Magnetic Materials Market by Application, Product and Geography - Forecast and Analysis 2023-2027

Magnetic Materials Market Forecast 2023-2027

The magnetic materials market size is estimated to increase by USD 12.91 billion and grow at a CAGR of 6.56% between 2022 and 2027. The growth of the market depends on several factors, such as the increase in iron ore production volume, the increased applicability in the computer application industry, and the increased investment. The market experiences considerable influence from the production and capacity of iron ore, essential for manufacturing magnets. Growth in iron ore production, notably propelled by regions such as Western Australia, China, Brazil, and India, is pivotal for market expansion. As iron ore stands as a key ingredient in magnetic material production, any rise in its production directly affects magnet availability and cost-effectiveness, thereby fueling market growth.

What will be the size of the Magnetic Materials Market During the Forecast Period?

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Segmentation

This market report extensively covers market segmentation by application (automotive and transportation, electronics and instrumentation, industrial, and others), product (hard 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.

By Application

The automotive and transportation segment will account for a major share of the market's growth during the forecast period. The market for automotive and transportation applications is anticipated to grow during the forecast period. 

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The automotive and transportation segment was valued at  USD 10.65 billion in 2017 and continued to grow until 2021. The demand for unique automotive solutions has driven the growth of advanced automotive magnets. Generally, they 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 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.

By Regions 

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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. 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.

Market Dynamics and Customer Landscape

The market is witnessing significant growth propelled by the increasing demand for renewable energy sources, particularly in the wind energy sector. With Europe aiming to expand its wind energy capacity by 25 GW, there's a notable surge in the production and capacity requirements for magnetic materials used in wind turbines. This demand is further fueled by government initiatives aimed at promoting clean energy and reducing carbon emissions, driving investments in renewable energy projects. Additionally, the automotive sector is increasingly adopting electric vehicle (EV) technology, which relies heavily on magnetic materials such as neodymium for electric motors. As countries worldwide focus on reducing dependence on fossil fuels and transitioning towards electrification, the demand for magnetic materials in the automotive sector is expected to continue rising.

On the supply side, the magnetic materials market is influenced by factors such as the availability and cost of raw materials like nickel and cobalt, which are essential components in the production of magnets. Fluctuations in the prices of these materials can impact the overall cost of magnetic materials, posing challenges for manufacturers. Moreover, infrastructural developments and manufacturing activities play a crucial role in shaping the market dynamics. Investments in infrastructure projects and manufacturing facilities contribute to the growth of the magnetic materials market by enhancing production capabilities and supply chain efficiency. However, the high cost associated with magnetic materials remains a concern for market players, prompting efforts to innovate and develop alternative materials with similar magnetic properties at a lower cost.

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 Market Driver

The market is significantly influenced by the production and capacity of iron ore, which serves as a vital raw material for manufacturing magnets. The increase in iron ore production volume, particularly driven by regions like Western Australia, China, Brazil, and India, plays a pivotal role in driving the growth of the market. With iron ore being the primary component in the production of magnetic materials, any surge in its production directly impacts the availability and cost-effectiveness of magnets, thereby stimulating market growth. This trend is further supported by the growing demand for magnets in various applications, including wind turbines, electricity generation, and the automotive sector, among others, driving manufacturers to increase their production capacities to meet market demands.

Additionally, government initiatives and infrastructural developments aimed at bolstering the manufacturing sector and supporting industrial growth also contribute to the expansion of the market. Initiatives aimed at promoting local manufacturing, coupled with investments in infrastructure to enhance logistical capabilities and streamline the supply chain, create a conducive environment for the growth of the market. Moreover, the adoption of high-cost banking security systems, which heavily rely on magnetics, further amplifies the demand for these. As a result, the market is expected to witness steady growth in the coming years, driven by the interplay of increased iron ore production, expanding industrial activities, and supportive government policies.

Significant Market Trends

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 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.

Major Market Challenge

High R&D costs are a significant challenge hindering market growth. The costs associated with the development of a new product include 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 magnetics which incurs a high cost of developing new materials. Therefore, the high research and development costs of developing new materials can hinder the growth of the market during the forecast period.

Market Customer Landscape

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 Market Customer Landscape

Who are the Major Magnetic Materials Market Companies?

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:

• 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
• Hitachi Ltd.

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.

Segment Overview

The 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. 

• Application Outlook 
  • Automotive and transportation
  • Electronics and instrumentation
  • Industrial
  • Others

• Product Outlook 
  • Hard magnetic materials
  • Soft magnetic materials

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing substantial growth, driven by various factors such as the increasing demand for renewable energy sources like wind energy and solar power. Neodymium magnets, known for their exceptional magnetic properties, are extensively utilized in wind turbines and electric motors for efficient electricity generation. Additionally, advancements in electronic systems and medical equipment production contribute to the market expansion. Initiatives by governments and investments in renewable energy projects further boost demand for magnetic materials. Despite challenges like raw material shortages and economic slowdowns, the market continues to innovate, offering nano-structured magnetic materials for diverse applications, including power transmission and electronic devices.

Also, the market is experiencing significant growth, driven by diverse industries such as the automotive sector, power generation, and renewable energy. With the rise of initiatives promoting renewable energy investment, the market witnesses increasing demand for magnetic materials in the wind energy sector, contributing to the installation of 5 GW and 25 GW of new energy capacity. These materials play a crucial role in various applications, from power generation capacity to the manufacturing of electric vehicles and transformers. Additionally, advancements in technological devices and innovations like smart electronic bank cards further fuel the demand for magnetic materials across industries.

Additionally, the market is witnessing substantial growth due to increasing demand across various sectors such as the power and energy sector, electric vehicles manufacturing, and banking security systems. With initiatives from governments and organizations like the International Organization of Motor Vehicle Manufacturers (OICA), the market is experiencing significant advancements in manufacturing activities and infrastructural developments. Additionally, innovative products like ventilators and antitheft articles are driving the demand for magnetic materials such as nickel and boron, contributing to the expansion of the industry. Companies like Pacifico Energy and Dana TM4 are also playing a crucial role in shaping the market landscape.

The Global Magnetic Materials Market is experiencing robust growth, fueled by a variety of factors including the burgeoning demand for renewable energy solutions and advancements in technology. With the increasing push towards sustainability, the market is witnessing a surge in demand, with an estimated 5 GW of capacity being dedicated to renewable energy projects utilizing magnetic materials. This highlights the pivotal role magnetic materials play in the transition towards cleaner energy sources such as wind and solar power. One of the key considerations in the development of magnetic materials is their magnetic response. Understanding how these materials react to magnetic fields is crucial for optimizing their performance in various applications, ranging from consumer electronics to medical devices.

Network layouts play a critical role in determining the efficiency and effectiveness of magnetic systems. Whether it's the design of magnetic circuits in transformers or the layout of magnetic sensors in industrial machinery, careful consideration of network layouts is essential for achieving desired outcomes. The magnetic dipole moment and spin are fundamental properties of magnetic materials that influence their behavior and characteristics. These properties are central to the development of advanced magnetic materials with tailored properties for specific applications, driving innovation and growth in the Global Magnetic Materials Market.

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 12.91 billion
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 forecasting, 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.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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