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The permanent magnets market is projected to reach a value of USD 12.79 billion, at a compound annual growth rate (CAGR) of 8.37% between 2023 and 2028. The growth of the permanent magnet market is fueled by the increasing utilization of storage technology, particularly in renewable energy sectors such as wind power. These magnets, including their ferrite material segment, play a vital role in energy storage systems, offering compactness, lightness, and cost-effectiveness. Advancements in supply chains and production units optimize market performance and product quality, catering to various sectors like consumer goods & electronics and the automotive segment. Moreover, they ensure stability, reliability, and swift response times, enabling seamless integration of renewable energy sources into power grids. Market expansion is further influenced by AI simulations, revolutionizing magnetic material design, thus reducing time, effort, and expenses associated with physical fabrication and testing.
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In the realm of materials science and manufacturing, various application sectors drive the utilization of materials with specific magnetic properties across diverse end-user industries. Tailoring manufacturing processes to meet the demands of different product categories is essential for efficient production. Understanding the characteristics of different magnet types enables the creation of innovative solutions tailored to specific market segments. However, navigating economic conditions and market fluctuations requires agility and strategic planning. Embracing recycling initiatives and prioritizing energy efficiency play pivotal roles in promoting sustainability and reducing environmental impact throughout the production chain. By aligning with these principles, businesses can thrive while contributing to a more sustainable future.
The neodymium iron boron magnets segment is estimated to witness significant growth during the forecast period. This segment is among the strongest and most cost-efficient types. They display numerous properties, due to which they have been increasingly adopted in recent years. This segment offers high magnetic field strength and stability despite having a low Curie temperature and being susceptible to oxidation.
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The neodymium iron boron magnets segment was the largest segment and was valued at USD 11.43 billion in 2018. Moreover, NdFeB magnets are used in power tools, electric motors, and other products that require strong and compact permanent magnets. Furthermore, some of the factors that fuel the growth of the segment across the globe during the forecast period include the rising and extensive applications of these in sectors including electronics, military, automotive, heart care, and others, along with the limited availability of substitutes. Hence, such factors are fuelling the growth of this segment which in turn will drive the market during the forecast period.
Asia-Pacific dominates the market, representing around 56% of the global market. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Some of the main factors that are significantly contributing to the growth of the market in APAC are the rapid industrialization and significant expansions in the automotive, industrial, energy, and consumer electronics sectors in the region, permanent magnets. In addition, the demand in the consumer spending on electronics sector is projected to witness a surge in the utilization of permanent magnets due to the improvement of living standards and the increase in disposable income in Asia-Pacific.
Countries like the U.S., Canada, France, South Korea, Brazil, and Indonesia have actively participated in this growth, either through manufacturing initiatives or the development of quality raw materials serving as vital growth opportunities. In the Asia Pacific region, particularly in countries like South Korea and Japan, companies like TDK Corporation have played a pivotal role in advancing efficiency and quality.
Furthermore, the increasing use of cloud computing and the associated development have led to increasing demand for data centers for storing huge amounts of data which fuels the demand. Hence, such factors drive the market growth in APAC during the forecast period.
Innovation drives progress in various industries, with significant material innovations and technological advancements shaping the competitive landscape. However, navigating demand fluctuations and volatile economic conditions presents challenges for businesses. Embracing recycling initiatives and prioritizing energy efficiency are essential in promoting sustainability and reducing environmental impact across diverse application sectors. Meanwhile, optimizing manufacturing processes is critical for maintaining competitiveness and efficiency. Furthermore, understanding the magnetic properties of materials enables innovative solutions in various fields. Market analysts closely monitor these factors, conducting thorough market growth analysis to provide insights into industry trends and opportunities for growth. By staying abreast of developments and adapting to changing market dynamics, businesses can thrive in today's ever-evolving landscape.
One of the key factors driving the permanent magnet market growth is the increased applicability of storage technology. These are used in energy storage technology and offer a range of advantages. These magnets allow the development of energy storage systems that are both compact and lightweight, as well as those that are highly efficient and cost-effective. Developments in supply chains and units produced have shown promising growth with key accounts for market reduction and quality. In addition, they offer stability, dependability, and rapid response times, making them an ideal choice for integrating renewable energy sources into power grids.
Moreover, the market has been fuelled by the development and implementation of cutting-edge energy storage technologies. In addition, as the number of renewable energy installations increases, the need for energy storage solutions that are both efficient and dependable has become increasingly important for managing intermittent and ensuring network stability. Furthermore, they facilitate the efficient conversion, transport, and storage of electric vehicles, renewable energy generation, grid stabilization, and industrial automation, thus addressing the energy storage needs of various industries. Hence, such factors drive the growth of the permanent magnet market size during the forecast period. The market forecasts suggest continuous growth, considering the indispensable roleplay in various sectors and their increasing usage globally. As they continue to find applications in diverse fields, their pivotal role in driving efficiency and innovation remains the basis for their sustained growth and relevance in the ever-evolving technological landscape.
A key factor shaping the permanent magnet market growth is the AI simulations for magnetic material geometry design. Artificial Intelligence (AI) simulations offer a range of advantages for the design and production of magnetic components. By leveraging sophisticated algorithms and computer models, manufacturers can analyze a vast array of design options, pinpointing the most suitable configurations. Therefore, it not only does save time and effort but also reduces the expenses associated with physical fabrication and testing.
Moreover, AI simulations enable manufacturers to gain valuable insights into how magnetic materials behave in real-world environments. In addition, accurate and precise simulations offer an in-depth understanding of how different geometries influence magnetic properties like magnetization and coercivity, as well as remanence. Hence, such factors are positively impacting the market which, in turn, will drive the market during the forecast period.
High costs associated with the mining of rare-earth metals are one of the key challenges hindering the permanent magnet market growth. The extraction and refinement of rare earth minerals, including neodymium and praseodymium, are important for the operation due to their magnetic properties. However, these processes can be highly intricate, laborious, and costly.
Moreover, the difficulty of extracting rare earth materials from economically viable deposits is a major factor in the high cost of mining them. In addition, rare earth minerals are usually found in small quantities, making the mining process more difficult and necessitating large-scale operations. Despite challenges posed by the pandemic, the market is observing increased demand in the electronics industry, especially in magnet motors and cars, presenting potential revenue share prospects. Consumption patterns are evolving, attracting new buyers and entrants into the market. Moreover, these deposits tend to be in remote areas, requiring substantial investments in infrastructure and transportation. Hence, such factors hinder the market size during the forecast period.
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.
Adams Magnetic Products: The company offers permanent magnets such as Neodymium and Samarium Cobalt.
This market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Arnold Magnetic Technologies Corp., Daido Steel Co. Ltd., Earth Panda Advance Magnetic Material Co.Ltd., Electron Energy Corp., Guangdong Lingyi Intelligent Manufacturing Co. Ltd., Hitachi Ltd., Ningbo Yunsheng Co. Ltd., TDK Corp., Bunting Magnetics Co., Chengdu Galaxy MagnetsCo. Ltd., DURA MAGNETS PVT. LTD., Gayatri Magnet, Goudsmit Magnetics Groep BV, Hangzhou Permanent MagnetGroup. Ltd., Ningbo Co star Materials Hi Tech Co. Ltd., NingBo NingGang Permanent Magnetic Materials Co. Ltd., Ningbo Risheng Magnets Co. Ltd., Yantai Dongxing Magnetic Materials Inc., and Zhenghai Group Co. 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.
Market Customer Landscape
The global growth has seen a significant surge, primarily driven by increased demand across various industries and applications. From consumer devices like computers and loudspeakers to critical roles in the automotive industry and wind turbines, the usage of rare earth magnets has escalated worldwide.
The Permanent Magnets Market is experiencing significant growth, driven by the expanding demand for sustainable energy sources such as wind and solar. Among the various types of magnets, Neodymium Ferrite Boron (NdFeB) stands out, particularly in applications like wind turbine generators and electric vehicle (EV) markets. While ferrite counterpart serves as a reliable counterpart in various industries including consumer goods, robotics, and wearable devices, Alnico finds its niche in defense, aerospace, and medical sectors. Despite being a fragmented market, investments in business & inventory alongside government purchases drive market concentration. Rare earth metal deposits play a crucial role in ensuring a steady supply chain for these magnets, essential for industries ranging from oil & gas to medical. The industrial application segment, including automotive and oil & gas industry, represents a substantial portion of the market demand. Moreover, the medical sector benefits from the use of MRI machines, which rely heavily on Neodymium Iron Boron (NdFeB) magnets.
The market faces regulatory scrutiny due to environmental concerns, particularly regarding the use of rare earth metals like dysprosium. Fluctuating costs of raw materials pose challenges for manufacturing companies, impacting energy costs and R&D investments. Despite high R&D costs and man-hours, manufacturers strive for optimum efficiency to offer competitive prices. Human expertise is crucial in developing environmentally friendly permanent magnets with the desired magnetic power and material structure. These magnets find applications in speakers, appliances, HVAC systems, hybrid electric vehicles, and more. Alloys of rare-earth elements are utilized to enhance the quality of magnets, ensuring reliable performance in various devices such as laptops, televisions, smartphones, and music systems.
Permanent Magnets Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2023 |
Historic period |
2017-2021 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.37% |
Market growth 2024-2028 |
USD 12.79 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.13 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 56% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adams Magnetic Products, Arnold Magnetic Technologies Corp., Daido Steel Co. Ltd., Earth Panda Advance Magnetic Material Co.Ltd., Electron Energy Corp., Guangdong Lingyi Intelligent Manufacturing Co. Ltd., Hitachi Ltd., Ningbo Yunsheng Co. Ltd., TDK Corp., Bunting Magnetics Co., Chengdu Galaxy MagnetsCo. Ltd., DURA MAGNETS PVT. LTD., Gayatri Magnet, Goudsmit Magnetics Groep BV, Hangzhou Permanent Magnet Group. Ltd., Ningbo Co star Materials Hi Tech Co. Ltd., NingBo NingGang Permanent Magnetic Materials Co. Ltd., Ningbo Risheng MagnetsCo. Ltd., Yantai Dongxing Magnetic Materials Inc., and Zhenghai Group Co. 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 forecast period |
Customization purview |
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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 Material
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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