India EV Steel Market is Expected to Register a 7.09% CAGR Through 2031
Growth in Electric Vehicle (EV) Adoption and Government
Policies & Initiatives are likely to propel the market during the forecast
period.
According to
TechSci Research report, “India EV Steel Market – By Region,
Competition, Forecast and Opportunities, 2021-2031F”, India EV Steel Market was valued at USD 24 Billion
in 2025 and is expected to reach USD 36 Billion by 2031 with a CAGR of 7.09%
during the forecast period.
The growing focus on sustainability and
low-carbon production is a major trend in the Indian EV steel market. As global
attention shifts toward environmental responsibility and reducing carbon emissions,
the steel industry, including the production of electrical steel, is under
increasing pressure to adopt cleaner, more sustainable practices. This trend is
becoming especially relevant in the context of India’s transition toward
electric vehicles and its commitment to meeting international climate goals.
One key aspect of this trend is the
shift toward green steel production. Traditional methods of steel production,
such as blast furnace and basic oxygen furnace processes, are highly
carbon-intensive, contributing significantly to greenhouse gas emissions. In
response to this, there is a growing push for the adoption of electric arc
furnaces (EAF) and hydrogen-based steel production, which produce steel with
lower carbon emissions. These technologies are gaining traction in India as
part of the broader global movement to decarbonize the steel industry. Moreover,
recycling and the use of secondary steel are becoming more common in the
production of electrical steel. India has significant potential for scrap
recycling, and using recycled steel reduces the need for primary raw materials,
thereby lowering the environmental impact of steel production. By incorporating
recycled materials, manufacturers can reduce energy consumption and emissions
associated with steelmaking.
The push for sustainable production is
also aligned with the growing demand for energy-efficient products. Electrical
steel is key to reducing energy losses in electric motors, transformers, and
other electrical equipment. As the demand for energy-efficient technologies
increases, particularly in the EV and renewable energy sectors, manufacturers
of electrical steel in India are focusing on producing materials that meet
stringent environmental and energy efficiency standards. This trend is driving
innovation in the steel sector and encouraging manufacturers to invest in
cleaner production methods and more sustainable materials.
Browse over XX Market
data Figures spread through XX Pages and an in-depth TOC on " India EV Steel Market.”
Based
on Location, The motor segment dominated the India EV steel market primarily
due to the rapid growth of the electric vehicle (EV) industry. Electric motors
are the core components of EVs, as they directly drive the vehicle's propulsion
system. The performance and efficiency of these motors are highly dependent on
the quality of the steel used, particularly Non-Grain Oriented Electrical Steel
(NGOES), which is preferred for motor applications.
As
India pushes towards adopting sustainable and environmentally friendly
transportation solutions, the demand for EVs has surged. The government’s
initiatives, such as the Faster Adoption and Manufacturing of Hybrid and
Electric Vehicles (FAME) scheme, alongside growing consumer awareness about
environmental concerns, have accelerated the EV adoption process. This, in
turn, has resulted in a significant increase in the need for high-performance
electric motors. These motors, essential for EV propulsion, require electrical
steel that offers high magnetic permeability and low energy losses, which is
precisely the property of NGOES.
Moreover,
the rise of domestic manufacturing of EVs, led by both established automakers
and new entrants, further contributes to the dominance of motors in the EV
steel market. As local production ramps up, Indian manufacturers are sourcing
more NGOES for electric motors to meet the growing demand for EVs.
Additionally, advancements in motor design, such as the move toward more
efficient and compact motors, also necessitate high-quality electrical steel to
optimize motor performance and reduce energy consumption.
Beyond
the automotive sector, the motor industry in India is expanding into other
applications, such as industrial motors and renewable energy systems. These
motors similarly require high-performance electrical steel, driving further
demand. In conclusion, the dominance of motors in India’s EV steel market is
driven by the accelerating demand for electric vehicles, advancements in motor
technology, and government support for EV infrastructure.
Based
on Region, North India is emerging as the fastest-growing region in the India
EV steel market due to a combination of industrial development, government
policy support, and rapid urbanization. Several northern states, including
Delhi, Haryana, Uttar Pradesh, and Punjab, are becoming active players in the
EV transition, which in turn is driving the demand for electrical steel used in
electric motors, batteries, and charging infrastructure.
One
of the key factors contributing to this growth is Delhi’s EV policy, which has
set aggressive targets for electric vehicle adoption, including incentives for
manufacturers and buyers. This policy has encouraged local production and
investment in EVs and associated components, including the electrical steel
required for motors and transformers. Additionally, the Delhi-NCR region has
become a hub for EV startups and component suppliers, further boosting demand
for high-quality electrical steel.
Haryana
and Uttar Pradesh, with their large manufacturing bases and proximity to
automotive clusters, are also investing heavily in EV manufacturing. Companies
are setting up new facilities or expanding existing plants, which drives the
need for specialized electrical steel to meet motor efficiency and energy
performance standards.
Infrastructure
development is another driving force. The rapid expansion of EV charging
stations, especially in urban centers and along highways, requires electrical
components such as transformers and switchgear—applications where electrical
steel plays a crucial role. Moreover, North India benefits from strong
logistical connectivity and access to skilled labor, making it an attractive
location for steel processing and component manufacturing. The region’s
industrial ecosystem, combined with supportive policies and rising consumer
demand for EVs, positions it as a key growth zone in the Indian EV steel
market.
Major companies
operating in the India EV Steel Market are:
- Steel Authority of India Limited
- MI Electrical Steel Processing India Pvt. Ltd.
- JSW MI Steel
- NLMK India
- Shanxi Honglu Sanli
- JFE Steel Corporation
- Bao Steel India
- POSCO
Electrical Steel India
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“The India EV steel market presents
significant growth opportunities driven by the rapid adoption of electric
vehicles (EVs), the expansion of EV infrastructure, and the push for
energy-efficient technologies. As India aims to achieve its sustainability
goals, demand for high-performance electrical steel, particularly for EV
motors, transformers, and renewable energy applications, is set to rise. The
government’s support for EV adoption through incentives and infrastructure
development further bolsters this trend. Additionally, advancements in
manufacturing technologies and a focus on sustainability create favorable
conditions for market players, positioning India as a key hub for EV steel
production and consumption.,” said Mr. Karan Chechi, Research Director of TechSci
Research, a research-based global management consulting firm.
“India EV Steel Market, By Type (Non-Grain Oriented, Grain- Oriented) By
Application (Entry Level Vehicles, Mid-Level Vehicles, Luxury Class Vehicles,
Commercial Class Vehicles) By Location (Motor, Car Body, Battery, Others) By
Region, Competition, Forecast & Opportunities, 2021-2031F”, has evaluated the future growth
potential of India EV 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 EV Steel
Market.
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