The grain oriented electrical steel market is gaining importance as power networks, renewable energy infrastructure, and electrical equipment manufacturers increasingly prioritize energy efficiency. Grain oriented electrical steel is valued for its favorable magnetic properties, making it particularly suitable for transformer cores where minimizing energy losses is essential. According to Market Research Future, the market was valued at USD 15.86 billion in 2024 and is projected to reach USD 22.85 billion by 2035, expanding at a CAGR of 3.37% from 2025 to 2035.

Transformers represent the largest application segment, accounting for 78.4% of the market in 2024. The strong position of transformers is closely associated with power transmission and distribution investments. Modernization of electricity grids requires efficient transformers capable of handling increasing electricity demand while limiting losses during transmission. This requirement continues to support demand for high-performance electrical steel.

Renewable energy expansion is another important market factor. Wind and solar installations require electrical infrastructure capable of efficiently transferring generated electricity into transmission networks. As countries expand renewable capacity, transformer requirements are increasing, creating opportunities for producers of low-loss grain oriented electrical steel.

Technological development is also influencing the industry. Manufacturers are working on advanced processing methods and improved magnetic characteristics to enhance electrical performance. Automation, precision engineering, and improved production controls can support more consistent product quality while helping manufacturers respond to evolving transformer specifications.

Asia-Pacific represents the dominant regional market, with a 71.1% share in 2024. China accounted for a major portion of regional demand, while India is supported by grid expansion and infrastructure development. Europe is projected to record a 3.6% CAGR, supported by energy-efficiency initiatives and renewable energy integration.

The automotive sector is another emerging opportunity as vehicle electrification increases demand for advanced electrical components. Overall, grid modernization, renewable power development, manufacturing innovation, and electrification are expected to remain important factors shaping the grain oriented electrical steel industry through 2035.