Permanent Magnets Market Size, Share & Trends Report

Permanent Magnets Market Size, Share & Trends Analysis Report By Material (Ferrite, NdFeB, Alnico, SmCo), By Application (Medical, Consumer Goods & Electronics), By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Sep, 2020
  • Base Year for Estimate: 2019
  • Report ID: 978-1-68038-058-3
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 119

Report Overview

The global permanent magnets market size was valued at USD 20.74 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.9% from 2020 to 2027. The market growth is majorly attributed to the consumer goods and electronics industry, where permanent magnets are widely used in various applications, including smartphones and personal electronics. Increasing production in the electronics sector was the major driver of the market until the emergence of the COVID-19 pandemic. The medical industry is a vital segment of the market and with increasing COVID-19 cases across the globe, the demand for ventilators is rising significantly, which is boosting the market growth.

China permanent magnets market size

Permanent magnets are used in ventilators, and the ongoing pandemic has accelerated their demand, as they are crucial to treat respiratory failure and prolong a patient’s life. Ventilator manufacturers, especially in China, ramped up their production to expand their supply owing to surging demand in the country and overseas due to COVID-19. For example, in April 2020, Aeonmed, a ventilator manufacturer in Beijing, received orders from around 40 countries and delivered over a thousand invasive ventilators.

Although the high demand for medical equipment owing to COVID-19 proved fruitful for the market to a certain extent, demand for permanent magnets from other end-use industries was negatively affected.  For example, Zhong Ke San Huan, a manufacturer in China, predicts a loss of 70-80% in its profits for the fiscal year that ended on June 30, 2020, compared to the previous year on account of a fall in consumer demand amid the COVID-19 outbreak.  As a result, low product demand caused raw material prices to decline. For example, 99.5% of dysprosium oxide witnessed a price decline of about 5% in July 2020 from June 2020, as the suppliers tend to cut off prices to propel sales and reduce their inventories.

With growing mitigation efforts to reduce the impact of COVID-19, the market is expected to stabilize and uplift itself with development in industries, including renewable energy, consumer electronics, and electric vehicles. Many electric vehicle plants have resumed their operations, which is a positive sign for the product demand. For example, in May 2020, Okinawa resumed its production with a 25% workforce. The resumption of manufacturing operations is anticipated to boost the market growth over the forecast period.

Application Insights

The consumer goods and electronics application segment accounted for the largest revenue share of more than 26.0% in 2019. Increasing investments in smartphones, laptops, and household electronic devices are expected to augment product demand during the forecast period. For example, Samsung announced to invest USD 500 million in setting up a plant in India. An increase in the production of smartphones shall eventually boost market growth.

The adoption of permanent magnets is rapidly increasing in various products owing to their phenomenal properties. For example, in February 2020, Armstrong Fluid Technology announced new versions of its Design Envelope 6800 boosters with permanent magnet motors that will provide up to 40% additional savings over booster systems with premium efficiency NEMA Motors with integrated drives. The replacement of substitute products with permanent magnets is anticipated to propel the segment growth over the forecast period.

Automotive is another vital segment of the market, which is anticipated to witness steady growth over the coming years owing to electric vehicles. Electric motors that have permanent magnets, such as neodymium magnets, tend to provide better induction, save energy, are light in weight, and generate more power. For example, Nissan LEAF uses permanent magnets to produce energy savings of 20%. Increasing government initiatives and regulations regarding the adoption and production of electric vehicles are expected to augment the product demand in the near future.

The energy sector is yet another segment with promising growth opportunities for the market over the coming years. For instance, preference for permanent magnets over electromagnets has been witnessed for wind turbines, owing to added benefits such as enhanced efficiency and less installation cost, due to reduced weight of electricity-generating components. This is a positive sign for the segment to flourish in the coming years.

Material Insights

Ferrite accounted for the largest volume share of more than 80.0% in 2019. Unlike rare earth magnets, ferrite magnets are obtained from iron ore that is available in abundance in the earth’s crust. Additionally, these provide corrosion resistance, along with high coercivity at low cost, making them ideal for high-temperature motors.

Factors such as phenomenal characteristics, abundant availability, and low cost are propelling research activities to find out ways for increasing the consumption of ferrite magnets. For example, in June 2019, Greenspur Renewables developed a permanent magnet generator (PMG) concept using ferrite that could become beneficial in designing giant 25MW offshore wind turbines.

Global permanent magnets market share

Rare earth magnets account for a small volume share in the market owing to factors such as high cost, major raw material portion originating from China, and rising demand from other applications, such as batteries. Despite these factors, their demand is anticipated to rise across the forecast period as they are stronger than ferrite magnets. For instance, NdFeB offers high magnetic energy, coercive force, and high energy density, thus making it possible to miniaturize, reduce weight, and make instruments thin.

Regional Insights

Asia Pacific held the largest volume share of more than 75.0% in 2019. The growth is attributed to increasing developments in the end-use industries of the region, such as renewable, electronics, medical, and automotive. China has been a prominent market in the region. The country not only excels in gaining a high consumption share owing to large-scale production of electronics, electric vehicles, and medical equipment but also has the advantage of possessing large reserves of rare earths, which is an important raw material. 

In addition, rising government initiatives in the developing economies of Asia Pacific towards the growth of the manufacturing sector are expected to open new opportunities for the market over the coming years. For instance, the Production-Linked Incentive Scheme in India compelled 22 companies to apply for the incentive program that is aimed towards smartphone manufacturing in the country. The expected production of components and smartphones by the companies is worth USD 153 billion over a tenure of five years. Companies including Samsung, Foxconn, Wistron, and Micromax are amongst the applicants of this USD 6.6 billion incentive program. Such schemes are expected to boost production and thus consumption of permanent magnets over the forecast period.

Europe held the second-largest volume share in the market in 2019. Vehicle manufacturing, along with electronics production in the region, is expected to augment product demand in the near future. The resumption in manufacturing operations post lockdown situation is anticipated to create demand for the product. For instance, in July 2020, Danfoss Editron increased the manufacturing rate of power electronics by 13% and permanent magnet motors by 8% compared to the previous month at its facility in Finland.

Key Companies & Market Share Insights

The market has been characterized by high competition owing to the presence of various players. Growing demand for permanent magnets is compelling companies to gain a competitive edge in the market through initiatives, such as capacity expansions and mergers & acquisitions. For example, in April 2020, USA Rare Earth LLC acquired NdFeB permanent magnet manufacturing equipment from Hitachi Metals America, Ltd. This acquisition will aid in re-establishing rare earth magnet production in the U.S., and the company is expected to have an annual production capacity of 2 kilotons of rare earth magnets that will help it gain a market share of around 17% in the U.S. Some of the prominent players in the permanent magnets market include:

  • Arnold Magnetic Technologies

  • Electron Energy Corporation

  • Daido Steel Co., Ltd.

  • Hitachi Metals Ltd.

  • Shin-Etsu Chemical Co., Ltd.

  • TDK Corporation

Permanent Magnets Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 19.22 billion

Revenue forecast in 2027

USD 32.86 billion

Growth Rate

CAGR of 5.9% from 2020 to 2027 (Revenue-based)

Product demand in 2020

1,002.70 kilotons

Volume forecast in 2027

1,463.30 kilotons

Growth Rate

CAGR of 3.9% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Volume in kilotons, revenue in USD Million, and CAGR from 2020 to 2027

Report coverage

Volume and revenue forecast, company market positioning, competitive landscape, growth factors, and trends

Segments covered

Material, application, region

Regional scope

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

Country scope

U.S.; Canada; Mexico; Germany; China; India; Japan; Brazil

Key companies profiled

Adams Magnetic Products Co.; Daido Steel Co., Ltd; Eclipse Magnetics Ltd.; Arnold Magnetic Technologies; Hitachi Metals Ltd.

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Segments Covered in the Report

This report forecasts revenue and volume 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 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global permanent magnets market report on the basis of material, application, and region:

  • Material Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Ferrite

    • Neodymium Iron Boron (NdFeB)

    • Aluminum Nickel Cobalt (Alnico)

    • Samarium Cobalt (SmCo)

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Automotive

    • Consumer Goods & Electronics

    • Industrial

    • Aerospace & Defense

    • Energy

    • Medical

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

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