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.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
5.5% |
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Base Year Market Size (2024) |
USD 321.4 million |
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Forecast Year Market Size (2037) |
USD 644.7 million |
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Regional Scope |
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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:
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Coatings Type
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Material Type |
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Application |
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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.
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:
Author Credits: Rajrani Baghel
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