Non Grain Oriented Electrical Steel Market By Product Type (Fully Processed, Semi-Processed); By Application (Motors, Generators, Transformers); By End Use (Automotive & Transportation, Industrial Equipment, Appliances & HVAC, Energy & Utilities); By Geography, Segment Revenue Estimation, Forecast, 2024–2030

Introduction And Strategic Context

The Global Non Grain Oriented Electrical Steel Market will witness a stable CAGR of 4.3% , valued at $20.2 billion in 2024 , expected to expand and reach $26.1 billion by 2030 , confirms Strategic Market Research.

 

This market centers on non grain oriented (NGO) electrical steel , a silicon-rich alloy used in motors, transformers, and generators. Unlike grain-oriented steel, NGO steel has random grain structure, allowing for magnetic performance in all directions — a critical property for rotating machinery. As electrification accelerates across industrial, transportation, and energy sectors, NGO steel is becoming indispensable in modern engineering systems.

 

Several macro forces are shaping the strategic direction of this market:

• EV adoption is ramping up fast. Every electric drivetrain needs motors, and every motor needs high-performance NGO steel for optimal energy efficiency. That makes NGO steel a foundational material in the clean mobility transition.

• In parallel, industrial automation is scaling, with thousands of motors used in smart factories, HVAC systems, and robotics. This is quietly creating recurring demand for NGO grades that support both low core loss and mechanical flexibility.

• Grid upgrades and renewable energy systems are also playing a role. Even though transformers typically use grain-oriented steel, auxiliary systems like wind turbines and backup motors rely heavily on NGO steel.

From a policy standpoint, multiple governments — especially in Asia and Europe — are now incentivizing local electrical steel production to reduce dependency on imports. These trade dynamics are introducing new regional supply chains and intensifying competition among global manufacturers.

 

Key stakeholders in this ecosystem include:

• Steel manufacturers , refining NGO grades to meet stricter performance metrics around magnetic losses and thickness.

• Automakers and EV motor suppliers , who are prioritizing NGO steel in motor cores for its consistent magnetic properties and cost-effectiveness.

• OEMs and component makers across HVAC, rail, and appliances.

• Energy utilities and wind turbine OEMs , which require NGO for rotating machinery in hybrid grids.

• Policymakers and trade groups , managing tariffs, subsidies, and ESG-related sourcing standards.

To be honest, NGO steel isn't glamorous—but it's absolutely mission-critical. You won't see it on the front page of tech news, but it sits at the heart of every high-efficiency motor design that's powering the next wave of electrification.

 

Market Segmentation And Forecast Scope

The non grain oriented electrical steel market is structured along four practical segmentation axes: type , application , end use , and region . Each reflects a different facet of buyer priorities — from magnetic performance needs to regulatory compliance and downstream integration.

By Product Type

The market is broadly divided into:

• Fully Processed NGO Steel : This type undergoes full annealing and surface treatment at the steel mill itself. It’s ready-to-use and optimized for minimal core loss — ideal for high-efficiency industrial motors and automotive traction motors.

• Semi-Processed NGO Steel : Requires additional processing by the end user. While it comes at a lower cost, it offers slightly lower performance and is more common in low-end appliances or general-purpose motors.

In 2024 , fully processed NGO steel is expected to generate over 62% of market revenue , thanks to growing EV motor demand and stricter energy efficiency standards in appliances.

 

By Application

Applications span a wide array of motor-driven systems. Key segments include:

• Electric Motors : The largest application by far, covering motors used in EVs, HVAC systems, robotics, pumps, compressors, and rail traction.

• Generators : Especially relevant in industrial setups, power backup systems, and certain renewable energy technologies like wind turbines.

• Transformers and Static Equipment : A smaller segment, typically in auxiliary roles, since grain-oriented steel dominates power transformers.

Electric motors will continue to dominate, accounting for nearly 70% of application-based demand in 2024 , driven by both automotive and industrial sector growth.

 

By End Use

End users vary widely, with four major buckets:

• Automotive & Transportation : The fastest-growing end-use category, fueled by surging EV sales, electric rail systems, and demand for lighter, efficient traction motors.

• Industrial Equipment & Automation : Includes process industries, robotics, pumps, conveyors, and smart manufacturing. Demand is steady, thanks to energy-saving initiatives.

• Home Appliances & HVAC : Refrigerators, air conditioners, washing machines, and fans—all driven by motors using NGO steel cores.

• Energy & Utilities : Particularly for generators and backup systems in smart grids and hybrid power stations.

The automotive and transportation sector is poised to post the fastest CAGR through 2030 , as OEMs lock in long-term supply contracts to secure NGO steel for EV motor production.

 

By Region

The market divides into four broad regions:

• Asia Pacific : The largest and most dynamic region, led by China, India, Japan, and South Korea. High domestic steel output, rising EV production, and government push for industrial efficiency drive this market.

• Europe : Strong demand for high-efficiency motors and tightening emissions legislation are boosting regional consumption, especially in Germany and France.

• North America : Growing focus on local steel production, EV incentives, and infrastructure upgrades—especially in the U.S.

• LAMEA (Latin America, Middle East & Africa) : Slower uptake, but opportunities are emerging in renewable energy and electrified rail infrastructure.

Asia Pacific holds the lion’s share of global market value in 2024 , but Europe is expected to lead in premium-grade NGO steel demand , driven by automotive innovation and eco-design mandates.

The segmentation shows a market pulled in multiple directions: cost versus performance, legacy uses versus EV growth. The clear trend is a pivot toward higher-grade NGO steel and vertically integrated supply models — especially in automotive and energy-intensive industries.

 

Market Trends And Innovation Landscape

The non grain oriented electrical steel market is evolving fast — but not through flashy breakthroughs. Instead, it's a story of incremental improvements , materials science optimization , and supply chain repositioning . That said, the impact of these “quiet” shifts is anything but small. They're reshaping how motors are built — and what OEMs now expect from their steel suppliers.

Efficiency-Driven Innovation

OEMs across industries are under growing pressure to improve energy efficiency . That’s pushing manufacturers to develop NGO steel grades with:

• Lower core losses

• Higher permeability

• Better thickness control

One significant trend is the push toward high-frequency NGO steel , optimized for inverters and high-speed rotating machinery, like EV traction motors . As electric vehicles move to 800V architectures , magnetic cores must cope with faster switching and stronger magnetic fields. This is where conventional NGO grades fall short.

An R&D head at a European EV motor company recently commented, “We don’t just need electrical steel anymore — we need intelligent steel. It must perform magnetically, thermally, and mechanically, all under stress.”

 

Silicon Content and Coating Innovation

Next-gen NGO steel is increasingly being tailored by adjusting silicon content , balancing ductility with magnetic performance. However, higher silicon often makes the steel brittle — a known tradeoff. This is where innovation in insulation coatings comes in. These coatings reduce eddy current losses, allow tighter stacking, and improve interlaminar resistance.

Leading manufacturers are now experimenting with coating formulations that can endure harsher stamping processes and higher temperature exposure — ideal for high-speed motors in electric vehicles or industrial pumps.

 

Localization and Strategic Alliances

There’s a sharp pivot toward localized steel production in the U.S., India, and parts of Europe. Several EV and appliance manufacturers have started signing direct supply deals with electrical steel producers to de-risk from overseas dependencies — especially post-pandemic and post-tariff disruptions.

These alliances often include joint R&D initiatives focused on co-developing motor cores and laminations suited for specific use cases — like 3-in-1 eAxles or compact HVAC systems.

This quiet vertical integration may reshape the market structure — making large OEMs increasingly influential in setting material specs.

 

Thin-Gauge and High-Grade NGO Steels

Another material science trend: development of ultra-thin gauge NGO steel , typically <0.30mm. Thinner laminations reduce hysteresis losses in motors but are harder to manufacture and process. Asian steel giants are currently ahead in this space, but Western producers are catching up fast.

There’s also growing demand for high-grade non-oriented steels (often labeled as NO35 or equivalent), especially for premium EV applications and renewable energy turbines. While costlier, their efficiency returns are justifying the price — particularly when regulatory mandates force higher motor performance.

 

AI-Based Quality Control and Simulation Tools

On the digital side, leading steelmakers are integrating AI-driven quality control systems into rolling mills and annealing lines. This helps maintain tighter tolerances in grain structure and thickness. Meanwhile, motor simulation software vendors are now embedding NGO steel material libraries directly into CAD/CAE platforms — helping engineers fine-tune designs earlier in the process.

Bottom line: NGO steel may seem like a low-profile commodity. But behind the scenes, it's being reengineered for a different world — one where every percentage point of motor efficiency translates to real-world energy savings and regulatory compliance. That makes material innovation in this market not just desirable, but absolutely necessary.

 

Competitive Intelligence And Benchmarking

The non grain oriented electrical steel market is dominated by a small circle of global producers who combine material science leadership , capacity scale , and tight customer integration . But this isn’t a volume game alone. It’s increasingly a performance-driven chessboard , where the ability to deliver thinner, lower-loss steel — often on tight lead times — defines market power.

Key Players and Strategic Positioning

1. ArcelorMittal

One of the largest steelmakers globally, ArcelorMittal has invested significantly in high-efficiency NGO steel production across its European and Indian facilities. Its NGO portfolio serves both industrial and EV motor clients, with increasing emphasis on premium electrical steels for low-loss applications.

Their strategy blends centralized R&D with decentralized production , allowing them to adapt to local automotive supply chains. ArcelorMittal’s strategic advantage is agility across geographies — they’re rarely the lowest cost, but they’re often the most accessible.

 

2. Nippon Steel Corporation

Renowned for technical precision, Nippon Steel leads the pack when it comes to ultra-thin and high-grade NGO steel . They serve Japanese OEMs with exacting magnetic and mechanical specs, especially in EV and hybrid powertrains.

Their strength lies in process engineering — from hot rolling to decarburization and annealing. Several global automakers rely on Nippon not just for steel but for motor design input, making them a deeply embedded partner rather than just a supplier.

 

3. POSCO

South Korea’s POSCO has made NGO steel a key growth pillar, particularly for EV and energy-efficient industrial motors. Their Hyper NO series caters directly to high-speed motor cores, with enhanced coatings and low core loss at high frequencies.

POSCO is aggressively expanding in Southeast Asia and India, eyeing Tier-1 EV motor manufacturers. Their cost-performance balance has helped them win share in both budget and premium segments.

 

4. JFE Steel

Focused primarily on Asia-Pacific, JFE Steel offers a specialized line of NGO grades designed for industrial applications. They are known for tight lamination tolerances , supporting compact motor designs.

JFE is increasingly targeting export opportunities as domestic automotive demand in Japan matures. Their strategy leans on joint ventures and technical licensing to build market access outside Japan.

 

5. Tata Steel

With production bases in India and Europe, Tata Steel is investing heavily in localizing NGO steel for EVs and industrial motors. Their presence in the UK gives them access to EU markets, while Indian production supports a fast-growing domestic EV ecosystem.

Tata’s recent push includes high-efficiency grades developed in collaboration with local OEMs . To be honest, Tata is playing a smart long game — building strategic trust with Indian automakers as the country ramps up electrification.

 

6. AK Steel (Cleveland-Cliffs)

The U.S.-based AK Steel , now part of Cleveland-Cliffs , is the primary domestic source of NGO steel for North American automotive and appliance markets. Their competitive edge lies in logistics efficiency and trade-protected supply .

They've been investing in capacity upgrades to meet demand from U.S. EV makers — especially those seeking IRA-compliant, locally sourced materials. That said, they face pressure from Asian competitors on product range and thin-gauge precision.

 

Competitive Landscape Overview

• Asia dominates thin-gauge and high-grade NGO innovation, especially for high-speed motors.

• Europe excels in process stability and ESG-compliant production, catering to eco-design mandates.

• North America is catching up , helped by localization incentives, but still trails on product depth.

The shift toward electrification is re-sorting this market fast. Buyers no longer just ask for “NGO steel” — they ask for specific grades that align with motor simulation models, inverter compatibility, and thermal tolerance. That puts pressure on steelmakers to become engineering collaborators, not just material providers.

 

Regional Landscape And Adoption Outlook

The adoption of non grain oriented electrical steel varies significantly across global regions, largely depending on the maturity of industrial automation , EV penetration , local steelmaking capacity , and regulatory landscape . Some regions are scaling up premium-grade production for advanced motors, while others are still focused on cost-effective steel for basic appliances and general-use motors.

North America

The North American NGO steel market is experiencing a strategic shift. Historically reliant on imports — especially from Japan and South Korea — the region is now accelerating domestic production , driven by:

• The U.S. Inflation Reduction Act (IRA) , which encourages sourcing materials from within North America.

• Surging EV manufacturing in the Midwest and Southeast U.S.

• Greater emphasis on energy-efficient appliances under DOE guidelines.

 

Cleveland-Cliffs (AK Steel) remains the primary domestic player, but automakers are demanding thinner, low-loss grades for EV traction motors — something U.S. mills are only now ramping up. Canada and Mexico contribute to motor assembly and component exports but depend on U.S.-based steel.

If U.S. producers can close the performance gap with Asian rivals, local content rules could give them a strong edge in coming years.

 

Europe

Europe has long championed energy efficiency and emissions reduction , and that ethos permeates the NGO steel space. The region shows strong demand for:

• Thin-gauge, high-performance NGO steel for EVs and industrial automation.

• ESG-compliant steel , with a focus on lifecycle emissions and recyclable content.

• Steady appliance and HVAC replacement cycles driven by eco-design regulations.

 

Germany , France , and Italy are major adopters — both as producers and consumers. EU mandates on motor efficiency (IE4/IE5 standards) are also pushing OEMs to switch to higher-grade NGO steel. Europe is also home to high-end motor designers , making it a key market for advanced NGO products.

That said, Europe’s reliance on imported feedstock and energy costs are pain points, especially with ongoing supply chain disruptions.

 

Asia Pacific

This region dominates in volume, innovation, and speed of adoption . Countries like China , Japan , South Korea , and India are deeply invested in NGO steel across both commodity and high-performance grades.

• China leads in raw output, EV motor consumption, and appliance manufacturing.

• Japan and South Korea lead in ultra-thin, low-loss NGO steel , setting the benchmark for traction motors globally.

• India is scaling fast — both in domestic EV manufacturing and localized steel production (via Tata Steel , JSW , and SAIL ).

Asia Pacific accounts for over 50% of global NGO steel demand in 2024 , with EVs, rail systems, and industrial expansion as growth engines. OEMs in the region are tightly integrated with steelmakers, often co-developing motor designs and grade specifications.

In short, this is the heartbeat of the NGO market — where both scale and sophistication meet.

 

LAMEA (Latin America, Middle East, and Africa)

This region currently represents a smaller share of global demand but holds untapped potential. Trends include:

• Brazil investing in rail electrification and industrial motors.

• Middle Eastern countries using NGO steel in air conditioning and desalination-related motors.

• Africa showing early-stage adoption, mostly tied to urban infrastructure and consumer appliances.

A key barrier remains the lack of local manufacturing capacity . Most NGO steel is imported, making it expensive and often lower-grade due to cost sensitivity. However, as grid expansion and sustainable building standards take hold, mid-grade NGO steel demand is expected to rise steadily.

For vendors, this region represents a long-term opportunity — especially if training, incentives, or public-private partnerships materialize.

 

Regional Bottom Line

• Asia Pacific leads in both volume and grade innovation .

• Europe is setting the tone on sustainability and motor performance standards .

• North America is in catch-up mode but benefits from policy tailwinds and reshoring trends .

• LAMEA remains a white space with infrastructure-led potential.

To be honest, this isn’t a uniform market. It’s fragmented, high-stakes, and increasingly regionalized. But that also means growth is available at every tier — from premium EV steel in Korea to utility motors in Kenya. The challenge is matching supply to regional realities.

 

End-User Dynamics And Use Case

The end users of non grain oriented electrical steel (NGO) span a wide spectrum — from EV motor manufacturers to HVAC brands to rail operators. But what they all have in common is a need for magnetic performance, thermal resilience , and cost efficiency . That said, how they prioritize those factors varies a lot depending on the segment.

1. Automotive and EV Manufacturers

This is the fastest-growing and most technically demanding user base for NGO steel.

Applications include:

• Traction motors in EVs, hybrids, and e-bikes

• Auxiliary motors for pumps, cooling fans, and steering systems

These OEMs demand:

• Ultra-thin steel (≤0.30 mm)

• Consistent magnetic properties across frequencies

• Compatibility with compact motor designs and automated stamping

Many global EV players now specify exact NGO steel grades in their RFQs — with strict parameters around hysteresis loss and permeability.

A senior EV sourcing manager recently shared, “We don't just buy NGO steel — we co-engineer it. Every percent loss we reduce translates into real-world driving range.”

 

2. Industrial Equipment and Automation

Process industries, smart factories, and robotics vendors use NGO steel in:

• High-efficiency motors for conveyors, robotics, pumps, and compressors

• High-speed tools and drives in manufacturing systems

What matters here is reliability , cost-effectiveness , and compliance with energy efficiency standards (like IEC and NEMA).

This segment typically uses semi-processed and standard-grade NGO steel , but demand is shifting toward higher-performance laminations — especially in Europe and East Asia.

 

3. HVAC and Home Appliances

This is a steady, volume-driven market for NGO steel used in:

• Compressors in refrigerators and AC units

• Motors in washing machines, dryers, and fans

These OEMs are cost-sensitive but must also meet energy labeling and emission standards . That’s pushing many toward fully processed NGO steel that delivers better performance with minimal redesign.

This segment is also highly regional. For instance:

• Southeast Asian markets demand lower-cost NGO steel for price-competitive appliances.

• European brands are switching to IE4-compliant motors , creating demand for premium NGO grades.

 

4. Energy and Utility Sector

In power generation and transmission, NGO steel is used in:

• Rotating generators (especially wind turbines and small hydro)

• Back-up motors and start-stop systems

• Grid-side actuators and controls

While transformer cores mostly use grain-oriented steel, rotating components require NGO grades — especially in hybrid energy systems and grid automation setups.

Adoption here is growing modestly, but as grids modernize , NGO steel will become more critical in supporting decentralized and inverter-driven systems .

 

5. Transportation and Rail Electrification

Rail operators and transit manufacturers use NGO steel in:

• Traction motors

• Brake actuators

• Climate control systems

These buyers often work closely with steelmakers to balance vibration resistance , thermal durability , and magnetic stability under cyclic loads. Demand is highest in urban metro systems , electrified freight lines , and light rail in Asia and Europe.

 

Use Case: European EV Tier-1 Supplier

A Tier-1 motor supplier in Germany was tasked with developing a new 800V drive motor for a next-gen EV platform. Early tests with standard NGO steel showed unacceptable core losses at high speeds. Working with a regional steelmaker, they co-developed a high-frequency, fully processed NGO grade with a customized coating to reduce eddy current losses.

The result?

• 30% reduction in core loss

• 12% increase in motor power density

• Regulatory compliance achieved without redesigning the housing or cooling system

This collaboration not only saved the OEM from a costly platform delay but also helped the steelmaker secure a multi-year, exclusive supply agreement — cementing a strategic partnership.

Bottom line: every motor needs NGO steel — but not every end user needs the same grade. This market is shifting from transactional steel supply to engineering-first partnerships. Whether it’s energy savings in appliances or performance in traction motors, the use cases are evolving fast — and buyers are demanding more precision than ever.

 

Recent Developments + Opportunities & Restraints

Recent Developments (Past 24 Months)

• POSCO launched a next-gen Hyper NO Ultra series in early 2024, designed specifically for 800V EV traction motors , with improved insulation coatings and enhanced high-frequency loss performance.

• Cleveland-Cliffs (AK Steel) announced a $500 million expansion in 2023 to upgrade its NGO production facility in Ohio, aiming to meet domestic demand for IRA-compliant steel for EVs.

• Tata Steel Europe partnered with a leading EV motor OEM in 2024 to co-develop customized NGO grades for IE5 motors in appliances and com mercial vehicles.

• Nippon Steel revealed a research collaboration with Tokyo-based robotics firms to design ultra-thin NGO steel for compact automation motors.

• The European Commission introduced a proposal in 2023 mandating carbon footprint disclosure for all steel used in motors sold in the EU — set to take effect by 2026.

 

Opportunities

• EV Manufacturing Boom : As electric vehicle sales rise, especially in Asia and Europe, the demand for high-efficiency traction motors is expanding NGO steel applications beyond traditional industrial use. Steelmakers that align with Tier-1 EV suppliers could secure long-term, high-margin contracts.

• Localized Steel Supply Chains : With the U.S. and EU enforcing local sourcing rules, there's a major opportunity for domestic producers to capture share previously held by imports. Policy tailwinds will support CAPEX into advanced NGO lines.

• Green Building and Smart Appliances : Rising demand for low-energy HVAC systems and smart appliances is driving the shift toward premium NGO steel in consumer electronics.

 

Restraints

• High Capital Cost of Thin-Gauge Production : Producing ultra-thin NGO grades requires specialized annealing lines and coating technologies — a high barrier for new entrants and smaller regional mills.

• Talent Gap in Materials Engineering : As more OEMs demand tailored steel solutions, there's a growing shortage of skilled professionals who understand both metallurgy and motor design , particularly in emerging markets.

In simple terms: there’s real runway here — but only if steelmakers can upgrade fast, partner smarter, and align with electrification. The risk? Fall behind on innovation, and you’ll be out of the spec sheet before you even quote.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 20.2 Billion
Revenue Forecast in 2030	USD 26.1 Billion
Overall Growth Rate	CAGR of 4.3% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Billion, CAGR (2024 – 2030)
Segmentation	By Product Type, By Application, By End Use, By Geography
By Product Type	Fully Processed, Semi-Processed
By Application	Motors, Generators, Transformers
By End Use	Automotive & Transportation, Industrial Equipment, Appliances & HVAC, Energy & Utilities
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., Germany, China, India, Japan, Brazil, etc.
Market Drivers	- EV adoption and motor electrification - Regulatory pressure on energy efficiency - Growth of industrial automation
Customization Option	Available upon request