Enjoy complimentary customisation on priority with our Enterprise License!
The magnetic materials market size is estimated to grow at a CAGR of 6.56% between 2022 and 2027. The market size is forecast to increase by USD 12,910.29 million. The growth of the market depends on several factors, such as the increase in iron ore production volume, the increased applicability of magnetic materials in the computer application industry, and the increased investment in magnetic materials.
This magnetic materials market report extensively covers market segmentation by application (automotive and transportation, electronics and instrumentation, industrial, and others), product (hard magnetic materials and soft magnetic materials), and geography (APAC, North America, Europe, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, View Report Sample
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increase in iron ore production volume is a major factor driving market growth. The major raw material in the production of magnetic materials is iron ore. The significant upsurge in the production of iron ore in 2022 will boost the magnetic materials market growth.
However, Western Australia is the largest producer of iron ore and accounted for a major share of global iron ore production and was dominant in 2020. China and Brazil are other large producers of iron ores in the world and are the second and the third-largest producers of iron ore globally. Over the next ten years, global iron ore production is also expected to grow at a rate of 3% because of the high requirements of magnets and magnet materials. For instance, in FY 2020, India's iron ore production increased by 19% year-over-year (y-o-y) to 240 million tons. Therefore, the rise in iron ore production will drive the growth of the magnetic materials market during the forecast period.
The increased emphasis on semi-hard magnets is an emerging trend shaping market growth. Semi-hard magnets are finding expanding applications in the automotive and power electronics industries which include alloys whose coercivity lies between that of soft magnets and hard magnets. Remalloy, Vicalloy, Iron Chrome Cobalt (FeCrCo), and Cunico are some of the most widely used semi-hard magnets include
However, such materials deliver moderate coercivity for applications such as brakes and hysteresis-coupled drives. In addition, these magnets are widely used in torque-coupled devices, relay magnets, flip signs, sensor magnets, and level sensors. FeCrCo magnets exhibit properties like that of cast Alnico 5, but these materials are highly malleable and are generally used in the production of bars, rods, wires, and thin rolled strips. According to the requirements of the magnets and magnet materials, and clients several companies such as Eclipse Magnetics (Spear and Jackson Group), deliver FeCrCo materials that can be custom designed. The company sells semi-hard magnetic materials in its Ultra-Strip III Book Label which delivers premier performance and merchandise protection for paperback and hardcover books. Therefore, the increased focus on semi-hard magnets will drive the growth of the market during the forecast period.
High R&D costs associated with magnetic materials are a significant challenge hindering market growth. The cost associated with the development of a new product contains raw material costs, manufacturing costs, and design and testing costs.
Furthermore, research and development require high capital with a huge investment in heavy equipment and machinery that are required for mining activities. Intensive research and development also demand the requirement for a skilled workforce that is well-versed in various research methodologies. Also, the lack of a skilled workforce in the market adds to the overall costs. In addition, the market involves limited portfolios, wherein intensive research is being carried out to improve hard and soft magnetic materials which incurs a high cost of developing new materials. Therefore, the high research and development costs of developing new magnetic materials can hinder the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Magnetic Materials Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alliance LLC - The company offers magnetic materials such as rare earth magnets, ferrite magnets, alnico magnets, and samarium cobalt magnets.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The automotive and transportation segment will account for a major share of the market's growth during the forecast period. The magnetic materials market for automotive and transportation applications is anticipated to grow during the forecast period.
Get a glance at the market contribution of various segments View the PDF Sample
The automotive and transportation segment was valued at USD 10,654.63 million in 2017 and continued to grow until 2021. The demand for unique automotive solutions has driven the growth of advanced automotive magnets. Generally, magnetic materials are used in vehicles, such as electric vehicles (EVs), which use less fuel, produce lower emissions, and are more advanced. Also, they find applications in motors, sensors, actuators, and suspension systems for enhancing vehicle control systems. For instance, the development of magnetic levitation (maglev) trains in Japan has increased the demand for magnetic materials in the transportation industry. These maglevs do not run on metal tracks but float nearly 10 cm above special guideways by using the principle of magnetic levitation. In the automobile segment, sintered ferrites are increasingly used in DC motors. Additionally, magnetic materials, such as NdFeB, are widely used for the miniaturization of components in the segment. Although the segment is advancing at a strong growth rate, factors such as the high volatility of raw materials will restrict the growth of the market during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 45% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period., APAC dominates the market in focus in terms of consumption with countries such as China, Japan, Australia, and India being the major contributors to the market growth. With rapid industrialization in the region and substantial expansions in the automotive, industrial, energy, and consumer electronics industries in the region, both hard and soft magnetic materials are experiencing a growth in demand. Globally, China is one of the largest importers of iron ore. In APAC, there is a steady rise in iron ore production and exports from Australia, which is expected to drive the growth of the market. With the rising number of vehicle safety regulations and pollution mandates, automotive manufacturers in the region are mainly emphasising the implementation of various safety techniques, such as quick airbag deployments, tire pressure sensor systems, and pollution reduction measures, in their automobiles which will contribute to the demand for magnetic materials. In APAC, long-term market growth is expected during the forecast period, due to the availability of low-cost labor and raw materials, as many end-user industries are moving their base to this region.
The regulatory bodies of countries such as China, India, and Australia imposed mandatory lockdowns to mitigate the risks of COVID-19, which disrupted the growth of the regional market in 2020. Nevertheless, the growth of EV manufacturing and sales in APAC, despite lockdown restrictions, led to the growth of the magnetic materials market in the region. For instance, in 2020, China sold more than 1.3 million EV units. In 2021, such factors led to the recovery of the regional magnetic materials market. Also, the Government of China has taken several measures to strengthen the regulations over its rare-earth metals industry and maintain its monopoly in the magnetic materials market. China is the biggest supplier of these minerals and rare earth minerals are used in permanent magnets. Therefore, the rising coalition in the market and the stringent export controls implemented by the Chinese government can pose restrictions to magnetic materials companies operating in China. Such factors can lower the country's market share, which, in turn, can slow down the growth of the magnetic materials market in APAC during the forecast period.
The magnetic materials market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Magnetic Materials Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.56% |
Market growth 2023-2027 |
USD 12,910.29 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.64 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 45% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alliance LLC, Arnold Magnetic Technologies Corp., Carpenter Technology Corp., Daido Steel Co. Ltd., DEXTER MAGNETIC TECHNOLOGIES, Dura Magnetics Inc., Electron Energy Corp., Grundfos Holding AS, Hengdian Group Holdings Ltd., Lynas Rare Earths Ltd., Magna Tronix Pvt. Ltd., Magnaworks Technology Inc., Magnet Expert Ltd., Merck KGaA, Nippon Steel Corp., TDK Corp., The InterTech Group Inc., Toshiba Corp., TyTek Group, and Hitachi Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.