PERMANENT MAGNET MOTOR MARKET ANALYSIS

Permanent Magnet Motor Market Size and Trends

The Global Permanent Magnet Motor Market is estimated to be valued at US$ 49.05 Bn in 2024 and is expected to reach US$ 96.34 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 10.1% from 2024 to 2031.

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Permanent magnet motors are seeing increasing adoption across industries such as automotive, HVAC, and industrial machinery due to their high efficiency and low maintenance benefits compared to traditional motor types.

The permanent magnet motor market is expected to witness significant growth during the forecast period driven by the rising global demand for energy-efficient electric motors from end-use industries. Stringent regulations regarding energy efficiency and carbon emission levels across major countries will also boost the replacement of conventional motors with permanent magnet motors. Additionally, the increasing integration of automated manufacturing processes and the growing electric vehicle market will further support the demand for permanent magnet motors.

Growing demand from automotive industry

The automotive industry has seen a rise in the adoption of permanent magnet motors in applications such as electric vehicles, hybrid electric vehicles, and plug-in hybrid electric vehicles. Permanent magnet motors provide advantages like higher efficiency, reliability and compact size. With growing environmental concerns and stringent emission regulations, automakers are focusing on electrification of vehicles. Both pure electric vehicles and hybrids rely heavily on permanent magnet motors to drive the electric powertrain. Motors with permanent magnets are well-suited for automotive applications as they provide high torque even at lower rpm which is ideal for traction motors. The sales of electric vehicles have been growing significantly and major automakers have aggressive plans to expand their EV portfolio in the coming years. As more automakers join the electrification revolution, the demand for permanent magnet motors from the automotive industry is expected to surge. With strong government support and falling battery prices, market analysts predict that electric vehicles will account for a considerable share of total vehicle sales over the next decade. This will present lucrative opportunities for permanent magnet motor manufacturers in the upcoming years.

Market Concentration and Competitive Landscape

Rising deployment in renewable energy systems

Another key driver for permanent magnet motors is the renewable energy industry. Permanent magnet motors find widespread usage in various renewable energy conversion systems such as solar power, wind power, hydroelectric power. In solar power systems, permanent magnet motors are used in solar trackers and concentrators to optimize sunlight exposure. They provide the precise torque control needed to automatically adjust the position of photovoltaic panels. In wind power generation, permanent magnet synchronous generators are the technology of choice for direct drive wind turbines due to their reliability and efficiency. They eliminate the need for gearboxes which are a major pain point in wind turbines. Permanent magnet motors also enable improved design of multi-pole and super-long stator linear generators for hydrokinetic turbines. With the growing emphasis on clean and green energy, investments in solar, wind and hydro power projects have been increasing tremendously. Agencies like IEA forecast that the global renewable energy capacity will almost double by 2030 from the 2020 levels. This expands the market for permanent magnet motors that play a crucial role in renewable energy technology. Their high performance, durability and maintenance-free operations make them well-aligned to deliver on the exploding demand from the renewable energy sector.

Key Takeaways from Analyst:

The permanent magnet motor market is poised to grow significantly in the coming years driven by rising demand for energy efficient motors across various industrial applications. Increased focus on lowering carbon emissions and energy consumption will prompt more end users to adopt permanent magnet motors. Government regulations mandating energy efficiency are also expected to boost adoption. Advantages of high torque to weight ratio and power density makes permanent magnet motors attractive for electric vehicles. Growth in the EV industry will thus create opportunities for motor manufacturers.

North America currently dominates the market owing to high motor demand. Strong growth in industries like automotive, HVAC, and factory automation is driving the APAC market growth. Asia Pacific and Europe are also sizable markets driven by regulatory pushes for energy efficiency. The construction industry's recovery in these regions post COVID will propel permanent magnet motor sales.

Fluctuating prices of rare earth metals used in magnets can pose a challenge for manufacturers. Supply chain disruptions due to geopolitical issues also impact raw material availability and prices. However, ongoing R&D towards developing motors with less rare earth usage can help address this restraint. Overall, with rising electrification across industries and governments emphasizing sustainable growth, the permanent magnet motor market is well positioned for steady expansion globally in the long term.

Market Challenges: High initial cost of permanent magnet motors

The high initial cost of permanent magnet motors is posing a significant challenge for the growth of the global permanent magnet motor market. Permanent magnet motors are more expensive compared to traditional induction motors owing to the use of expensive rare-earth magnets like neodymium, dysprosium, and praseodymium which add to their production costs. Rare-earth elements are scarce minerals which experience price fluctuations in the global market. Additionally, manufacturers need sizable capital to invest in specialized manufacturing infrastructure and technology to produce high-quality permanent magnet motors.

This high initial capital requirement restricts many small and medium enterprises from adopting permanent magnet motors for their operations. Especially, in cost-sensitive industries and applications, customers prefer cheaper alternatives like induction motors. The upfront costs associated with permanent magnet motors discourage changes or upgrades in the existing systems. This limits the scope of penetration for permanent magnet motors in the replacement or retrofit market. Further, customers in price-sensitive developing nations find it difficult to justify the higher capital expenditure of permanent magnet motors against alternatives.

Market Opportunities: Emergence of sensor less control technology

The emergence of sensor less control technology could provide significant opportunities for the global permanent magnet motor market growth. Sensor less control removes the need for position sensors within motors, making the overall system simpler, more robust, and reliable. This helps reduce manufacturing and maintenance costs. Such technology allows precise control of motor speed and position without the need for separate feedback devices.

Many industries are now looking to adopt sensor less technology. For example, the HVAC industry has been implementing sensor less permanent magnet motors in applications such as fans and blowers. Removing sensors reduces overall system weight and complexity. This provides design advantages for equipment manufacturers. At the same time, it lowers costs for end users.

The industrial automation sector is another major area primed for growth with sensor less control of permanent magnet motors. Automated processes require precise motion control, which sensor less technology provides. Many factory robots, CNC machines, and other automated equipment now utilize sensor less permanent magnet motors. This trend is anticipated to rise further over the coming years as more industrial processes become automated and optimized.

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Insights By Motor Type - Advantages of Programmability Drive DC Motor Demand

In terms of Motor Type, the Direct Current (DC) Motor segment is estimated to account for 64.4% share of the market in 2024 owing to its programmable and customizable nature. DC motors offer high controllability as their speed and torque can be precisely regulated through advanced variable speed drives. This programmability gives DC motors an edge over AC motors in applications that require flexible control and automation. DC motor speed and direction can be easily controlled by adjusting the voltage and current levels through external control circuits. Their operation is not reliant on mains power frequency, providing more robust performance even under voltage fluctuations. This high degree of customizability has accelerated the use of DC motors in applications with complex motion profiles like CNC machines, robotic arms, conveyor belts, and laser cutters where real-time adjustments are critical. Most industrial motion control processes now leverage DC motor versatility for precision motion applications. Their simple construction with fewer moving parts also gives DC motors higher reliability and longer operational life compared to AC motors. This reduced maintenance needs boosts the total cost of ownership for DC motorized systems over time. Overall, the programmable and customizable nature of DC motors that enables intricate motion control has fueled their widespread adoption, contributing to the highest market share.

Insights By Material Type - Superior Performance Properties Drive Neodymium Demand

In terms of Magnetic Material Type, the Neodymium segment is estimated to account for 41.7% share of the market in 2024 owing to its unmatched magnetic properties that deliver maximized motor performance. Neodymium magnets have exceptionally high magnetic fields that allow building of smaller yet more powerful electric motors. With a large magnetic flux density, neodymium magnets efficiently convert electrical energy into rotational force output. This high energy product means motors using neodymium magnets can operate at higher torque and rotational speeds while maintaining a compact form factor. Their small size leads to lightweight yet powerful motors suitable for applications constrained by size and weight. Neodymium magnets also demonstrate high Curie temperatures, meaning they retain their magnetic properties even under elevated operational temperatures without demagnetization. This thermal endurance has expanded their use in high-temperature industrial processes and electric vehicles. Neodymium magnets' strong magnetic fields also result in high motor efficiencies of above 90%, lowering energy consumption significantly. These unrivaled performance benefits have increased neodymium magnet adoption across industries striving for more compact, lightweight and efficient motorized solutions. This drives its prominence as the highest revenue generating magnetic material type segment.

Insights By Vertical - Automation Growth Fuels General Industrial Demand

In terms of Vertical, the General Industrial segment is estimated to account for 43.5% share of the market in 2024 owing to the proliferation of industrial automation worldwide. Growing labor costs and the need for consistent quality have accelerated automation integration across various general industrial processes like material handling, assembly, packaging, inspection, and machine tooling. Permanent magnet motors are increasingly replacing legacy AC induction motors in automated machinery due to advantages like high efficiency, precise control, wider speed range and compact size. Their programmable operation is well-suited for automated equipment with variable workload profiles. Integration of permanent magnet motors has streamlined complex, repetitive production tasks while reducing downtime from equipment failures. Developing countries are also automating general industries like food and beverage, rubber and plastics, paper and metals to boost output and quality. This widespread industrial automation drive relying on precise motion control furnished by permanent magnet motors has boosted their highest market share in the general industrial vertical.

Regional Insights

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North America has established itself as the dominant region in the global permanent magnet motor market. The U.S. accounts for the 41.8% share in 2024 owing to strong automotive, industrial, and HVAC sectors which are major end users of permanent magnet motors. American automobile manufacturers such as General Motors and Ford are global leaders and have significant operations across the world. This has prompted large scale investment in permanent magnet motor technologies to power electric vehicles.

Stringent regulations regarding fuel efficiency and emissions have further boosted demand. Major North American industrial firms have also incorporated advanced permanent magnet motors into their manufacturing processes for improved productivity and energy savings. With a highly developed industrial base focused on factory automation, the use of permanent magnet motors continues to grow. Furthermore, organizations providing HVAC and cooling systems have widely adopted permanent magnet motors due to their reliability and efficiency.

The Asia Pacific region has emerged as the fastest growing market for permanent magnet motors. China, in particular, is playing a pivotal role due to immense manufacturing activity and a growing focus on renewable energy and electric vehicles. Automobile exports from China have surged in recent years with electric vehicle production rising exponentially. This has presented massive opportunities for permanent magnet motor suppliers.

Countries such as India and Southeast Asian nations are also industrializing rapidly, resulting in extensive foreign investment pouring in. Manufacturing industries require efficient motor systems and are turning to permanent magnet varieties. In addition, initiatives by governments to modernize infrastructure and transition to cleaner sources of energy have created significant tailwinds. Large multinational corporations have established facilities across Asia to take advantage of low production costs and proximity to end-markets, augmenting demand.

Market Report Scope

Permanent Magnet Motor Industry News

• In July 2023, Delta Line, a leading manufacturer of motion control solutions based in Switzerland, introduced a new range of brushed permanent magnet DC motors available in three sizes: 42DI, 52DI, and 63DI. These motors are designed to deliver nominal torque of up to 0.06Nm for the 42mm size, 0.22Nm for the 52mm size, and 0.27Nm for the 63mm size, making them suitable for various demanding applications.
• In July 2022, Collins Aerospace, a unit of Raytheon Technologies and a leader in advanced aerospace solutions, developed the first working prototype of its 500-kilowatt electric motor designed for the Airlander 10 aircraft. This project, in collaboration with Hybrid Air Vehicles and the University of Nottingham, aims for the motor to achieve a power density of 9 kW/kg and an efficiency of 98% through innovative motor topology and composite construction. The motor is currently undergoing basic characterization testing at the University of Nottingham.
• In December 2020, Toshiba Corporation, a Japan-based multinational conglomerate founded in 1875, announced that it had developed a new magnetic material with characteristics that deliver major improvements in motor efficiency. The company stated that this material, when tested, increased productivity by 0.9 points. Toshiba noted that this component can also be used in electric motors to enhance their efficiency.
• In October 2020, Wright Electric, a U.S.-based startup founded in 2016 and focused on developing electric propulsion systems for aircraft, announced that it had signed an agreement with the U.S. Department of Energy's Energy Innovative Energy Research Institute. This collaboration aims to create innovative, efficient, and lightweight electrically powered engines, which could enhance the Fixed Magnet Motor Market.

*Definition: The Global Permanent Magnet Motor Market involves the commercialization and sale of permanent magnet synchronous motors which incorporate permanent magnets in their rotor or stator instead of windings. These motors have high efficiency and power density making them suitable for industries like consumer electronics, automotive, HVAC, and industrial automation. The market involves manufacturing companies producing permanent magnet motors catering to the global demand from end-use industries. Key players actively market and sell their permanent magnet motors worldwide.

Market Segmentation

•  Motor Type Insights (Revenue, US$ Bn, 2019 - 2031)
  • Direct Current (DC) Motor
  • Alternating Current (AC) Motor
•  Magnetic Material Type Insights (Revenue, US$ Bn, 2019 - 2031)
  • Ferrite
  • Neodymium
  • Samarium Cobalt
  • Others
•  Vertical Insights (Revenue, US$ Bn, 2019 - 2031)
  • Automotive
  • General Industrial
  • Energy
  • Water and Wastewater Treatment
  • Mining
  • Oil and Gas
  • Aerospace and Defense
  • Others
• Regional Insights (Revenue, US$ Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • South Africa
    • Rest of Middle East & Africa
• Key Players Insights
  • ABB Ltd.
  • Ametek, Inc.
  • Danfoss A/S
  • General Electric Company
  • Hitachi, Ltd.
  • Hyosung Heavy Industries
  • Johnson Electric Holdings Limited
  • Mitsubishi Electric Corporation
  • Nidec Corporation
  • Regal Beloit Corporation
  • Rockwell Automation, Inc.
  • Schneider Electric SE
  • Siemens AG
  • Toshiba Corporation
  • WEG S.A.