The global electrical steel coatings market size reached USD 271 Million in 2021 and is likely to surpass a valuation of USD 285 Million in 2022. Furthermore, with rising usage of these coatings in transformers and motors, the overall sales of electrical steel coatings are slated to grow at a steady CAGR of 5.5% between 2022 to 2032, totaling a market valuation of USD 488.3 Million by 2032.
Electrical steel coatings are pigmented coatings that insulate silicon steel sheets of motors and generators. These unique coatings are being increasingly utilized during the construction of electrical equipment like transformers and motors to prevent corrosion, eddy current losses, hysteresis losses, and anomalous losses. Besides this, they also offer excellent surface insulation resistance and thermal stability.
| Attribute | Key Statistics |
|---|---|
| Electrical Steel Coatings Market Base Value (2021A) | USD 271 Million |
| Estimated Market Value (2022E) | USD 285.3 Million |
| Projected Market Value (2032F) | USD 487.3 Million |
| Value-based CAGR (2022 to 2032) | 5.5 % |
| Collective Value Share: Top 3 Countries (2022E) | 27.1% |
Electrical steel coatings have become essential solutions for ensuring the efficiency of motors, transformers, and generators. These coatings are mostly used during the construction of the magnetizable core of these electrical products to insulate the electrical steel sheets for preventing the flow of electricity and reducing eddy currents.
Thus, rising production and usage of electrical equipment like transformers, generators, and motors will continue to boost the growth of the global electrical steel coatings market during the forecast period.
Similarly, the rapid expansion of end-use industries including automotive and electricity is likely to push the sales of electrical steel coatings over the next decade.
Different grades of electrical coatings are utilized only with particular kinds of electrical steel. Due to the rise in electrical steel usage across a variety of end-use applications, the overall electrical steel coatings market will expand at a steady pace over the forecast period.
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The global demand for electrical steel coatings is projected to grow at 5.5% CAGR between 2022 and 2032, in comparison to the 4.9% CAGR registered during the historical period from 2015 and 2021.
The market is predicted to expand quickly as a result of increasing usage of electrical steel coatings in a variety of small and big electrical devices, such as motors, inductors, transformers, etc., and subsequent adoption of these electrical devices across numerous end-use industries.
Due to the increased use of electrical steel in numerous applications, electrical steel coatings are becoming more popular. Electrical steel is used in motors, inductors, transformers, and other small and large electrical equipment. Additionally, as the energy and power sector expands, there is a growing need for auxiliary infrastructure, which includes electrical steel.
Among various end-use industries, the automotive and electrical industries are the primary users of transformers and motors. As a result, the expansion of these sectors serves as a significant market catalyst for the electrical steel coatings market.
According to the Organization Internationale des Constructeurs d'Automobiles (OICA), global vehicle production reached around 57.3 million units in 2021, a 9.1% increase over production levels in 2020. Rising vehicle production and sales will eventually propel the demand for electrical steel coatings during the forecast period.
Similarly, the rising demand for electricity will boost the sales of electrical steel coatings over the next ten years. The International Energy Agency (IEA) predicts that global power demand will increase by 4% annually in 2022 after increasing by 5% annually in 2021.
Development of Low-cost Coatings With Good Quality to Boost Electrical Steel Coatings Market
The development of superior quality coatings at a lower cost can provide significant growth opportunities to exclusive coatings manufacturers. The market players, specifically those involved in the manufacture of electrical steel coatings, can capitalize on the opportunity to supply good quality products at lower costs.
Although key steel manufacturers are developing their own production facilities for coatings, the cumulative cost of raw material procurement, Research and Development, product development, and large-scale production are considered the factors leading toward successful backward integration. Therefore, it will create an opportunity for manufacturers across the globe, which will eventually grow the electrical steel coatings market.
Similarly, rising demand for electrical equipment like transformers, generators, and motors across thriving automotive and power sectors will boost the electrical steel coatings market over the next ten years.
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One of the main challenges the electrical steel coatings market is facing is rules and regulations put in place for reducing energy usage and pollution. For instance, the Federal Energy Law of Switzerland outlines actions to regulate and lower energy consumption in machinery, vehicles, and installations. This is done to provide an inexpensive and sustainable supply of energy.
These regulations have an effect on the energy sector and the automotive industry, the two sectors that use electrical steel coatings most frequently, even if they have no direct effect on the market for coatings for electrical steel.
As more nations and governments establish policies to make energy usage as environmentally friendly as possible, these rules are only getting stricter. As a result, this will present a challenge for the electrical steel coatings market between 2022 to 2032.
Rapid Expansion of Power Infrastructure Generating Demand in the USA
As per FMI, the USA will continue to remain at the top of the ladder in the global electrical steel coatings market throughout the forecast period, accounting for a market share of around 12.7% in 2022.
The rapid expansion of power infrastructure, the growing need for improving the efficiency of transformers and motors, and the strong presence of leading manufacturers are driving the USA electrical steel coatings market.
A significant share of overall energy demand in America is met by hydropower plants. With new projects such as Belo Monte Hydropower, demand for electrical steel as well as coatings is expected to rise over the coming years.
Electrical steel coatings manufacturers in the USA are introducing new products into the market to comply with mandated regulations to cater to their increasing demand across various end-use industries. Deployment of energy infrastructure and auxiliary equipment is also pacing up, subsequently generating high demand for electrical steel coatings.
Similarly, high demand for transformers and motors due to rising production and sales of electric cars and favorable government support will boost the market in the USA during the next ten years.
Booming Automotive Industry Boosting Sales in China
The electrical steel coatings market in China is expected to grow at a robust pace during the forecast period, making it one of the most lucrative markets across East Asia.
Growth in the market is driven by the flourishing automotive industry, increasing investments by the government in developing electricity infrastructure, and easy availability of electricity steel coatings at much lower prices.
Similarly, rapid industrial growth and increasing demand for motors and transformers across a wide range of sectors including power and energy, automobile, and electrical and electronics will further boost sales of electrical steel coatings in the market.
One of the key sectors that use motors is the automotive industry. According to the Organisation Internationale des Constructeurs d'Automobiles, the Asia-Pacific, spearheaded by China, produced the most motor vehicles in 2020, with a total output value of 44.3 million vehicles (OICA). This emerging Chinese automotive industry is expected to prove to be a significant growth driver for the electric steel coatings market in the country between 2022 to 2032.
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Rising Popularity Among End-Use Sectors Fueling Grain-oriented Segment Growth
Grain-oriented electrical steel is predicted to hold the largest market share in the global electrical steel coatings market during the forecast period, owing to rising adoption across various end-use industries.
Grain-oriented electrical steel is a significant material that can generate magnetic flux while at rest and is not rotating. As a result, grain-oriented electrical steel works well for the construction of transformers. It is typically used in sheets that have been punched, wrapped, or laminated.
Grain-oriented electrical steel is an important material in the production of energy-efficient transformers and large, high-performance generators. Thus, increasing usage of transformers and generators in the industrial and power & energy sectors will fuel the growth of the target segment during the next ten years.
C5 Remains the Highly Sought After Coating Type in the Market
Between 2022 and 2032, the C5 coating type is expected to hold the majority of the market share in the electrical steel coatings market during the forecast period. The C5 coating type makes an insulating coating with high electrical resistance using a chemical procedure and an inorganic filler. C5 coatings offer excellent surface resistivity both before and after stress reduction annealing (SRA).
Stamping processes with organic components will result in longer punch and die lives. C5A has a thinner coating than C5AS, which is typically used to reduce the sticking of cold-rolled motor lamination steel and semi-processed non-oriented electrical steel during quality anneals.
In order to enhance their market share, leading manufacturers of electrical steel coatings are currently focusing on expansion and new product launch activities as well as research and development of organic-based electrical steel coatings. For instance,
| Attribute | Details |
|---|---|
| Estimated Market Size (2022) | USD 285.3 Million |
| Projected Market Size (2032) | USD 487.3 Million |
| Anticipated Growth Rate (2022 to 2032) | 5.5 % |
| Forecast Period | 2022 to 2032 |
| Historical Data Available for | 2015 to 2021 |
| Market Analysis | USD Million for Value and Tons for Volume |
| Key Countries Covered | USA, Canada, Brazil, Mexico, Germany, Italy, France, UK, Spain, Russia, Poland, China, Japan, South Korea, India, ASEAN, Australia and New Zealand, GCC Countries, Turkey, and South Africa. |
| Key Segments Covered | Coating Type, Material Type, Application, End Use & Region |
| Key Companies Profiled | Axalta Coating Systems Ltd.; thyssenkrupp AG; Rembrandtin Lack GmbH Nfg. KG; POSCO; Baosteel; Nippon Steel & Sumitomo Metal Corporation (NSSMC); ArcelorMittal SA; JFE Steel Corporation; Filtra Catalysts and Chemicals Ltd.; Polaris Laser Laminations, LLC; Wuhan Iron & Steel (GROUP) CORP.; Proto Laminations Inc.; AK Steel Holding Corporation; Cogent Power Limited; Chemetall GmbH; Dorf Ketal Chemicals; Steel Authority of India Limited(SAIL); Tata Steel. |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The global electrical steel coatings market is anticipated to reach a valuation of USD 285.3 Million in 2022.
As per FMI, the global electrical steel coatings market is anticipated to grow at a CAGR of 5.5% over the forecast period of 2022 and 2032 in terms of value.
The global electrical steel coatings market is projected to reach a valuation of USD 487.3 Million by 2032.
The electrical steel coatings market witnessed a growth of 4.9 % CAGR between 2015 and 2021.
Axalta Coating Systems Ltd, thyssenkrupp AG, Rembrandtin Lack GmbH Nfg. KG, POSCO, Baosteel, Nippon Steel & Sumitomo Metal Corporation (NSSMC), ArcelorMittal SA, JFE Steel Corporation, Filtra Catalysts and Chemicals Ltd., Polaris Laser Laminations, LLC, Wuhan Iron & Steel (GROUP) CORP.,Proto Laminations Inc., AK Steel Holding Corporation, Cogent Power Limited, Chemetall GmbH, Dorf Ketal Chemicals, Steel Authority of India Limited(SAIL), and Tata Steel are leading players in the electrical steel
Top countries driving the demand for electrical steel coatings are the USA, Japan, and Germany.
1. Executive Summary 2. Market Overview 3. Key Market Trends 4. Key Success Factors 5. Global Market - Pricing Analysis 6. Global Market Demand (in Value or Size in USD Million) Analysis 2015 to 2021 and Forecast, 2022 to 2032 7. Market Background 8. Global Market Analysis 2015 to 2021 and Forecast 2022 to 2032, by Coating Type 8.1. C2 8.2. C3 8.3. C4 8.4. C5 8.5. C6 9. Global Market Analysis 2015 to 2021 and Forecast 2022 to 2032, by Material Type 9.1. Chrome Free 9.2. Chrome-containing 9.3. Formaldehyde-free 9.4. MgO 10. Global Market Analysis 2015 to 2021 and Forecast 2022 to 2032, by Material Type 10.1. Grain-oriented 10.2. Non-grain oriented 10.2.1. Fully Processed 10.2.2. Semi Processed 11. Global Market Analysis 2015 to 2021 and Forecast 2022 to 2032, by End-Use 11.1. Transformers 11.1.1. Transmission 11.1.2. Portable 11.1.3. Distribution 11.2. Motors 11.2.1. Upto 10 HP 11.2.2. 10 HP- 100 HP 11.2.3. 100 HP -500 HP 11.2.4. 500 HP-1000 HP 11.2.5. Above 1000 HP 11.3. Others 12. Global Market Analysis 2015 to 2021 and Forecast 2022 to 2032, by Region 12.1. North America 12.2. Latin America 12.3. Europe 12.4. East Asia 12.5. South Asia and Pacific 12.6. Middle East and Africa 13. North America Market Analysis 2015 to 2021 and Forecast 2022 to 2032 14. Latin America Market Analysis 2015 to 2021 and Forecast 2022 to 2032 15. Europe Market Analysis 2015 to 2021 and Forecast 2022 to 2032 16. East Asia Market Analysis 2015 to 2021 and Forecast 2022 to 2032 17. South Asia and Pacific Market Analysis 2015 to 2021 and Forecast 2022 to 2032 18. Middle East and Africa Market Analysis 2015 to 2021 and Forecast 2022 to 2032 19. Emerging Countries Market Analysis 20. Market Structure Analysis 21. Competition Analysis 21.1. Axalta Coating Systems Ltd. 21.2. thyssenkrupp AG 21.3. Rembrandtin Lack GmbH Nfg. KG 21.4. POSCO 21.5. Baosteel 21.6. Nippon Steel & Sumitomo Metal Corporation (NSSMC) 21.7. ArcelorMittal SA 21.8. JFE Steel Corporation 21.9. Filtra Catalysts and Chemicals Ltd. 21.10. Polaris Laser Laminations, LLC 21.11. Wuhan Iron & Steel (GROUP) CORP. 21.12. Proto Laminations Inc. 21.13. AK Steel Holding Corporation 21.14. Cogent Power Limited 21.15. Chemetall GmbH 21.16. Dorf Ketal Chemicals 21.17. Steel Authority of India Limited (SAIL) 21.18. Tata Steel 22. Assumptions and Acronyms Used 23. Research Methodology
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Electrical Steel Coatings Market
