MAGNETIC MATERIALS MARKET ANALYSIS

Magnetic materials market faces significant challenges due to high investment required for research and development activities. Developing new magnetic materials and substances that can perform optimally requires extensive research at the nanoscale level. Such lengthy gestation periods associated with high capital costs deter many companies from actively pursuing innovation in this domain. For example, the US Department of Energy's 2021 budget for the Advanced Research Projects Agency-Energy was US$ 430 million, a major portion of which was allocated to explore revolutionary solutions in advanced materials and other energy technologies. Scaling up production of new magnetic materials poses technical challenges that increase project risks.

Market Opportunities- Advances in battery storage technologies

Magnetic materials market can witness growth opportunities due to advancements in battery storage technologies. Lithium-ion batteries used in electric vehicles, consumer electronics, and grid-scale energy storage rely on specialized magnetic materials for improved performance. For instance, in January 2022, according to the International Energy Agency, electric car stock grew by 41% worldwide in 2021 with over 6.6 million new registrations. This surge in EV adoption strain supplies of materials like neodymium and put pressure on manufacturers to find substitutes or ways to use less of these critical resources It also envisions using novel magnetic material formulations to assist overcome critical constraints of current battery technologies.