This paper presents the magnetostatic field analysis of a coaxial magnetic gear device proposed by Atallah and Howe. The structural configuration and speed reduction ratio of this magnetic gear device are introduced. The 2-dimensional finite-element analysis (2-D FEA), conducted by applying commercial FEA software Ansoft/Maxwell, is performed to evaluate the magnetostatic field distribution, especially for the magnetic flux densities within the outer air-gap. Once the number of steel pole-pieces equals the sum of the pole-pair numbers of the high-speed rotor and the low-speed rotor, the coaxial magnetic gear device possesses higher magnetic flux densities, thereby generating greater transmitted torque.