The Electrical Steel Coatings Market is to Touch $418.8 million by 2030; The rapid expansion of end-use industries, particularly in sectors like automotive and electrical and Increase in Electric Vehicle (EV) Production propels market growth.

The Electrical Steel Coatings Market size is estimated to reach $418.8 million by 2030, growing at a CAGR of 7.2% during the forecast period 2023-2030, according to a recent report published by IndustryARC, titled, “Electrical Steel Coatings Market – By Type (C0, C2, C3 (C3A), C4 (C4A, C4AS), C5 (C5A, C5AS), C6), By Coating Technique (Electroless plating, Physical Vapor Deposition, Chemical Vapor Deposition), By Electrical Steel Type (Grain-oriented Electrical Steel, Non-oriented Electrical Steel (Non-oriented semi-processed Electrical Steel, Non-oriented fully processed Electrical Steel)), By Application (Static Machines (Power & Distribution Transformers, Welding Transformers, Audio Transformers, Current Transformers, Others), Rotating Machines (Electrical vehicle driving motors, Hermetic motors, AC motors, Intermittent service motors), Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2023-2030” The rapid expansion of end-use industries, particularly in sectors like automotive and electrical and Increase in Electric Vehicle (EV) Production are fueling the growth of the Electrical Steel Coatings industry during the forecast period.

The Asia-Pacific region is projected to dominate the electrical steel coatings market, holding a 46% share during the forecast period from 2024 to 2030. This dominance is driven by significant growth across various industrial sectors, including automotive, electrical, and power & energy industries, which have all experienced rising demand. According to the IEA, an estimated USD 2.8 trillion will be invested in energy in 2023, with over USD 1.7 trillion allocated to clean energy initiatives. These initiatives encompass nuclear power, energy storage, grids, low-emission fuels, renewable energy, efficiency upgrades, end-use renewables, and electrification. The rapid expansion of these industries in the Asia-Pacific region is expected to be a key driver of growth in the global electric steel coatings market during the 2024-2030 forecast period.

As previously noted, transformers and motors play a crucial role in various industries, particularly in the automotive and electrical sectors. The growth of these industries serves as a significant driver for the Electrical Steel Coatings market. According to the International Energy Agency (IEA), coal supply investments are currently much higher than pre-pandemic levels, with a predicted increase of 10% in 2023. Additionally, Acara Solutions India reports that India, a major exporter of automobiles, saw a 15% rise in auto exports during the fiscal year 2023. These factors create an ideal environment for the growth of the Electrical Steel Coatings market from 2024 to 2030.

The rise in electric vehicle (EV) production is another significant driver for the electrical steel coatings market. As EVs become more mainstream, the demand for high-performance electrical motors has surged. Electrical steel is an essential material in the manufacture of these motors due to its superior magnetic properties, which are critical for the efficient functioning of electric drivetrains. Coatings applied to electrical steel, such as silicon coatings, improve the motor's efficiency and power output, contributing to the overall performance and longevity of the vehicle. With the automotive industry increasingly shifting towards electric mobility to meet environmental targets and consumer preferences for cleaner transportation, manufacturers are relying heavily on electrical steel with specialized coatings. Additionally, the global increase in EV charging infrastructure and government incentives for green vehicles are further boosting the demand for electrical steel in the automotive sector. As automakers look to enhance vehicle performance while reducing weight and improving energy efficiency, the need for electrical steel with advanced coatings will continue to rise, supporting the growth of the market in the coming years.

• In April 2023, Fives, a leading player in steel processing and technology, introduced and supplied thermal sections for two new annealing and coating lines (ACL) and a new annealing and pickling line (APL). The thermal section plays a critical role in determining the performance and quality of electrical steel.

• In May 2022, AZZ Inc., a global provider of welding solutions, specialty electrical equipment, galvanizing and metal coating solutions, and highly engineered services for critical infrastructure, acquired the Precoat Metals business division of Sequa Corporation. Sequa, a portfolio company of the international investment firm Carlyle, was acquired for approximately $1.28 billion, as previously announced

Key companies profiled in the Electrical Steel Coatings Market are v Axalta Coating Systems, Chemetall GmbH, ArcelorMittal, Dorf Ketal, PPG Industrial Coatings, Valmont Coatings, Silco Tek, JFE Steel Corporation, Novolipetsk Steel, Nippon Steel Corporation and others.