IMARC Group has recently released a new research study titled “South Korea Electrical Steel Market Size, Share, Trends and Forecast by Type, Application, End Use Industry, and Region, 2025-2033”, offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends and competitive landscape to understand the current and future market scenarios.

South Korea Electrical Steel Market Overview

The South Korea electrical steel market size reached USD 799.88 Million in 2024 and is expected to grow to USD 1,214.53 Million by 2033, reflecting a CAGR of 4.75% during the 2025-2033 forecast period. The market expansion is driven by rising demand from automotive, electronics, and energy sectors, advancements in steel manufacturing technology, and a focus on energy-saving products. Electrical steel is vital for transformers, motors, and generators, serving various industrial and infrastructure projects.

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

South Korea Electrical Steel Market Key Takeaways

• Market Size in 2024: USD 799.88 Million
• CAGR: 4.75% (2025-2033)
• Forecast Period: 2025-2033
• The market is expanding with increasing demand from automotive, electronics, and energy industries.
• Advances in steel manufacturing and energy-saving products drive market growth.
• Electrical steel is widely used in transformers, motors, and generators for industrial and infrastructure projects.
• Growth is supported by government policies emphasizing sustainability and renewable energy adoption.
• Smart manufacturing and R&D investments enhance product quality and global competitiveness.

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Market Growth Factors

The South Korea electrical steel market is significantly driven by the country's aggressive shift toward renewable energy, as of March 2025. The government’s goal to achieve carbon neutrality by 2050 has led to increased investment in wind and solar power projects. These renewable energy systems require high-quality electrical steel for transformers and generators that ensure high efficiency with minimal energy loss. Manufacturers are enhancing electrical steel through improved grain orientation and coatings to meet stringent magnetic property requirements in support of green energy infrastructure. This alignment with national clean energy agendas strengthens the electrical steel market's growth prospects as renewable capacity expands.

In January 2024, technological advancements in manufacturing emerged as a crucial factor shaping market trends. Techniques such as improved grain orientation and advanced coating methods increase the magnetic efficiency of electrical steel materials used in automotive, consumer electronics, and power generation. These innovations reduce energy loss in transformers and electric motors, contributing directly to energy savings and sustainability goals. Further, smart manufacturing and automation enable increased production precision, waste reduction, and cost savings. The integration of AI-driven process controls and real-time quality monitoring allows manufacturers to tailor electrical steel products to specific applications, thereby enhancing global competitiveness.

By February 2025, rising urban electrification and infrastructure expansion have become key growth drivers. The rapid development of smart grids, electric vehicle charging stations, and urban transportation systems generates demand for electrical steel with superior magnetic and electrical properties. Government initiatives to develop smart cities and green transport infrastructure align closely with these material needs. Additionally, the focus on sustainable urban infrastructure and improved power grid distribution, alongside increased renewable energy integration into urban grids, fuels market demand. Continuous infrastructure investments incorporating high-performance materials ensure sustained growth in the electrical steel sector.

Market Segmentation

Type Insights:

• Grain Oriented Electrical Steel: Used for applications requiring optimized magnetic properties in one direction enhancing transformer efficiency.
• Non-Grain Oriented Electrical Steel: Suitable for rotating electrical machines like motors and generators where magnetic properties need to be isotropic.

Application Insights:

• Transformers: Electrical steel used primarily in transformer cores to improve energy efficiency and reduce losses.
• Motors: Steel applied in motor cores to enhance performance by reducing energy losses.
• Generators: Electrical steel facilitating efficient energy conversion in generators.
• Others: Additional applications were electrical steel aids in magnetic and energy efficiency.

End Use Industry Insights:

• Energy and Power: Electrical steel supporting power generation and distribution infrastructure.
• Automobiles: Use in electric vehicles and automotive electrical components.
• Household Appliances: Steel materials used in consumer appliances for improved energy efficiency.
• Building and Construction: Application in infrastructure projects requiring electrical steel components.
• Others: Various other industries utilizing electrical steel according to specific needs.

Regional Insights

The market covers key South Korean regions including Seoul Capital Area, Yeongnam (Southeastern Region), Honam (Southwestern Region), Hoseo (Central Region), and others. The report does not specify the dominant region or regional market share percentages. However, the segmentation across these regions suggests a broad distribution of demand driven by industrialization and urbanization processes.

Recent Developments & News

In January 2024, POSCO completed the first phase of its Hyper No non-oriented electrical steel sheet plant at Gwangyang Steel Works, designed to meet rising demand from electric vehicles and premium appliance manufacturers. This plant’s advanced technology aims to boost motor energy efficiency in alignment with global sustainability trends, demonstrating POSCO's commitment to innovation. In October 2024, JSW Group partnered with South Korean POSCO to develop a 5 million tonnes per year integrated steel factory in Odisha, India, which will produce battery materials for electric vehicles and renewable energy. This collaboration supports India's steel demand and energy transition goals, combining JSW's manufacturing strength with POSCO's technologies.

Key Players

• POSCO
• JSW Group

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