This work introduces a 2D model that calculates power losses in coaxial magnetic gears (CMGs). The eddy current losses of the magnets are computed analytically, whereas the core losses of the ferromagnetic segments are computed using an analytical–finite element hybrid model. The results were within 1.51% and 3.18% of those obtained from an FEA for the eddy current and core losses in the CMG for an indicative inner rotor speed of 2500 rpm. In addition, the significance of the circumferential magnet segmentation is demonstrated in the CMGs. Furthermore, a parametric investigation of the efficiency of the system for different applied external loads is carried out. Finally, a mesh sensitivity analysis is performed, along with the computation of the average power losses throughout one full period, resulting in an at least 80% reduction in computational costs with a negligible effect on accuracy. The developed model could be a valuable tool for the minimization of power losses in CMGs since it combines high accuracy with a low computational cost.