2026 has become a pivotal year for the global upgrade of motor efficiency standards. Led by the formal implementation of the EU’s IE5 ultra‑premium efficiency standard and China’s targeted "Motor Efficiency Improvement Plan," major economies have simultaneously tightened market access requirements for motor efficiency.

European Union: From 2026, the IE5 ultra‑premium efficiency standard becomes mandatory. Compared with IE4, overall motor efficiency improves by 3‑5%, with industrial general‑purpose motors required to achieve ≥95% efficiency, covering motors from 0.75 kW to 1,000 kW. Brushless motors under IE5 consume 15‑20% less energy than traditional IE3 motors, and a single industrial motor can save thousands of kilowatt‑hours annually.

China: The "Motor Efficiency Improvement Plan (2024‑2026)" explicitly requires that by 2026, high‑efficiency brushless motors account for over 70% of industrial motors, while low‑efficiency brushed motors will be fully phased out from industrial applications. The national standard GB 30253‑2024 raises the minimum energy efficiency requirement for permanent magnet synchronous motors from IE2 to IE4, and introduces the more forward‑looking IE5+ efficiency class. In the first half of 2026, procurement of high‑efficiency brushless motors in China’s industrial sector grew by 28% year‑on‑year.

United States: Although the current general‑purpose motor threshold remains NEMA Premium (equivalent to IE3), the DOE has issued a final rule requiring that medium‑range motors between 100 and 250 horsepower must meet NEMA Super Premium (equivalent to IE4) efficiency standards from 1 June 2027.

Other Markets: Taiwan, China requires IE3 for motors <75kW and IE4 for 75‑200kW; Japan’s JIS C 4034‑30‑1:2026 aligns with the latest IEC updates. Globally, motor efficiency regulations are forming a tiered pattern of "EU leading, China catching up, and the US following."

How Does the Efficiency Upgrade Drive Demand for High‑Grade Steel?

Each step up in motor efficiency imposes stricter requirements on the core material – electrical steel (silicon steel). This "regulatory push → material upgrade" transmission chain is reshaping the supply‑demand dynamics of high‑grade steel globally.

1. IE5 Forces Thinner Gauge, Lower Core Loss, and Higher Magnetic Induction in Silicon Steel

IE5 motors need efficiency above 95%, making traditional 0.5mm‑thick silicon steel inadequate. The industry is rapidly shifting to ultra‑thin gauges of 0.35mm, 0.20mm, and even 0.10mm. For example, Baosteel’s 35WW270 grade, designed specifically for IE5 industrial motors, offers better core loss control than traditional 0.5mm products, making it easier to meet IE5 requirements. Thinner and more uniform silicon steel yields higher motor efficiency; 0.10mm ultra‑thin gauge steel can reduce core loss by 30‑50%.

2. Demand for High‑Grade Non‑Oriented Silicon Steel Continues to Rise

Non‑oriented silicon steel is the core magnetic material in motors, directly determining motor efficiency. A research report by Huatai Securities projects that demand for high‑grade non‑oriented silicon steel will reach 4.02 million tons by 2025, with a compound annual growth rate of about 12.5% from 2022 to 2025, and up to 32.5% in the new energy vehicle sector.

In terms of downstream structure, home appliances and industrial motors account for more than 70% of non‑oriented silicon steel demand. Driven by efficiency upgrades, high‑grade non‑oriented silicon steel used in IE4/IE5 ultra‑high‑efficiency motors has become a critical functional material for reducing industrial carbon emissions and achieving carbon neutrality goals.

3. Global Electrical Steel Market Accelerates Expansion

According to market research reports, the global electrical steel market was valued at approximately US$37.1 billion in 2025 and is expected to grow to US$39.7 billion in 2026, with a CAGR of 7%. Other forecasts suggest that by 2026 the market may reach US$62.9 billion, rising to US$83.2 billion by 2031, at a CAGR of 5.8%. Among segments, high‑grade (low‑loss) electrical steel is the fastest‑growing, driven by tightening international efficiency standards and the lifecycle economics of equipment.

Strategic Opportunities and Transformation for the Steel Industry

The comprehensive upgrade of motor efficiency regulations is becoming a key driver for optimizing the product mix in the steel industry.

Production capacity shifts towards high‑end products. Since the beginning of 2026, Chinese steelmakers have globally launched six core steel products, and the self‑sufficiency rate for high‑end steels used in robotics motors, subsea pipelines, and other areas has approached 100%. The "15th Five‑Year Plan" outline includes high‑grade electrical steel as a key development area within advanced steel industries. The annual growth rate of demand for high‑grade non‑oriented silicon steel used in new energy vehicle drive motors is expected to exceed 25%; and demand for ultra‑thin gauge (0.20mm and below) high‑grade non‑oriented silicon steel used in industrial robot joint motors is surging.

Supply remains tight, with leading players gaining advantages. The supply side for high‑grade non‑oriented silicon steel is oligopolistic, with fewer than eight domestic steel producers capable of manufacturing high‑grade products. High investment outlays and technological barriers mean that supply is expected to remain tight. Major steel groups are well positioned to consolidate their leading positions in this structural opportunity.

Steel industry transitions from "general‑purpose" to "customized" products. Growing demand for steel in new energy, high‑end equipment, automotive lightweighting, and other fields is pushing steel enterprises to accelerate product upgrades, focusing on special steels, high‑strength steels, and other high‑value‑added products. Steel products are increasingly moving from "general‑purpose" to "customized" solutions.

High‑Grade Steel Supply Chain: Who Supports the Industry?

Efficiency upgrades test not only steelmaking capabilities but also the responsiveness and professional service capability of the supply chain. In the distribution chain from steel mills to motor manufacturers, specialized steel trading and processing service providers are playing an increasingly critical bridging role.

Shanghai Ruichao Industrial Co., Ltd. is a professional force in this supply chain. The company is deeply engaged in the steel trading sector, providing high‑grade steel procurement and processing support services to customers in motor manufacturing, mechanical processing, and other industries. Against the backdrop of the IE5 efficiency standard rollout, motor manufacturers face urgent demand for high‑grade non‑oriented silicon steel and ultra‑thin electrical steel – not only requiring material performance to meet specifications, but also demanding stable supply, precise delivery timing, and reliable processing accuracy. Leveraging its deep understanding of the steel market and stable upstream channel resources, Shanghai Ruichao Industrial offers a one‑stop service covering material selection consulting, precise procurement, and customized processing. This helps motor manufacturers respond more efficiently through the supply chain and seize the market opportunities created by the efficiency upgrade.

The 2026 global upgrade of motor efficiency regulations is not only a technological revolution for the motor industry but also a strategic opportunity for high‑grade steel demand. From the EU’s mandatory IE5, to China’s target of 70% high‑efficiency industrial motors, and the US’s phased approach to IE4, each upward step in efficiency standards forces motor manufacturers to adopt higher‑grade, thinner‑gauge, lower‑loss electrical steel. For the steel industry, this is both a driver of product mix optimization and a strategic window to shift from "scale expansion" to "value creation." Under the dual impetus of carbon neutrality goals and efficiency regulations, high‑grade steel – especially high‑grade non‑oriented silicon steel – is moving from niche demand to explosive growth. In this wave of material upgrades, professional supply chain service providers like Shanghai Ruichao Industrial are delivering indispensable value to efficiently connect the upstream and downstream of the industry chain.