GVR Report cover Neodymium Market Size, Share & Trends Report

Neodymium Market Size, Share & Trends Analysis Report By Application (Magnets, Catalysts), By End Use (Automotive, Wind Energy, Electrical & Electronics), By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Oct, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68038-372-0
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 95

Report Overview

The global neodymium market size was valued at USD 2.25 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.3% from 2021 to 2028. The demand for magnets in various end-use industries such as green energy and automotive is projected to boost the market growth over the forecast period. Neodymium and its compounds are used in a variety of applications, among which neodymium-iron-boron (NdFeB) is the key product with the highest demand across several applications. NdFeB magnets have a high strength-to-weight ratio, which has reduced the sizes of electric motor systems for communication, computation, and small consumer products.

U.S. neodymium market size, by application, 2018 - 2028 (USD Million)

Increasing installation capacity of wind energy in the U.S. and the growing demand for wind turbines are projected to assist in the expansion of the U.S. market for neodymium. As per the recent data provided by the Energy Information Administration (EIA), wind energy installation was higher compared to any other energy technology in 2019 and 2020. Annual wind turbine capacity in the country was recorded at 14.2 gigawatts in 2020, surpassing the previous record of 13.2 gigawatts in 2012.

Various states in the country have announced significant investments in wind energy technology in order to reduce the dependence on non-renewable energy sources. For instance, Texas is likely to invest over USD 16 billion in 26 projects over the coming 10 years. In addition, upcoming projects such as Traverse Wind Energy Center, Aviator Wind Project, and Goodnight Wind Energy Project are projected to boost the demand for neodymium products over the short term.

Fused salt electrolysis using fluorides is a key process to obtain metallic neodymium. The separation of neodymium from other rare earth elements is an energy-intensive process. As feed material used in the process is thermodynamically very stable, a large amount of energy is necessary to obtain alloy or metal. Thus, higher energy costs are likely to create a critical impact on the growth of the market.

Application Insights

Magnets held the largest volume share of over 65.0% in 2020. Neodymium along with iron and boron makes a very strong permanent magnet. This has led to the development of small-size electronics such as smartphones, computer hard drives, loudspeakers, and various consumer and automotive electronic products. With the growing population needs and the rising middle-class population, electronics demand is likely to grow in the long run, thus driving the market for neodymium.

NdFeB magnets also find applications in electric and hybrid vehicles. Global focus on electric vehicles owing to a rise in vehicle emissions is projected to benefit the market growth. Additionally, these magnets are relatively less expensive compared to samarium cobalt (SmCo) magnets due to the abundant availability of Nd and Fe. These magnets are mechanically stronger and are 13% lighter than SmCo magnets.

The glass and ceramics application segment is projected to grow at a moderate pace over the forecast period. It acts as coloring and decoloring agents in glasses and with glass, it can produce colors such as warm grey, wine red, and violet. These glasses are used in infrared radiation filters, calibration of spectral lines, welder goggles, and astronomical work.

End-use Insights

The automotive segment dominated the market with a revenue share of over 55.0% in 2020 and is likely to maintain its position during the forecast period. Neodymium (Nd) magnets are widely used in automotive applications, such as energy transmission systems, vehicle multimedia systems, electronic control units, and automotive safety and information system. Driverless technology is another key area, wherein market vendors are likely to observe new opportunities over the coming years.

Global neodymium market share, by end use, 2020 (%)

The rapid expansion of the electric vehicles market is anticipated to drive the neodymiumindustry on account ofthe rising demand for electric motors and automotive electronics. For instance, as per the International Energy Agency (IEA), the number of electric vehicles on road has increased from 17,000 units in 2010 to 7.2 million in 2019.

The wind energy segment is projected to expand at the fastest revenue-based CAGR of 5.6% from 2021 to 2028. The increasing shift towards non-renewable energy and sustainable energy practices is anticipated to attract wind turbine demand, thus positively affecting the market growth. As per the Global Wind Energy Council, 2021 was the best year for wind energy as it witnessed around 93 gigawatts of installed capacity addition, an increase of 53% from 2020. China and the U.S. were the key contributors with a percentage share of 55.9% and 18.1%, respectively, in 2021.

Regional Insights

Asia Pacific dominated the market with a revenue share of over 85.0% in 2020. The sheer volume and growth of Asia Pacific are mainly led by China. The production of permanent magnets, expanding electric vehicles industry, rise in the installations of wind energy, and large volume production of electronic products are some of the factors that promote the expansion of the neodymium industry in China. The country also leads the rare earth metal industry in terms of production as it has successfully brought down the production costs in recent times.

Monopolism, geopolitics, and scarcity are likely to create disruption in the supply of neodymium. Thus, considering this, regions such as North America and Europe have started expanding their regional markets through government funding and programs. The European Commission has graded rare earth elements (REE) as the highest critical raw materials. Moreover, the European Rare Earths Competency Network was launched in 2013 to expand the REE industry in the European region.

Key Companies & Market Share Insights

Investments by end users in the neodymium value chain are projected to offer new opportunities for market vendors. Various medium-sized and large companies are likely to invest in the construction of new plants for magnets. For instance, in March 2021, Chinese rare earth manufacturer, Guangsheng has planned to build a manufacturing plant for NdFeB permanent magnetic material. This project is worth USD 206 million and is likely to produce 8,000 tons per year.

Recycling rare earth elements including neodymium hold a large potential to restructure the industry. In the recent past, several companies have started adopting recycling processes to recycle materials from the end-use industries. In March 2021, the University of Birmingham developed a project, which separates magnets from waste into alloy powder. This powder can be reused to manufacture sintered rare earth magnets. Some prominent players in the global neodymium market include:

  •  Arafura Resources Ltd.

  • Lynas Rare Earths Ltd.

  • Avalon

  • Rainbow Rare Earths Limited

  • METALL RARE EARTH LIMITED

  • Hefa Rare Earth

  • Greenland Minerals

Neodymium Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 2.34 billion

Revenue forecast in 2028

USD 3.39 billion

Growth Rate

CAGR of 5.3% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion, volume in tons, and CAGR from 2021 to 2028

Report coverage

Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Application, end use, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Canada; Mexico; Germany; France; U.K.;China; India; Japan;Brazil; South Africa

Key companies profiled

Arafura Resources Ltd.;Lynas Rare Earths Ltd.;Avalon;Rainbow Rare Earths Limited;METALL RARE EARTH LIMITED;Hefa Rare Earth; Greenland Minerals

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global neodymium market report on the basis of application, end use, and region:

  • Application Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2028)

    • Magnets

    • Catalysts

    • Ceramics &Glass

    • Others

  • End-use Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2028)

    • Automotive

    • Electrical & Electronics

    • Wind Energy

    • Others

  • Regional Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • France

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa (MEA)

      • South Africa

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