전기강판용 바니시 시장 보고서 : 동향, 예측 및 경쟁 분석(-2035년)

Electrical Steel Sheet Varnish Market

The future of the global electrical steel sheet varnish market looks promising with opportunities in the transformer, electric vehicle, and industrial markets. The global electrical steel sheet varnish market is expected to reach an estimated $1,250.2 million by 2035 from $761.3 million in 2027 with a CAGR of 6.4% from 2027 to 2035. The major drivers for this market are the increasing demand for electric vehicles, the rising adoption of renewable energy, and the growing need for energy-efficient motors.

• Lucintel forecasts that, within the type category, C5 is expected to witness the highest growth over the forecast period due to increasing demand for C5 petroleum resin adhesives.
• Within the application category, electric vehicle is expected to witness the highest growth over the forecast period due to increasing production of electric vehicles and the incorporation of advanced battery technologies.
• In terms of regions, APAC is expected to witness the highest growth over the forecast period due to expanding electric vehicle production and greater public charging network investments.

Emerging Trends in Electrical Steel Sheet Varnish Market

Use of insulation systems will replace commodity coating supply for electrical steel sheet varnish in the period from 2025 to 2027 on account of an increase in efficiency rules for motors and the process of electrification. Lucintel indicates a preference for thermal performance and process reliability in different regional markets. Manufacturers will focus on developing products with low emissions and fast cure as well as utilizing thinner margins.

• Sustainability: Because of the European solvent emission limits that a number of suppliers must meet by 2025 and expected OEM declarations, most sludge and high solids waterborne varnish developments are happening. An increasing number of suppliers have reported reductions in excess of 30% of the solvent in the varnish systems as compared to conventional systems. There will be a positive impact on the market as the costs for permitting a plant and the requirement for reporting emissions will make low-emission coatings more cost effective.
• Digital Manufacturing: From 2025, more coatings systems will integrate inline machines to measure the thickness, machine vision systems, and statistical process controls to lower the insulation resistance and the frequency of the manual measurements. In the next three to five years, connected production will improve all aspects of the automotive and industrial motor systems.
• High-performance Materials: Higher thermal tolerance will be a key aspect in new varnish developments along with strong adhesion and higher thermo-mechanical abuse tolerance for pressing. In the next few years Class 200 and Class 220 insulation systems will become more prevalent in traction motors.
• Regional Supply Diversification: After the supply disruptions of 2022-2024, North American and European manufacturers of motor components have begun sourcing from secondary suppliers while in China there will be a new build of electrical steel and coating capacity. In the next decade sourcing will be based on a two source principle in order to limit the concentration of supply of resin, solvent, and additives from a single country.
• Electric-vehicle Efficiency: Electric cars sales crossed 17 million units globally in 2024, according to IEA. 2025-2027 will prioritize reducing Core Loss at high switching frequencies. Suppliers of varnish which support thin electrical steel sheets, enhanced interlaminar insulation and ultra-fast curing will dictate traction motor specifications as volumes increase.

Electrical steel sheet varnish market is transitioning from price to specification centered. Preferred status may be awarded to suppliers with validated thermal classes, stable application performance, and documented emission data. Growth potential may be dramatic, but long qualification cycles will prevail. Local technical support and reliable second source manufacturing will increasingly govern contract awards.

Recent Developments in the Electrical Steel Sheet Varnish Market

The demand for insulated steel will drive market growth for electric steel sheet varnish in the coming years due to the increased production of electric vehicles, improvement of power grids, and the use of more efficient electric motors. From 2025 to 2027, suppliers will focus on producing varnishes with thinner layers, higher thermal conductivity, and regional manufacturing. Lucintel believes competition will focus on performance of variety, speed of supply and safety of supply rather than price.

• Increased Production Capacity: In March 2025, Nippon Steel announced it would expand its electrical steel capacity in Japan and the US. More production will increase the need for high-performance varnishes as the industry moves toward thinner, better quality steel for traction motors and transformers.
• Strategic Localization: In January 2025, Cleveland-Cliffs stated it had begun work on its $1.3 billion plan to upgrade electrical steel at its Butler Works. As customers seek shorter and safer qualification cycles and more secure supply, localized coating supply will become more important.
• New Coating Technologies: In 2025, coating companies developed new insulation systems using low-solvent materials and high-temperature resins for non-oriented electrical steel. These coatings allow better motor efficiency, easier stamping, and faster curing and can replace older systems.
• Government Support: Implementation of the Net-Zero Industry Act in 2025 by the European Union increased government support for the domestic manufacturing of clean energy. Electrical steel projects with policy support will drive demand for varnish toward manufacturing services capable of technologically advanced systems with compliant materials and reliable resources.
• Supplier Consolidation: In 2025, specialty-coatings companies continued to acquire formulation assets and regional distributors instead of developing everything internally. As a result, they can now access automotive approvals and improve after-sales support more quickly. This means that qualification expertise will be a more important competitive advantage compared to the next five years.

Electrical steel sheet varnish is clearly showing signs of being a more specification-driven component for powertrain and grid equipment. In the coming years, suppliers who can prove their insulation and handle strict environmental regulations will gain the most business. Though profit margins will remain low, qualified products will continue to have some control over pricing as coating failures may lead to motor inefficiencies, high scrap rates, or unreliable transformers.

Strategic Growth Opportunities in the Electrical Steel Sheet Varnish Market

During the years 2024 to 2026, demand for electrical steel sheet will transition from basic insulation to lower emission production, higher efficiency, and thinner gauges capable of more frequent operations. With motor manufacturers focusing more on electrification and the growing investment in grids driving up output for transformers, Lucintel highlights the importance of suppliers with a quick coating qualification and regional construction cluster services.

• High-frequency Motor Varnishes: There exists an opportunity for better margins with formulations for 800 volts designed for both high-speed compressor and traction motors. The IEA published a report in May 2025 that supported the anticipated shift of over 40% of global car sales to electric vehicles by 2030, creating additional demand for varnishes that minimize heat loss and dielectric failure in the compact drive systems.
• Transformer-grade Insulation Systems: With the growing demand for grid modernization and the $1.5 billion grid investment support the U.S. Department of Energy announced in January 2025, the next 3 - 5 years will create demand for suppliers who can provide thermal aging for performance.
• Low-VOC Sustainable Coatings: Environmental resources and plant emissions goals do not have to fall on the performance of safety and electrical varnishes. and are a focus of the revised Industrial Emissions Directive from the EU, which came into force in August 2024. This directive created environmental procurement that drives varnish manufacturers to safer chemistries and recorded carbon performance.
• Regional Production and Technical Service: Local blending, lab testing and inventory in India, Mexico and Southeast Asia can shorten cycle times for qualification. By March 2025 India's production linked incentive program attracted investments to the tune of Rs. 1.97 trillion. As capacity for motor and transformers builds outside of the established centers in Europe and Japan, regional support will be increasingly important.
• Digital Application Optimization: For big coil manufacturers, controlling viscosity, cure temperature, and film thickness with sensors can eliminate scrap. Siemens reported industrial software revenue of €7.4 billion for fiscal 2025, which was released in November 2025. Supporting connected processes will provide a steady income stream via analytics, formulation, and application contracts through continuous process support.

Electrical steel sheet varnish suppliers should view formulation as an opportunity to provide a competitive edge, as opposed to incurring a cost of compliance. Qualified coatings will enable higher speeds, thinner gauges, and high frequency motors with faster qualification. The producers that combine application support with dependable supply43 will win the largest market share through 2030 as electric mobility, distributed power, and factory automation grow.

Electrical Steel Sheet Varnish Market Drivers and Challenges

The market for electrical steel sheet varnish is mainly affected by the current status of the economy and the dynamic changes in technology, sustainability, and laws. The increasing market demands for efficient electric motors and transformers, and the increasing demand for electric vehicles also creates the demand for manufacturers to create thinner coatings, reduce losses, and improve insulation. Although Lucintel thinks the market for electrical steel sheet varnish will be mainly driven by the innovations in the industry of materials and the widespread use of electrification in industries, they think there will be large barriers to market increases due to fluctuations in raw materials and prices, expensive qualification and testing, and environmental laws.

The factors responsible for driving this market include:

• Electrification Demand: The increasing production of electric vehicles, industrial motors and transformers as well as renewable energy equipment brings a greater demand for insulated electrical steel sheets. The expected global sales of electric vehicles in 2024 will be in the range of 17 million, causing a demand to be met by January 2025. The next 3 to 5 years will see an improvement of the intensity of innovative investments in power grid infrastructure which will increase the demand for varnishes with high insulation, and the ability to operate at high temperatures."
• Technology Improvements: Market pressure is expected to increase for manufacturing varnish systems that enable thinner coatings that cure rapidly and possess superior magnetic properties. High-frequency and hyper-precise switching in commercial electric motors will, beginning in January 2025, drive the need for high-performance insulation. In the next 3 to 5 years, advanced technology in resin systems will create a need for such insulation.
• Regulatory Efficiency Standards: While mostly as a result of the UE's revised energy efficiency framework (effective July 2024), the procurement environment is anticipated to the challenged to well after 2025. The reduction of core losses in electric machines will be addressed by high-performance varnishes. The introduction of strict minimum standards of efficiency in the next 3 to 5 years, together with more effective public procurement and new public sector efficiency labels, will create the demand for coatings that provide good electrical performance and insulation, as well as thinner gauges.
• Sustainability Transition: A preference is developing for the use of waterborne varnishes with low, or no, VOC and bio-based technologies for coatings, both in the industrial and the electronics sectors. After January 2025, when new laws regarding the management of industrial chemicals and the reporting of VOCs will take effect, this preference will be more pronounced. Over the next 3 years, there will be a demand for high-performance low-VOC varnishes and associated supporting products.
• Manufacturing Efficiency: Improved coating viscosity control and faster curing times will decrease waste and labor costs for manufacturers, which will allow cheaper priced and higher quality coatings to be produced. For 2025, challenges associated with continuous production will probably interfere with remaining price competitive.

The challenges facing this market include:

• Raw Material price heterogeneity: The first quarter of 2025 is anticipated to present obstacles to the chemical and logistics markets caused by external freight constrictions and local supply constraints. Commodity prices are anticipated to become highly unpredictable due to erratic supply and almost certain higher costs for energy. Profit margins will be adversely impacted and unfavorable pressure will be brought to bear to alter product formulations, all compounded by a need for longer contract commitments in order to protect profitability. With price volatility, longer term contracts will be offered to automotive and transformer manufacturing industries.
• Envirnogme Compliance: There will be higher development costs due to increased regulations for emissions of solvents, hazardous substances, sewage and safety in the workplace. There will also be an increased cost for operational controls due to the ongoing requirements of the REACH program in the European Union. In the next 3 to 5 years, there will likely be a lot more work to manage new requirements and more ongoing changes to the facilities. This will be especially challenging to small companies.
• Costs and performance risks: Good dielectric strength, adhesion, thermal stability, flexibility, chemical resistance, and resistance to processing of electrical steel are all important attributes of a varnish. In the past few months, both automotive and industrial clients have rushed validation projects that would typically require multiple manufacturing runs to be accepted. In the next 3-5 years, we expect new technologies will take a considerable time to validate, and insufficient products will result in costly recalls, production delays, and a loss of goodwill.

The electrical steel sheet varnish market will grow due to increasing demands for electrification and energy efficiency and will also benefit from the positive impact of grid improvement and modern motor design. Longer, thinner, and stronger coatings will be required due to automation and advanced manufacturing processes. In the short term increased volatile chemical costs, more stringent regulations, and longer customer approval times will dominate the market. Participants will best meet industry needs through offering low emission chemistry, greater process control, and offering diverse regional supply and technical service. In the next 3-5 years, competition will be focused more on efficiency of compliance with regulations and assurance of performance and reliable services over price.

List of Electrical Steel Sheet Varnish Market Companies

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies electrical steel sheet varnish market companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the electrical steel sheet varnish market companies profiled in this report include-

• KANSAI HELIOS Austria
• Beckers Group
• Voltatex
• ThyssenKrupp Steel
• Waelzholz
• Quaker Houghton
• ELANTAS Beck
• JYOTI ENTERPRISE
• Korona Group
• Suzhou Jufeng Electrical Insulation System

Electrical Steel Sheet Varnish Market by Segment

The study includes a forecast for the global electrical steel sheet varnish market by type, application, and region.

Electrical Steel Sheet Varnish Market by Type [Value ($M) from 2019 to 2035]:

• C3
• C5
• C6
• Others

Electrical Steel Sheet Varnish Market by Application [Value ($M) from 2019 to 2035]:

• Transformer
• Electric Vehicle
• Industrial
• Others

Electrical Steel Sheet Varnish Market by Region [Value ($M) from 2019 to 2035]:

• North America
• Europe
• Asia Pacific
• The Rest of the World

Country Wise Outlook for the Electrical Steel Sheet Varnish Market

The higher investment in high-efficiency electrical steel drives the varnish coating on electrical steel sheets market, particularly in electric vehicles, renewable energy equipment, and grid modernization. Between 2025 and 2027, manufacturers focus on producing varnish coating that ensures film consistency and thinner gauges and value high annealing lines. In the latest report by Lucintel, increasing significance is observed in downstream production in coated sheets and varnish formulators.

• United States: Cleveland Cliffs' $500 million award from the U.S. Department of Energy for upgrading electrical steel production in March 2024, motivates the domestic production of non-grain-oriented electrical steel for use in motors and generators. In anticipation of product shortages and supply chain disruptions by 2027, automakers and equipment manufacturers will further spur domestic demand for specialty varnishes.
• China: The completion of Baosteel's second phase of its high-grade electrical steel project in Zhanjiang (December 2025) increases capacity of advanced electrical steel. accelerates demand for high-quality electrical steel for efficient motors and transformers, as well as drives a need for uniform insulating coatings. This will drive domestic varnish suppliers to supply better quality varnish for high-speed coating lines through 2028.
• Germany: Thyssenkrupp Steel's confirmation of its €3 billion investment program in May 2025 and a new 2.5 million ton direct reduced iron plant, will further maintain its focus on premium electrical steel grades. This will drive demand for low emission strongly regulated varnish systems for the European market.
• India: The production-linked incentive program for specialty steel, worth ₹6,322 crore is helping set up domestic manufacturing and technology partnerships (January 2025). As Indian mills enhance their electrical steel capacity, varnish manufacturers can expect to get new opportunities to qualify for positions in the supply chains of transformers, motors, and generators over the next few years.
• Japan: JFE Steel's announcement of a second line for the production of electrical steel at its Kurashiki Works (February 2024) will come on stream in fiscal 2027 and will produce special grades. This project will supply coated electrical steel to Japan and create a steadily increasing market for high-grade, thin, heat resistant varnishes.

Features of the Global Electrical Steel Sheet Varnish Market

• Market Size Estimates: electrical steel sheet varnish market size estimation in terms of value ($B).
• Trend and Forecast Analysis: Market trends (2019 to 2026) and forecast (2027 to 2035) by various segments and regions.
• Segmentation Analysis: electrical steel sheet varnish market size by type, application, and region in terms of value ($B).
• Regional Analysis: electrical steel sheet varnish market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
• Growth Opportunities: Analysis of growth opportunities in different types, applications, and regions for the electrical steel sheet varnish market.
• Strategic Analysis: This includes M&A, new product development, and competitive landscape of the electrical steel sheet varnish market.

Analysis of competitive intensity of the industry based on Porter's Five Forces model.

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This report answers following 11 key questions:

• Q.1. What are some of the most promising, high-growth opportunities for the electrical steel sheet varnish market by type (C3, C5, C6, and others), application (transformer, electric vehicle, industrial, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
• Q.2. Which segments will grow at a faster pace and why?
• Q.3. Which region will grow at a faster pace and why?
• Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
• Q.5. What are the business risks and competitive threats in this market?
• Q.6. What are the emerging trends in this market and the reasons behind them?
• Q.7. What are some of the changing demands of customers in the market?
• Q.8. What are the new developments in the market? Which companies are leading these developments?
• Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
• Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
• Q.11. What M&A activity has occurred in the last 6 years and what has its impact been on the industry?

Table of Contents

1. Executive Summary

2. Market Overview

• 2.1 Background and Classifications
• 2.2 Supply Chain

3. Market Trends & Forecast Analysis

• 3.2 Industry Drivers and Challenges
• 3.3 PESTLE Analysis
• 3.4 Patent Analysis
• 3.5 Regulatory Environment

4. Global Electrical Steel Sheet Varnish Market by Type

• 4.1 Overview
• 4.2 Attractiveness Analysis by Type
• 4.3 C3: Trends and Forecast (2019-2035)
• 4.4 C5: Trends and Forecast (2019-2035)
• 4.5 C6: Trends and Forecast (2019-2035)
• 4.6 Others: Trends and Forecast (2019-2035)

5. Global Electrical Steel Sheet Varnish Market by Application

• 5.1 Overview
• 5.2 Attractiveness Analysis by Application
• 5.3 Transformer: Trends and Forecast (2019-2035)
• 5.4 Electric Vehicle: Trends and Forecast (2019-2035)
• 5.5 Industrial: Trends and Forecast (2019-2035)
• 5.6 Others: Trends and Forecast (2019-2035)

6. Regional Analysis

• 6.1 Overview
• 6.2 Global Electrical Steel Sheet Varnish Market by Region

7. North American Electrical Steel Sheet Varnish Market

• 7.1 Overview
• 7.2 North American Electrical Steel Sheet Varnish Market by Type
• 7.3 North American Electrical Steel Sheet Varnish Market by Application
• 7.4 United States Electrical Steel Sheet Varnish Market
• 7.5 Mexican Electrical Steel Sheet Varnish Market
• 7.6 Canadian Electrical Steel Sheet Varnish Market

8. European Electrical Steel Sheet Varnish Market

• 8.1 Overview
• 8.2 European Electrical Steel Sheet Varnish Market by Type
• 8.3 European Electrical Steel Sheet Varnish Market by Application
• 8.4 German Electrical Steel Sheet Varnish Market
• 8.5 French Electrical Steel Sheet Varnish Market
• 8.6 Spanish Electrical Steel Sheet Varnish Market
• 8.7 Italian Electrical Steel Sheet Varnish Market
• 8.8 United Kingdom Electrical Steel Sheet Varnish Market

9. APAC Electrical Steel Sheet Varnish Market

• 9.1 Overview
• 9.2 APAC Electrical Steel Sheet Varnish Market by Type
• 9.3 APAC Electrical Steel Sheet Varnish Market by Application
• 9.4 Japanese Electrical Steel Sheet Varnish Market
• 9.5 Indian Electrical Steel Sheet Varnish Market
• 9.6 Chinese Electrical Steel Sheet Varnish Market
• 9.7 South Korean Electrical Steel Sheet Varnish Market
• 9.8 Indonesian Electrical Steel Sheet Varnish Market

10. ROW Electrical Steel Sheet Varnish Market

• 10.1 Overview
• 10.2 ROW Electrical Steel Sheet Varnish Market by Type
• 10.3 ROW Electrical Steel Sheet Varnish Market by Application
• 10.4 Middle Eastern Electrical Steel Sheet Varnish Market
• 10.5 South American Electrical Steel Sheet Varnish Market
• 10.6 African Electrical Steel Sheet Varnish Market

11. Competitor Analysis

• 11.1 Product Portfolio Analysis
• 11.2 Operational Integration
• 11.3 Porter's Five Forces Analysis
  • Competitive Rivalry
  • Bargaining Power of Buyers
  • Bargaining Power of Suppliers
  • Threat of Substitutes
  • Threat of New Entrants
• 11.4 Market Share Analysis

12. Opportunities & Strategic Analysis

• 12.1 Value Chain Analysis
• 12.2 Growth Opportunity Analysis
  • 12.2.1 Growth Opportunities by Type
  • 12.2.2 Growth Opportunities by Application
• 12.3 Emerging Trends in the Global Electrical Steel Sheet Varnish Market
• 12.4 Strategic Analysis
  • 12.4.1 New Product Development
  • 12.4.2 Certification and Licensing
  • 12.4.3 Mergers, Acquisitions, Agreements, Collaborations, and Joint Ventures

13. Company Profiles of the Leading Players Across the Value Chain

• 13.1 Competitive Analysis
• 13.2 KANSAI HELIOS Austria
  • Company Overview
  • Electrical Steel Sheet Varnish Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.3 Beckers Group
  • Company Overview
  • Electrical Steel Sheet Varnish Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.4 Voltatex
  • Company Overview
  • Electrical Steel Sheet Varnish Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.5 ThyssenKrupp Steel
  • Company Overview
  • Electrical Steel Sheet Varnish Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.6 Waelzholz
  • Company Overview
  • Electrical Steel Sheet Varnish Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.7 Quaker Houghton
  • Company Overview
  • Electrical Steel Sheet Varnish Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.8 ELANTAS Beck
  • Company Overview
  • Electrical Steel Sheet Varnish Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.9 JYOTI ENTERPRISE
  • Company Overview
  • Electrical Steel Sheet Varnish Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.10 Korona Group
  • Company Overview
  • Electrical Steel Sheet Varnish Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.11 Suzhou Jufeng Electrical Insulation System
  • Company Overview
  • Electrical Steel Sheet Varnish Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing

14. Appendix

• 14.1 List of Figures
• 14.2 List of Tables
• 14.3 Research Methodology
• 14.4 Disclaimer
• 14.5 Copyright
• 14.6 Abbreviations and Technical Units
• 14.7 About Us
• 14.8 Contact Us