Global Advanced Magnetic Materials Market - 2024-2031

Overview

Global Advanced Magnetic Materials Market reached US$ 24.1 million in 2023 and is expected to reach US$ 49.4 million by 2031, growing with a CAGR of 9.4% during the forecast period 2024-2031.

Increasing demand for advanced magnetic materials in hybrid electric vehicles is likely to provide market possibilities over the forecast period. In China, the automotive industry is changing as consumers' preferences for battery-powered vehicles increase. Furthermore, the Chinese government predicts that electric vehicle production will reach 20% by 2025. It is mirrored in the country's electric car sales trend, which reached a record high in 2022.

In addition, the demand for magnetic materials in wind power plants is increasing. China has increased wind generation capacity in the last two years. China installed more wind power stations in 2022, generating 46% more wind power than Europe. According to the IEA, China's onshore wind electricity capacity was 30.9 GW in 2023 and is expected to reach 59 GW by the end of 2023.

In 2023, North America is expected to be the second-dominant region with over 20% of the global advanced magnetic materials market. The increasing use of advanced magnetic materials in power generation applications will boost the region's industry. U.S. is second after China in terms of electricity generation capacity. In 2022, utility-scale electricity production facilities in U.S. generated around 4,243 billion kWh. About 60% of this electricity was generated using fossil fuels such as coal, natural gas, petroleum and other gases.

Dynamics

Rising Electrification in Automotive

The automotive industry is a key user of advanced magnetic materials, particularly for the construction of electric and hybrid vehicles. Permanent magnets comprised of materials such as neodymium-iron-boron are critical components in electric motors, contributing to the growing need for advanced magnetic materials as the automotive industry transitions to electrification to reduce emissions and increase fuel efficiency.

According to the China Passenger Car Association, the country delivered 5.67 million EVs and plug-ins in 2022, nearly doubling its sales in 2021. Anticipating a drop in the nation's need for lubricant additives, the market is positioned to maintain current sales levels. In India, the emphasis is turning to EVs to reduce greenhouse gas emissions. The government has set aside 30% of the new vehicles in India will be electric in 2023.

Growing Demand from Energy & Power

Advanced magnetic materials are widely used in the power generation industry. The materials are utilized in motors for power generation and electricity transmission. Magnetic materials are used in a variety of applications, including motors, generators, transformers and actuators.

Electric machines are built of hard magnetic materials and have one basic function: to provide magnetic flux. In accordance to the Energy and Resource Institute, globally power generation capacity will reach 29,165 tetra watt-hours in 2022, representing a 2.26% increase over the 28,520 tetra watt-hours generated in 2021. Thus, increased energy generation capacity is expected to fuel the market for advanced magnetic materials.

High Costs and Limited Availability of Rare Materials

The manufacture of advanced magnetic materials frequently entails complex manufacturing procedures that necessitate specialized equipment and expertise. It results in high manufacturing costs, limiting the use of certain materials, particularly in price-sensitive industries. Patents, license agreements and trade policies all increase prices and impede the transfer of technology and materials between countries, reducing market competitiveness and innovation.

Many advanced magnetic materials, like neodymium-iron-boron magnets, are based on rare earth elements such as neodymium and dysprosium. Limited availability and unequal geographic distribution of certain elements can cause supply constraints and price volatility, affecting the stability and cost-effectiveness of advanced magnetic materials.

Segment Analysis

The global advanced magnetic materials market is segmented based on type, end-user and region.

Rising Investments in Automotive Sector Drives the Segment Growth

Automotive is expected to be the dominant segment with over 30% of the market during the forecast period 2024-2031. Investments in this industry are projected to drive up demand for improved magnetic materials in the future years. For example, in March 2022, Suzuki Motor, a Japanese corporation, announced a US$ 1.3 billion investment in an India plant that will manufacture electric vehicles and batteries.

The materials lead to increased energy efficiency and light weighing initiatives in automobile components, which attracts investment. The rising emphasis on vehicle safety and connection drives demand for advanced driver assistance systems, which use magnetic materials for sensors and actuators. Stringent regulatory regulations for emissions and fuel economy encourage automobile makers to implement new technologies, driving revenue growth in the industry.

Geographical Penetration

Rising Energy Projects in Asia-Pacific

Asia-Pacific is expected to be the dominant region in the global advanced magnetic materials market covering over 30% of the market. The region's booming automotive sector, as well as an increase in energy initiatives, are driving demand for advanced magnetic materials in car components. Furthermore, technical breakthroughs, government initiatives and a thriving consumer electronics sector all contribute to the region's dominant position in the advanced magnetic materials market.

According to the International Organization of Motor Vehicle Manufacturers, China will account for 32.5% of global automobile manufacturing in 2021. Pacifico Energy announced in October 2020 the start of construction of a 54-MW solar project in Sano-shi, Tochigi Prefecture, Japan. It is Pacifico Energy's thirteenth plant in Japan. Furthermore, JERA Co. declared its goal to increase its renewable energy investment to 5 GW of capacity by 2025.

Competitive Landscape

The major global players in the market include Adams Magnetic Products Co., Advanced Technology & Materials Co., Ltd., Anhui Sinomag Technology Co., Ltd., Arnold Magnetic Technologies, Daido Steel Co., Ltd., Dexter Magnetic Technologies, Electron Energy Corporation, Hitachi Metals, Ltd., Master Magnetics and TDK Corporation.

COVID-19 Impact Analysis

The epidemic interrupted globally supply lines, hurting the manufacture and distribution of advanced magnetic materials. Lockdown measures forced manufacturing facilities to close or operate under restrictions, causing output delays and raw material shortages. Transportation interruptions and border restrictions compounded supply chain issues, making it difficult to deliver materials to clients on schedule.

During the pandemic, demand for advanced magnetic materials fell in many industries that rely heavily on them, including automotive, electronics and renewable energy. Automotive output, for example, saw major declines as vehicle sales fell due to economic uncertainty and lower consumer spending. The decrease in demand immediately affected the need for advanced magnetic materials utilized in components such as electric motors, sensors and actuators.

Russia-Ukraine War Impact

Russia and Ukraine are both large producers of raw materials used in advanced magnetic materials, including rare earth elements and metals such as neodymium, dysprosium and cobalt. Any disruption in the production or shipment of these products caused by the conflict result in supply shortages and price volatility in the globally market. Companies that rely on Russian or Ukrainian sources may need to seek alternate suppliers, which could result in greater prices and delays.

The uncertainty surrounding the conflict may add to price volatility in the global advanced magnetic materials market. Investors and corporations respond to geopolitical concerns by stockpiling resources or hedge against future supply disruptions, resulting in price changes. Higher raw material prices affect the profitability of manufacturers and downstream sectors that rely on advanced magnetic materials for diverse applications, such as electronics, renewable energy, automotive and medical equipment.

By Type

• Soft Magnetic Materials
• Permanent Magnetic Materials
• Semi-hard Magnetic Materials
• Others

By End-User

• Healthcare
• Automotive
• Energy and Power
• Industrial
• Electronics
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In October 2023, Ara Partners, a private equity firm that specializes in investments aimed at industrial decarbonization, has reported its acquisition of Vacuumschmelze, a prominent global maker of advanced magnetic materials.
• In December 2023, Advanced Magnet Lab, Inc. has announced their method for producing permanent magnets in U.S. The program intends to enable high-volume commercial manufacture, with a special emphasis on non-sintered permanent magnets designed to satisfy the needs of specific commercial and defense customers.

Why Purchase the Report?

• To visualize the global advanced magnetic materials market segmentation based on type, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of advanced magnetic materials market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global advanced magnetic materials market report would provide approximately 54 tables, 46 figures and 182 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies