IMARC Group has recently released a new research study titled “Mexico Electrical Steel Market Size, Share, Trends and Forecast by Type, Application, End Use Industry, and Region, 2025-2033” which offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends, and competitive landscape to understand the current and future market scenarios.
Market Overview
The Mexico electrical steel market size reached USD 503.6 Million in 2024 and is expected to grow to USD 885.1 Million by 2033, with a CAGR of 5.8% during the forecast period of 2025-2033. Growth is driven by rising power infrastructure investments, the expansion of electric vehicle production, grid modernization initiatives, renewable energy adoption, and increasing demand for energy-efficient electrical components.
Study Assumption Years
- Base Year: 2024
- Historical Years: 2019-2024
- Forecast Period: 2025-2033
Mexico Electrical Steel Market Key Takeaways
- Current Market Size in 2024: USD 503.6 Million
- CAGR: 5.8%
- Forecast Period: 2025-2033
- Mexico is undergoing significant investments in modernizing and expanding its power infrastructure, enhancing demand for electrical steel in transformers, reactors, and electrical components.
- The growth of electric vehicle manufacturing hubs such as Volkswagen's Puebla plant and BMW's San Luis Potosí facility is increasing the need for specialized electrical steel grades.
- Government initiatives led by the Comisión Federal de Electricidad (CFE) promote grid modernization and deployment of energy-efficient technologies.
- Increasing integration of smart grid systems and renewable energy is sustaining long-term demand for electrical steel.
- Localization of EV supply chains is positioning Mexico as a crucial player in the regional and global EV manufacturing ecosystem.
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Mexico Electrical Steel Market Growth Factors
Rising Investments in Power Infrastructure
Mexico is investing substantially in modernizing and expanding its power infrastructure to meet electricity demand across residential, industrial, and commercial sectors, driving Mexico electrical steel market growth. These investments target transmission and distribution networks, requiring large volumes of electrical steel used in transformers, reactors, and other electrical components. The integration of smart grid technologies further necessitates advanced electrical steels capable of operating efficiently under fluctuating loads. These developments are boosting the strategic importance and demand for electrical steel within Mexico's energy sector.
Expansion of Electric Vehicle (EV) Production
Mexico's emergence as a key EV manufacturing hub is a major driver for the electrical steel market. Global automakers like Tesla, General Motors, and BMW are expanding capacities, supported by Mexico's skilled labor, cost advantages, and USMCA trade benefits. Notably, Volkswagen allocated USD 942 million for a Puebla electromobility center and BMW is investing nearly USD 900 million in San Luis Potosí for EV production commencing in 2027. EVs require non-grain-oriented electrical steel with low core loss and high magnetic permeability for motor cores and power electronics. Supporting infrastructure also depends on electrical steel components, accelerating market growth.
Government Initiatives to Modernize the Grid
The Mexican government, particularly through the Comisión Federal de Electricidad (CFE), is actively modernizing the national grid to enhance energy efficiency, reduce system losses, and integrate renewables. Investments focus on upgrading infrastructure, replacing old transformers, and deploying new substations, all relying on high-quality electrical steel. Regulatory measures encourage utilities to adopt energy-efficient technologies that require superior electrical steel grades. These initiatives, coupled with digital infrastructure improvements, are fostering a positive market outlook and sustained demand for electrical steel products.
Mexico Electrical Steel Market Segmentation
Type Insights:
- Grain Oriented Electrical Steel: Focuses on steel with grains aligned in one direction, enhancing magnetic properties, primarily used in transformers and related applications.
- Non-Grain Oriented Electrical Steel: Consists of steel with randomly oriented grains, ideal for applications like motors and generators requiring uniform magnetic properties.
Application Insights:
- Transformers: Electrical steel used for cores and laminations to efficiently transfer electrical energy.
- Motors: Specialized electrical steel supporting motor cores, critical for energy efficiency.
- Generators: Electrical steel components in the generation of electrical power.
- Others: Includes miscellaneous applications requiring electrical steel.
End Use Industry Insights:
- Energy and Power: Electrical steel applications in power generation, transmission, and distribution equipment.
- Automobiles: Use in electric motors and other automotive electrical components.
- Household Appliances: Incorporation in motors and transformers within household devices.
- Building and Construction: Application in electrical equipment used in construction.
- Others: Other industries utilizing electrical steel.
Regional Insights
The report segments the market into Northern Mexico, Central Mexico, Southern Mexico, and others.
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Recent Developments & News
In 2024, Nippon Steel Trading Corporation (NST) announced the construction of a new coil center for electrical steel sheets in Apaseo El Grande, Guanajuato. This project, supported by local government officials, is expected to begin operations in April 2025, aiming to enhance the electrical steel product supply chain within the region.
Key Players
- Nippon Steel Trading Corporation (NST)
Customization Note
If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.
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