Neodymium Market Analysis APAC, North America, Europe, South America, Middle East and Africa - China, Japan, US, Germany, South Korea - Size and Forecast 2024-2028

Neodymium Market Size 2024-2028 

The neodymium market size is projected to increase by USD 1.50 billion at a CAGR of 8.09% between 2023 and 2028. Numerous factors significantly contribute to the market's growth, including a heightened emphasis on renewable energy sources, an uptick in consumer electronics production, and the expanding utilization of neodymium magnets in the biomedical sector. These elements collectively fuel market expansion, indicating a broader shift towards sustainable energy solutions and technological advancements. The increasing adoption of renewable energy reflects a global commitment to environmental sustainability, driving innovations in energy production and consumption. Simultaneously, the growth in consumer electronics production underscores the expanding digital landscape and the increasing reliance on electronic devices in daily life. Additionally, the rising use of neodymium magnets in the biomedical industry highlights the material's versatility and its vital role in advancing medical technologies.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

By Type

The metal segment is estimated to witness significant growth during the forecast period. It includes powerful permanent magnets known as neodymium magnets which possess high magnetic field strength. Due to this, they are vital in applications across numerous industries including the production of electric and hybrid vehicles and sustainable energy solutions such as wind turbines. There is rising demand for EVs in China, with 2.99 million EVs sold in 2020, which was half of the total EVs sold worldwide. Hence such trends strongly indicate a positive impact on the market growth of this segment during the forecast period 

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The metal segment was the largest segment and was valued at USD 1.73 billion in 2018. Wind turbines require neodymium magnets to ensure the efficiency of wind energy generation among other renewable energy sources. In Germany, numerous projects are increasing the adoption of wind farms for the shift toward renewable energy. Bankewitz and Mussingen are two such projects which use General Electric 5.5 MW turbines with a rotor diameter of 158 meters and are projected to be completed by the end of 2023. Moreover, other growing industries like aerospace, defense, medical devices, and manufacturing will also boost the demand for neodymium magnets and propel the market growth during the forecast period.

By Region

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APAC is estimated to contribute 87% 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. In APAC, China is one of the largest markets due to it being one of the largest automotive markets in the APAC region and the diverse applications of neodymium magnets in the automotive, electronics, energy, and healthcare industries. Moreover, other factors like massive industrialization and infrastructure development projects will also boost regional market growth. The increasing demand for lightweight and fuel-efficient vehicles, especially EVs will especially boost the demand for Neodymium magnets. 

Moreover, applications in the production of small electronic devices like smartphones, tablets, and laptops particularly in South Korea and Japan will also have a positive impact on the regional neodymium market. Yet another factor resulting in market growth is the use of Neodymium magnets in wind turbines into which India and China are pushing significant investments to help transition into sustainable energy models. Hence such factors will boost regional market growth during the forecast period.

Market Dynamics

The market is witnessing significant growth driven by its use in various applications, particularly in the Electric vehicle industries and wind energy-related applications. Neodymium is a key component in Neodymium-iron-boron (NdFeB) magnets, which are crucial for EV traction motors and wind power generators. These magnets are also essential in industries like robotics and wearable devices. The increasing focus on alternative energy sources, such as wind farms like the MacIntyre Wind Farm in Queensland, is further boosting the demand for neodymium. This trend aligns with the global shift towards carbon-neutral practices and the growing importance of Rare Earth Elements in advanced technologies like IoT and DC systems.

Key Market Driver

The rise in the production of consumer electronic devices is a primary driver boosting the growth of the market.  Neodymium magnets are sought-after for their high magnetic strength and durability, leading to their extensive use in smartphones and hard disk drives.

Furthermore, as major companies like Samsung, Xiaomi, Apple, and LG expand their production capacity and launch new products, the demand for neodymium magnets is expected to surge further. With the rising popularity of smartphones and cloud computing, the market is projected to continue its growth trajectory during the forecast period. These developments highlight the crucial role neodymium magnets play in enhancing the performance of consumer electronic devices.

Significant Market Trends

The rise in production capacities and the emergence of alternative suppliers is a major trend influencing market growth. The market is experiencing lucrative trade and increased demand for rare earth metals like neodymium due to countries evaluating and exploiting domestic reserves for strategic purposes. Several neodymium-consuming nations are encouraging this trend to mitigate supply risks. India, South Africa, Brazil, Australia, Canada, Vietnam, and Malaysia are witnessing increased investments in the sector and are expected to emerge as reliable alternative suppliers to China.

Furthermore, new developments in North America, Australia, and Africa are adding to neodymium resources. Japan is also investing heavily in these nations to reduce its reliance on China for imports. With many mines expected to come on-stream between 2019 and 2024, Technavio predicts a drop in China's supply share, positively impacting the market's growth during the forecast period.

Major Market Challenge

Demand-supply outages and the rise of substitutes are key factors hindering market growth. The market faces a significant supply-demand imbalance, with limited production sites mainly in China, the US, and Australia, while the demand is widespread across the world. Trade plays a vital role in distributing neodymium to various end-user industries.

Furthermore, environmental concerns, federal quotas, and rising production costs often lead to the closure of small mining sites, disrupting supplies and exports to key importing countries. Potential substitutes, such as ferrite magnets and dysprosium-free neodymium magnets, are being explored. The rapidly growing end-use demand outpaces supply due to the time required for the commercial development of reserves, leading to serious consideration of alternatives. These supply-demand imbalances and the rise of substitutes are expected to hinder the growth of the market during the forecast period.

Key Companies & Market Insights

Companies are implementing various market trends and analysis strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market and resulting of market growth analysis.

Baotou-rareearth- The company offers neodymium products such as Oxide, Metal, and Carbonate.

The  market  growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

Alkane Resources Ltd, American Elements, Arafura Rare Earths Ltd., Australian Strategic Materials Ltd., Avalon Advanced Materials Inc., Canada Rare Earth Corp, Dura Magnets Pvt. Ltd., Energy Transition Minerals Ltd., HEFA Rare Earth Canada Co. Ltd., IREL India Ltd., Lenntech BV, Lynas Rare Earths Ltd., Merck and Co. Inc., MP MATERIALS CORP., Neo Performance Materials Inc., Ningdo Newland Magnet Industry Co. Ltd., Noah Chemicals, Sagami Chemical Metal Co. Ltd., The Metall Rare Earth Ltd., and Vietnam Rare Earth Joint Stock Co.

The market analysis and report of 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.

Market Customer Landscape

The market forecasting 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 market growth and forecasting growth strategies.

Global Market Customer Landscape

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Type Outlook 
  • Metal
  • Compound

• Application Outlook 
  • Automotive
  • Electrical and electronics
  • Wind energy
  • Others

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

You may also interested in the market reports:

• Neodymium (NdFeB) Magnets Market: Neodymium (NdFeB) Magnets Market by Type, End-user and Geography - Forecast and Analysis 

• Permanent Magnets Market: Permanent Magnets Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Japan, India, Germany - Size and Forecast 

• Magnet Market: Magnet Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Japan, India, Germany - Size and Forecast 

Market Analyst Overview

The market is experiencing robust growth, primarily driven by its essential role in the production of Neodymium Ferrous Boron (NdFeB) magnets, crucial for various applications such as brushless DC motors, IoT (Internet of Things) devices, and spindle motors. However, challenges like mining ruestrictions and economic protectionism have impacted the supply chain. Industries such as tire manufacturing and automotive, including companies like General Motors, rely on neodymium for various applications, including magnetic bearings and automatic door locks. Despite challenges like Brexit and the coronavirus pandemic, the neodymium market continues to innovate for green energy technologies and worker safety, driving its demand in solar energy and other sectors.

The market plays a pivotal role in various industries, including the automotive segment and EV industry, where it is used in spindle motors and traction motors. Neodymium compounds like Nd oxide are essential in offshore wind farms for their use in generators. Additionally, neodymium is crucial in the chemicals sector for polymerization reactions and as catalysts. Its magnetic properties make it indispensable in rare earth magnets for applications like jet engines, microphones, loudspeakers, and computer hard disks. With the rise of digitalization and changing consumer demands, neodymium continues to be a key material in various high-tech and industrial applications.

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What are the Key Data Covered in this Market 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 2024 and 2028
• 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 companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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