The Indian electrical steel market is around US$ estimated to reach US$ XX billion in 2035, growing at a CAGR of X% from 2025 to 2035. As of 2025, the market is estimated to be valued at approximately US$ 3.6 billion.

The Indian electrical steel market is undergoing structural growth, supported by accelerated grid investments, material localization policies, and rising demand from mobility and industrial sectors. Electrical steel remains a key component across transformers, rotating machines, and precision energy systems. Rising energy consumption and capacity upgrades have repositioned the material from a specialized input to a fundamental element across public and private sector projects.

Grid Development Reinforcing Material Demand

The expansion of India’s power infrastructure remains central to the growth of electrical steel consumption. Utilities are upgrading distribution lines and transmission capacity to manage rising peak loads. Equipment modernization across substations, transformers, and voltage regulation systems is increasing the need for precision-grade core materials. Both public and private sector players are aligning infrastructure projects with reliability metrics, reinforcing the preference for electrical steel that supports reduced energy loss and higher performance density.

Investments are flowing into transmission corridors, smart metering systems, and power conditioning units. These segments use varying configurations of grain-oriented steel, particularly for high-efficiency transformers and voltage converters. Rural electrification programs and inter-regional connectivity projects are expanding the demand base across state-owned utilities and EPC contractors. Growth in grid-scale energy storage and hybrid power models is further strengthening the volume outlook.

Policy-Led Expansion and Supply Chain Localization

Government-led programs are aligning incentives with long-term capacity creation in electrical steel manufacturing. The Production Linked Incentive (PLI) scheme for specialty steel is enabling new plant investments and raw material integration. Domestic production capacity is being expanded to meet sectoral benchmarks, reduce import exposure, and fulfill localized sourcing mandates from infrastructure agencies.

 Policy alignment around electric mobility is driving consistent demand from automotive and energy storage manufacturers. Motors, inverters, and battery systems require non-grain-oriented steel for controlled electromagnetic performance. Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) and National Electric Mobility Mission Plan (NEMMP) are catalyzing intake across mid-size and compact EV platforms. Segment-level procurement is being directed toward localized, compliant suppliers that meet technical and operational parameters.

Urban and Industrial Expansion Broadening Use Cases

The rise in real estate development, infrastructure modernization, and manufacturing corridor expansion is supporting consistent consumption across motor systems and industrial assemblies. Appliance manufacturers, HVAC solution providers, and smart equipment OEMs are integrating electrical steel into high-volume production cycles. Demand extends into compressed equipment, pump systems, and automation-ready drive units.

Electrification of freight, warehousing, and logistics hubs is creating new application pockets for motor-grade steel in material handling equipment and control units. Facility managers are selecting efficient components aligned with operational cost savings and energy audit compliance. As industrial clusters scale up production and adopt digitally controlled machinery, electrical steel usage across motors and actuators is expected to increase further.

Country Outlook

India’s electrical steel market is positioned for sustained growth, anchored by infrastructure rollout, mobility scale-up, and industrial development. With long-term investments planned in renewable integration, power conditioning, and domestic electrification, demand visibility remains strong across the transformer, motor, and component manufacturers. Supply-side focus on backward integration and advanced processing is reinforcing material availability across use categories.

Localized manufacturing ecosystems, supported by policy incentives and industrial zoning, are building capacity to meet growing institutional demand. Regulatory frameworks, energy efficiency norms, and private sector investments are aligning around high-efficiency steel components. India’s role as a strategic contributor to global electrical steel consumption is expected to strengthen over the forecast period, with the country emerging as a key production and application hub.

Segmentation

• By Type
  • Foam Chemicals
  • Dry Chemicals
  • Wet Chemicals
  • Dry Powders
  • Others
• By Application
  • Residential
  • Commercial
  • Industrial
  • Oil & Gas
  • Automotive
  • Others
• By Country
  • India

Key Players:

• Domestic Producers
  • Tata Steel
  • JSW Steel
  • Steel Authority of India Limited (SAIL)
  • ArcelorMittal Nippon Steel India (AM/NS India)
• International Players with Local Presence:
  • POSCO (South Korea)
  • Nippon Steel Corporation (Japan)
  • Baosteel Group (China) Controls Pvt.Ltd.