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The rare earth metals market size is estimated to grow at a CAGR of 8.3% between 2022 and 2027. The size of the market is forecast to increase by USD 4932.67 million. The growth of the market depends on several factors, including growing demand for electronic appliances and personal equipment, the surge in consumption from APAC, and the rise of new production capacities.
This report extensively covers market segmentation by application (permanent magnets, metal alloys, catalysts, polishing powder, and others), type (light rare earth elements, heavy rare earth elements, and other element types), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growing demand for electronic appliances and personal equipment is notably driving the market growth, although factors such as demand-supply outages and the rise of substitutes may impede the market growth. 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.
Key Rare Earth Metals Market Driver
Growing demand for electronic appliances and personal equipment is a major driver fueling market growth. Rare earth compounds of yttrium, terbium, cerium, and gadolinium are used as phosphors in various electronic appliances such as Liquid Crystal Display (LCDs) and smartphones. These rare earth metal compounds exhibit electrophosphorescence, wherein an electric discharge in the compound results in color variations. In addition, these elements are also used in energy-efficient lighting and magnetic refrigeration. However, the latter still needs to make inroads into the consumer segment. Magnetic refrigeration is now predominantly being used for industrial purposes.
A rise in disposable incomes, technology breakthroughs, and falling microprocessor prices are propelling the demand for personal gadgets such as laptops, mobile phones, and tablets across the world. Rapidly expanding mobile networks and internet penetration in India, Bangladesh, Indonesia, Thailand, and other countries in Southeast Asia are aiding the demand for mobile gadgets and personal equipment. There is a significant untapped market in these regions, which presents an immense growth opportunity for the sale of personal equipment. This is expected to pose a demand for rare earth phosphors for use in their manufacture.
Significant Rare Earth Metals Market Trend
A rise in production capacities and the emergence of alternative suppliers is a major trend in the market. Lucrative trade and the growing demand for rare earth elements have intensified the evaluation of domestic reserves for exploitation, and several countries started to leverage rare earth elements for strategic uses. This is being encouraged by large rare earth metal-consuming nations in order to leverage their supply risks. Technavio observes an increased investment in this sector in India, South Africa, Brazil, Australia, Canada, Vietnam, and Malaysia. These countries are likely to emerge as reliable alternative suppliers to China.
New developments in North America (mainly Canada), Australia, and Africa are contributing to the new rare earth element resources. Japan has committed huge investments in these nations in order to reduce its import dependence on China. Some notable supply capacities that are expected to scale up in terms of output are Nolans and Mt. Weld (Australia), Mountain Pass (California), Lofdal Rare Earth Project (Namibia), and the Hoidas lake project (Canada).
Major Rare Earth Metals Market Challenge
The lack of skilled professionals in the mining sector is the major challenge impeding the market growth. The rare earth metals mining sector, particularly in China, is experiencing rapid growth due to the increase in global demand. Though the industry is experiencing high growth, it is facing difficulties in finding professionals with the right knowledge and skills to take on complex mining jobs. Also, the mining industry is facing competition from the higher-paying oil and gas industry while recruiting qualified professionals and workers. Health concerns also play a major role in the dearth of qualified employees in this sector. This has resulted in greater bargaining by worker unions when dealing with their employers over remuneration settlements and other disputes. Therefore, the shortage of skilled professionals poses a major threat to the market and may result in delays or cancellation of new mining projects.
Key Rare Earth Metals Market Customer Landscape
The rare earth metals market 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 Rare Earth Metals Market Customer Landscape
Vendors 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.
Neo Performance Materials Inc. - The company offers the production, refining, and marketing of high-value niche metals and their compounds as its key offering in the rare metal segment. Under this segment, the company sources reclaim, produces, refines, and markets high-value specialty metals and their compounds.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the segment of the permanent magnet will be significant during the forecast period. Major rare earth elements used for making permanent magnets are neodymium, praseodymium, dysprosium, gadolinium, terbium, and samarium. These magnets are widely used in military technologies, including precision-guided missiles and bombs in aircraft and warships, because of their high thermal stability. Permanent magnets are used in magnetic catches of devices such as refrigerators, electric motors, anti-lock brakes, electric guitars, loudspeakers, and holding devices. Neodymium-iron-boron (NdFeB) magnets also find wide application in consumer electronics, automotive, air-conditioners, and electric vehicles. These factors will facilitate market growth during the forecast period.
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The permanent magnets segment was valued at USD 1,972.83 million in 2017 and continue to grow by 2021. Technological breakthroughs in the segment of the permanent magnet are expected to revolutionize the residential, commercial, automotive, air-conditioning, and refrigeration industries. A key feature of this technology is that it does not require flammable and toxic refrigerants. Besides being efficient, this technology does not pose any harm to the ozone layer like conventional refrigerants.
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APAC is estimated to contribute 72% 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.
The rare earth metals market in APAC is growing rapidly because of the increased demand from the automotive and electronic industries in the region. Rapid economic and industrial development and a higher standard of living are leading to an increased demand for personal technology and advanced appliances such as mobiles, televisions, and computers in the region.
The COVID-19 outbreak negatively impacted the regional market as a result of the restrictions imposed by governments in China, South Korea, Japan, India, and other countries to stop the spread of the disease and guarantee public safety in 2020. However, the developments by vendors operating in the market will positively impact the market in focus during the forecast period. In March 2022, Arafura Resources announced that it is on track to supply 5% of the world's rare earth metals. The company will receive $30 million during the forecast period to help build Australia's first rare earth separation plant at its Nolans Project, 135 kilometers north of Alice Springs. Thus, the aforementioned factors will drive the growth of the market in focus during the forecast period.
The rare earth metals 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.
Rare Earth Metals Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.3% |
Market growth 2023-2027 |
USD 4,932.67 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.1 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 72% |
Key countries |
US, China, Vietnam, Japan, and India |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alkane Resources Ltd, Arafura Rare Earths Ltd., Arnold Magnetic Technologies Corp., Avalon Advanced Materials Inc., Canada Rare Earth Corp, Energy Transition Minerals Ltd., Frontier Rare Earths Ltd., HEFA Rare Earth Canada Co. Ltd., Hitachi Metals Ltd., Iluka Resources Ltd., IREL (India) Ltd., Lynas Rare Earths Ltd., MONTERO MINING AND EXPLORATION LTD., Namibia Critical Metals Inc, Neo Performance Materials Inc., Northern Minerals Ltd., Rare Element Resources Ltd., Shin Etsu Chemical Co. Ltd., SHOWA DENKO K.K., and Ucore Rare Metals Inc. |
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, and 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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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