PUBLISHER: Acute Market Reports | PRODUCT CODE: 1397454
PUBLISHER: Acute Market Reports | PRODUCT CODE: 1397454
The permanent magnet market plays a vital role in numerous industries, providing essential components for various applications. The permanent magnets market is expected to grow at a CAGR of 9.3% during the forecast period of 2023 to 2031, driven by the increasing demand for electric vehicles, the thriving consumer electronics industry, and aerospace and defense applications. The restraint related to rare earth materials underscores the importance of supply chain resilience in the industry.
One of the primary drivers of the permanent magnets market is the surging demand for electric vehicles (EVs). As the world transitions towards cleaner and more sustainable modes of transportation, electric vehicles have gained immense popularity. Permanent magnets, particularly neodymium iron boron (NdFeB) magnets, are critical components in electric motors, helping in the conversion of electrical energy to mechanical energy. The growing production and adoption of EVs in both consumer and commercial sectors are driving the demand for permanent magnets. This trend is further bolstered by government incentives and regulations promoting cleaner transportation alternatives. According to the International Energy Agency (IEA), the global stock of electric passenger cars surpassed 10 million in 2020, marking a significant increase in EV adoption.
The thriving consumer electronics industry is another significant driver of the permanent magnet market. With the proliferation of smartphones, laptops, wearable devices, and various gadgets, the demand for compact, efficient, and lightweight components has risen. Permanent magnets, especially neodymium magnets, are essential for miniaturized components such as speakers, microphones, and vibration motors in consumer electronics. The constant innovation and upgrading of consumer electronic devices drive the continuous demand for high-performance permanent magnets. The Consumer Technology Association (CTA) predicts that the global consumer technology industry will reach a record $487 billion in retail revenue in 2022, underlining the strong demand for consumer electronics.
Aerospace and defense applications have been a consistent driver for the permanent magnet market. Permanent magnets are used in various critical components, including sensors, actuators, radar systems, and magnetic bearings. The increasing investments in defense and aerospace technologies, along with the growing demand for sophisticated surveillance and navigation systems, propel the requirement for high-performance permanent magnets. These magnets contribute to the efficiency and precision of equipment in these sectors. Data from the Stockholm International Peace Research Institute (SIPRI) shows that global military expenditure reached $1.83 trillion in 2020, indicating sustained investments in the defense sector.
Despite the promising growth prospects, a notable restraint for the permanent magnet market is the supply chain vulnerabilities related to rare earth materials. The production of powerful neodymium and samarium cobalt magnets relies heavily on rare earth elements, primarily sourced from China. Any disruptions or fluctuations in the supply of these rare earth materials can significantly impact the availability and pricing of permanent magnets. To mitigate this restraint, efforts are underway to diversify the sources of rare earth materials and develop recycling technologies for magnets. Instances of supply disruptions in the rare earth materials market, driven by factors like trade tensions and environmental concerns, have highlighted the need for supply chain resilience in the permanent magnets industry.
The permanent magnets market can be segmented by material into five categories: neodymium iron boron (NdFeB) magnets, ferrite magnets, samarium cobalt magnets, alnico magnets, and others. In 2022, NdFeB magnets generated the highest revenue due to their widespread use in various applications, including electric vehicles and consumer electronics. For the period from 2023 to 2031, the "samarium cobalt magnets" segment is expected to exhibit the highest compound annual growth rate (CAGR). Samarium cobalt magnets are favored for their high-temperature stability and resilience, making them suitable for demanding applications in aerospace, defense, and energy sectors.
The permanent magnets market can be segmented by application into seven categories: consumer electronics, general industrial, automotive, medical technology, environment & energy, aerospace & defense, and others. In 2022, the "automotive" segment witnessed the highest revenue, driven by the increasing use of permanent magnets in electric vehicle propulsion systems and other automotive components. For the period from 2023 to 2031, the "environment & energy" segment is expected to experience the highest CAGR. This growth can be attributed to the use of permanent magnets in renewable energy applications, such as wind turbines and hydropower generators.
The permanent magnets market exhibits geographic variations in demand and growth. Geographic trends indicate that regions with strong manufacturing and technological capabilities, coupled with growing investments in clean energy and electric transportation, tend to lead in permanent magnet adoption. Regions like Asia-Pacific, particularly China, have been at the forefront of both permanent magnet production and consumption. When considering the region with the highest CAGR during the forecast period from 2023 to 2031, North America is expected to exhibit the most substantial growth. The region's focus on technological innovation, defense spending, and the automotive industry is likely to drive increased demand for permanent magnets. In terms of revenue percentage, Asia-Pacific, led by China, is expected to maintain its position as the region with the highest revenue percentage throughout the forecast period. China's dominance in the rare earth materials market and its extensive manufacturing capabilities contribute to its prominent share in the permanent magnets market.
The permanent magnets market features several key players, including Hitachi Metals Ltd., Arnold Magnetic Technologies, Adams Magnetic Products, Dexter Magnetic Technologies, Electron Energy Corporation, Lynas Corporation Ltd., Molycorp Inc., OM Group and Shin-Etsu Chemicals Co., Ltd. These companies employ specific strategies to maintain and expand their market presence. In 2022, Hitachi Metals Ltd. held a significant market share, providing a wide range of permanent magnet solutions for various industries. The company's strategy revolved around innovation, quality control, and expanding its global customer base. Arnold Magnetic Technologies, with a focus on advanced materials and magnet assemblies, excelled in providing customized solutions for industrial applications. Their strategy emphasized close collaboration with customers to develop tailored magnet solutions. Adams Magnetic Products, specializing in the distribution of permanent magnets, positioned itself as a key player in the market. Their strategy centered on providing comprehensive magnet solutions and excellent customer service. For the forecast period from 2023 to 2031, these companies are expected to continue their strategies, focusing on innovation, customization, sustainability, and expanding their global footprint. They will explore new markets and technologies to maintain their competitive edge in the evolving permanent magnets market.
This study report represents analysis of each segment from 2021 to 2031 considering 2022 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2023 to 2031.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation ofPermanent Magnets market are as follows:
Micro and macro environment factors that are currently influencing the Permanent Magnets market and their expected impact during the forecast period.
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
FIG. 9Market Positioning of Key Permanent Magnets Market Players, 2022
FIG. 10Global Permanent Magnets Market - Tier Analysis - Percentage of Revenues by Tier Level, 2022 Versus 2031