Electrical Steel Coatings Market Size & Share, by Coating Type (C2, C3, C4, C5, C6); Material Type; Application - Global Supply & Demand Analysis, Growth Forecasts, Statistical Report 2025-2037

  • Report ID: 6460
  • Published Date: Sep 20, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2025-2037

Electrical Steel Coatings Market size is evaluated at USD 321.4 million in 2024 and is poised to exceed USD 644.7 million by the end of 2037, registering over 5.5% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of electrical steel coatings is estimated at USD 339.1 million.

The rising demand for advanced industrial components such as transformers and electric motors is fuelling the application of electrical steel coatings to mitigate energy losses. 

The C5 coatings have widespread use cases in carbon steel and galvanized steel due to their superior surface resistivity and high performance, aiding its revenue growth. For instance, C5 electrical steel coating sales are expected to increase from USD 138.3 million in 2025 to USD 257.0 million by 2037. The growing industrial activities worldwide are boosting the use of C5 coatings for enhanced performance and durability of materials. C5 electrical steel coatings are projected to capture 39.8% of the revenue share by 2037 owing to the increasing application in refrigerator motors and large turbogenerators.


Electrical Steel Coatings Market Size
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Electrical Steel Coatings Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing industrial automation: Increased automation in manufacturing processes drives demand for efficient electric motors and transformers, thereby supporting the market. Around 76% of companies in the manufacturing sector plan to implement automation by 2027. Automation can reduce defects in manufacturing by 90%. Automated systems require components that can withstand rigorous operating conditions. Electrical steel coatings provide improved corrosion resistance and durability.

    Moreover, the rise of robotics and AI in manufacturing increases the need for precise and efficient electrical components, further propelling demand for quality electrical steel coatings. The adoption of industrial robots in manufacturing sector is expected to increase by 100% by 2025.
  • Automotive electrification and expansion of renewable energy: The shift toward electric vehicles is increasing the need for high-quality electrical steel in motors and batteries, boosting the electrical steel coatings market. Also the growth of renewable energy sources, such as wind and solar power, necessitates high-performance electrical steel for generators and transformers, driving demand for coated products.

Challenges

  • High product costs: The manufacturing process for electrical steel and its coatings is quite expensive due to the complex steps and raw materials involved. For instance, electrical steel is often made from iron, and alloyed with silicon to improve its magnetic properties, the fluctuations in the raw material prices directly influence the overall product cost. Also, continuous technological advancements uplift the production cost, which may limit its electrical steel coating sales growth to some extent.
  • Presence of alternatives: The increasing use of alternative materials such as aluminum and other technologies can potentially hamper the demand for electrical steel coating products. Aluminum and composites are lighter than steel and are finding increasing applications in the automotive manufacturing sector. They effectively aid in weight reduction and lead to energy efficiency. Such characteristics are anticipated to make alternatives more attractive and impact the sales of electrical steel coatings.

Electrical Steel Coatings Market: Key Insights

Base Year

2024

Forecast Year

2025-2037

CAGR

5.5%

Base Year Market Size (2024)

USD 321.4 million

Forecast Year Market Size (2037)

USD 644.7 million

Regional Scope

  • North America (U.S., and Canada)
  • Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific)
  • Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Brazil, Rest of Latin America)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Electrical Steel Coatings Segmentation

By Material Type (Chrome-free, Chrome-containing, Formaldehyde-free, MgO)

By 2037, chrome-containing segment is estimated to capture over 47.5% electrical steel coatings market share. Chromium is vital in various end use industries including stainless steel production due to its ability to enhance corrosion resistance and durability. According to the U.S. Geological Survey Publications Warehouse, 18% of chromium is used in stainless steel production. Chromium is also essential in chemicals and pigment production that are widely used in various manufacturing processes, fuelling the application area of chrome-containing coatings.

Application (Transformers, Electric Motors, Generators, Inductors)

The transformers segment is anticipated to drive the electrical steel coatings market with a notable market share. The rise of renewable energy sources, such as wind and solar, requires efficient transformers for grid integration. This increases the demand for electrical steel coatings that can enhance the performance of transformers in these applications. Moreover, ongoing urbanization and infrastructure projects necessitate the installation of new transformers, leading to higher demand for electrical steel coatings used in transformer cores.

Our in-depth analysis of the electrical steel coatings market includes the following segments:

Coatings Type

 

  • C2
  • C3
  • C4
  • C5
  • C6

Material Type

  • Chrome-free
  • Chrome-containing
  • Formaldehyde-free
  • MgO

Application

  • Transformers
  • Electric Motors
  • Generators
  • InductorsA

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Electrical Steel Coatings Industry - Regional Scope

APAC Market Forecast

By 2037, Asia Pacific electrical steel coatings market is projected to dominate over 52.5% revenue share owing to the rapidly expanding industrial activities and rising energy infrastructure projects in the region. The booming automotive and construction sectors are making high use of electrical steel coatings in Asia Pacific. Technological advancements in materials and coating processes such as nanocoating technology also contribute to the market growth. India, China, South Korea, and Japan are leading the sales of electrical steel coatings in the region.

India is the second largest producer of crude steel in the world, the steel production of the country grew 4-7% to 123-127 MT in 2024. Various government initiatives and supportive policies are contributing to the electrical steel coatings market growth in India. For instance, India Brand Equity Foundation revealed that the Government of India in the 2023 to 2024 union budget allocated around USD 8.6 million to the Ministry of Steel for the promotion of self-reliance in the steel industry. Such policy supports are anticipated to augment the sales of electrical steel and its coatings in the country during the forecasted period.

North America Market Statistics

In electrical steel coatings market, North America region is expected to account for more than 28.5% revenue share by the end of 2037 owing to the presence of leading electrical steel coating manufacturers. The rising investment in research and development activities for the production of advanced coating materials and increasing demand for automobiles and consumer electronics are boosting the electrical steel coatings market growth in the region.

In the U.S. the rising investments in power projects and the growing popularity of renewable energy sources are boosting the applications of electrical steel coatings. Hydropower plants are prime energy suppliers in the U.S., which is driving high demand for electrical steel-coated generators and transformers in such plants.

In Canada, the rising adoption of electric vehicles is set to fuel the demand for electrical steel coatings in the coming years. For instance, according to Statistics Canada, around 3.0% of the light-duty vehicles registered in Canada in 2022 were EVs.

Research Nester
Electrical Steel Coatings Market Share
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Companies Dominating the Electrical Steel Coatings Landscape

    Key players in the electrical steel coatings market are adopting several tactics such as new product launches, partnerships, regional expansion, and mergers & acquisitions to earn high-profit shares. Leading companies are investing heavily in R&D activities to introduce advanced coating materials with enhanced electrical efficiency and thermal stability. They are also forming strategic alliances with other players to increase electrical steel coatings market reach.

    Some of the key players include:

    • AK Steel Holding Corporation
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Tata Steel Limited
    • Axalta Coating Systems Ltd.
    • ThyssenKrupp AG
    • Rembrandtin Lack GmbH Nfg. KG
    • ArcelorMittal SA
    • Wuhan Iron & Steel Corporation
    • Proto Laminations Inc.
    • Dorf Ketal Chemicals
    • Filtra Catalysts and Chemicals Ltd.

In the News

  • In April 2024, ArcelorMittal SA revealed its plans to build an advanced manufacturing faculty in Calvert, Alabama, which is anticipated to offer around 150kt domestic production of non-grain-oriented electrical steel each year. In support of this project, the U.S. Internal Revenue Service awarded USD 280.5 million in investment tax credits.
  • In March 2023, ThyssenKrupp AG announced the expansion of its competence center for electric mobility at the Bochum site. This strategy is anticipated to deliver around 2,18,000 metric tons of non-grain-oriented electrical steel per year.

Author Credits:  Rajrani Baghel


  • Report ID: 6460
  • Published Date: Sep 20, 2024
  • Report Format: PDF, PPT
Electrical Steel Coatings Market Market Report Scope
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