Kuwait Electrical Steel Market Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

The Kuwait electrical steel market, valued at USD 900 million, is propelled by energy-efficient equipment, renewable energy initiatives, and manufacturing expansion, with key segments in grain-oriented steel and transformers.

Region:Middle East

Author(s):Geetanshi

Product Code:KRAD3718

Pages:82

Published On:November 2025

About the Report

Base Year 2024

Kuwait Electrical Steel Market Overview

  • The Kuwait Electrical Steel Market is valued at USD 900 million, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for electrical steel in power generation and industrial applications, alongside the expansion of the automotive sector. The rising need for energy-efficient transformers and motors has further propelled the market, reflecting a robust industrial landscape. Recent trends also highlight the impact of grid modernization, renewable energy investments, and the electrification of transport and infrastructure projects as key growth drivers in Kuwait’s steel sector .
  • Kuwait's electrical steel market is dominated by major cities such as Kuwait City and Ahmadi, which serve as industrial hubs. The concentration of manufacturing facilities and the presence of key players in these regions contribute to their dominance. Additionally, the strategic location of Kuwait facilitates trade and access to international markets, enhancing the overall market dynamics .
  • In 2023, the Kuwaiti government implemented the “Regulation for Energy Efficiency in Electrical Equipment, 2023” issued by the Public Authority for Industry. This regulation mandates minimum energy performance standards for electrical steel used in transformers and motors, requiring manufacturers and importers to comply with specific energy-saving criteria and labeling requirements. The regulation aims to improve energy efficiency, reduce losses in electrical equipment, and promote the adoption of advanced technologies in the industrial sector .
Kuwait Electrical Steel Market Size

Kuwait Electrical Steel Market Segmentation

By Type:The electrical steel market can be segmented into four main types: Grain-Oriented Electrical Steel, Non-Grain-Oriented Electrical Steel, Laminated Electrical Steel, and Others. Among these, Grain-Oriented Electrical Steel is the leading sub-segment due to its superior magnetic properties, making it ideal for transformers and other electrical applications. The demand for high-efficiency electrical components has driven the growth of this sub-segment, as manufacturers seek to enhance performance and reduce energy losses. Non-Grain-Oriented Electrical Steel is also gaining traction, particularly in the production of motors and generators for industrial and automotive applications .

Kuwait Electrical Steel Market segmentation by Type.

By End-User:The end-user segmentation includes Power Generation, Transformers, Motors, Industrial Equipment, Consumer Electronics, Automotive, and Others. The Transformers segment is the most significant contributor to the market, driven by the increasing demand for electricity and the need for efficient power distribution systems. The growth in renewable energy sources and the modernization of existing infrastructure have further bolstered this segment's prominence. Motors and industrial equipment also represent substantial shares, reflecting the ongoing industrialization and electrification trends in Kuwait .

Kuwait Electrical Steel Market segmentation by End-User.

Kuwait Electrical Steel Market Competitive Landscape

The Kuwait Electrical Steel Market is characterized by a dynamic mix of regional and international players. Leading participants such as Gulf Steel Works, Kuwait Steel, Alghanim Industries, United Steel Industrial Company (Kuwait), Al-Qatami Steel, Zamil Steel, National Industries Group, Al-Mabani General Contractors, KSC Steel, Al-Falah Group, Al-Khaldiya Steel, Al-Mansouria Steel, Al-Mohammedia Steel, Al-Salam Steel, Al-Hazm Steel contribute to innovation, geographic expansion, and service delivery in this space .

Gulf Steel Works

1995

Kuwait City, Kuwait

Kuwait Steel

1996

Ahmadi, Kuwait

Alghanim Industries

1930

Kuwait City, Kuwait

United Steel Industrial Company (Kuwait)

1998

Kuwait City, Kuwait

Al-Qatami Steel

1980

Kuwait City, Kuwait

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Annual Revenue (USD Million)

Revenue Growth Rate (%)

Market Share (%)

Production Capacity (Tons/Year)

Capacity Utilization Rate (%)

Kuwait Electrical Steel Market Industry Analysis

Growth Drivers

  • Increasing Demand for Energy-Efficient Electrical Equipment:The Kuwait electrical steel market is experiencing a surge in demand for energy-efficient electrical equipment, driven by a national focus on reducing energy consumption. In future, Kuwait's energy consumption is projected to reach 19,000 GWh, prompting manufacturers to adopt advanced electrical steel to enhance efficiency. The government's commitment to achieving a 20% reduction in energy use by 2030 further supports this trend, creating a robust market for high-performance electrical steel products.
  • Government Initiatives Promoting Renewable Energy:The Kuwaiti government has set ambitious targets for renewable energy, aiming for 15% of its energy mix to come from renewable sources by 2030. This initiative is expected to drive the demand for electrical steel, particularly in wind and solar applications. With an investment of approximately $1.6 billion in renewable projects planned for future, the electrical steel market is poised to benefit significantly from these developments, enhancing local production capabilities and technological advancements.
  • Expansion of Manufacturing Sectors:The manufacturing sector in Kuwait is projected to grow by 4.5% in future, driven by diversification efforts away from oil dependency. This expansion is expected to increase the demand for electrical steel, particularly in the production of transformers and motors. The establishment of new manufacturing facilities, with an estimated investment of $900 million, will further stimulate the local electrical steel market, creating opportunities for innovation and increased production capacity.

Market Challenges

  • Fluctuating Raw Material Prices:The electrical steel market in Kuwait faces significant challenges due to fluctuating raw material prices, particularly for iron ore and scrap steel. In future, the price of iron ore is expected to average $125 per ton, impacting production costs. This volatility can lead to unpredictable pricing for electrical steel products, making it difficult for manufacturers to maintain competitive pricing and profitability in a market that is sensitive to cost fluctuations.
  • Limited Local Production Capacity:Kuwait's electrical steel production capacity is currently limited, with local manufacturers producing only 30% of the total demand. In future, the country is expected to import approximately 75,000 tons of electrical steel to meet its needs. This reliance on imports not only increases costs but also exposes the market to supply chain disruptions, making it a significant challenge for local manufacturers aiming to compete effectively in the region.

Kuwait Electrical Steel Market Future Outlook

The future of the Kuwait electrical steel market appears promising, driven by a combination of government initiatives and technological advancements. As the country invests in renewable energy and infrastructure projects, the demand for high-quality electrical steel is expected to rise. Additionally, the shift towards sustainable manufacturing practices will likely encourage local producers to innovate and enhance their production capabilities, positioning them favorably in the regional market landscape.

Market Opportunities

  • Growth in Electric Vehicle Manufacturing:The electric vehicle (EV) sector in Kuwait is anticipated to grow significantly, with an expected increase in EV sales to 12,000 units in future. This growth presents a substantial opportunity for electrical steel manufacturers to supply materials for motors and batteries, enhancing their market presence and contributing to the overall sustainability goals of the country.
  • Development of Smart Grid Technologies:The push for smart grid technologies in Kuwait is set to create new opportunities for electrical steel applications. With an investment of $600 million planned for smart grid infrastructure in future, manufacturers can capitalize on the demand for advanced electrical steel products that support efficient energy distribution and management, aligning with national energy goals.

Scope of the Report

SegmentSub-Segments
By Type

Grain-Oriented Electrical Steel

Non-Grain-Oriented Electrical Steel

Laminated Electrical Steel

Others

By End-User

Power Generation

Transformers

Motors

Industrial Equipment

Consumer Electronics

Automotive

Others

By Application

Transformers

Inductors

Motors

Generators

Others

By Manufacturing Process

Hot Rolled

Cold Rolled

Others

By Distribution Channel

Direct Sales

Distributors

Online Sales

Others

By Region

Central Kuwait

Southern Kuwait

Northern Kuwait

Others

By Policy Support

Government Subsidies

Tax Incentives

Regulatory Support

Others

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Kuwait Ministry of Electricity and Water)

Manufacturers and Producers of Electrical Steel

Distributors and Retailers of Electrical Steel Products

Energy Sector Companies

Industrial Equipment Manufacturers

Trade Associations in the Electrical Steel Industry

Financial Institutions and Banks

Players Mentioned in the Report:

Gulf Steel Works

Kuwait Steel

Alghanim Industries

United Steel Industrial Company (Kuwait)

Al-Qatami Steel

Zamil Steel

National Industries Group

Al-Mabani General Contractors

KSC Steel

Al-Falah Group

Al-Khaldiya Steel

Al-Mansouria Steel

Al-Mohammedia Steel

Al-Salam Steel

Al-Hazm Steel

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Kuwait Electrical Steel Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Kuwait Electrical Steel Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Kuwait Electrical Steel Market Analysis

3.1 Growth Drivers

3.1.1 Increasing demand for energy-efficient electrical equipment
3.1.2 Government initiatives promoting renewable energy
3.1.3 Expansion of manufacturing sectors
3.1.4 Technological advancements in electrical steel production

3.2 Market Challenges

3.2.1 Fluctuating raw material prices
3.2.2 Limited local production capacity
3.2.3 Competition from imported products
3.2.4 Regulatory compliance issues

3.3 Market Opportunities

3.3.1 Growth in electric vehicle manufacturing
3.3.2 Development of smart grid technologies
3.3.3 Investment in infrastructure projects
3.3.4 Potential for export markets

3.4 Market Trends

3.4.1 Shift towards sustainable manufacturing practices
3.4.2 Increasing use of advanced high-strength steel
3.4.3 Rising adoption of automation in production
3.4.4 Focus on recycling and waste reduction

3.5 Government Regulation

3.5.1 Standards for electrical steel quality
3.5.2 Environmental regulations on manufacturing
3.5.3 Import tariffs on electrical steel products
3.5.4 Incentives for renewable energy projects

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Kuwait Electrical Steel Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Kuwait Electrical Steel Market Segmentation

8.1 By Type

8.1.1 Grain-Oriented Electrical Steel
8.1.2 Non-Grain-Oriented Electrical Steel
8.1.3 Laminated Electrical Steel
8.1.4 Others

8.2 By End-User

8.2.1 Power Generation
8.2.2 Transformers
8.2.3 Motors
8.2.4 Industrial Equipment
8.2.5 Consumer Electronics
8.2.6 Automotive
8.2.7 Others

8.3 By Application

8.3.1 Transformers
8.3.2 Inductors
8.3.3 Motors
8.3.4 Generators
8.3.5 Others

8.4 By Manufacturing Process

8.4.1 Hot Rolled
8.4.2 Cold Rolled
8.4.3 Others

8.5 By Distribution Channel

8.5.1 Direct Sales
8.5.2 Distributors
8.5.3 Online Sales
8.5.4 Others

8.6 By Region

8.6.1 Central Kuwait
8.6.2 Southern Kuwait
8.6.3 Northern Kuwait
8.6.4 Others

8.7 By Policy Support

8.7.1 Government Subsidies
8.7.2 Tax Incentives
8.7.3 Regulatory Support
8.7.4 Others

9. Kuwait Electrical Steel Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Annual Revenue (USD Million)
9.2.4 Revenue Growth Rate (%)
9.2.5 Market Share (%)
9.2.6 Production Capacity (Tons/Year)
9.2.7 Capacity Utilization Rate (%)
9.2.8 Product Portfolio Breadth
9.2.9 R&D/Innovation Index
9.2.10 Supply Chain Reliability
9.2.11 Customer Base (Key End-User Segments)
9.2.12 ESG (Environmental, Social, Governance) Initiatives

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Gulf Steel Works
9.5.2 Kuwait Steel
9.5.3 Alghanim Industries
9.5.4 United Steel Industrial Company (Kuwait)
9.5.5 Al-Qatami Steel
9.5.6 Zamil Steel
9.5.7 National Industries Group
9.5.8 Al-Mabani General Contractors
9.5.9 KSC Steel
9.5.10 Al-Falah Group
9.5.11 Al-Khaldiya Steel
9.5.12 Al-Mansouria Steel
9.5.13 Al-Mohammedia Steel
9.5.14 Al-Salam Steel
9.5.15 Al-Hazm Steel

10. Kuwait Electrical Steel Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Ministry of Electricity and Water
10.1.2 Ministry of Commerce and Industry
10.1.3 Ministry of Public Works
10.1.4 Others

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment in Renewable Energy Projects
10.2.2 Budget Allocation for Electrical Infrastructure
10.2.3 Corporate Partnerships
10.2.4 Others

10.3 Pain Point Analysis by End-User Category

10.3.1 Supply Chain Disruptions
10.3.2 Quality Assurance Issues
10.3.3 Cost Management Challenges
10.3.4 Others

10.4 User Readiness for Adoption

10.4.1 Awareness of Electrical Steel Benefits
10.4.2 Training and Skill Development Needs
10.4.3 Infrastructure Readiness
10.4.4 Others

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Performance Metrics Tracking
10.5.2 Case Studies of Successful Implementations
10.5.3 Feedback Mechanisms
10.5.4 Others

11. Kuwait Electrical Steel Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Development


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-ups


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service


7. Value Proposition

7.1 Sustainability Initiatives

7.2 Integrated Supply Chains


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding Efforts

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 JV

10.2 Greenfield

10.3 M&A

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 JVs

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Milestone Tracking
15.2.2 Activity Scheduling

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of industry reports from local and international market research firms
  • Review of government publications and trade statistics from the Kuwait Ministry of Commerce and Industry
  • Examination of academic journals and publications focusing on electrical steel applications and market trends

Primary Research

  • Interviews with key stakeholders in the electrical steel supply chain, including manufacturers and distributors
  • Surveys targeting electrical engineers and procurement managers in relevant industries
  • Field visits to manufacturing plants to gather insights on production processes and capacity

Validation & Triangulation

  • Cross-validation of data through multiple sources, including trade associations and industry experts
  • Triangulation of findings from desk research and primary interviews to ensure consistency
  • Sanity checks conducted through expert panel reviews to validate market assumptions

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of the total addressable market based on national steel consumption statistics
  • Segmentation of the market by end-user industries such as automotive, construction, and appliances
  • Incorporation of macroeconomic indicators and government initiatives promoting electrical steel usage

Bottom-up Modeling

  • Collection of production data from major electrical steel manufacturers in Kuwait
  • Estimation of market share based on sales volume and revenue from key players
  • Analysis of pricing trends and cost structures to derive market value

Forecasting & Scenario Analysis

  • Utilization of time-series analysis to project future demand based on historical data
  • Scenario modeling considering factors such as economic growth, technological advancements, and regulatory changes
  • Development of multiple forecasts (baseline, optimistic, and pessimistic) to account for market volatility

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Electrical Steel Manufacturers60Production Managers, Quality Control Engineers
End-User Industries (Automotive)50Procurement Managers, Design Engineers
Construction Sector Stakeholders40Project Managers, Structural Engineers
Electrical Equipment Manufacturers40Product Development Managers, Supply Chain Managers
Regulatory Bodies and Trade Associations40Policy Makers, Industry Analysts

Frequently Asked Questions

What is the current value of the Kuwait Electrical Steel Market?

The Kuwait Electrical Steel Market is valued at approximately USD 900 million, reflecting a robust industrial landscape driven by increasing demand for energy-efficient electrical equipment in power generation and industrial applications.

What are the main drivers of growth in the Kuwait Electrical Steel Market?

Which cities in Kuwait dominate the Electrical Steel Market?

What regulations have been implemented in Kuwait to improve energy efficiency in electrical equipment?

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