Global Permanent Magnet Motor Market is Estimated to Witness High Growth Owing to Increasing Industrial Automation and Electric Vehicle Adoption
The Global Permanent Magnet Motor market is estimated to be valued at US$ 49.05 Bn in 2024 and is expected to exhibit a CAGR of 10.1% over the forecast period 2024-2031. Permanent Magnet synchronous motors are gaining more traction in industrial automation applications owing to their efficiency and compact size.
Market Dynamics:
The growth of the global permanent magnet motor market is driven by increasing industrial automation and rising electric vehicle sales. Firstly, permanent magnet motors find wide application in industrial machinery owing to advantages such as high torque to size ratio, compact size and energy efficiency. Growing industrial automation to enhance productivity is driving demand for permanent magnet motors in manufacturing sector. Secondly, permanent magnet motors are increasingly being used in electric vehicles due to their high torque capabilities. Stringent emission regulations and government incentives are fueling adoption of electric vehicles worldwide, thereby boosting permanent magnet motors market.
Growing Demand for Energy-Efficient Motors is Driving the Permanent Magnet Motor Market Growth
Permanent magnet motors offer higher efficiency compared to traditional electric motors as they do not require additional power to generate magnetic fields. This results in reduced energy consumption and lower operating costs. With rising energy prices and growing focus on minimizing carbon footprint, industries and building owners are increasingly adopting energy-efficient permanent magnet motors for applications such as HVAC systems, pumps and fans. The stringent government regulations pertaining to energy efficiency standards are also driving the replacement of conventional motors with more efficient permanent magnet motors globally.
Increasing Electrification of Transportation is Accelerating Market Growth
Electric vehicles rely on powerful yet efficient permanent magnet motors for propulsion. The rapid electrification of transportation sector with rising sales of electric vehicles as well as hybrid electric vehicles is fueling the demand for permanent magnet motors. Government incentives and subsidies for electric vehicles along with expanded charging infrastructure are encouraging more consumers to opt for electric vehicles. Leading automakers are heavily investing in developing affordable electric vehicles equipped with technologically advanced permanent magnet motors. This fast-growing electric mobility trend is a major market driver for permanent magnet motors.
Volatility in Raw Material Prices Poses a Challenge
Rare earth metals such as neodymium, dysprosium and terbium which are key ingredients in permanent magnets experience volatile prices. China dominates the global rare earth supply chain and its trade policies can significantly impact rare earth prices. Geopolitical factors and trade tensions can cause temporary supply disruptions. Sudden price fluctuations pose a risk to manufacturers. The heavy reliance on rare earth imports also raises national security concerns. High raw material prices pose a restraint on the cost-effectiveness of permanent magnet motors.
Complex Manufacturing Process Increases Costs
The assembly of permanent magnet motors with integrated magnets requires intricate manufacturing processes and shaping of magnets to tight tolerances. This results in higher tooling and R&D investments compared to induction motors. The processing and handling of rare earth materials during magnet production incurs additional costs. The complex manufacturing also raises barriers for small players to enter the market. The relatively high manufacturing costs pose a challenge, especially for cost-sensitive applications.
Growing Demand for Home Appliances Offers Opportunities
With rising disposable incomes, the sales of home appliances such as washing machines, refrigerators, vacuum cleaners are growing consistently across major economies. Permanent magnet motors provide improved efficiency and quiet operation ideal for appliances. Leading appliance manufacturers are replacing induction motors with permanent magnet motors to enhance energy efficiency of their products. This growing demand from the home appliance sector presents a key growth opportunity.
Expanding Clean Energy Sector to Drive Adoption
The rapid installation of renewable energy sources such as wind and solar power along with distributed energy resources is drawing huge investments globally. Permanent magnet generators and synchronous motors are increasingly utilized in clean technologies such as solar PV inverters and wind turbine generators due to their superior power densities and efficiencies. Emerging applications in areas like energy storage, microgrids and electric power transmission networks are opening new avenues of growth. The expansion of clean energy sector worldwide creates a positive market opportunity.
Link: https://www.coherentmarketinsights.com/market-insight/permanent-magnet-motor-market-5164
Key Developments:
- 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 US 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.
Key Players:
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, and WEG S.A.
