transmission upgrades and hydroelectric grid expansion projects. However, cost remains a constraint, and Hi-B usage is minimal outside of top-tier government-backed projects.

The Middle East —particularly GCC nations—has pockets of demand tied to smart grid pilots and solar integration. Saudi Arabia and the UAE are investing in energy infrastructure diversification, where GOES fits into HV/MV transformer upgrades.

Africa is still largely off the radar. Transformer imports dominate, and local demand for GOES remains negligible outside donor-backed infrastructure projects.

That said, rising electrification targets across sub-Saharan Africa and South Asia may open small but growing pockets of demand over the next decade.

 

Regional Growth Snapshot

Region	2024 Share	2030 Outlook
Asia Pacific	45%+	Fastest growth
Europe	~25%	Efficiency-led
North America	~18%	Policy reshoring
LAMEA	<12%	Long-term upside

Bottom line: Asia owns the volume, Europe sets the quality bar, and North America is catching up. The wild card? Emerging economies where power reliability is the bottleneck—and GOES might just be the enabler that unlocks the next generation of electrification.

 

End-User Dynamics And Use Case

Grain oriented electrical steel is one of those materials that most end users never think about—yet it’s embedded in some of the most mission-critical infrastructure. The key to understanding GOES adoption lies in recognizing how different end-user segments prioritize efficiency, compliance, and long-term cost control.

Energy & Utility Companies

No surprise here— utility companies are the largest and most consistent buyers of GOES. Their main use case? Core laminations for power and distribution transformers .

Transformer procurement is often driven by government-backed infrastructure upgrades, energy-efficiency mandates, or renewable integration plans. Most utilities now require that suppliers meet or exceed performance thresholds set by local or international energy regulators.

In some regions, utilities are starting to specify Hi-B or even super Hi-B grades for new installations to minimize transmission losses over multi-decade life cycles.

An energy procurement director in Germany recently noted, “Transformer loss savings aren’t marginal—they're baked into our ROI calculations from day one.”

 

Industrial Manufacturing

Large manufacturers—particularly in sectors like petrochemicals, automotive, steel, and mining—also rely on GOES-based transformers to stabilize internal power distribution. These are often housed in on-site substations and must meet similar loss-reduction targets.

This segment typically seeks a balance between performance and cost. Many industrial operators still use conventional GOES grades unless local regulations or energy tariffs incentivize efficiency upgrades.

In fast-industrializing countries like India and Vietnam, manufacturers are just beginning to include energy loss as a line item in procurement discussions. That said, there’s room to grow.

 

EV and Railway OEMs

Electric vehicle manufacturers and railway system integrators are emerging users of GOES—particularly for traction motors and auxiliary transformers . While amorphous and non-oriented steels still dominate motor applications, GOES is carving out a role in systems that operate under consistent magnetic fields or require minimal no-load loss.

Traction applications are especially relevant in high-speed rail projects in China, Japan, and parts of Europe. These require compact, lightweight, and high-efficiency components, where GOES sometimes offers performance advantages over non-oriented alternatives.

 

Commercial Infrastructure Developers

A smaller but important segment includes developers of commercial buildings, data centers, and energy-intensive campuses . These users typically install medium-voltage distribution transformers where efficiency specs—especially in Europe and North America—now influence GOES selection.

While this segment doesn’t match the volume of utilities or OEMs, it's a high-margin space for premium GOES products.

 

Use Case Highlight

In 2023, a state-run utility in South Korea launched a nationwide transformer replacement program aimed at reducing grid transmission losses by 12% over five years. The program involved replacing aging transformer fleets with high-efficiency units using super Hi-B grain oriented electrical steel .

One pilot project in Busan focused on a high-load substation feeding a metro transit system. By upgrading to super Hi-B core transformers, the utility cut no-load losses by 22% , saving an estimated $480,000 annually in electricity that would otherwise be lost as heat.

The energy savings justified the higher upfront material cost within less than 3 years —and set a precedent for GOES-based efficiency upgrades across the country.

The program’s lead engineer commented, “We weren’t chasing specs—we were chasing results. Super Hi-B delivered.”

 

Segment Priorities at a Glance

End User	Priority	Typical GOES Grade
Energy & Utilities	Efficiency, compliance, durability	Hi-B / Super Hi-B
Industrial Manufacturers	Cost-efficiency balance	CGO / Hi-B
EV & Railway OEMs	Compactness, low-loss designs	Thin-gauge GOES
Commercial Developers	Energy certification compliance	Hi-B

Bottom line: utilities are the anchor, but momentum is building in new spaces—especially where grid-grade performance is becoming the baseline. GOES is no longer just a commodity steel. It’s a design input—and a strategic one at that.

 

Recent Developments + Opportunities & Restraints

Recent Developments (Past 2 Years)

• POSCO launched a new Hi-B GOES grade in 2024 , optimized for ultra-low core loss applications in UHV transformer manufacturing. The product is already being tested in Chinese and European grid infrastructure tenders.

• Cleveland-Cliffs (AK Steel) secured a $90M grant from the U.S. Department of Energy in 2023 to upgrade its Butler, Pennsylvania facility for domestic GOES production. The move supports U.S. efforts to localize electrical steel supply.

• JFE Steel partnered with a German transformer OEM in 2024 to co-develop ultra-compact transformer cores using thin-gauge GOES. The collaboration targets European Ecodesign standards set to tighten again in 2026.

• Baowu Steel initiated export restrictions on premium GOES grades in late 2023, citing domestic grid modernization needs and national energy security. This has affected supply chains in Southeast Asia and parts of Africa.

 

Opportunities

• Grid Modernization in Emerging Markets: Governments in Southeast Asia, the Middle East, and Latin America are rolling out high-voltage substation projects. GOES demand will rise as these regions chase energy reliability targets.

• Green Steel Certifications: The push toward low-carbon steelmaking is becoming a new revenue lever. Producers that adopt hydrogen or EAF-based processes can gain access to sustainability-linked procurement budgets—especially in the EU.

• Transformer Miniaturization and Smart Grids: As transformer OEMs race to shrink size without losing capacity, demand for thin-gauge, high-permeability GOES is accelerating. This could reshape design standards globally by 2026.

 

Restraints

• High Production Costs: GOES production is technically intensive. Advanced grades require exacting annealing and coating processes—driving up costs and creating barriers for new entrants.

• Supply Chain Concentration: The market depends heavily on a handful of producers in East Asia and limited suppliers in the West. Any disruption—be it trade policy or logistics—can destabilize pricing and availability across regions.

To be honest, this isn’t a market where you’ll see explosive disruption. But the runway is solid, and the risks—while real—are manageable with the right partnerships and tech investments. If you're not already watching GOES, now’s the time to start.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 12.4 Billion
Revenue Forecast in 2030	USD 17.0 Billion
Overall Growth Rate	CAGR of 5.3% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Billion, CAGR (2024–2030)
Segmentation	By Type, By Application, By End User, By Geography
By Type	Conventional Grain Oriented, High Magnetic Permeability
By Application	Transformers, Motors, Reactors
By End User	Energy Utilities, Industrial Manufacturing, EV and Railway OEMs, Commercial Developers
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., UK, Germany, China, India, Japan, Brazil, etc.
Market Drivers	- Grid modernization programs - Efficiency mandates from regulators - Renewable integration & transformer upgrades
Customization Option	Available upon request