Global magnetic materials market is estimated to witness high growth, owing to rising demand from electronics industry and increasing adoption of electric vehicles
Global magnetic materials market is estimated to be valued at USD 31.41 Bn in 2024, exhibiting a CAGR of 5.5% over the forecast period (2024-2031). Increasing demand for magnetic materials from electronics industry along with growing adoption of electric vehicles can drive the market growth during the forecast period. Furthermore, growing focus of governments across the globe on reducing carbon emissions can boost demand for magnetic materials from electric vehicle manufacturers.
Market Dynamics-
Increasing Demand from Electronics Industry- Magnetic materials play a crucial role in the manufacturing of various electronic components such as sensors, motors, and transformers. With rapid urbanization and digitalization across the globe, there has been huge demand for consumer electronics such as smartphones, computers, and home appliances. This rising demand from the electronics industry can drive the magnetic materials market growth over the forecast period.
Growing Adoption of Electric Vehicles- Growing focus on reducing carbon emissions and fossil fuel reliance has accelerated the adoption of electric vehicles globally. Magnetic materials are highly used in motors and power systems of electric vehicles. Therefore, increasing electric vehicles sales can boost demand for magnetic materials during the forecast period.
Increase in usage of magnetic materials in electronic goods manufacturing can drive the market growth
Rising use of magnetic materials such as soft magnetic alloys and rare earth metals such as neodymium iron boron in the manufacturing of electronic goods such as mobile phones, computers, hard disk drives, headphones, and others can drive the market growth. Magnetic materials are used to make magnets, inductors, transformers, and motors which are key components in many electronic devices. With rise in global sales of consumer electronics, there will be huge demand for magnetic materials.
Growing demand for permanent magnets in electric vehicles can drive the market growth
Permanent magnets, particularly those made from neodymium iron boron (NdFeB), are essential for electric vehicles as they are used in the electric motors that power these vehicles. With growing environmental concerns and a shift towards cleaner transportation, sales of battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs) are expected to surge. Major automakers are actively expanding their EV offerings, and it is projected that electric vehicles will account for a significant share of new car sales by 2040. This substantial increase in EV adoption is likely to drive demand for high-performance permanent magnets, thereby fueling growth in the magnetic materials market.
Fluctuating raw material prices poses challenge
The prices of key raw materials used for manufacturing magnetic materials such as rare earth metals are quite volatile in nature. Rare earth metals like neodymium, praseodymium and dysprosium, which are crucial for making high-intensity magnetic materials, experience large price fluctuations based on supply demand forces in the mining industry. This volatility in input prices can hamper the stable growth of the magnetic materials market.
Issues with recycling of rare earth materials can hamper the market growth
Currently, rare earth metals utilized in magnetic materials have low recycling rates due to the absence of economically viable recycling methods. As a result, most of these metals end up in landfills once products reach the end of their lifecycle. Establishing effective recycling technologies to recover rare earth elements from electronic waste could enhance recycling rates and decrease reliance on mining. However, existing infrastructural and technological constraints in recycling present significant challenges to the sustainability and future growth prospects of the magnetic materials industry.
Increased R&D in high-temperature magnetic materials
Researchers are working on developing new grades of magnetic materials that can withstand high operating temperatures exceeding 150°C while maintaining their magnetic properties. Such magnetic materials will enable the design of miniaturized motors and electronics that can operate under harsh conditions commonly present in industrial equipment, automotive engines, aerospace systems, and others. Successful commercialization of high-temperature magnetic alloys and composites through focused R&D presents a massive market opportunity targeting heat-intensive applications.
Growing demand for energy-efficient motors
Energy-efficient electric motors used in appliances, industrial machinery and heating, ventilation, and air conditioning (HVAC) systems employ advanced magnetic materials to reduce energy losses. With sustainability becoming a priority, there will be increase in adoption of energy-efficient electric technology across sectors to reduce carbon footprint. This increased demand for high-efficiency motors directly benefits makers of next-generation magnetic materials with lower core and hysteresis losses, such as iron cobalt alloys, grain-oriented electrical steel, and others.
Link - https://www.coherentmarketinsights.com/market-insight/magnetic-materials-market-1968
Key Developments-
- In November 2020, Zhong Ke San Huan announced that it had completed construction of a new production line for its rare-earth-free magnets. It would have an annual production capacity of 1,000 tons. The new production line uses advanced manufacturing technologies. These include vacuum melting and directional solidification to produce high-quality magnets with superior magnetic properties. Beijing Zhong Ke San Huan Hi-Tech Co., Ltd., commonly referred to as Zhong Ke San Huan, is a prominent company in the magnetic materials industry.
- In October 2020, Hitachi Metals announced that it had developed a new type of magnet made from rare-earth-free materials. It is called the RE-free magnet. The company claimed that RE-free magnet has high magnetic properties that are comparable to those of conventional magnets made with rare earth metals. Hitachi Metals, now known as Proterial, Ltd., is a prominent manufacturer specializing in high-grade specialty steel products, magnetic materials, and functional components.
Key Players-
AK Steel Holding Corporation, Arnold Magnetic Technologies, Electron Energy Corporation, Hitachi Metals, Ltd., Lynas Corporation Ltd., Molycorp Inc., OM Group, Shin-Etsu Chemicals Co., Ltd., Tengam Engineering Inc., TDK Corporation, and Daido Steel Co. Ltd
