Soft Magnetic Material Market Size, Share, and Growth Analysis, By Material Type (Soft ferrite, Electrical steel), By Application (Motors, Transformers), By End-Use Industry, By Region - Industry Forecast 2025-2032

Global Soft Magnetic Material Market size was valued at USD 31.6 billion in 2023 and is poised to grow from USD 34.54 billion in 2024 to USD 70.35 billion by 2032, growing at a CAGR of 9.3% during the forecast period (2025-2032).

The rising popularity and sales of electric vehicles (EVs) are set to significantly drive demand for soft magnetic materials in the coming years, given their critical role in manufacturing EV components like motors, transformers, and inductors. A global focus on sustainability is further advancing the need for these materials, which are integral to power electronics and renewable energy generators. Additionally, the increasing electrification and implementation of smart grids will likely enhance growth within the soft magnetic materials market. Investment in R&D for innovative magnetic solutions, alongside a surge in consumer electronics sales, is expected to sustain long-term adoption. However, challenges such as high production costs, raw material volatility, competition from alternatives, and environmental issues may hinder market demand during the forecast period.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Soft Magnetic Material market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Soft Magnetic Material Market Segments Analysis

Global Soft Magnetic Material Market is segmented by Material Type, Application, End-Use Industry and region. Based on Material Type, the market is segmented into Soft ferrite, Electrical steel, Cobalt and Others. Based on Application, the market is segmented into Motors, Transformers, Alternators and Others. Based on End-Use Industry, the market is segmented into Automotive, Electronics & Telecommunications, Electrical and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Global Soft Magnetic Material Market

The global soft magnetic material market is experiencing significant growth due to the rising focus on sustainability and the widespread adoption of clean mobility solutions, particularly electric vehicles (EVs). As demand for EVs surges, soft magnetic materials play a crucial role in the performance of electric motors, transformers, and inductors, contributing to enhanced energy efficiency and minimized power losses. This connection between the increasing sales of electric vehicles and the utilization of soft magnetic materials is anticipated to positively influence the overall market outlook, driving higher demand and reinforcing the importance of these materials in the shift towards greener technologies.

Restraints in the Global Soft Magnetic Material Market

The Global Soft Magnetic Material market faces significant challenges due to the complexities involved in manufacturing processes and the high cost of raw materials necessary for production. This results in increased product pricing, which can restrict market growth. Additionally, the limited availability of these critical raw materials, coupled with unpredictable fluctuations in supply, further escalates costs. These factors create barriers to the widespread adoption of soft magnetic materials, particularly in underdeveloped and developing nations, where budget constraints are more pronounced. Consequently, this restraint hinders market expansion in regions that could greatly benefit from these materials.

Market Trends of the Global Soft Magnetic Material Market

The Global Soft Magnetic Material market is witnessing a significant trend towards the development of nanocrystalline and amorphous alloys, characterized by their low core loss, high permeability, and excellent thermal stability. These advanced materials are increasingly being adopted in power electronics, transformers, and electric vehicle applications, driving their demand across various industries. As the need for efficient energy management and improved performance grows, these next-generation soft magnetic materials are poised to become indispensable in the market. This trend is expected to dominate the landscape through 2032, presenting lucrative opportunities for companies to innovate and capture market share in this evolving sector.