Permanent Magnet Market

Updated on : November 25, 2024

Permanent Magnet Market

The global permanent magnet market is valued at USD 53.5 billion in 2024 and is projected to reach USD 80.4 billion by 2029, growing at 8.5% cagr from 2024 to 2029. It is expected to witness steady growth during the forecast period, owing to the increasing demand for motors, generators, sensors, loudspeakers, wearable devices, smart appliances, MRI machines and so on. The demand for permanent magnet market is mostly from Neodymium Iron Boron magnets. The major end use industries of permanent magnets are Consumer Electronics, General Industrial, Automotive, Medical Technology, Environment & Energy, Aerospace & Defense Industries.

Attractive Opportunities in Permanent Magnet Market Trends

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Permanent Magnet Market Dynamics

Driver: Growing demand for permanent magnets due to increased deployment of wind turbines

The growing demand for offshore wind turbines in Environment & Energy industry is pushing the companies to manufacture advance magnet-based generators. According to GWEC, more than 25 GW of offshore wind will be installed in as single year in 2025.  Countries and regions across the globe are investing heavily in the wind sector and trying to grab a significant market share in the renewable energy industry. This is likely to change the market dynamics of components used in manufacturing of wind turbines including permanent magnets. Countries like France, and the US are developing recycling technologies to recycle wind turbine blades by 2030 and achieve net zero emissions in future. Additionally, a Swedish company, Vatenfall has undertaken a sustainability initiative to achieve 100% circular economy of permanent magnets from its wind turbines.

Restraint: Fluctuating raw material cost of rare earth magnets

Fluctuating cost of raw materials is one of the major restraints hampering the growth of global permanent magnet market. Sudden increase in the prices of rare earth magnets, particularly neodymium can lead to higher production cost affecting the profit margins. Due to this factor it becomes challenging for the rare earth magnet manufacturers to deliver high quality products at low prices. Similarly, sudden decrease in the cost of rare earth magnets leads to higher inventory cost affecting the competitiveness in the market.

Opportunity: Growing demand for EVs and Hybrid Vehicles

With the increasing population, the demand for permanent magnets is growing in automotive industry. Consumer spending has been increased with the changing consumer preferences and advancement in technologies. Many well-established players in the permanent magnet market are adopting electrification to meet the stringent regulations set by the government to promote clean energy. Major automotive manufacturers such as Audi, and MG Motors are utilizing permanent magnet synchronous motor in EVs and hybrid vehicles that provides 15% more efficiency than the induction motors. Due to its low maintenance cost, durability, and reliability, the demand for permanent magnets synchronous motors is rising that mostly uses Neodymium Iron Boron permanent magnets.

Challenge: High reliance on China for raw materials and magnets

China dominates the global Rare Earth Elements (REE) market and is also a crucial supplier of REEs to majority of the countries. Additionally majority of the permanent magnet manufacturers are in China. Countries across the world are trying to establish domestic magnet manufacturing facilities to reduce the vulnerability of supply chain of permanent magnets. Japan, US and European countries are exploring the existing mines for extracting rare earth elements. China being the largest producer of rare earth elements has undertaken the magnet industry due to absence of these materials in western regions.

Permanent Magnet Market Ecosystem:

Based on the type, Neodymium Iron Boron magnet type is estimated to be the fastest-growing type during the forecast period, in terms of value.

Neodymium Iron Boron magnet, a most advanced rare earth magnet available in the market offers compressive strength, high residual induction (Br), high coercivity (Hc), and maximum energy product (BHmax). It is available in variety of sizes, shapes and grades. Neodymium Iron Boron magnet is 18 times stronger than the ferrite magnets. Due to its exceptional magnetic properties and versatility, it is widely used in Consumer Electronics, General Industrial, Automotive, Medical Technology, Environment & Energy, Aerospace & Defense Industries. With the growing demand for Neodymium Iron Boron magnet in aerospace & defense applications, the Defense Department has awarded $5.1 million to Rare Resource Recycling Inc. for its recycling capabilities.

Based on End-use Industries, the automotive industry segment is anticipated to register the highest CAGR in permanent magnet market.

The automotive industry is expected to be the fastest-growing end use industry in the permanent magnet market during the forecast period. Permanent magnets are mostly preferred for automotive industry due to its compact design, durability, high performance and efficiency. Permanent magnets are widely used in electric motors, generators, sensors, actuators, magnetic bearing systems and braking systems. Growing demand for EVs and hybrid vehicles is driving the growth of automotive industry in permanent magnet market. Furthermore, increased demand for energy-efficient solutions, developments in automation, and the adoption of renewable energy sources fuel the need for permanent magnets in the automotive industry.

North America to be the second-largest market for permanent magnet market during the forecast period, in terms of value.

North America is the second-largest permanent magnet market across the world. The major end-use industries in this region include Consumer Electronics, General Industrial, Automotive, Medical Technology, Environment & Energy, Aerospace & Defense Industries. The demand for permanent magnet is high in consumer electronics industry due to changing consumer preferences and advancements in technologies. US is the largest permanent magnet market in North America, which is witnessing significant growth in permanent magnet market for general industrial and automotive industry apart from consumer electronics. In US, the demand for electric vehicles is booming, so to fulfil the need, there has been sudden increase in the production of permanent magnets. In 2024, E-VAC Magnets, a subsidiary of Vacuumschmelze has established a manufacturing facility in South Carolina to boost the supply of EV infrastructure.

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Permanent Magnet Market Players

The permanent magnet market is dominated by well-established players, Proterial, Ltd.(Japan), Arnold Magnetic Technologies (US), TDK Corporation (Japan), Yantai Dongxing Magnetic Materials Inc. (China), Shin-Etsu Chemical Co., Ltd. (Japan), Electron Energy Corporation (US), Adams Magnetic Products, LLC (US), Bunting Magnetics Co. (US), Tengam Engineering, Inc. (US), Ningbo Yunsheng Co., Ltd. (China), Chengdu Galaxy Magnets Co., Ltd. (China), Goudsmit Magnetics (Netherlands), Eclipse Magnetics (UK), Dexter Magnetic Technologies (US), and Earth Panda Advance Magnetic Material Co., Ltd. (China)., are the main producers in the global permanent magnet market.

These companies are attempting to establish themselves in the permanent magnet market by adopting advanced technologies. A thorough competitive analysis of these major permanent magnet market participants is included in the research, along with information on their company profiles, most recent advancements, and important market strategies.

Permanent Magnet Market Report Scope

The study categorizes the permanent magnet market based on type, End-use industries, and Region.

Permanent Magnet Market by Type:

• Neodymium Iron Boron Magnets
• Ferrite Magnets
• Samarium Cobalt Magnets
• AlNiCo Magnets
• Others

Permanent Magnet Market by End-use industries:

• Consumer Electronics
• General Industrial
• Automotive
• Medical technology
• Environment & Energy
• Aerospace & Defense
• Other end-use industries

Permanent Magnet Market by Region:

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

Recent Developments

• In October 2024, Arnold Magnetic Technologies has expanded its production facility in Thailand to produce various types of permanent magnet assemblies and serve wide rang of customers across Asia Pacific, Europe, and the US.
• In July 2024, Electron Energy Corporation has collaborated with Magnetic Holdings, LLC to offer unique and comprehensive solutions based on samarium cobalt formulations in the magnetics industry for various applications.
• In April 2023, Arnold Magnetic Technologies announced its partnership with Cyclic Materials to develop rare earth cycling program to increase the resiliency of their supply chain for rare earth materials.
• In March 2022, Dexter Magnetic Technologies expanded its production capacity by doubling its manufacturing facilities to make a greater impact on semi-conductor, defense and medical sectors with their critical components.
• In March 2021, Arnold Magnetic Technologies acquired Ramco Electric Motors to enhance its portfolio with advanced electric motor solutions and expand its offerings across diverse markets such as industrial, military and aerospace.

Frequently Asked Questions (FAQ):

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