Permanent Magnet The market is expected to grow from its 2021 valuation of USD 35.20 billion to USD 73.35 billion by 2030, at a compound annual growth rate (CAGR) of 8.5%. In 2022, the market was valued at USD 38.19 billion.
.jpg "The Global Permanent Magnets Market 2020-2030 (USD Billion)")
Growing production of hybrid and electric vehicles is currently driving the demand for permanent magnet and is likely to show a similar trend over the forecast period. Unlike temporary magnets that need an external electric supply to generate a magnetic field, permanent magnets possess their own persistent magnetic field which eliminates the use of electric supply. For instance, magnets used in refrigerators for holding the doors.
The primary function of permanent magnets in commercial industries include conversion of mechanical energy to electrical energy, electrical to mechanical, control ions or electrons, and attraction and repulsion between two magnets. Some of the very common applications of permanent magnets include electric motors, electric generators, loudspeaker, hard disk drives, batteries, wind turbines, microwave, laundry machines, etc.
At present, Asia Pacific is the leading region in the global permanent magnet industry with China being the most dominant country across the globe followed by Japan. Europe and other regions account for very minimum market volume as well as value share in the year 2018 and are projected to exhibit similar drift over the predictable future.
Asia Pacific is projected to witness the fastest growth owing to the growing consumer electronics market especially in China, India, and ASEAN. However, the future belongs to SSD (solid-state-drive) and not HDD (hard-disk-drive). Where HDD utilizes magnetic platters to store data, SSD stores information using flash memory. SSD is hence anticipated to overtake the HDD market which is another restraint for the permanent magnet industry in this region. Despite the fact that the Chinese market is flooding with oversupply, strong consumer demand industrial application is estimated to drive the permanent magnet industry in the foreseeable future.
Permanent Magnets Market Scope
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2030 |
| Study Period | 2018-2030 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2030 | USD 73.35 billion |
| Growth Rate | CAGR of 8.5 % during 2020-2030 |
| Segment Covered | Material, Application, Regions |
| Regions Covered | North America, Europe, Asia Pacific, Middle East and Africa, South America |
| Key Players Profiled | Hitachi Metals, Ltd. (Japan), TDK Corporation (Japan), Shin-Etsu Chemical Co., Ltd. (Japan), Electron Energy Corporation (US), Adams Magnetic Products Co., Inc. (US) |
Key segments of the global permanent magnets market
Product Overview (USD Billion)
- Ferrite
- Neo (NdFeB)
- SmCO
- Alnico
Application Overview, (USD Billion)
- Automotive
- Electronics
- Energy generation
- Others
Regional Overview, (USD Billion)
- North America
- U.S.
- Europe
- Germany
- UK
- Asia Pacific
- Japan
- China
- Rest of the World
Frequently Asked Questions (FAQ) :
The global permanent magnets market size is expected to reach USD 38.19 billion by 2030.
The global permanent magnets market revenue is expected to register a CAGR of 8.5% during the forecast period.
The Asia Pacific region is estimated to hold the highest market share in the permanent magnets market.
Adams Magnetic Products Co., Inc., Arnold Magnetic Technologies, Daido Steel Co., Ltd., Earth-Panda Advance Magnetic Material Co., Ltd., Hitachi Metals Ltd., Ningbo Yunsheng Co., Ltd., Shin-Etsu Chemical Co., Ltd are a few major players in permanent magnets market.
As per Adroit Market Research analysis, permanent magnet industry in today’s world is consumer-centric hence, customization is the key for maximum returns. Permanent magnets industry require substantial upfront infrastructure investment in high volume applications. Furthermore, Dozens of worthy competitors are present in today’s permanent magnet industry making the competition aggressive. But, the key fact is over capacity and fluctuating prices are hindering the growth of this market.
Players are making lower margins as the price of rare earth metals is fluctuating. Furthermore, the picture is different when it comes to low volume application as the players can make a higher margin owing to less competition. At present, the permanent magnet industry is attractive owing to technological advancement in terms of manufacturing as well as selling. However, overcapacity in Asia Pacific region mainly in China has led to price wars owing to unregulated and uncontrolled growth of rare earth elements (REE) industry.
Amongst 200 magnet producers worldwide, nearly 100 are selling their product online. At present, there are ample of applications that utilize these magnets hence more buyers. For instance, various end-use of these magnets include convertible top controls, airbag systems, trunk closers, dental drills, elevator doors, flywheel storage systems, magnetic fasteners, liquid level switches, golf cart motors, 3-D printing systems, laser weapon systems, sub-sea pumps, security tags, autopsy saws, magnetic bandages, pacemaker pumps, surgical robots, etc.
Neo (NdFeB) held a lion share of nearly more than 60% in the year 2018 in the global permanent magnet market size and is estimated to be the fastest growing permanent magnet type over the foreseeable future. However, increasing price of neodymium owing to favorable demand and attractive production of rare earth metals is hindering its production in terms of volume. Furthermore, ferrite permanent magnet type held the major market revenue share in terms of volume, in the year 2018.
Neo (NdFeB) are the strongest permanent magnet available today and are known as rare earth magnets. It was the ultra-compact neodymium magnet that first made possible to develop world’s slimmest speakers. Even today, most of the Neo (NdFeB) is used in the voice coil motors in the hard disk drives of PCs. Other ranges of neodymium application include sensors, loudspeakers, brushless DC motors, magnetic separation, generators, etc.
Application wise, the global permanent magnet industry is dominated by the automotive industry with a market revenue share of more than 40% in the year 2018. Lately, neodymium magnets have gradually been used in the manufacture of automobile motors. In other words, the development of hybrid car would have been difficult if neodymium magnets did not exist. Hence, with the expansion of automobile production, such as hybrid and electric vehicles, the demand for neodymium magnets is expected to upsurge over the forecast period.
In terms of region, Asia Pacific dominated the global permanent magnet industry with market revenue and volume share of more than 80% in the year 2018. This region is anticipated to witness a similar trend over the forecast period owing to the development of rare earth magnetic material mining industry.
China is the leading producer of magnet-related applications, such as electric cars, air conditioners, motors, elevators, and acoustic devices. Hence, these applications are expected to drive the need for inexpensive and improved permanent magnets. The growing market size of permanent magnet in this region is further supported by the fact that the production of rare earth permanent magnet (REPM) in China is more than the actual demand.
Permanent magnets industry is witnessing huge potential in the practice of recycling. Recycling of permanent magnets consists of a collection of waste, extraction of the magnet, and recycling of the extracted magnets. Europe is taking initiatives by collecting post-production wastes and limited extraction of NdFeB magnets from a different application. No wonder, the European Union (EU) is to become world number one in renewables over the foreseeable future.
Major players operating in the Asia Pacific permanent magnets include., Shin-Etsu Chemical Co., Ltd., Yantai Zhenghai Magnetic Materials Co., Ltd., Daido Steel Co., Ltd., Tokyo Denki Kagaku Kogyo K.K., TDK Corporation, Ningbo Yunsheng Co., Ltd., and others.