Electrical Steel Coatings Market

Electrical Steel Coatings Market Size Analysis

According to a recent survey conducted by ChemView Consulting, the Global Electrical Steel Coatings Market grew at a CAGR of 4.9% between 2017-2021 and is estimated to be US$ 312.7Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 6.2% and is expected to reach a valuation of US$ 570.7Mn by 2032 end.

Insulating silicon steel sheets used in motors and generators are pigmented coatings called electrical steel coatings. To reduce corrosion, eddy current losses, hysteresis losses, and anomalous losses during electrical equipment construction like transformers and motors, these special coatings are being used more and more. In addition, they provide good thermal stability and surface insulation resistance.

Electrical steel coatings have grown to be crucial solutions to guarantee the effectiveness of motors, transformers, and generators. These coatings are primarily employed to insulate the electrical steel sheets used in the fabrication of the magnetizable core of these electrical devices, blocking the flow of electricity and lowering eddy currents.

Therefore, increased production and use of electrical machinery like transformers, generators, and motors will continue to fuel the growth of the global electrical industry.

Market Dynamic

DEVELOPMENT OF LOW-COST COATINGS WITH GOOD QUALITY TO BOOST THE ELECTRICAL STEEL COATINGS MARKET

Exclusive coatings firms may have considerable growth prospects if higher-quality coatings with cheaper costs can be developed. Market participants can take advantage of the possibility of providing high-quality goods at more affordable prices, particularly those engaged in producing electrical steel coatings.

Although major steel producers are building their own coatings production facilities, the cost of large-scale production, R&D, and acquiring raw materials are thought to be the fundamental drivers of successful backward integration. As a result, it will open up opportunities for producers worldwide, eventually leading to market growth for electrical steel coatings.

The market for electrical steel coatings will also benefit from increased demand for electrical equipment, including transformers, generators, and motors in the booming automotive and power sectors.

THE ELECTRICAL STEEL COATINGS MARKET IS FACING RULES AND REGULATIONS PUT IN PLACE TO REDUCE ENERGY USAGE AND POLLUTION

Exclusive coatings firms may have considerable growth prospects if higher-quality coatings with cheaper costs can be developed. Market participants can take advantage of the possibility of providing high-quality goods at more affordable prices, particularly those engaged in producing electrical steel coatings.

Even though major steel producers are building their own coatings production facilities, the cost of large-scale production, R&D, and the acquisition of raw materials are thought to be the fundamental drivers of successful backward integration. As a result, it will open up opportunities for producers worldwide, eventually leading to market growth for electrical steel coatings.

The market for electrical steel coatings will also benefit from increased demand for electrical equipment, including transformers, generators, and motors in the booming automotive and power sectors.

Market Segments Covered in Report

By Coating Type:

• C2
• C3
• C4
• C5
• C6

By Material Type:

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

By Application:

• Grain-oriented
• Non-grain Oriented

By End-Use:

• Transformers
• Motors
• Others

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

Which end-use segment is projected as the most lucrative segment?

The Transformers segment is projected as the most lucrative segment.

Why is the grain-oriented segment leading the way in the electrical steel coatings market?

Due to its increasing use across numerous end-use industries, grain-oriented electrical steel is anticipated to hold the biggest market share globally for electrical steel coatings during the forecast period.

Grain-oriented electrical steel is a noteworthy material that can produce magnetic flux while at rest and without rotating. Because of this, grain-oriented electrical steel is useful for making transformers. It is commonly utilized in laminated, wrapped, or punched sheets.

For the manufacture of massive, high-performance generators and energy-efficient transformers, grain-oriented electrical steel is a crucial component. Therefore, the target segment’s growth over the next ten years will be fueled by an increase in the use of transformers and generators in the industrial and power & energy sectors.

Which is the most commonly used coating type in the global market?

In the electrical steel coatings market between 2023 and 2032, the C5 coating type is anticipated to hold the bulk of the market share. The C5 coating type uses a chemical process and an inorganic filler to create an insulating coating with high electrical resistance. C5 layers provide excellent surface resistivity before and after stress reduction annealing (SRA).

Punch and die lifetimes will be increased when stamping procedures that include organic materials. When used to prevent the sticking of cold-rolled motor lamination steel and semi-processed non-oriented electrical steel during quality anneals, C5A has a thinner coating than C5AS.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• With a market share of 52.7%, the electrical steel coatings market in the Asia Pacific Region is one of the most profitable markets globally. It is anticipated to expand at a rapid rate over the forecast period. The booming automotive sector, rising government spending on building the infrastructure for electricity, and the accessibility of electrified steel coatings at significantly reduced prices all contribute to the market’s growth.
• Throughout the forecast period, the U.S. will continue to dominate the worldwide electrical steel coatings market, with a market share of about 7% in 2023. The U.S. market for electrical steel coatings is being driven by the rapid growth of the nation’s power infrastructure, the growing demand for improved transformer and motor efficiency, and a strong presence from major manufacturers.

Competition Analysis

Leading producers of electrical steel coatings are currently concentrating on business expansion and new product launches, as well as research and development of organic-based electrical steel coatings to increase their market share.

The key developments in the Global Electrical Steel Coatings Market:

• In August 2021, to satisfy a crucial demand of impending environmental legislation, the Austrian industrial coatings business Rembrandtin asserts to have created the first chromium-free electrostrip coating for grain-oriented electrical steel used in distribution transformers.
• In April 2019, Thyssenkrupp began operating its production line for grain-oriented electrical steel coatings in Nashik. This aided the business in expanding its market share in India.

A list of some of the key suppliers present in the market are:

• 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

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectional analysis at global and country levels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.