Global Electrical Steel Coatings Market Size will Reach $289.28 Million in 2023

Global Electrical Steel Coatings Market Overview

According to Global Market Monitor, the 2023 global electrical steel coatings industry market size will reach $289.28 million, with a CAGR of 4.35% from 2023 to 2028.

Electrical Steel Coating Industry Market Development Prospects

Electrical steel coating is mainly used in the construction process of magnetizable magnetic cores of electrical products to insulate electrical steel plates to prevent current flow and reduce eddy currents. Thus, the increasing production and use of electrical equipment such as transformers, generators, and electric motors will continue to drive the growth of the global electrical steel coatings market during the forecast period.

The rapid expansion of end markets including automotive and power is likely to drive the demand for electrical steel coatings over the next decade. Different grades of electroplating are used only for specific types of electrical steel, and the overall electrical steel coatings market will expand at a steady rate during the forecast period owing to the increasing usage of electrical steel for various applications.

Under the background of carbon peaking and carbon neutrality goals, the requirements for energy conservation and emission reduction are increasing. China has put forward strict requirements for the energy efficiency upgrade of transformers, motors, and household appliances, and the improvement of energy efficiency standards will also promote the development of the electrical steel coating industry in the direction of environmental protection, while the low-end product market will gradually be eroded.

Electrical Steel Coatings Market Strength and Drives

Electrical steel, also known as silicon steel sheet, is a soft magnetic alloy of ferrosilicon with very low carbon content. The increasing adoption of large power transformers in heavy industry and residential sectors is driving the demand for electrical steel coatings, especially in developed countries, where most electrical steel coatings are used to manufacture components for such transformers. High surface insulation resistance and thermal stability are some of the key advantages that promote the use of electrical steel coatings in such applications.

Besides manufacturing motors for large power transformers, hybrids, and electric vehicles, electrical steel coatings are also used in energy-saving measures. Eco-friendly production of various electrical equipment must use electrical steel coatings, especially to improve the energy efficiency of such equipment. These are the driving forces for the electrical products market of electrical steel.