Non-oriented Electrical Steel for New Energy Vehicles Market Share [2032]

Report Description

Non-oriented Electrical Steel for New Energy Vehicles Market Outlook 2032

The non-oriented electrical steel for new energy vehicles market size was USD 2.6 Billion in 2023 and is projected to reach USD 6.0 Billion by 2032, expanding at a CAGR of 9.8% during 2024–2032.

Non-oriented electrical steel is essential in these contexts for rebuilding or upgrading motors to improve vehicle performance or extend their operational life. Although smaller in scale compared to the automotive manufacturers segment, the aftermarket is significant for the sustained demand and utilization of non-oriented electrical steel, especially in regions with high electric vehicle penetration and a well-established automotive maintenance culture.

Get Free Sample Report

Moreover, the economic benefits of lower operational costs associated with electric commercial vehicles drive the adoption in this segment. As more fleets are electrified, the demand for non-oriented electrical steel is expected to grow, driven by the need for durable and efficient electric motors that can withstand the rigorous demands of commercial transportation.

Non-oriented Electrical Steel for New Energy Vehicles Market Dynamics

Get Free Sample Report

Drivers

The increasing demand for energy-efficient vehicles drives the market. As global awareness and regulatory pressures regarding environmental sustainability rise, there is a significant push towards vehicles that offer reduced carbon emissions and higher fuel efficiency. Electric vehicles (EVs), which rely heavily on efficient electric motors made with non-oriented electrical steel, are at the forefront of this shift.

The superior magnetic properties of non-oriented electrical steel reduce energy losses during the conversion of electricity into mechanical energy, enhancing the overall efficiency of EVs. This demand is further bolstered by technological advancements in electrical steel production.

Innovations in material science and manufacturing processes have enabled the development of high-grade non-oriented electrical steel that offers improved performance characteristics such as lower core loss and higher permeability. These advancements enhance the appeal of non-oriented electrical steel in high-performance electric vehicle applications, driving its market growth.

Restraints

The high cost of raw material required for non-oriented electrical steel for new energy vehicles hinders the market. The production of non-oriented electrical steel involves expensive alloys and sophisticated processing techniques, which elevate the overall cost of the material. This cost factor can be a barrier, particularly in cost-sensitive markets. Additionally, the market is also impacted by regulatory challenges.

The production and use of non-oriented electrical steel are subject to stringent environmental regulations, especially concerning emissions and waste management during the manufacturing process. Compliance with these evolving regulations can incur additional costs and operational complexities, potentially restraining market growth.

Opportunities

The rapid expansion of the non-oriented electrical steel for new energy vehicles in emerging markets creates new opportunities in the market. Countries in regions such as Asia Pacific and Latin America are witnessing rapid economic growth, urbanization, and increased environmental awareness, all of which contribute to a growing interest in electric vehicles.

The expansion of the automotive sector in these regions, coupled with improving charging infrastructure and decreasing costs of EVs, opens new avenues for the adoption of non-oriented electrical steel.

Scope of the Non-oriented Electrical Steel for New Energy Vehicles Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics are included in the report.

Non-oriented Electrical Steel for New Energy Vehicles Market Segment Insights

Product Type Segment Analysis

Fully processed segment dominates the non-oriented electrical steel for new energy vehicles market, characterized by its high magnetic properties and superior efficiency. This type of steel undergoes a full cycle of heat treatment and is typically insulated to enhance its magnetic characteristics.

It is specifically designed to reduce energy losses during the operation of electric motors found in new energy vehicles. The demand for fully processed non-oriented electrical steel is driven by its ability to improve the performance and extend the range of electric vehicles by minimizing energy dissipation. As automakers continue to focus on increasing the efficiency of electric vehicles to meet stringent environmental regulations and consumer expectations for longer driving ranges, the demand for fully processed non-oriented electrical steel has seen significant growth in the market.

Semi-processed segment is gaining significant traction in the market. This type of steel is less expensive compared to fully processed variants and is suitable for applications where ultra-high efficiency is not the primary requirement. The semi-processed non-oriented electrical steel segment caters to a broader range of applications within the automotive sector, including less critical components of electric vehicle motors where cost considerations are paramount.

Despite its lower initial magnetic properties, this segment attracts manufacturers looking to balance performance with cost-effectiveness in consumer-grade vehicles. The demand for semi-processed non-oriented electrical steel is influenced by cost pressures within the automotive industry, driving innovations aimed at improving its performance post-processing to make it more competitive with fully processed alternatives.

Application Segment Analysis

Passenger vehicles segment holds a major share of the market, due to the rising consumer demand for electric and hybrid passenger cars. This segment utilizes non-oriented electrical steel extensively for the construction of efficient electric motors that power these vehicles. The growth of the segment is significantly influenced by the global shift towards sustainable transportation solutions, coupled with governmental incentives and regulations promoting the adoption of electric vehicles.

As manufacturers strive to meet stringent efficiency standards and consumer expectations for performance and range, the demand for high-quality non-oriented electrical steel has surged. This steel is crucial in reducing energy losses and enhancing the overall efficiency of the vehicle's powertrain. The increasing penetration of electric vehicles in the automotive market, driven by technological advancements and decreasing battery costs, further bolsters the demand for non-oriented electrical steel in passenger vehicles, making it a key area of focus for steel manufacturers and automotive companies alike.

Commercial vehicles segment is gaining significant traction in the market. The electrification of commercial vehicles is gaining momentum as businesses and public sectors seek to reduce carbon emissions and fuel costs associated with traditional internal combustion engine vehicles.

Non-oriented electrical steel is integral to the development of high-performance electric motors used in these vehicles, which require robust and efficient components capable of handling higher power and torque demands. The growth of the segment is propelled by increasing investments in electric public transport solutions and the rise of e-commerce, which demands more sustainable logistics and delivery solutions.

Get Free Sample Report

End-user Segment Analysis

Automotive manufacturers segment dominates the market. This segment includes original equipment manufacturers (OEMs) that produce electric and hybrid vehicles. Automotive manufacturers utilize non-oriented electrical steel primarily for the construction of high-efficiency motors, which are integral to the performance and efficiency of electric vehicles.

The demand in this segment is driven by the global push towards vehicle electrification, spurred by stringent environmental regulations and growing consumer awareness about sustainable transportation. Automotive manufacturers are continuously seeking high-quality non-oriented electrical steel that offers superior magnetic properties, enabling the production of more efficient and compact motors.

As the automotive industry invests heavily in electric vehicle technology, including the development of new models and the expansion of production capacities, the demand for non-oriented electrical steel from this segment is expected to grow robustly. This growth is further supported by various government incentives aimed at promoting electric vehicle adoption, which encourage automotive manufacturers to accelerate their shift towards electric mobility.

The aftermarket segment is projected to experience significant growth in the market. This segment caters to the needs of vehicle service providers, repair shops, and DIY enthusiasts who require electrical steel components for replacement or performance enhancement purposes. The aftermarket for non-oriented electrical steel is growing as the fleet of electric vehicles on the road ages and requires maintenance. Additionally, the segment benefits from the increasing trend of vehicle customization and retrofitting, where older vehicles are equipped with new electric powertrains.

Regional Analysis

Asia Pacific dominates the non-oriented electrical steel for new energy vehicles market for new energy vehicles, driven by several factors including the presence of major automotive manufacturing hubs, significant investments in electric vehicle (EV) technology, and supportive government policies. Countries such as China, Japan, and South Korea are at the forefront of this market, largely due to their well-established automotive industries and aggressive EV adoption strategies.

China, in particular, has emerged as a global leader in the electric vehicle market, supported by substantial government initiatives aimed at promoting EVs as a means to reduce urban air pollution and decrease dependency on imported oil. These initiatives include subsidies for EV buyers and mandates for automotive manufacturers to produce a certain percentage of electric vehicles.

This regulatory environment, combined with a growing consumer acceptance of electric vehicles, has spurred significant demand for non-oriented electrical steel, which is essential for manufacturing efficient electric motors. The region's focus on enhancing material technologies and increasing production capacities for high-grade electrical steel further solidifies its dominance in the global market.

The market in the Europe is anticipated to witness the fastest growth in the market during the forecast period, due to characterized by stringent environmental regulations, a strong push for decarbonization, and high consumer awareness regarding sustainable practices. The European Union’s aggressive targets for CO2 emissions reductions have been a major driver for the adoption of electric vehicles, subsequently increasing the demand for non-oriented electrical steel.

Countries such as Germany, France, and the UK are leading this transition, supported by comprehensive government policies that include substantial incentives for EV purchasers and investments in EV infrastructure, such as charging stations. Moreover,  automotive manufacturers in Europe are some of the most proactive in integrating electric vehicles into their future product lines, further driving the demand for non-oriented electrical steel.

The region is also home to several leading steel manufacturers who are actively investing in new technologies to produce high-quality electrical steel that meets the specific requirements of modern electric vehicle motors. This commitment to innovation and quality underpins Europe’s strong position in the global market for non-oriented electrical steel.

Get Free Sample Report