Global Permanent Magnet Market Outlook to 2028

Global Permanent Magnet Market Overview

The Global Permanent Magnet Market was valued at USD 22.10 billion in 2023. The market is driven by the growing demand for permanent magnets in key sectors such as electric vehicles (EVs), renewable energy, and consumer electronics. These industries are pushing the adoption of high-performance magnets, particularly neodymium-iron-boron (Nd Fe B) and ferrite magnets, due to their efficiency in energy conversion and ability to support miniaturization in electronic devices.

Major players in the global permanent magnet market include Hitachi Metals Ltd., TDK Corporation, Arnold Magnetic Technologies, VACUUMSCHMELZE Gmb H & Co. KG, and Zhong Ke San Huan Hi-Tech Co. Ltd. These companies are leading the development of high-performance permanent magnets, focusing on expanding production capacity and research into alternative materials to overcome supply chain constraints in rare earth elements.

In 2023, Hitachi Metals Ltd. expanded its production of Nd Fe B magnets for electric vehicles and wind turbines, addressing the growing demand for energy-efficient solutions in these sectors. The company also invested in recycling technologies for rare earth materials to reduce dependence on raw material imports.

In 2023, Asia-Pacific dominated the global permanent magnet market, driven by its strong automotive and electronics industries, particularly in China, which accounts for over 80% of global rare earth magnet production. The region's dominance is further supported by government investments in renewable energy projects and electric vehicle infrastructure.

Global Permanent Magnet Market Segmentation

The global permanent magnet market is segmented by region, product type, and application.

By Region: The global permanent magnet market is geographically segmented into North America, Europe, Asia-Pacific (APAC), Latin America, and the Middle East and Africa (MEA). In 2023 Asia-Pacific led the market, with China being the key producer of rare earth magnets, supplying over 80% of the worlds Nd Fe B magnets. The region's strong presence in EV production and renewable energy projects has solidified its dominance in the market.

By Product Type: The global permanent magnet market is segmented by product type into neodymium iron boron (Nd Fe B) magnets, samarium cobalt (Sm Co) magnets, ferrite magnets, and alnico magnets. In 2023, Neodymium Iron Boron (Nd Fe B) magnets held the largest market share, driven by their extensive use in electric vehicle motors, wind turbines, and consumer electronics.

By Application: The market is segmented by application into automotive, electronics, energy generation, and industrial. In 2023, the automotive segment dominated the market due to the rising production of electric vehicles. Permanent magnets are essential for the performance and efficiency of electric motors used in EV powertrains.

Global Permanent Magnet Market Competitive Landscape

Company

Establishment Year

Headquarters

Hitachi Metals Ltd.

1910

Tokyo, Japan

TDK Corporation

1935

Tokyo, Japan

Arnold Magnetic Technologies

1895

Rochester, New York, USA

VACUUMSCHMELZE Gmb H & Co. KG

1923

Hanau, Germany

Zhong Ke San Huan Hi-Tech Co. Ltd.

1989

Beijing, China

TDK Corporation: In 2023, TDK's magnetic sensors, including Hall and TMR sensors, saw substantial sales growth, particularly in automotive and smartphone applications. This aligns with the broader industry trend towards electrification and the integration of advanced technologies in consumer electronics.

Arnold Magnetic Technologies: In April 2023, Arnold Magnetic Technologies, a leading global manufacturer of high-performance magnets, announced a new partnership with Cyclic Materials, a pioneer in developing sustainable domestic supply chains for rare earth elements.Together, they will work to develop a rare earth recycling program, creating the world's first circular supply chain for these critical materials

Global Permanent Magnet Market Analysis

Global Permanent Magnet Market Growth Drivers

Growing Demand for Electric Vehicles: In 2023, the increasing global adoption of electric vehicles has significantly driven the demand for high-performance permanent magnets. With over 14 million EVs sold globally, automakers rely on Nd Fe B magnets to enhance the efficiency and range of electric motors. As governments worldwide push for cleaner transportation options, this trend is expected to continue in the coming years.

Expansion of Renewable Energy Projects: In 2023, over 90 GW of new wind energy capacity was installed globally, driving the demand for permanent magnets used in wind turbines. Permanent magnets are integral to improving the efficiency of wind turbine generators, particularly in offshore projects. The push for renewable energy, particularly in Europe and Asia-Pacific, is a key growth driver for the permanent magnet market.

Rising Demand for Consumer Electronics: In 2022, the consumer electronics sector remains a key driver of the permanent magnet market. Permanent magnets are widely used in small, powerful components like speakers, motors, and sensors. As consumers demand more compact and energy-efficient devices, the need for high-quality magnets continues to rise.

Global Permanent Magnet Market Challenges

Supply Chain Disruptions for Rare Earth Materials:
In 2023, supply chain disruptions caused by geopolitical tensions and export restrictions on rare earth materials significantly impacted the production of permanent magnets. China, which controls the majority of global rare earth production, imposed export limits, creating supply shortages and increasing material costs.

Price Volatility of Raw Materials:
In 2023, the cost of rare earth elements fluctuated significantly, making it difficult for manufacturers to maintain stable production costs. Neodymium prices rose, driven by supply shortages and increased demand from sectors like electric vehicles and renewable energy, posing challenges for market stability.

Global Permanent Magnet Market Government Initiatives

Made in China 2025: In 2023, the Chinese government continued to support its Made in China 2025 initiative in 2023, emphasizing the development of domestic production capabilities for high-tech industries, including electric vehicles and renewable energy. The initiative has boosted the production of rare earth materials and magnets, making China a key player in the global market.

European Green Deal: In 2023, the European Union continued its commitment to the European Green Deal, which aims to make Europe climate-neutral by 2050. The deal has increased investments in renewable energy projects and electric vehicle infrastructure, boosting demand for permanent magnets in wind turbines and EV motors.

Global Permanent Magnet Market Future Market Outlook

The Global Permanent Magnet Market is expected to witness substantial growth by 2028, driven by advancements in electric vehicle production, renewable energy projects, and the growing demand for efficient consumer electronics.

Global Permanent Magnet Market Future Market Trends

Integration of Rare Earth Recycling Technologies: By 2028, the permanent magnet market will see a rise in the adoption of recycling technologies to recover rare earth materials from end-of-life products. This trend will help address supply chain concerns and reduce reliance on mining. Governments and companies are expected to invest heavily in recycling initiatives to secure sustainable sources of rare earth elements.

Advances in Renewable Energy Infrastructure: By 2028, the global installation of wind energy capacity is expected to reach 140 GW annually, further increasing the demand for permanent magnets used in wind turbine generators. The shift towards renewable energy, driven by government initiatives and climate goals, will be a significant factor in the markets growth.
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