India Electrical Steel Market is Expected to Register a 9.10% CAGR Through 2031
Rapid Growth in Renewable Energy Sector and Expansion of
Electrical & Electronics Manufacturing Industry are likely to propel the market
during the forecast period.
According to
TechSci Research report, “India Electrical Steel Market – By Region,
Competition, Forecast and Opportunities, 2021-2031F”, India Electrical Steel Market was valued at
USD 2.25 Billion in 2025 and is expected to reach USD 3.83 Billion by 2031 with
a CAGR of 9.10% during the forecast period.
India’s ongoing electrification efforts
and growing awareness about energy efficiency are crucial factors driving the
electrical steel market. As millions of households and industries gain access
to electricity, the demand for electrical equipment rises, alongside the need
for energy-efficient solutions. The government’s focus on rural
electrification, under programs like Saubhagya, ensures electricity reaches
even the most remote villages. This expansion requires a vast network of
transformers, motors, and generators that rely heavily on electrical steel.
Efficient electrical steel reduces transmission and distribution losses,
enabling better power quality and cost savings, which are critical in
low-income regions.
At the same time, energy efficiency has
become a national priority to combat rising power demand and environmental
concerns. Policies promoting the use of energy-efficient appliances and
equipment encourage manufacturers to adopt electrical steel grades that reduce
core losses. This trend is especially evident in industries and commercial
buildings where electrical motors and transformers constitute a major portion
of energy consumption. Awareness campaigns and regulations
around energy consumption motivate consumers and industries to choose products
with better efficiency ratings. Electrical steel’s role in improving
transformer and motor efficiency directly contributes to meeting these goals.
For instance, energy-efficient transformers with grain-oriented electrical
steel cores reduce losses significantly, helping utilities and consumers lower
electricity costs. Moreover, international agreements and India’s commitments
to sustainable development foster a shift towards greener technologies. This
shift increases demand for electrical steel in electric vehicles,
energy-efficient industrial equipment, and renewable energy projects, all
requiring materials that support reduced energy wastage. Technological advancements in electrical
steel manufacturing also enable the production of materials with superior
magnetic properties, which align with the country’s energy efficiency
objectives.
Browse over XX Market
data Figures spread through XX Pages and an in-depth TOC on " India Electrical Steel Market.”
Based
on Vertical, The Energy & Power sector dominated the India electrical steel
market due to its foundational role in supporting the country's growing
electricity demand, grid expansion, and transition to renewable energy sources.
Electrical steel is a critical material used in the manufacturing of
transformers, generators, and other core components essential for energy
transmission and distribution. As India continues to modernize its power
infrastructure, the need for high-efficiency electrical equipment has surged,
directly fueling the demand for electrical steel.
One
of the primary drivers is the expansion of India's power grid to support
urbanization, industrialization, and rural electrification. The government’s
initiatives such as the Saubhagya scheme and the Revamped Distribution Sector
Scheme (RDSS) aim to strengthen the electrical infrastructure and reduce
transmission losses. This has led to a significant increase in the deployment
of distribution and power transformers, which rely heavily on grain-oriented
electrical steel for improved performance and reduced core losses. The
rapid growth of renewable energy projects, especially in solar and wind power,
has created new demand for efficient transformers and generators that can
handle variable loads. These components must be highly reliable and
energy-efficient, making electrical steel indispensable to their design and
functioning. Moreover, as India works toward achieving its net-zero emissions
goals, energy efficiency has become a national priority. The use of high-grade
electrical steel in power equipment plays a direct role in minimizing energy
losses, making it essential for meeting regulatory and sustainability
standards.
Based
on Region, North India is emerging as the fastest-growing region in the India
electrical steel market due to a combination of strong industrial growth, rapid
urbanization, and significant infrastructure development. This region hosts a
large concentration of manufacturing hubs, power plants, and renewable energy
projects, all of which are major consumers of electrical steel.
One
of the key factors driving growth is the expansion of power infrastructure to
meet the rising electricity demand in North India. States like Uttar Pradesh,
Haryana, Punjab, and Rajasthan have witnessed extensive investments in power
generation and distribution, including new substations, transformers, and smart
grid technologies. These developments require substantial quantities of
grain-oriented electrical steel for transformers and non-grain-oriented steel
for motors and generators, fueling market demand. Additionally, North India is
a major center for industrial activity, including automotive, textile, and
electrical equipment manufacturing. The increasing adoption of energy-efficient
motors and appliances in these industries propels the need for high-quality
electrical steel, especially non-grain-oriented varieties used in motor cores.
Industrial growth coupled with government initiatives promoting “Make in India”
encourages local production and consumption of electrical steel products. Urbanization
and infrastructure projects such as metro rail networks, airports, and smart
city initiatives in cities like Delhi, Noida, and Gurugram also contribute to
the rising demand. These projects rely heavily on electrical equipment that
incorporates electrical steel, further boosting the market. Moreover, North
India’s favorable connectivity and logistics infrastructure facilitate the
distribution of electrical steel to both northern and adjoining regions,
enhancing its role as a key market hub.
Major companies
operating in the India Electrical Steel Market are:
- Tata Steel
Limited
- JSW Steel
Limited
- Jindal Steel
and Power Limited
- Steel Authority
of India Limited (SAIL)
- Essar Steel
India Limited
- Electrosteel
Steels Limited
- VISA Steel
Limited
- Bhushan Steel
Limited
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“The India electrical steel market
presents significant growth opportunities driven by the country’s expanding
power infrastructure, rapid industrialization, and growing emphasis on energy
efficiency. Increasing investments in renewable energy, electrification of rural
areas, and modernization of the electrical grid are fueling demand for
high-quality electrical steel products. Additionally, the rising adoption of
electric vehicles and smart technologies further amplifies market potential.
With government initiatives promoting domestic manufacturing and import
substitution, the sector is poised for technological advancements and capacity
expansion, making it an attractive arena for both domestic and international
investors seeking long-term growth in a rapidly evolving energy landscape.”
said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.
“India Electrical Steel
Market, By Type (Grain Oriented Electrical Steel,
Non-Grain Oriented Electrical Steel), By Application (Transformers, Motors
& Generators, Inductors), By Vertical (Automotive, Construction,
Manufacturing, Energy & Power, Others) By Region, Competition, Forecast
& Opportunities, 2021-2031F”,
has evaluated the future growth potential of India Electrical Steel Market and
provides statistics & information on Market size, structure and future Market
growth. The report intends to provide cutting-edge Market intelligence and help
decision-makers make sound investment decisions., The report also identifies
and analyzes the emerging trends along with essential drivers, challenges, and
opportunities in the India Electrical Steel Market.
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