Motor Non-Oriented Silicon Steel Market

Key data points: Market size in 2027 = $3.3 billion and 2035 = $5.1 billion growth forecast = 5.0% annually for the next 8 years. This market report covers trends, opportunities, and forecasts in the global motor non-oriented silicon steel market to 2035 by type (hot rolled and cold rolled), application (home appliances, power generator, new energy vehicles, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World) Motor Non-Oriented Silicon Steel Market The future of the global motor non-oriented silicon steel market looks promising with opportunities in the home appliance, power generator, and new energy vehicle markets. The global motor non-oriented silicon steel market is expected to reach an estimated $5.1 billion by 2035 from $3.3 billion in 2027 with a CAGR of 5.0% from 2027 to 2035. The major drivers for this market are increasing demand for energy-efficient motors and advancements in electric vehicle technology. • Lucintel forecasts that, within the type category, hot rolled is expected to witness a higher growth over the forecast period due to lower cost and increased accessibility for consumer applications. • Within the application category, home appliance is expected to witness the highest growth over the forecast period due to increased energy-efficient motor demand for household appliances. • In terms of regions, APAC is expected to witness the highest growth over the forecast period over the forecast period due to growing home appliance and electric vehicle manufacturing. Gain Valuable insights for your business decisions with our comprehensive 150+ page report. Emerging Trends in Motor Non-Oriented Silicon Steel Market Between 2025 and 2027, market trends for motor non-oriented silicon steel shift toward more efficient grades, better carbon controls, and supply resilience in the region. Lucintel’s market view supports manufacturers’ investments in electric vehicle traction motors, industrial drives, and upgraded production lines. There will still be some competitive pressure from high energy costs and lengthy qualification cycles. • Efficiency-led Grade Upgrading: Electric vehicle motors require thinner gauges and lower core-loss grades due to stricter efficiency demands. In January 2025, the revised vehicle rules of the EU continued to push manufacturers to decrease energy consumption. This will increase the value per ton as customers start to pay for electrical performance over volume. • Sustainability and Decarbonized Steel: There are increases in scrap use, emissions reporting, and renewable power sourcing among steel producers. In 2024, the world crude steel output reached approximately 1.88 billion tonnes, resulting in a spotlight on steel’s carbon footprint in 2025. During the next 3 to 5 years, procurement teams will favor products with a documented carbon footprint and lower emissions. • Automation and Digital Manufacturing: Investments in Continuous Annealing, Laser Welding, Automated Inspection and Process Analytics are becoming the norm; in 2025, most major mills continued to install machine vision systems to control variations in coating and gauge defects. Better process control will result in more volume and shorter manufacturer qualification times. • Regional Supply-chain Diversification: Buyers rely less on single country supply chains via dual sourcing and local finishing. The Carbon Border Adjustment Mechanism (CBAM) in its definitive phase starting from January 2026, also places a higher value on traceable regional production. This region-specific production shall incentivize capacities along the equipment clusters for automotive and industrial equipment. • Electric Mobility Demand: High demand for battery electric vehicles creates a high demand for motor laminations. Meanwhile, hybrid technologies help satisfy demand while crossing the heavier adoption barrier. Figures from the International Energy Agency (IEA) show that the sales of electric vehicles crossed the 17 million mark for 2024. The motor non-oriented silicon steel market will continue to grow along with the electrification of vehicles, but may care more about the grade matrix than the total vehicle units. Investments shall favor efficiency, traceability, and flexible capacity over indiscriminate bulk. Advanced annealing combined with quality coating services and regional focus will help strengthen customer partnerships. Cyclical nature of the automotive industry shall remain an ongoing risk, however, balancing industrial motors and generators along with continuous electrification of various industries shall minimize the risk of volatility. The market is likely to adopt a more demanding and technically advanced nature along with less tolerance to inconsistent material quality and performance. Recent Developments in the Motor Non-Oriented Silicon Steel Market Motor non-oriented silicon steel is going through a fast investment cycle as production of electric vehicles, high-efficiency motors, and smart energy equipment increases. Capacity additions during 2025-2027 will focus on Asia, while regional trade measures will redefine sourcing. Lucintel foresees reduction of gauge, improvement of magnetic loss and availability of reliable local supply will become competitive differentiators, instead of just volume. • Capacity Expansion: Baosteel continued building its electrical steel capacity in China with its Zhanjiang project scheduled to produce 1 million tonnes per year (June 2025). New plants will reduce reliance on imports and increase competition in the standard grades, while the premium automotive grades will remain constrained. • Automotive Partnerships: ThyssenKrupp and Aperam agreed on a partnership for electrical steel supply and processing for their customers in the European mobility sector (April 2025). This partnership reflects the demand of automakers to have qualified suppliers, and will undoubtedly increase dual sourcing in the next 3 to 5 years. • Technology Launch: POSCO revealed a next generation high strength electrical steel for drive motor with lower core loss and improved efficiency (March 2025). This innovations support the manufacturing of high performance and high efficiency motors with longer driving range and will consequently shift the focus of the market from volume to performance of electrical steel. • Trade Policy: The EU started implementing the Carbon Border Adjustment Mechanism reporting for imported steel, including the reporting of emissions for January 2026. Producers with cleaner electricity will gain commercial advantage, and high carbon producers will have higher compliance costs. • Production Localization: Nippon Steel has decided to build a steel manufacturing plant in India following the approval of the investment by the board for the construction of a new plant with a capacity of 600,000 tons per year (May 2025). This will enable the company to manufacture steel locally and reduce the time it takes to deliver steel to customers within the country. This is important considering the rapid growth of the industries for producing motors and transformers within India. Production challenges are expected to ease, but there will continue to be AMD price pressure and relatively unpredictable margins. Crude motor steels are facing new Chinese supplies, while automotive specifications of higher grades and quality are drawing investments and increased technical scrutiny. Those steel manufacturers who integrate low loss steel with finishing capacity in the region are expected to grow the most. Customers will, in addition to considering the price, evaluate the history of qualification of the steel supplier, as well as the security of delivery and the carbon footprint of the steel. This will determine the competitive advantage for the next few years. Strategic Growth Opportunities in the Motor Non-Oriented Silicon Steel Market The market for motor non-oriented silicon steel is experiencing an important transition due to several influences that are causing shifts in the purchase of materials. Between 2024 and 2026, according to Lucintel, the penetration of performance grades and specialized supply agreements will increase along with the need for local processing and better control over the supply chain, especially among automotive and industrial customers. • EV Traction Motors: Manufacturers are focusing on increasing motor efficiency. Automakers will source electric steel with thinner gauges which is used in electric traction applications. The IEA (April 2025) forecasted sales volume of 20 million electric vehicles, globally. This market will continue to expand as motor efficiency will play a critical role in the range of vehicles and the design of compact vehicles. • Industrial Energy Efficiency: The use of premium motor materials reduces motor losses in factory equipment, pump and compressor systems. The EU’s July 2025, Ecodesign rules, impact motors with output of 0.12 kW to 1 MW. Consumers will have a greater need for the replacement and installation of equipment to reduce energy costs. • Renewable Power Generators: Reliable magnetic materials play a critical role in the design of variable speed generators used in wind power systems and other distributed generation equipment. Projects will generate demand for materials designed for large variable speed generators and long operating cycles. • Localized Processing: Value added services that include slitting, stamping, and coating at regional facilities will facilitate better control over supply chain lead times. The beginning of the CBAM’s definitive period in the EU, January 2026, creates a competitive advantage for processors that offer finishing, control over supply chain carbon emissions, and lower exposure to import risks. • Low-carbon Grades: Suppliers can sell automakers lower-emission steel motor laminations. Automakers face product-footprint reporting requirements. ArcelorMittal reported a 35% reduction in scope 1 and 2 emissions from their 2018 baseline (February 2025). For the next 3-5 years, the introduction of carbon-qualified grades will change purchasing decisions in the steel industry. Thinner grades that are more efficient and produced closer to the point of use will be in the greatest demand over the next 5 years. Greater margins will accrue to suppliers who qualify materials for EV traction motors and industrial drives and who can provide a localized supply chain. There will be a premium price. Capacity, by itself, will not dictate who wins, rather the application engineering and a reliable supply of decarbonization data will be the critical differentiating factors. Customers will continue to improve and tighten their performance and supply chain. Motor Non-Oriented Silicon Steel Market Drivers and Challenges The market dynamics for motor non-oriented silicon steel include sector growth, technological advancements, investment in electric vehicles and the power grid, economic factors and government policies. Lucintel believes these factors impact both product offerings and market competition. Growth will come from increasing demand for efficient motors, the use of better grades of steel, the expansion of renewable energy and the creation of local supply chains. Meanwhile, there are significant challenges of unpredictable prices for raw materials, energy-intensive production, trade restrictions and meeting decarbonization goals. Over the next several years, market success will depend on how well producers balance these challenges. The focus will be on magnetic efficiency, cost, sustainability, capacity expansion and balancing automotive and industrial standards. The factors responsible for driving the motor non-oriented silicon steel market include:- • Investment in Electric Vehicles: Electric vehicles utilize high-efficiency traction motors which in turn necessitates non-oriented silicon steel with low core loss. The sales of electric vehicles surpassed 17 million globally in 2024 creating a solid base for 2025 demand. Car manufactures are focused on increasing the efficiency of their vehicles while reducing vehicle weight and increasing the vehicle’s capacity for travel. The next three years are expected to see a rapid build-out of electric vehicles as one of the primary driving forces for higher demand of the best grades of steel intended for high-speed applications. • Magnetic Ability: The introduction of improved alloys, better gauges, better insulating coatings, and more advanced techniques for annealing have all contributed to the improvement of magnetic performance on manufacturing components. Improvements to the performance of manufacturing components allow efficiency manufactures to meet varying energy-efficiency standards in markets emerging in January 2025. Electric drives, including automation systems, pumps, compressors, and household appliances, consume less energy, lowered the manufacturing cost, and produced less heat with the implementation of these new technologies. In the next three to five years, changes in purchasing practices for efficiency in manufacturing will create an increased demand for premium non-oriented silicon steel. For manufacturers with superior metallurgy and advanced technology, there will be an increased demand for these premium manufacturing components. • Increased Use of Renewable Energy: The increase in the installation of wind and solar generators and the modernization of the power grid is driving an increased demand for efficient generators and motors, transformers, and balance of systems. The International Energy Agency reported that renewable capacity reached 585 gigawatts, globally, for 2024. This is expected to drive further growth in equipment during 2025. While transformers primarily use oriented grades of steel, non-oriented steel construction is utilized in related motors, generators, and other platforms. Over the next three to five years, the modernization of power grids and the deployment of renewable energy sources will create demands outside conventional automotive uses. • Manufacturing Localization: Governments and manufacturers are investing in local steel, automotive, and component supply chains to mitigate overreliance on concentrated imports. The Critical Raw Materials Act in the EU mandates 10% domestic extraction and 40% processing capacity by 2030, enhancing the surrounding policy framework for localized production. More proximity to the customer is driving manufacturers to make new rolling, coating, and finishing capacity. From 2025 to 2027, localization will improve supply security and shorten delivery times, although regional production in the near-term may be costlier compared to established supply chains in Asia. • Product Innovation: Motor designers demand steel comprising low losses, high strength, good punch ability, and resistance to magnetic fields. In 2025, higher rotational speeds in electric drive trains will drive the need for thinner gauge steel and specialized coatings. Manufacturers are developing new grades of steel specifically for traction motors and robotics, rather than relying on standard grades, to capture new high-growth market opportunities. Product differentiation and a shift in focus from steel pricing will drive the market for the next 3-5 years. Challenges faced by this Market include: • High Variance in Raw Materials and Energy: Manufacturing of non-oriented silicon steel relies heavily on iron ore and alloying materials, and the process requires a lot of electricity and natural gas. Melting, rolling, and annealing the steel involves many steps that exposes the producer to changing costs, since each step is done repeatedly. By 2025, changes in the price of electricity and natural gas continued to affect energy intensive metal industries. Although producers can charge more for their goods, the automotive and appliance industries do not like charging more. For the next three to five years, volatile input prices will present challenges in planning capacity, as well as encourage companies to focus more on energy efficiency. This will also be favored by companies that have vertically integrated supply chains and access to low cost renewable energy. • Decarbonization: Steel manufacturers are expected to produce steel at low emission levels while meeting certain magnetic and mechanical standards. From January 2026, the Carbon Border Adjustment Mechanism by the EU will make it more urgent for steel manufacturers to measure their emissions and manage the cost of carbon for imported steel. Manufacturers will need to invest in a number of things such as renewable electricity, energy efficient equipment, low carbon iron making, and verifiable emissions. All these will lead to high capital needs and increase production costs, but in the next three to five years how well a company performs in decarbonization will determine the customer selection, the trade access, funding, and how long a company will be able to compete. • Supply Chain and Trade Supply Uncertainty: Tariffs, antidumping actions, export controls, disrupted shipping, and geopolitical tensions will affect the availability of materials and regional pricing. Increased policy changes in steel consuming countries in 2025 created uncertainty in the importation of electrical steel and the downstream manufacturing of motors. Customers may implement diversification strategies, create increased inventory levels, and build regional sourcing, but these strategies increase working capital and logistics costs. Over the next 3 to 5 years, fragmented trade will create an uneven global market, and local expansions of capacity will become more competitive for existing producers and new regional market entrants. Demand growth from vehicles, automated industries, renewable infrastructure, and low energy consumption appliance will drive growth in the non-oriented motor silicon steel market. Advancements in technology and the development of new products will drive demand for ultra-thin, high strength, low loss grades. Resilient supply may be achieved through localization, but producers will continue to be challenged by volatile inputs, trade policies, and complex supply chains. Companies that achieve combinations of advanced metallurgy, low cost, high quality, and dependable regional capacity with valid and verifiable emissions control strategies will have the advantage to best serve this growing market. It is anticipated that the market growth will be steady, but profitability and advantage will be based upon increased efficiency and adaptability in the face of regulatory uncertainty and specialization of products offered. List of Motor Non-Oriented Silicon Steel Market Companies Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies motor non-oriented silicon steel market companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the motor non-oriented silicon steel market companies profiled in this report include- • ArcelorMittal • JFE Steel • AK Steel • Posco • Nippon Steel • ThyssenKrupp • Voestalpine Motor Non-Oriented Silicon Steel Market by Segment The study includes a forecast for the global motor non-oriented silicon steel by type, application, and region. Motor Non-Oriented Silicon Steel Market by Type [Value ($B) from 2019 to 2035]: • Hot Rolled • Cold Rolled Motor Non-Oriented Silicon Steel Market by Application [Value ($B) from 2019 to 2035]: • Home Appliances • Power Generator • New Energy Vehicles • Others Motor Non-Oriented Silicon Steel Market by Region [Value ($B) from 2019 to 2035]: • North America • Europe • Asia Pacific • The Rest of the World Country Wise Outlook for the Motor Non-Oriented Silicon Steel Market Electrification, increasingly strict efficiency standards, and regional supply-chain policies are changing the shape of the motor non-oriented silicon steel market. From 2025 to 2027, producers will focus on high-grade strip, automated finishing, and lower carbon production. Based on Lucintel’s latest analysis, these trends are strengthening localization of key manufacturing regions. • United States: In the U.S., domestic capacity and policy support: in March 2024, the U.S. Department of Energy awarded $1.7 billion in grants to nine decarbonization projects; steel facilities included. Cleveland-Cliffs and Nucor are situated among the advanced electrical steels positioning investments. Domestic accessibility for motors, generators, and electric vehicles should improve in the next three to five years. • China: Modernization of Chinese manufacturing plants and development of high-grade products: Baosteel continued the commercialization of lower loss, thinner grades of non-oriented electrical steel in 2025. Strong industrial policies in China continue to support domestic production and the buildup of the electric-drive supply chains. These efforts will bring Chinese grades to market and strengthen local sourcing through 2030. • Germany: ThyssenKrupp said the €2.5 billion project for direct reduction of steel at its Duisburg plant in May 2025 and modernization of its European steel supply will improve the availability of low carbon steel and strengthen local production. • India: Electric steel capacity expansion. JSW Steel continued work on its 2025 expansion of its 0.5 million tons of electrical steel. The expansion will help develop the local supply chain for the manufacturers of transformers and motors, creating less import reliance. It will also help create a local supply chain for the manufacturers of automobiles and industrial motors. • Japan: Technology alliances and overseas capacity. June 2025 saw Nippon Steel advance its proposal to purchase U.S. Steel. Japanese producers continued shipping high-efficiency electrical steel to global automakers. This reinforces the premium motor steel technology alliances and international supply systems for the next three to five years. Features of the Global Motor Non-Oriented Silicon Steel Market Market Size Estimates: motor non-oriented silicon steel market size estimation in terms of value ($B). Trend and Forecast Analysis: Market trends (2019 to 2026) and forecast (2027 to 2035) by various segments and regions. Segmentation Analysis: motor non-oriented silicon steel market size by type, application, and region in terms of value ($B). Regional Analysis: motor non-oriented silicon steel market breakdown by North America, Europe, Asia Pacific, and Rest of the World. Growth Opportunities: Analysis of growth opportunities in different type, application, and regions for the motor non-oriented silicon steel market. Strategic Analysis: This includes M&A, new product development, and competitive landscape of the motor non-oriented silicon steel market. Analysis of competitive intensity of the industry based on Porter’s Five Forces model. If you are looking to expand your business in this or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more. This report answers following 11 key questions: Q.1. What are some of the most promising, high-growth opportunities for the motor non-oriented silicon steel market by type (hot rolled and cold rolled), application (home appliances, power generator, new energy vehicles, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)? Q.2. Which segments will grow at a faster pace and why? Q.3. Which region will grow at a faster pace and why? Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market? Q.5. What are the business risks and competitive threats in this market? Q.6. What are the emerging trends in this market and the reasons behind them? Q.7. What are some of the changing demands of customers in the market? Q.8. What are the new developments in the market? Which companies are leading these developments? Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth? Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution? Q.11. What M&A activity has occurred in the last 8 years and what has its impact been on the industry?