The global Grain-oriented Silicon Steel market was valued at US$ million in 2022 and is projected to reach US$ million by 2029, at a CAGR of % during the forecast period. The influence of COVID-19 and the Russia-Ukraine War were considered while estimating market sizes.
Grain-oriented silicon steel is a specialized electrical steel designed to exhibit superior magnetic properties in a specific direction, achieved through a controlled rolling and annealing process that aligns the grain structure. This orientation results in low core losses, high magnetic permeability, and reduced energy dissipation, making it ideal for applications requiring efficient magnetic flux conduction. Because of these attributes, grain-oriented silicon steel is extensively used in the construction of transformer cores, inductors, and other electromagnetic devices where minimizing energy loss is crucial.
The market for grain-oriented silicon steel remains vital to the global energy and manufacturing sectors, despite fluctuations in raw material prices and supply chain disruptions. Demand is driven by the ongoing electrification trends, renewable energy integration, and the push for energy-efficient appliances and infrastructure. Furthermore, as utilities modernize power grids and industries adopt more sustainable practices, the need for high-performance magnetic materials like grain-oriented silicon steel continues to grow, supporting lower carbon footprints in power transmission and distribution.
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Segmentation by Product Type
The grain-oriented silicon steel market can be segmented into four primary product types based on thickness, which directly influences performance characteristics like core loss and permeability.
1. 0.23 mm Grain-oriented Silicon Steel
The 0.23 mm variant represents the thinnest and highest-grade option, offering the lowest core losses and highest efficiency for demanding applications. It is produced through advanced cold-rolling and high-temperature annealing to achieve precise grain orientation, ensuring optimal magnetic performance in high-frequency environments.
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Market Insight: This ultra-thin grade serves as a premium demand driver in high-efficiency transformers and advanced electrical equipment. It is favored by manufacturers seeking to meet stringent energy efficiency standards, though its higher production costs limit broader adoption. However, as regulations tighten on energy consumption, the shift toward thinner gauges is accelerating.
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Trend: Utilities in Europe and North America increasingly specify 0.23 mm steel for grid modernization projects, where minimizing losses in distribution transformers is key to reducing operational expenses.
2. 0.27 mm Grain-oriented Silicon Steel
The 0.27 mm thickness strikes a balance between performance and cost, providing excellent magnetic properties while being more accessible for mid-range applications. This grade undergoes similar processing to achieve directional grain alignment, reducing eddy current losses effectively.
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Market Insight: Demand for 0.27 mm silicon steel is robust in the transformer sector, particularly for power and distribution units. It appeals to cost-conscious buyers without compromising too much on efficiency, making it a staple in emerging markets.
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Trend: With the rise of renewable energy integration in Asia-Pacific, this segment is gaining traction as manufacturers upgrade to grades that support variable load conditions in solar and wind farm transformers.
3. 0.30 mm Grain-oriented Silicon Steel
At 0.30 mm, this product type offers reliable performance for standard applications, with good permeability and moderate core losses. It is widely used in conventional electrical machinery where extreme efficiency is not the primary concern, produced via established rolling techniques.
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Market Insight: The 0.30 mm grade remains the most widely adopted product segment, driven by its versatility in general-purpose transformers and motors. Volume sales are high in industrial settings, though competition from non-oriented alternatives poses a challenge.
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Trend: In developing regions, infrastructure investments are boosting procurement of this thickness for basic electrification projects, where affordability trumps ultra-low loss requirements.
4. 0.35 mm Grain-oriented Silicon Steel
The thickest among standard grades at 0.35 mm, this type is suited for larger, low-frequency applications like large power transformers, where mechanical strength and ease of handling are prioritized over minimal losses.
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Market Insight: High-density demand comes from the power generation industry, essential for core construction in generators and heavy-duty transformers. Its robustness under thermal stress expands its utility in harsh operating conditions.
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Trend: Manufacturers are scaling production to meet growing needs in mega-grid projects across the Middle East and South America, where thick-gauge steel supports high-capacity transmission equipment.
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Segmentation by Application
Applications highlight the practical utility of grain-oriented silicon steel, leveraging its directional magnetic properties to enhance efficiency in electromagnetic devices across various sectors.
1. Transformer
The transformer industry is the largest consumer of grain-oriented silicon steel, using it primarily for core laminations to minimize energy losses during voltage transformation.
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Insight: In distribution and power transformers, the material’s low hysteresis enables efficient power transfer, critical for grid stability and reducing operational costs.
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Trend: The global push for smart grids and renewable integration in China and Europe is driving higher adoption, with manufacturers favoring thinner gauges for better performance.
2. Electric Motors
Grain-oriented silicon steel enhances motor efficiency by optimizing magnetic flux paths, particularly in induction and synchronous motors used in industrial and automotive applications.
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Insight: Its high permeability reduces stator core losses, improving overall motor ratings and supporting compact designs in electric vehicles.
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Trend: As electrification accelerates in transportation, especially in Asia-Pacific, demand is surging for specialized grades that withstand high-speed operations.
3. Generator
In generators, the steel’s properties ensure low excitation losses and high output efficiency, vital for both stationary power plants and portable units.
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Insight: Rotor and stator cores benefit from the aligned grains, which maximize energy conversion in hydroelectric and thermal generators.
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Trend: Renewable energy expansions, like wind turbines in North America, are increasing usage, with innovations focusing on durability under variable loads.
4. Home Appliances
Small transformers and motors in appliances such as refrigerators, air conditioners, and washing machines utilize this steel to meet energy-saving regulations.
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Insight: Thinner variants help achieve compliance with standards like Energy Star, reducing household electricity consumption without raising costs significantly.
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Trend: Consumer demand for eco-friendly appliances in urbanizing markets, particularly India and Southeast Asia, is fostering steady growth in this segment.
5. Other
Additional uses include inductors, relays, and magnetic shielding in electronics and telecommunications, where precision magnetic behavior is essential.
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Insight: Niche applications in high-frequency devices form a stable base, though smaller in volume compared to power sectors.
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Trend: Emerging tech like 5G infrastructure is exploring customized silicon steel for better signal integrity in base stations.
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Segmentation by End-User
1. Transformer Manufacturers
Transformer producers, including those for power and distribution units, form the largest end-user group, relying on grain-oriented silicon steel for core efficiency.
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Insight: As grids evolve to handle intermittent renewables, low-loss cores become indispensable for maintaining voltage stability.
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Trend: Major players in Asia-Pacific lead procurement, with regional investments in transmission infrastructure fueling expansion.
2. Electric Motor Producers
Companies in the motor industry, from industrial automation to EV makers, use this material to boost performance and comply with efficiency norms.
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Insight: Enhanced magnetic properties support higher torque and lower heat generation, critical for sustainable manufacturing.
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Trend: The automotive shift to EVs globally is creating new clusters, with suppliers innovating for lightweight, high-efficiency stators.
3. Power Generation Companies
Utilities and generator firms employ grain-oriented silicon steel in turbine and alternator cores for reliable energy output.
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Insight: Its role in minimizing losses during generation is key for cost-effective operations in large-scale plants.
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Trend: Decarbonization efforts are pushing adoption in hybrid systems, with Europe leading in regulatory-driven upgrades.
4. Home Appliance Producers
Appliance manufacturers integrate the steel in small motors and transformers to achieve energy-efficient designs for consumer markets.
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Insight: This segment, though volume-driven, offers long-term potential as global standards emphasize sustainability.
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Trend: Smart home integrations in emerging economies are incorporating advanced grades for quieter, greener operations.
5. Other Industrial Users
Diverse industries, including electronics and telecom, utilize the steel for specialized electromagnetic components.
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Insight: Steady demand persists in custom applications, balancing cost with performance in non-power sectors.
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Trend: Industrial automation advancements are sustaining needs for reliable magnetic materials in sensors and relays.
The Grain-oriented Silicon Steel market is best understood through its segmentation landscape. By product type, thinner gauges like 0.23 mm are gaining prominence due to efficiency demands in transformers and motors. By application, transformers dominate, but electric vehicles and renewables are propelling growth in motors and generators. By end-user, transformer manufacturers lead, yet power generation firms and appliance producers provide essential diversification and innovation drive.
Read Full Report Here: https://www.24chemicalresearch.com/reports/241651/global-grainoriented-silicon-steel-forecast-market-2023-2032-252
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