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Base Year: 2024
Companies covered: 14
Tables & Figures: 145
Countries covered: 22
Pages: 220
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Permanent Magnet Market
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Permanent Magnet Market Size
The global permanent magnet market was valued at USD 46 billion in 2024 and is expected to grow USD 116.2 billion with a growing CAGR of 9.4%.
One of the major growth drivers for the permanent magnet industry is the increase in the demand of the electric vehicle. They are used in electric motors that power the wheels, as well as in auxiliary systems such as power steering and air conditioning. Unlike other components of electric vehicle, permanent magnet has the added advantage that no power is required to retain its magnetism. In the market, the most common form which is used is neodymium iron boron magnet also called as NdFeB magnet. The demand for EVs also stimulates support from the government. This also drive the rapid improvement in permanent magnets needed for higher capacities and efficiency for electric vehicles motors and batteries.
For instance, the growth of EV market is getting higher day by day, in 2023 nearly one in five cars sold was electric. Also, the sales of electric car reached around USD 14 million in 2023 and the major countries in this were U.S., China and Europe. This growth in the electric car sales also influence the growth of the permanent market. The more the electric car sales the more the demand for the permanent market increases.
The other growth factor is the constant increase in demand of production of renewable energy, especially wind energy. The direct drive offshore wind turbines are utilizing high grade neodymium iron boron (NdFeB) magnets to enhance efficiency, minimize maintenance expenditures, and boost output power. The advancement of offshore wind technologies requires more dependable and durable permanent magnets. As the world’s demand for energy rises and carbon neutrality receives more focus, the use of permanent magnets in renewables energy systems is projected to grow considerably in the next few years.
Permanent Magnet Market Trends
The growing interest in electric vehicles, renewable power system, and automation in various industries led to the rapid expansion of the permanent magnet industry worldwide. One of the most highlighted movements is the increasing use of neodymium iron boron magnets which are widely used for their high cost-performance ratio in automotive and wind energy markets. Gears for compact consumer devices also propels the need for small sized highly efficient magnets.
In manufacturing, companies are ready to pay for advanced sintering and bonding processes to enhance magnet’s performance. Some recent developments include high temperature resistant magnets and the creation of aerospace and automobile grade magnets that do not require rare earth elements, using materials like iron nitride and manganese instead. Also, another market trend is the initiatives of using recycled rare earth element from end-of-life product. Along with this several new developments are going on with the advancement in technology.
For instance, in October 2024, Goudsmit Magnetics launched a new series of permanent lifting magnets able to lift and transport loads between 100 and 3,000 kg. The lifting magnets operated without an external energy supply and were of compact and lightweight construction that made it easy to manually switch them on and off. In construction, metal fabrication as well as shipbuilding, these devices were significantly utilized to raise heavy steel parts. With the magnets, safety and efficiency were boosted while improving longevity with a patented mechanism to reduce internal air gaps for greater performance while minimizing maintenance.
Permanent Magnet Market Analysis
The permanent magnet industry by product is segmented into ferrite, neodymium-iron-boron, samarium cobalt, aluminum nickel cobalt. The neodymium-iron-boron type accounted for 54.55% share in 2024 because of the diverse application across various field.
Their presence in the market is sustained due to elaborate research and technology which has broadened the scope of use beyond conventional methods. In motor driven electronic products, neodymium-iron-boron are extensively used as components in electric motors, generators, and speakers. Motors and other devices having driving and sensing elements are best served by these neodymium-iron-boron because of their high magnetic energy product, stable magnetic properties, and high saturation magnetic induction. Due to the global proliferation for electronic equipment, especially in consumer electronics and industrial automation, it remains a priority to use neodymium-iron-boron as these are the most economical and reliable.
Neodymium-iron-boron magnets have other equally important uses in medicine and environmental protection. For example, these magnets are used in magnetic resonance imaging (MRI) for capturing images which entails powerful and stable magnetic fields. Their application is further extended to medical magnetic therapies, and even in navigation. Environmentally, neodymium-iron-boron are used in the treatment of wastewater by magnetic separation for capturing metal ions useful in the controlling water pollution. Their renewability together with low content of heavy metals makes neodymium-iron-boron magnets eco-friendly. For industries that need cheap and eco-friendly materials, ferrite magnets win the competition due to new technologies and higher sales.
The International Electrotechnical Commission (IEC) claims that improving the energy efficiency of electric motors can reduce the overall energy expenditure by 20% to 30%. This directly accelerates the development of the permanent magnet market, and especially that of ferrite magnets. As a variety of industries focus more on energy-saving products, ferrite magnets are increasingly being used in high-efficiency electric motors. Such motors are used in industrial automation, HVAC equipment, and even in household appliances. Manufacturers choose ferrite magnets because they are inexpensive, durable, and have stable magnetic properties, which increases motor performance at a reasonable price.
On the basis of application, the permanent magnet market is segmented into automotive, electronics, energy generation, others. Automotive segment hold the market share of 49.94% of the market in 2024 and expected to grow at a faster rate of 9.5% CAGR to reach a wider consumer base.
As global adoption of electric vehicles (EVs) increases, new technologies associated with electricity and battery power in cars are at the forefront of creating a massive market for permanent magnet demand, which NdFeB neodymium iron boron magnets specialize in. These neodymium magnets serve as primary components in electric powertrains, motors, sensors, and additional critical items within the automobile.
The transition from internal combustion engine vehicles to EVs and hybrid electric vehicles (HEVs) has created demand for high performance magnets which enhances energy power density while decreasing energy consumption.
The performance of vehicles is further improved by the application of permanent magnets in braking systems, fuel pumps, and electric power steering.
With the growth of automotive electrification comes the increase in the need for high quality permanent magnets which strengthens and expands the automotive industries leading position in the market.
On the other sectors like electronics rely heavily on permanent magnets. Constant drive of people to purchase smartphones, wearables, and even hi-tech computing machines has led to the evolution of making small sized high-power magnets. For example, NdFeB magnets are used in speakers, hard drives, and precision instruments because of their exceptional magnetic strength.
For wind energy and direct-drive systems, the absence of energy generation gearboxes is achieved through the use of direct-drive permanent magnets. the wind energy is estimated to grow from 50% by 2030, which will result an increase in demand magnetite for samarium cobalt and NdFeB Phases. Modern technological development space, energy storage systems, and magnetic levitation systems depend on them as well. The growing engagement of states and companies in green energy makes it possible to deem the extension of the scope of use of permanent magnets as quite significant for the sector.
Asia Pacific holds the dominate position in the permanent magnet market by capturing the market share of 39.13% in 2023.
This dominance is due to the major player like China. Japan is the third largest producer, while China attains over 85-90% of the global rare earth production and thus is pivotal in the chains of supplying neodymium iron boron and samarium cobalt magnets for magnets. The region's leadership in neodymium iron boron (NdFeB) and samarium cobalt (SmCo) magnets ensured cost efficiency. Furthermore, high growth rates for the industry in India and Japan and South Korea also fuels the market.
In addition, the government programs promoting Electric Vehicles (EVs), wind energy, and sophisticated manufacturing increase innovation and local consumption at the same time. China’s production of nearly 60% of the world’s EVs coupled with the country’s position in leading wind power installations creates a greater need for permanent magnets. While Asia-Pacific is tightening its control over raw materials and technologies, its dominance in the global arena of permanent magnets is practically guaranteed. The region of North America and Europe is expanding their permanent magnet markets fueled by increasing investments in EVs, wind energy, and industrial automation. Simultaneously, Latin America and the MEA region are getting more focus due to growing prospects in renewable energy and infrastructure spending. The Asia Pacific region continues to dominate the globe, but the situation is changing everywhere as all major regions put forth their effort towards the vigorous growth of the market.
Permanent Magnet Market Share
The top 5 companies in the permanent magnet industry includes Hitachi Metals, Ltd., Jiangmen Magsource New Material Co., Ltd., VACUUMSCHMELZE (VAC) and Arnold Magnetic Technologies have advanced manufacturing capabilities which enable them to maintain a strong market share in the market as well in the electronics, automotive and renewable energy industries. Through their continuous advancement in technology these are some of the market players who hold a good market share in this market.
In April 2023 Arnold Magnetic Technologies joined hands with Cyclic Materials, a frontrunner in sustainable supply chains for unique earth elements. The objective is to form a closed loop supply chain for rare earth materials, extracting samarium, neodymium, dysprosium, and cobalt directly from Arnold’s production.
In October 2022, Hitachi Metals partnered with manufacturers to create electric vehicles that relied less on rare earth metals which came mostly from China. The firm was focused on producing ferrite-based magnets, which cost around 80% less than neodymium magnets. These iron oxide ferrite magnets were much cheaper than NEOMAX super magnets because most of the material was easily available.
Arnold Magnetic Technologies, a subsidiary of Compass Diversified, opened a new facility in Amata City, Chonburi, Thailand in October 2024. This facility marks the company’s first step into Amata’s premier industrial zone and is situated on a plot of land measuring 26,250 square feet.
Permanent Magnet Market Companies
Some of the eminent market participants operating in the permanent magnet industry include:
Permanent Magnet Industry News
The permanent magnet market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Billion from 2021 – 2034 for the following segments:
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Market, By Product
Market, By Application
The above information is provided for the following regions and countries: