Magnetic Materials Market Forecasts to 2030 – Global Analysis By Type (Soft Magnetic Materials and Hard Magnetic Materials), Application and By Geography

Magnetic Materials Market Forecasts to 2030 – Global Analysis By Type (Soft Magnetic Materials and Hard Magnetic Materials), Application and By Geography

According to Stratistics MRC, the Global Magnetic Materials Market is accounted for $36.71 billion in 2024 and is expected to reach $57.62 billion by 2030 growing at a CAGR of 7.8% during the forecast period. Magnetic materials are substances that exhibit magnetic properties, such as attraction or repulsion to magnetic fields. These materials are characterized by their ability to become magnetized and retain magnetic properties, including ferromagnetic, ferrimagnetic, and paramagnetic behaviours. Their unique properties are leveraged to influence and control magnetic fields in technological applications.

According to the International Magnetics Association (IMA), China produces more than two-thirds of the world's rare earth magnets and controls the majority of the global refining and processing capacity.

Market Dynamics:

Driver:

Increasing industrial automation

Automated machinery and robotics rely on magnetic materials for precise control, sensing, and actuation. These materials are integral in producing high-performance motors, sensors, and actuators, which are crucial for efficient and accurate automation processes. As industries adopt more automation to improve productivity and efficiency, the need for reliable and advanced magnetic materials escalates, propelling market growth and stimulating innovation in magnetic material technologies.

Restraint:

Environmental concerns

Environmental concerns in the magnetic materials primarily involve the extraction and processing of rare earth elements, which can lead to significant ecological damage, pollution, and habitat destruction. Additionally, the disposal of these materials poses environmental risks due to their potential toxicity. Consequently, these factors can hinder market growth by increasing operational costs, slowing down production, and complicating supply chains, ultimately affecting the overall profitability and sustainability.

Opportunity:

Rising adoption of electric vehicles (EVs)

Electric vehicles rely on high-performance magnets in motors, batteries, and magnetic sensors to enhance efficiency, power output, and overall performance. These magnets, often made from rare earth materials, are essential for improving motor efficiency and extending battery life. As the EV market expands, the need for high-quality magnetic materials increases, fostering growth in this sector and encouraging innovations that meet the evolving demands of electric vehicle technology.

Threat:

Fluctuations in prices of raw materials

Fluctuations in raw material prices, such as rare earth elements, occur due to supply chain disruptions, geopolitical tensions, and variable mining outputs. These price changes impact production costs and can lead to instability in the magnetic materials market. It may result in increased prices for finished products, affecting profit margins and potentially deterring investment. Additionally, price volatility can disrupt long-term planning and supply agreements, creating uncertainty that hampers market growth and innovation.

Covid-19 Impact

The covid-19 pandemic significantly impacted the magnetic materials market, causing disruptions in supply chains and manufacturing operations. Lockdowns and restrictions led to delays and shortages, affecting production and delivery schedules. Additionally, decreased industrial activity and reduced consumer spending slowed market growth. However, the pandemic also accelerated the shift towards digital transformation and increased demand for electronics, driving recovery and growth in certain segments. The market is now rebounding as industries adapt to new norms and resume investment in technology and innovation.

The soft magnetic materials segment is expected to be the largest during the forecast period

The soft magnetic materials segment is estimated to have a lucrative growth. Soft magnetic materials are materials with low coercivity, enabling them to magnetize and demagnetize easily. They are used in applications requiring efficient magnetic performance with minimal energy loss, such as transformers, inductors, and electric motors. Common soft magnetic materials include silicon steel, nickel-iron alloys, and soft ferrites. Their key properties are high permeability, low hysteresis loss, and high electrical resistivity, making them ideal for dynamic magnetic applications.

The electronics segment is expected to have the highest CAGR during the forecast period

The electronics segment is anticipated to witness the highest CAGR growth during the forecast period. Magnetic materials are essential in electronics, enabling key functionalities in devices. They are used in components like transformers, inductors, sensors, and memory storage. These materials enhance performance in power supplies, signal processing, and data storage systems. Innovations in magnetic materials contribute to advancements in miniaturization, efficiency, and reliability of electronic devices, playing a crucial role in modern technology development and application.

Region with largest share:

The magnetic materials market in the Asia-Pacific region is rapidly expanding, driven by robust industrial growth and technological advancements. Key sectors such as electronics, automotive, and renewable energy are significant contributors to this growth. The region benefits from a strong manufacturing base, especially in countries like China, Japan, and South Korea, which are major producers and consumers of magnetic materials. Increased demand for advanced electronic devices and electric vehicles is fueling market expansion, making Asia-Pacific a critical hub for magnetic materials innovation and production.

Region with highest CAGR:

The magnetic materials market in North America is experiencing robust growth driven by demand in electronics, automotive, and renewable energy sectors. Key factors include advancements in technology, increased adoption of electric vehicles, and the rise of smart devices. The market is characterized by significant investment in research and development, fostering innovation in magnetic materials for enhanced performance. Major players in the region are focusing on expanding production capabilities and forming strategic partnerships to capitalize on emerging opportunities and meet evolving industry needs.

Key players in the market

Some of the key players profiled in the Magnetic Materials Market include Hitachi Metals Limited, TDK Corporation, Nippon Steel Corporation, Daido Steel Corporation, Shin-Etsu Chemical Corporation, Lynas Corporation, Arnold Magnetic Technologies, Electron Energy Corporation, OM Group, Adams Magnetic Products Corporation, Molycorp Inc., Vacuumschmelze GmbH & Co. KG, AK Steel Holding Corporation, Neo Performance Materials Inc. and Guangzhou Newlife New Material Corporation.

Key Developments:

In June 2024, Guangzhou Newlife New Material Corporation launched two groundbreaking products, Digital Press Magnetic Paper (Press-Mag) and Eco-friendly Wide-format Printable High-Strength Magnetic Sheeting (Super-Mag) at the drupa 2024 exhibition. Both magnets embody the company’s commitment to innovation and sustainability, addressing key industry challenges and enhancing the capabilities of various printing technologies.

In July 2023, Neo Magnequench, a division of Neo Performance Materials Inc. broke ground on construction of the first rare earth magnet manufacturing facility in Europe designed to produce specialized rare earth permanent magnets for use in electric vehicles, wind turbines, and other clean energy technologies.

Types Covered:
• Soft Magnetic Materials
• Hard Magnetic Materials

Applications Covered:
• Electronics
• Automotive
• Energy & Power
• Industrial
• Medical
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements