Electrical Steel Coatings Market Expands from USD 332.4 Million to USD 572.2 Million by 2035 - Strong Growth in Germany, USA, and Japan

The global Electrical Steel Coatings market reached USD 256.3 million in 2020. Worldwide demand for Electrical Steel Coatings saw a 5.1% year-on-year growth in 2025, suggesting an expansion of the market to USD 335.0 million in 2025. Projections for the period between 2025 and 2035 indicate a 5.5% compound annual growth rate (CAGR) for global Electrical Steel Coatings sales, resulting in a market size of USD 572.2 million by the end of 2035.

Electrical steel coatings are essential materials that enhance the performance, durability, and efficiency of electrical components such as transformers, motors, and generators. With ongoing technological advancements and rising energy efficiency standards, the market is witnessing widespread adoption across the automotive, industrial, and renewable energy sectors.

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electrical steel coatings market Dynamics and Technological Advancements:

One of the most notable innovations in this industry is Voltatex 1250V Fast (C5 coating), which significantly improves manufacturing efficiency and component performance. Its superior weldability, even in thick layers, enables faster and more precise production of motors and transformers, helping manufacturers reduce costs and downtime.

electrical steel coatings market Trends (2020-2035): Growth Drivers and Opportunities:

Between 2020 and 2024, the market expanded steadily from USD 256.3 million to USD 317.5 million, supported by increased renewable energy deployment, grid modernization, and electric vehicle adoption. The integration of grain-oriented and non-grain-oriented electrical steels has been instrumental in achieving higher energy efficiency in transformers and electric motors, aligning with global carbon reduction goals.

electrical steel coatings market Highlights and Innovations:

A major development in recent years is the rise of eco-friendly water-based semi-inorganic coatings, which combine the advantages of organic and inorganic compounds. These coatings deliver excellent heat resistance and weldability while significantly lowering volatile organic compound (VOC) emissions. The transition to chrome-free coatings reflects the industry's shift toward sustainability and compliance with global environmental standards.

electrical steel coatings market Key Challenges:

Despite strong growth prospects, the industry faces challenges stemming from stringent environmental regulations. Restrictions on VOC emissions and the use of hazardous materials such as chromium and magnesium oxide have increased compliance costs. Smaller manufacturers often struggle to invest in R&D for sustainable alternatives, which raises production costs and limits market penetration. Furthermore, slow adoption of eco-friendly coatings in developing regions continues to hinder global expansion.

electrical steel coatings market Recent Developments:

July 2024: SIJ Acroni launched the pioneering production of advanced electrical steel through an Electric Arc Furnace (EAF) route, catering to the growing EV industry.

April 2023: Fives Group introduced advanced thermal sections for annealing and coating lines (ACL) and annealing and pickling lines (APL), enhancing electrical steel performance and quality.

electrical steel coatings market Regional Insights:

China: The Manufacturing Powerhouse (35.6% of East Asia Market):China dominates the market, driven by its robust EV manufacturing ecosystem and large-scale renewable energy projects. The nation's ongoing investment in smart grids and green infrastructure fuels demand for advanced coatings that enhance motor performance, reduce magnetic losses, and extend component lifespan.

United States: 22.9% Share in North America: In the U.S., the transition to electric mobility and renewable power is significantly boosting the need for electrical steels with high-performance coatings. The rapid expansion of EV infrastructure, coupled with stringent energy efficiency regulations, positions the U.S. as a high-growth market through 2035.

electrical steel coatings market Category and Segment Insights:

By Coating Type:C5 and C5AS coatings dominate with a 43.7% market share in 2025, offering superior weldability and reduced residue during motor manufacturing. Their thin-layer design enhances processing efficiency and aligns with the growing demand in EV and renewable energy applications.

By Application: Transformers account for 35.6% of market share, driven by grid modernization, renewable energy projects, and industrial power systems. Products like REMISOL EB 5320 offer high hydrolysis and corrosion resistance, ensuring reliability and compliance with green standards.

By Electrical Steel Type: Grain-oriented electrical steels dominate in transformers, while non-grain-oriented steels are preferred for motors and generators due to their superior magnetic properties and efficiency.

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electrical steel coatings market Future Outlook (2025-2035):

The global electrical steel coatings market is poised for robust expansion over the next decade. Rising electrification, the global shift toward sustainable energy, and technological innovations in coating materials will be the major growth catalysts. Companies investing in eco-friendly, high-performance coatings will lead the next wave of transformation in this sector.

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