What is its significance in electric machines?
When a magnetic material undergoes cyclic magnetization, two kinds of power losses occur on it. Hysteresis and eddy current losses are called as core loss. It is important in determining heating, temperature rise, rating & efficiency of transformers, machines & other A.C run magnetic devices.
When a magnetic core carries a time varying flux, voltages are induced in all possible path enclosing flux. Resulting is the production of circulating flux in core. These circulating current do no useful work are known as eddy current and have power loss known as eddy current loss.