Executive Summary
The Saudi Arabia Electrical Steel Market reached 69.34 kilo tons in 2026 and is projected to reach 113.26 kilo tons by 2035, registering a CAGR of 7.4% during the forecast period. Market growth is mainly due to expanding power transmission networks. It also comes from using renewable energy sources. Other drivers include industrial diversification. Investments in advanced manufacturing also support Vision 2030. Expansion in the use of high-efficiency transformers, motors, generators, and industrial automation continues to boost demand. The Saudi Arabia Electrical Steel Market reached USD 238.63 Million in 2026 and is projected to reach USD 414.51 Million by 2035, registering a CAGR of 6.3% during the forecast period.
The Kingdom of Saudi Arabia is experiencing one of the biggest initiatives towards modernizing its electricity network infrastructure in the Middle East. The Kingdom is investing heavily in solar projects, wind power facilities, hydrogen fuel plants and grid upgrades. This continues to boost the market for high-grade transformer steel. Additionally, industrial growth in mining, petrochemicals, manufacturing, and logistics continues to boost demand for premium motor steel. Market growth is mainly driven by the expansion of electricity transmission infrastructure
Significant economic development projects such as NEOM, The Line, Oxagon, Qiddiya, Red Sea Global, Diriyah Gate and various industrial cities have been boosting the need for electrical infrastructure. The need to construct smart cities, logistics, industries, desalination and transportation infrastructure to deploy transformers, industrial motors, distribution systems and automation systems that use high-quality electrical steel.
Increased mining operations, metals processing, industrial automation and hydrogen production have been broadening the applications of electrical steel in new applications apart from utilities. Focus on local manufacturing, energy efficiency and sustainability of industries further enhances the need for superior magnetic materials that offer low core losses.
Vision 2030, the National Renewable Energy Program (NREP) and industrial localization plans will ensure that there is continued demand for electrical steel in various applications such as utilities, industrial, commercial and infrastructure in the country making Saudi Arabia one of the fastest-growing markets for electrical steel in Middle East.
Market Driver
Vision 2030 and Electrical Transmission Upgrades Boost Transformer Core Steel Demand
Saudi Arabia is making significant investments into modernization of its electrical transmission network in order to facilitate integration of renewable energy production and to meet its growing electrical demand. The construction of high voltage electrical transmission networks, digital substations and connections of renewable energy sources into the grid leads to increasing use of high-quality electrical steel used in large transformers.
The implementation of Vision 2030 policy, along with expanding solar and wind energy generation through the National Renewable Energy Program (NREP), is boosting the demand for transformer steel. The investment of the Saudi Electricity Company (SEC) into transmission upgrades is likely to ensure long term demand for transformer steel.
Industrial Diversification and Mining Expansion Increase Premium NGOES Consumption
The strategy of Saudi Arabia for industrial diversification will see continued growth in advanced manufacturing, mining, petrochemicals, logistics and industrial processing industries. As new projects are being set up in various industrial sectors, there will be increased use of electric motors, generators, compressors, pumps and automated manufacturing systems that are built with the help of premium NGOES.
Projects in Jubail Industrial City, Yanbu Industrial City, Ras Al Khair, King Salman Energy Park (SPARK) and other emerging manufacturing hubs are likely to enhance demand for efficient rotating machinery. The adoption of technologies like Industry 4.0 and intelligent manufacturing systems will see increased demand for premium NGOES.
Market Opportunity
Green Hydrogen Development Creates Significant Long-Term Growth Potential
Saudi Arabia is emerging as one of the biggest producers of green hydrogen in the world on account of major investments being made in the renewable energy space and industrial development projects. The construction of electrolyzer plants, hydrogen plants, ammonia exports plants and processing plants would entail the use of transformers, generators, compressors and industrial motors that utilize premium electrical steel. Development of hydrogen projects in connection with NEOM, among others, would continue to drive the demand for premium grain-oriented and non-grain-oriented electrical steel over the long term.
Smart Cities and Industrial Mega Projects Expand Electrical Equipment Demand
Building intelligent cities, logistics corridors, tourism infrastructure and modern industrial zones offers great potential for the development of manufacturers of electrical steel that produce highly efficient electrical equipment. The construction of business zones, transport infrastructure, production facilities and digital infrastructure necessitates the installation of transformers, electrical distribution equipment, emergency power equipment and intelligent automation based on electrical steel. The growth of giga-projects such as NEOM, The Line, Qiddiya and Red Sea Global will lead to diversified demand for long-term periods for utilities, businesses and industries.
Segment Analysis
By Product Type: Grain-Oriented Electrical Steel Holds the Largest Market Share
The largest market share is held by grain-oriented electrical steel owing to the fact that electricity transmission network expansion continues to be one of the main focuses of investment in Saudi Arabia. The market was valued at 69.34 kilo tons in 2026 and will reach 113.26 kilo tons by 2035, thus fueling rising demand for transformer grade electrical steel. The incorporation of renewable energy, extension of high voltage transmission grids, development of industrial cities and modernization of power grids is leading to an increase in large transformer installations in Saudi Arabia.
By Manufacturing Process: Cold-Rolled Electrical Steel Registers the Fastest Growth
Cold-rolled electrical steel is going to witness maximum growth due to rising diversification of the industries, mining and manufacturing sectors. Industrial uses such as motors, generators, pumps, compressors and automation equipment require high quality of electrical steel that is not grain-oriented. Mining industry, petrochemical facilities and manufacturing are expected to contribute to the demand for superior cold-rolled electrical steel in the coming years.
By Application: Power Transformers Remain the Largest Application Segment
The power transformer category makes up the largest application segment due to the consistent investments made in electricity generation, renewable energy penetration and upgrades in transmission networks. The development of solar power parks, wind farms, industrial cities and electricity grid networks necessitates the setting up of transformers with high capacity that use grain-oriented electrical steel. Continuous investments made by the Saudi Electricity Company in transmission upgrades, digital substations and renewable energy penetration would continue to drive transformer sales.
Competitive Landscape
The Saudi Arabia electrical steel market is driven by a combination of international manufacturers of electrical equipment, regional engineering firms and national utility companies investing in electricity infrastructures. The premium electrical steel comes from international manufacturers and local competition in the market revolves around manufacturing transformers, power grids modernization, automation and involvement in giga projects for the realization of the Vision 2030.
- Hitachi Energy is consistently improving its market position with the installation of high-voltage transformers, digital substations, HVDC technology and grid automation that facilitates integration and extension of transmission networks in Saudi Arabia.
- Siemens Energy has become one of the main suppliers of gas-insulated substations, high-power transformers and transmission solutions in the country.
- ABB is well-represented via its industrial motors, drives, transformers and intelligent automation solutions for utilities, mining plants, manufacturers and commercial infrastructure in Saudi Arabia.
- Schneider Electric keeps on increasing the use of its energy management solutions, industrial automation systems, smart building systems and intelligent electrical distribution solutions, which facilitate the development of sustainable infrastructure and industrial diversification.
- Saudi Electricity Company (SEC) continues to be the biggest driver for transformer sales in the country through constant improvement of the transmission system, the adoption of renewable energy sources and updating electricity distribution network.
- National Grid SA continues to develop its extra high voltage transmission infrastructure, digital substations and electricity grids, which connect regions together.
- Hyundai Electric continues supplying transformers, switchgear and power equipment supporting utility projects, industrial developments and electricity transmission modernization in country.
BCG Matrix
| Category | Companies | Positioning Analysis |
| Stars | Hitachi Energy, Siemens Energy | Leadership in transformer technologies, digital substations, renewable energy integration and transmission modernization positions both companies at the forefront of Saudi Arabia’s expanding electricity infrastructure. |
| Cash Cows | ABB, Schneider Electric | Diversified portfolios covering industrial automation, transformers, drives and intelligent energy management provide stable business opportunities across utilities, mining, manufacturing and commercial infrastructure. |
| Question Marks | Hyundai Electric, National Grid SA | Expansion of renewable energy, hydrogen infrastructure and giga-projects presents opportunities to strengthen participation across next-generation electricity infrastructure developments. |
| Dogs | Saudi Electricity Company (SEC), Saudi Electricity Procurement Company (SPPC) | Both organizations significantly influence electrical steel demand through electricity infrastructure investments but primarily function as utility operators and infrastructure developers rather than manufacturers within the electrical steel value chain. |
Adoption Analysis
The adoption rate of premium electrical steel remains strong in Saudi Arabia among some of the fastest in the Middle East as a result of the country’s push towards electrification, adoption of renewable energy and industrial diversification in Vision 2030. Premium grain-oriented electrical steel is increasingly being used for the transformers required for solar parks, wind farms, industrial cities and the extension of transmission infrastructure.
Premium non-grain oriented electrical steel continues to find increasing use in industries such as mining, petrochemicals, manufacturing, logistics and industrial automation. Increased adoption of smart production lines, electric motors, generators, compressors and pumping equipment has been increasing demand for premium motor grade electrical steel in these industries. Further growth in giga projects and advanced manufacturing is expected to continue reinforcing the adoption of premium electrical steel in these sectors.
Disruption Analysis
The electrical steel market in Saudi Arabia is experiencing restructuring due to renewable energy deployments, industrialization and infrastructure development all happening at once. Deployment of large-scale renewable energy systems, hydrogen plants, industrial zones, smart cities and infrastructure is creating a higher demand for premium grain-oriented and non-grain-oriented electrical steels beyond the traditional application in the transmission of electricity.
Imported premium electrical steel still affects the market despite the rapid growth of transformer and electrical equipment manufacturing industries locally. Changing prices of steel globally, logistics and new supply chains continue to be key factors in procurement strategies by utilities and equipment manufacturers in the country.
Market differentiation will continue moving towards local manufacturing, smart grid, automation and energy efficient electrical equipment. Companies that have invested in transformer manufacturing, digital substations, hydrogen infrastructure, automation and sustainable industrial technologies will see increased success in the Saudi Arabian market going forward.
Regulatory Landscape
There exists an elaborate regulatory environment within the kingdom that fosters modernization of electricity infrastructure, renewable energy and localization and energy efficiency in industries. Some major regulators within this context include the Ministry of Energy, the Saudi Energy Regulatory Authority, SASO, Saudi Electricity Company and the Saudi Electricity Procurement Company.
The implementation of Vision 2030 is still contributing to investments in renewable energy, electricity transmission, industrial diversification and advanced manufacturing. Deployment of solar and wind power under NREP has increased use of transformers made of high quality grain-oriented electrical steel, while electricity transmission infrastructure within the country is being enhanced.
Expansion of domestic manufacturing and mining, logistics and industry processing operations in NIDLP is increasing use of non-grain oriented electrical steel within industrial motors, generators, automation and heavy machinery. At the same time, development of hydrogen and industrial decarbonization plans continue creating further possibilities for efficient electrical equipment.
The SASO will continue harmonizing the national technical standards for transformers, electric motors and electrical equipment based on international IEC standards, whereby the use of high-grade electrical steels having low core losses and high magnetic characteristics is recommended. The use of energy efficiency standards is anticipated to lead to the adoption of better electrical equipment.
Key Developments
- January 2024 – Saudi Electricity Company (SEC) accelerated transmission January 2024 – Saudi Electricity Company has hastened the expansion of its transmission infrastructure in relation to renewable energy and Vision 2030.
- March 2024 – Hitachi Energy obtained contracts in relation to high-voltage transmission infrastructure and digital substations for renewable energy in Saudi Arabia.
- June 2024 – SPPC has announced additional procurement of renewable energy projects as part of the expansion of solar and wind projects that required additional transmission infrastructure.
- August 2024 – Siemens Energy has increased deployment of grid technologies and high-capacity transformers for industrial development and electricity infrastructure renewal.
- October 2024 – ABB has improved its industrial automation and efficient motor portfolio for manufacturing, mining and industrial diversification projects in the Kingdom.
- February 2025 – National Grid SA has progressed with additional extra-high-voltage transmission infrastructure projects for industrial expansion and giga-projects.
Future Outlook
As per forecasts, electrical steel market in Saudi Arabia is forecast to increase from USD 238.63 Million in 2026 to USD 414.51 Million in 2035 at a CAGR of 6.3%. The implementation of Vision 2030, increase in capacity of renewable energy sources and improvements in electricity infrastructure and industry will continue to propel the demand for quality electrical steel in the country in the coming years.
Power Transformer will emerge as the largest application area on account of developments planned in the transmission network, smart substations, renewable energy and industrial city projects. Development of solar power plants, wind farms, hydrogen plants and mega industries will continue to spur the demand for quality grain-oriented electrical steel used in transformers and power infrastructures.
With respect to application, industrial will emerge as the fastest growing area because of expansion in capacity of mining, petrochemical, manufacturing, logistics and industrial automation. Use of electric motors, generators, compressors and automation machines in industries will help increase the demand for premium non-grain oriented electrical steel. The future competition is likely to be more oriented towards local production, smart grid technology, sustainable industrial solutions and automation. Firms that will invest in transformers manufacturing, smart substations, hydrogen infrastructure, industrial automation and efficient electric equipment will benefit from improved competitive advantage. The consistent implementation of Vision 2030, NREP and NIDLP will make Saudi Arabia one of the fastest growing electrical steel markets in Middle East.
Market Scope
| Segment | Material Type | Silicon Content | Product Form | Manufacturing Technology |
| Details | Grain-Oriented Non-Grain-Oriented | Low Silicon (<2%) Medium Silicon (2-3%) High Silicon (3-6.5%) | Sheets Coils Strips Others | Cold Rolled Hot Rolled |
| Segment | Power Rating | Thickness | Application | End-User |
| Details | Low Power (<1 kW) Medium Power (1 kW-100 kW) High Power (>100 kW) | Thick Gauge (>0.5 mm) Medium Gauge (0.3-0.5 mm) Thin Gauge (0.2-0.3 mm) Ultra-Thin (<0.2 mm) | Transformers Motors Generators Inductors & Reactors | Energy & Power Automotive Industrial Manufacturing Household Appliances Construction & Infrastructure |
Who Should Buy This Report in 2026?
The Sentillus Saudi Arabia Electrical Steel Market Report (2026 Edition) is designed for organizations involved in electrical steel production, transformer manufacturing, electric motor and generator manufacturing, power transmission, renewable energy, electric mobility, industrial equipment and strategic investment across global markets.
Electrical Steel Manufacturers
Identify demand opportunities across grain-oriented and non-grain-oriented electrical steel, benchmark competing producers, evaluate capacity expansion strategies and understand evolving requirements from transformer, motor and generator manufacturers.
Transformer Manufacturers
Assess electrical steel demand linked to power transformer and distribution transformer production, evaluate material performance requirements and understand procurement trends associated with grid modernization, renewable energy integration and transmission infrastructure development.
Electric Motor and Generator Manufacturers
Analyze demand for non-grain-oriented electrical steel across motors, generators and industrial electrical equipment while evaluating material efficiency, energy-loss requirements, technology developments and evolving manufacturing standards.
Power Utilities and Grid Infrastructure Companies
Understand electrical steel demand associated with transformer replacement, transmission network expansion, distribution infrastructure modernization and renewable power integration to support long-term procurement and infrastructure planning.
Renewable Energy Equipment Manufacturers
Evaluate opportunities linked to wind power generators, solar power infrastructure, grid-connected equipment and energy storage systems requiring high-efficiency electrical components and advanced magnetic materials.
Electric Vehicle and Automotive Component Manufacturers
Assess demand for non-grain-oriented electrical steel used in traction motors, electric vehicle drivetrains and high-efficiency automotive electrical systems while tracking light weighting, energy-efficiency and motor technology trends.
Steel Producers and Specialty Steel Companies
Benchmark competitive positioning, assess opportunities in premium grain-oriented and high-performance non-grain-oriented electrical steel, evaluate production investments and identify emerging applications across energy and mobility markets.
Industrial Equipment Manufacturers
Analyze material requirements for industrial motors, compressors, pumps, generators and other electrically powered machinery while assessing opportunities arising from industrial automation, energy efficiency and equipment modernization.
Government Agencies and Energy Regulators
Understand electrical steel demand drivers associated with grid expansion, energy transition policies, renewable power deployment, industrial development and energy-efficiency initiatives influencing regional markets.
Investors, Private Equity and Corporate Strategy Teams
Identify capacity expansion opportunities, evaluate strategic investments, benchmark major producers, assess regional supply-demand dynamics and analyze long-term opportunities across the global electrical steel value chain.
Research Institutions and Technology Developers
Support research into high-efficiency magnetic materials, advanced steel processing, reduced core losses, electric motor technologies, transformer efficiency and next-generation electrical equipment applications.
Frequently Asked Questions
Electrical steel is a critical functional material used in magnetic cores where energy efficiency and electromagnetic performance directly influence equipment performance. Its role across transformers, motors, generators and other electrical equipment makes developments in power infrastructure, industrial electrification and electric mobility important considerations when assessing future demand.
Companies evaluating the electrical steel market should consider product specifications, application requirements, regional manufacturing capabilities, customer industries, technology requirements, supply availability and competitive positioning. Assessment of demand drivers alongside production capabilities and end-use developments helps identify commercially relevant opportunities rather than relying only on headline market growth.
Transformer manufacturing is closely connected with electrical steel because the material forms a functional component of transformer magnetic cores. Changes in grid investment, renewable power integration, transmission expansion and transformer replacement cycles can therefore influence procurement requirements for electrical steel producers and downstream manufacturers.
Electric vehicle adoption affects electrical steel demand through the increasing requirement for high-efficiency traction motors and associated electrical components. Motor manufacturers increasingly require materials capable of supporting efficiency, power density and thermal-performance objectives, making electrical steel specifications an important consideration in electric drivetrain development.
Premium grades can provide improved magnetic performance and lower energy losses compared with conventional materials. Commercial relevance therefore extends beyond volume demand and includes applications where equipment efficiency, operating performance and lifecycle energy consumption are important purchasing criteria.
Market development can be influenced by raw-material availability, production technology requirements, energy-intensive manufacturing processes, qualification requirements, supply-chain concentration and the technical specifications demanded by transformer and motor manufacturers. Capacity expansion also requires significant technical expertise because product consistency and magnetic performance are critical to downstream applications.
Opportunity assessment requires analysis across application demand, product requirements, regional manufacturing activity and customer industries. Evaluating where transformer investment, electric mobility, industrial automation and renewable-energy infrastructure are generating new equipment requirements can help manufacturers prioritize applications with stronger structural demand potential.
The report is designed to support decisions related to market entry, capacity planning, product positioning, geographic expansion, competitive assessment, customer targeting and investment evaluation. Its value lies in connecting market dynamics with segmentation, regional conditions, competitive developments and industry-level opportunities.
Yes. The study can be customized to address specific geographic markets, countries, product categories, applications, competitors, historical periods or forecast requirements. Customization can be structured around the client’s commercial objective rather than being limited to the standard report framework.
Yes. A sample can be requested to assess the report’s structure, analytical approach, segmentation and level of detail before purchase. Clients can also discuss specific information requirements with the Sentillus research team during the evaluation process.
Yes. The competitive assessment examines relevant industry participants and their market positioning, strategic developments, product capabilities and other factors relevant to competitive evaluation. The depth of company analysis can also be expanded through customization where required.
Yes. Sentillus analysts can provide clarification on the methodology, market definitions, segmentation, assumptions and analytical findings included in the purchased study. Additional analyst discussions can also be considered where a customized research requirement has been commissioned.
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