Demand for Grain Oriented Electrical Steel in USA

Demand for Grain Oriented Electrical Steel in USA 2025 to 2035

Demand for grain oriented electrical steel in the USA is projected to grow from USD 1.95 billion in 2025 to approximately USD 3.29 billion by 2035, recording an absolute increase of USD 1.34 billion over the forecast period. This translates into a total growth of 68.7%, with demand forecast to expand at a compound annual growth rate (CAGR) of 5.40% between 2025 and 2035.

Quick Stats for USA Grain Oriented Electrical Steel Industry

• USA Grain Oriented Electrical Steel Sales Value (2025): USD 1.95 billion
• USA Grain Oriented Electrical Steel Forecast Value (2035): USD 3.29 billion
• USA Grain Oriented Electrical Steel Forecast CAGR: 5.40%
• Leading Application in USA Grain Oriented Electrical Steel Industry: Transformers (58.2%)
• Key Growth Regions in USA Grain Oriented Electrical Steel Industry: West, Northeast, South, Midwest
• Regional Leadership: West holds the leading position in demand
• Key Players in USA Grain Oriented Electrical Steel Industry: POSCO Holdings Incorporated, ArcelorMittal S.A., Baosteel Group Corporation, NIPPON STEEL CORPORATION, JFE Steel Corporation, thyssenkrupp AG, Stalprodukt S.A., Cleveland-Cliffs Incorporated, Arnold Magnetic Technologies Corporation, VIZ-Steel, JSW JFE Electrical Steel Private Limited

Demand is expected to grow by 1.7 times during the same period, supported by increasing transformer manufacturing, rising adoption of electric vehicles and renewable energy infrastructure, advancing energy-efficient power systems, and expanding domestic electrical equipment production throughout the USA.

The transformers segment is projected to account for 58.2% of grain oriented electrical steel demand in 2025. Transformers applications are widely used in the USA for power transmission systems, distribution networks, and industrial electrical equipment where energy efficiency, magnetic performance, and proven electrical characteristics remain essential for power grid applications and electrical equipment production optimization.

The power transformers segment is expected to represent 24.1% of grain oriented electrical steel demand in 2025. Power transformers applications are fundamental to the industry because they provide the essential high-voltage capabilities, grid connectivity properties, and reliable power transmission required for utility networks, industrial facilities, and electrical infrastructure systems.

Between 2020 and 2025, grain oriented electrical steel demand in the USA experienced steady expansion, driven by increasing electrical infrastructure development and growing recognition of advanced material requirements for transformer efficiency and electrical equipment optimization. The sector developed as electrical equipment manufacturers and utility providers, especially in major industrial centers, recognized the need for specialized steel solutions and effective magnetic materials to achieve efficiency objectives while meeting industry standards and performance requirements. Electrical companies and equipment manufacturers began emphasizing material innovation and magnetic performance to maintain competitive advantages and regulatory compliance.

Between 2025 and 2030, demand for grain oriented electrical steel in the USA is projected to expand from USD 1.95 billion to USD 2.50 billion, resulting in a value increase of USD 0.55 billion, which represents 41.0% of the total forecast growth for the decade. This phase of growth will be shaped by accelerating electrical equipment production, rising energy-efficient material advancement, and growing performance requirements for advanced power systems across major regions, particularly in areas where electrical infrastructure and renewable energy development initiatives are accelerating steel adoption. Increasing integration of high-performance transformer systems and growing adoption of grid modernization platforms continue to drive demand.

Electrical equipment manufacturers and steel suppliers are expanding their production capabilities to address the growing complexity of modern power requirements and efficiency standards, with USA operations leading investments in conventional manufacturing enhancement methods and efficient material optimization systems.

From 2030 to 2035, demand is forecast to grow from USD 2.50 billion to USD 3.29 billion, adding another USD 0.79 billion, which constitutes 59.0% of the overall ten-year expansion. This period is expected to be characterized by expansion of specialized electrical applications, development of enhanced energy-efficient capabilities, and implementation of comprehensive grain oriented electrical steel technology programs across different power and manufacturing sectors. The growing adoption of advanced transformer systems and enhanced efficiency platforms, particularly in major utility operations and manufacturing facilities, will drive demand for more sophisticated steel solutions and validated magnetic systems.

USA Grain Oriented Electrical Steel Industry Key Takeaways

Metric	Value
USA Grain Oriented Electrical Steel Sales Value (2025)	USD 1.95 billion
USA Grain Oriented Electrical Steel Forecast Value (2035)	USD 3.29 billion
USA Grain Oriented Electrical Steel Forecast CAGR (2025-2035)	5.40%

Why is the USA Grain Oriented Electrical Steel Industry Growing?

The USA grain oriented electrical steel industry is experiencing robust growth, primarily fueled by a parallel expansion in the broader electrical equipment manufacturing sector. A significant surge in demand for both transformer production and advanced magnetic materials has created a larger base of electrical manufacturers, equipment producers, and power companies requiring reliable steel products.

Changing electrical regulations and efficiency standards mandate the use of high-performance magnetic systems for optimal equipment performance and energy optimization. This power-driven demand establishes a consistent, efficiency-based foundation. As new operators enter the electrical equipment manufacturing segment and existing power practices are modernized, the need for standard-issue and specialized steel products forms a stable foundation for the industry's growth, ensuring a continuous stream of customers driven by efficiency necessity and regulatory compliance.

Technological innovation serves as a powerful secondary engine for this growth. Modern grain oriented electrical steel systems are no longer just basic magnetic materials; they are advanced energy-efficient products. The rapid adoption of specialized steel technologies has become a major selling point, significantly reducing manufacturing complexity and enhancing equipment efficiency.

Beyond traditional options, manufacturers are integrating advanced formulations for seamless incorporation with digitally conscious power approaches, and compatibility with various transformer requirements. These features, coupled with improvements in magnetic performance, system convenience, and product quality, are compelling both electrical and equipment operators to upgrade from basic steel systems, driving a cycle of replacement and premiumization within the industry.

The industry is benefiting from evolving power dynamics and a heightened focus on electrical equipment experience. An increasing emphasis on energy efficiency, particularly exploration of advanced magnetic technologies, is pushing demand for higher-quality, more diverse steel varieties. The segment has also expanded beyond traditional electrical channels, with growing interest from the renewable energy sector, utility applications, and even electrical manufacturing units.

This diversification, combined with the rise of specialized platforms that improve accessibility for all manufacturers, ensures that suppliers can reach a wider audience than ever before. This confluence of efficiency, innovation, and accessibility creates a fertile ground for continued industry expansion.

Opportunity Pathways - Demand for Grain Oriented Electrical Steel in the USA

The grain oriented electrical steel industry in the USA is positioned for strong and steady expansion, growing from USD 1.95 billion in 2025 to USD 3.29 billion by 2035, reflecting a 5.4% CAGR. This growth is driven by the rising adoption of advanced, energy-efficient magnetic systems in transformer manufacturing, power transmission equipment, and electrical infrastructure applications. Operators are seeking specialized steel solutions that maximize equipment efficiency, performance reliability, and manufacturing optimization amidst stringent energy standards.

Demand from renewable energy trends, smart grid innovations, and electric vehicle infrastructure strengthens opportunities for both high-performance magnetic formulations and integrated electrical steel solutions. Suppliers focusing on ultra-high efficiency grades, precision processing, and technical support stand to gain from evolving efficiency landscapes and manufacturer expectations for material consistency, magnetic performance, and technical documentation completeness.

• Pathway A - Power Transmission and Distribution Transformers. Manufacturers face escalating demand for reliable, high-efficiency steels for the large-scale production of transmission equipment. Solutions targeting utility transformers, distribution systems, and grid infrastructure can achieve strong adoption through optimized magnetic properties, consistency, and thermal performance characteristics. Estimated revenue opportunity: USD 0.76-1.04 billion.
• Pathway B - Advanced Electric Vehicle Infrastructure. The automotive industry requires increasingly sophisticated charging infrastructure and vehicle electrical systems. Collaborations with EV manufacturers for integrated transformer solutions (e.g., charging stations, onboard systems, power electronics) can unlock long-term supply contracts and partnerships. Estimated revenue opportunity: USD 0.68-0.92 billion.
• Pathway C - Renewable Energy Integration Systems. Growth in wind, solar, and storage applications creates robust demand for specialized transformer steels with exceptional efficiency and reliability performance. Suppliers offering proven high-grade steels with superior magnetic characteristics and environmental stability can build strategic relationships with top-tier energy developers. Estimated revenue opportunity: USD 0.61-0.83 billion.
• Pathway D - Industrial Motor and Drive Systems. Manufacturing requirements for precision, efficiency, and durability are driving preference for specialized steels in motor cores, drive systems, and automation equipment. Suppliers offering materials with exceptional magnetic stability and performance can differentiate offerings and attract quality-focused organizations. Estimated revenue opportunity: USD 0.54-0.73 billion.
• Pathway E - Smart Grid and Digital Infrastructure. Critical applications in grid modernization, smart transformers, and digital control systems require specialized steel configurations with advanced magnetic properties, stability characteristics, and precision features. Suppliers investing in material development for next-generation power systems can secure advantages in this demanding segment. Estimated revenue opportunity: USD 0.47-0.64 billion.
• Pathway F - Technical Service, Engineering Support & Performance Optimization. Comprehensive support networks offering material selection guidance, full technical documentation (design specifications), and application engineering create recurring partnership opportunities. Companies building strong technical service capabilities can capture ongoing relationships and enhance customer development speed. Estimated revenue opportunity: USD 0.39-0.53 billion.

Segmental Analysis

The industry is segmented by application, end use, and region. By application, the industry is divided into transformers, motors, and other equipment. In terms of end use, the industry is segmented into power transformers, distribution transformers, industrial transformers, with transformers representing a key growth and innovation hub for electrical technologies. Regionally, the industry is divided into West, Northeast, South, and Midwest.

Which Application Segment Captures the Dominant Share in the Grain Oriented Electrical Steel Landscape in USA?

Transformer applications account for 58.2% of grain oriented electrical steel demand in USA in 2025, making it the leading application type across the sector. This dominance reflects the energy efficiency requirements and performance acceptance needs of steel systems for existing electrical facilities and power applications where magnetic performance is optimized through established efficiency characteristics and integrated reliability architecture.

In the USA, where substantial electrical infrastructure requires steel integration without complete system redesign, transformer solutions provide practical pathways for equipment enhancement while maintaining cost preferences. Continuous innovations are improving magnetic performance, energy efficiency, and reliability parameters, enabling electrical operators to achieve high performance standards while maximizing cost effectiveness.

• Cost compatibility and existing system integration make transformers the preferred application type for enhancing electrical facilities and power operations.
• Magnetic reliability and performance demonstration track records are enhancing manufacturer confidence and production viability across large-scale adoption initiatives.

Which End Use Category Captures the Dominant Share in USA’s Grain Oriented Electrical Steel Industry?

Power transformers applications are expected to represent 24.1% of grain oriented electrical steel demand in 2025, reflecting the critical role of high-voltage equipment requiring comprehensive efficiency solutions. Power transformers operations including utility projects, transmission facilities, and distribution systems generate consistent demand for steels that support efficient power utilization and performance optimization.

Steel systems are widely adopted for power transformer facilities due to significant efficiency benefits and enhanced magnetic performance capabilities. Their reliable, high-performance operation provides effective, cost-efficient electrical solutions, enhancing energy independence for power system users.

• High-voltage requirements and transmission operations drive substantial demand for specialized steels designed for power applications.
• Efficiency optimization and performance reliability demands create consistent electrical protection requirements across major power regions and transmission facilities.

What are the Drivers, Restraints, and Key Trends in the USA Grain Oriented Electrical Steel Industry?

The demand for grain oriented electrical steel in the USA is advancing steadily due to increasing electrical requirements and growing recognition of advanced magnetic necessity for efficiency compliance, with the West region serving as a key driver of innovation and electrical advancement.

The sector faces challenges including magnetic performance consistency optimization, material enhancement complexity, and ongoing concerns regarding processing cost considerations and quality variations.

Growth in Electrical Infrastructure Development and Equipment Expansion Programs

The enhancement of manufacturing standards, gaining particular significance through electrical equipment trends and efficiency education campaigns, is enabling steel providers to achieve differentiation without prohibitive development costs, providing predictable demand patterns through electrical requirements and manufacturer preferences.

Enhanced manufacturing standards offering substantial opportunities for steel systems and integrated applications provide foundational dynamics while allowing providers to secure electrical facility agreements and distribution partnerships.

Deployment of Advanced Magnetic Capabilities and High-Performance Efficiency Systems

Modern steel providers and electrical operators are establishing advanced manufacturing networks and centralized production facilities that improve manufacturing efficiency through process standardization and magnetic analytics.

Integration of magnetic enhancement systems, high-performance material technology, and coordinated quality management enables more efficient production operations across multiple manufacturing regions.

Development of Automated Electrical Systems and Enhanced Equipment Targeting Methods

The expansion of automated electrical systems and equipment segmentation is driving development of specialized steel systems with enhanced magnetic profiles, improved performance characteristics, and optimized efficiency attributes that address current limitations and expand electrical applications beyond traditional steels.

These specialized systems require sophisticated magnetic capabilities and performance expertise that exceed traditional manufacturing requirements, creating specialized demand segments with differentiated efficiency propositions. Producers are investing in equipment targeting and magnetic optimization to serve emerging electrical applications while supporting innovation in performance development and efficiency engagement.

Analysis of USA Grain Oriented Electrical Steel Demand by Key Regions

Region	CAGR (2025-2035)
West	5.70%
Northeast	5.50%
South	5.20%
Midwest	5.00%

The USA grain oriented electrical steel demand is witnessing steady growth, supported by rising electrical requirements, expanding power facility initiatives, and the deployment of advanced magnetic technologies across regions. West leads the nation with a 5.70% CAGR, reflecting a strong innovation-conscious base, substantial electrical equipment development, and established power advancement facilities.

Why Does the West Region Lead Grain Oriented Electrical Steel Demand?

Demand for grain oriented electrical steel in West is projected to exhibit strong growth with a CAGR of 5.70% through 2035, driven by a strong innovation-conscious electrical base, substantial equipment development creating premium magnetic opportunities, and a concentration of manufacturing advancement across California, Oregon, Washington, Nevada, and surrounding states.

Advanced electrical technology programs and magnetic control initiatives are expanding steel adoption among manufacturers, power facilities, and electrical equipment suppliers pursuing performance optimization, efficiency development, and specialized electrical projects throughout major urban hubs and manufacturing corridors.

• Innovation consciousness base and electrical infrastructure capabilities are requiring comprehensive magnetic strategies and efficiency solutions, driving demand for steel systems with demonstrated performance enhancement capabilities and permanent reliability assurance throughout diverse electrical operations.
• Equipment development and electrical concentration are generating substantial steel demand across electrical companies, manufacturers, and efficiency suppliers serving power applications and electrical requirements.

Why Does the Northeast Region Demonstrate Strong Growth?

Demand for grain oriented electrical steel in Northeast is projected to grow with a CAGR of 5.50% through 2035, supported by established electrical presence, comprehensive equipment development, and strong manufacturing facilities across New York, Pennsylvania, Massachusetts, New Jersey, and surrounding states.

Established electrical presence and manufacturing leadership are supporting steel adoption throughout manufacturer facilities, equipment operations, and efficiency distribution centers serving performance enhancement and magnetic applications.

• Strong electrical ecosystem and manufacturing networks are enabling steel integration across efficiency producers, manufacturers, and magnetic suppliers pursuing advanced performance development and electrical programs.
• Premium equipment capabilities and efficiency excellence are driving steel demand among leading manufacturer corporations, electrical centers, and specialized efficiency firms focused on performance enhancement, magnetic optimization, and manufacturing development targeting electrical applications and advanced power operations.

What Factors Underpin Grain Oriented Electrical Steel Demand in South Region?

Demand for grain oriented electrical steel in South is forecast to advance with a CAGR of 5.20% through 2035, driven by expanding electrical capabilities, growing magnetic investment, and increasing efficiency consciousness across Texas, Florida, Georgia, North Carolina, and surrounding states.

Rising equipment sector development and manufacturing partnerships are supporting steel integration across magnetic producers, manufacturer facilities, and efficiency distributors pursuing performance enhancement, electrical expansion, and power initiatives throughout expanding electrical regions and urban centers.

• Growing electrical infrastructure and equipment investment are creating opportunities for steel adoption across emerging magnetic hubs, manufacturer facilities, and efficiency distribution centers in major metropolitan areas and electrical corridors.
• Performance expansion and efficiency growth are driving steel demand among electrical operators seeking enhanced performance capabilities and participation in advanced magnetic programs.

What Boosts Consistent Demand in the Midwest Region?

Demand for grain oriented electrical steel in Midwest is expected to expand with a CAGR of 5.00% through 2035, supported by magnetic manufacturing capabilities, electrical infrastructure development, and growing manufacturer efficiency presence across Illinois, Ohio, Wisconsin, Michigan, and surrounding states.

Efficiency expertise and production capabilities are driving steel demand among magnetic producers, electrical suppliers, and equipment manufacturers serving steel production and performance applications.

• Growing magnetic development and manufacturing investment are supporting steel adoption across emerging production hubs, electrical facilities, and manufacturer centers pursuing performance enhancement and magnetic programs.
• Expanding electrical infrastructure and magnetic integration are creating opportunities for steel utilization across efficiency suppliers, electrical production facilities, and manufacturer operations seeking performance steel production, efficiency support, and manufacturing capabilities throughout major electrical regions and emerging manufacturer efficiency centers.

Competitive Landscape of USA Grain Oriented Electrical Steel Industry

The grain oriented electrical steel industry in USA is defined by competition among established steel corporations, specialized magnetic companies, and integrated electrical producers, with major manufacturer operators maintaining significant influence through production resources and manufacturing capabilities. Companies are investing in steel advancement, magnetic optimization, efficiency acceptance technologies, and comprehensive performance services to deliver effective, reliable, and efficient electrical solutions across USA power and manufacturer applications.

POSCO Holdings Incorporated dominates with a 17.30% share, offering comprehensive magnetic solutions including advanced equipment, performance enhancement technologies, and distribution services with a focus on electrical applications, efficiency consistency, and magnetic optimization across USA operations. The company continues investing in magnetic programs, distribution strategies, and steel innovation while expanding operational presence and advanced manufacturer applications.

ArcelorMittal S.A. provides specialized magnetic solutions with emphasis on performance development and manufacturing excellence. Baosteel Group Corporation focuses on premium steel development and electrical applications. Nippon Steel Corporation emphasizes performance development and specialized manufacturer equipment production. JFE Steel Corporation offers magnetic technology solutions and professional performance support. thyssenkrupp AG specializes in electrical steel development and distribution programs.

Key Players in USA Grain Oriented Electrical Steel Industry

• POSCO Holdings Incorporated
• ArcelorMittal S.A.
• Baosteel Group Corporation
• Nippon Steel Corporation
• JFE Steel Corporation
• thyssenkrupp AG
• Stalprodukt S.A.
• Cleveland-Cliffs Incorporated
• Arnold Magnetic Technologies Corporation
• VIZ-Steel
• JSW JFE Electrical Steel Private Limited
• Rogers Corporation
• Covestro AG
• Armacell International S.A.
• Zeus Company Incorporated

Scope of the Report

Item	Value
Quantitative Units	USD 3.29 billion
Application	Transformers, Motors, Other Equipment
End Use	Power Transformers, Distribution Transformers, Industrial Transformers, Smart Grid Transformers, Electric Vehicle Motors, Industrial Motors
Regions Covered	West, Northeast, South, Midwest
Key Companies Profiled	POSCO Holdings Incorporated, ArcelorMittal S.A., Baosteel Group Corporation, NIPPON STEEL CORPORATION, JFE Steel Corporation, thyssenkrupp AG, Stalprodukt S.A., Cleveland-Cliffs Incorporated, Arnold Magnetic Technologies Corporation, VIZ-Steel, JSW JFE Electrical Steel Private Limited, Rogers Corporation, Covestro AG, Armacell International S.A., Zeus Company Incorporated
Additional Attributes	Sales by application and end use segment, regional demand trends across West, Northeast, South, and Midwest, competitive landscape with established steel corporations and magnetic suppliers, manufacturer facility preferences for transformers versus motors equipment, integration with electrical facilities and advanced magnetic optimization policies particularly advanced in West region

USA Grain Oriented Electrical Steel Industry by Segments

• Application :

  • Transformers
  • Motors
  • Other Equipment

• End Use :

  • Power Transformers
  • Distribution Transformers
  • Industrial Transformers
  • Smart Grid Transformers
  • Electric Vehicle Motors
  • Industrial Motors

• Region :

  • West
  • Northeast
  • South
  • Midwest