Global Silicon Steel Market Overview 2025

According to LookWhole Insight, the global Silicon Steel market is projected to reach USD 22.71 billion in 2024. It is expected to grow to USD 38.86 billion by 2033, registering a compound annual growth rate (CAGR) of 6.15% during the forecast period (2024–2033).

Silicon Steels Market Analysis

Silicon steel, also known as electrical steel, is a specialized steel alloy containing silicon and is widely used in the electromagnetic field, particularly as core components in motors, transformers, and generators. The key attributes of silicon steel include excellent magnetic properties, especially low energy loss, high magnetic saturation, and high electrical resistivity, which allow it to effectively reduce energy losses and enhance equipment efficiency during power transmission and conversion processes.

Typically, the silicon content of silicon steel ranges from 0.5% to 4.5%. Based on its magnetic properties and application requirements, silicon steel is classified into two main types: cold-rolled and hot-rolled. Cold-rolled silicon steel offers higher magnetic permeability and lower electromagnetic loss, making it ideal for high-performance motors and transformers. In contrast, hot-rolled silicon steel is more commonly used in low-load electrical equipment.

As global demand for electrical equipment and electric vehicles continues to grow—especially in core components such as transformers, motors, and electric engines—the application of silicon steel is expanding rapidly. Furthermore, rising standards for energy efficiency and environmental protection are prompting manufacturers to adopt low-loss, high-efficiency materials. Silicon steel precisely meets these requirements, becoming a key material for high-efficiency electrical equipment and smart grids.

Additionally, the rapid growth of electric vehicles is injecting strong momentum into the silicon steel market. The high-efficiency motors and battery systems in EVs require the use of high-performance silicon steel to improve energy efficiency and extend lifespan. As EV production scales up, demand for silicon steel will continue to rise.

Moreover, global government policies promoting green energy and clean technology are accelerating the demand for high-performance silicon steel, particularly in renewable energy and smart grid construction, where silicon steel plays an indispensable role as a core electromagnetic material. Overall, multiple factors are driving the market’s growth, which is expected to remain strong over the coming years, making silicon steel an essential pillar of the global power and high-efficiency manufacturing sectors.

Key Development Trends

Global Silicon Steels Market: Competitive Landscape

According to the LookWhole Insight report, the competitive landscape of the silicon steel market is shaped by several factors, including technological innovation, production capacity, market demand, and regional market variations. The global silicon steel market is dominated by several large steel and materials producers with significant advantages in scale, technology, and market share.

Leading producers such as Baosteel, ArcelorMittal, POSCO, and Nippon Steel & Sumitomo Metal Corporation (NSSMC) dominate the market due to their strong innovation capabilities and global production networks.

Baosteel, one of China’s largest steel producers, plays a critical role in the silicon steel market. The company holds a substantial market share domestically and also maintains strong global competitiveness. ArcelorMittal, one of the world’s largest steel manufacturers, has secured a significant position in Europe and other markets through its technological advancements and product quality. POSCO and NSSMC hold leading positions in South Korea and Japan respectively, offering high-performance silicon steel to industries such as power, home appliances, and electric vehicles.

Competition in the silicon steel market is not only driven by these major corporations but also by regional market demand. China is the largest consumer market for silicon steel globally, particularly in power equipment, home appliances, and electric vehicles. Local companies like Baosteel, Ansteel, and Shougang hold strong competitive advantages in the domestic market, meeting large-scale demand through pricing strategies and mass production. In contrast, in Europe and the U.S., stricter energy efficiency and environmental standards lead consumers to favor low-loss, high-performance silicon steel products. As a result, competition in these regions places greater emphasis on product performance and innovation capabilities.

Market Report Coverage & Segmentation

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