The global permanent magnet market size was estimated at USD 19.35 billion in 2016, growing at a CAGR of 9.0% over the forecast period. The extensive usage of permanent magnet for the production of batteries in electric and hybrid cars is expected to drive the market growth over the forecast.
China has been the largest manufacturer of rare earth magnets owing to the presence of large-scale deposits. As a result, the prices of raw materials are likely to decline due to low cost production in the economy. In addition, high production output of the raw materials is expected to result in a continuous adequate supply.
The U.S. ferrite magnets market in automotive applications is dominated by the non-electric segment, as of 2015. However, the country has been witnessing a significant rise in the adoption of plug-in electric cars, primarily driven by the advanced products offered by key players such as Tesla, Chevy, Nissan, Ford, Audi, and BMW, among others.
The fall in the price of samarium over the past few years can be attributed to declining downstream demand. The reduced prices and the growing demand for Samarium-Cobalt (SmCo) magnets, one of the most important application of samarium, is expected to have significant impacts on the overall market during the forecast period.
The industry is characterized by the usage of technological processes including powder metallurgy, transverse pressing and isostatic pressing for manufacturing permanent magnet. In addition, the market is characterized by innovations including the introduction of azimuth thruster powered by permanent magnet technology, which is expected to positively impact the industry.
The demand for rare earth is expected to be driven by the increasing use of the neodymium in sensors and gauges of high priced automobiles. In addition, the demand for the product is likely to be driven by the use in data storage devices such as HDD. However, the advent of SDDs is likely to restraint the demand of HDD, limiting the consumption of the product.
The demand for ferrite permanent magnets is likely to grow over the forecast period on account of increased corrosion resistance coupled with use of the magnets for long time intervals. The segment is expected to realize a growth of 7.2% over the forecast period on account of high demand in ABS, air bag actuators, and fuel cut-off devices.
The growing demand for electronics is expected to boost the permanent magnets demand over the forecast period. However, the emergence of cloud computing coupled with its high adoption rates is expected to adversely impact the electronic storage device market such as CDs, VCDs, and DVDs which is likely to limit the industry growth
Rare earth is extensively used in military defense technologies, space programs, and aviation industry with a profound use in the U.S. space shuttle program. In addition, promethium finds use in the atomic batteries manufactured for spacecraft and guided missile systems which is likely to boost the demand over the forecast period.
The market in Asia Pacific is expected to be driven by the high demand for the ferrite and rare earth permanent magnets by the automotive and electronics industry. In addition, rapid industrialization of the Chinese economy has resulted in the development of the economy as a manufacturing base, leading to a high demand for magnetic materials in the country.
The growing demand for luxury cars in developed economies including the UK, Germany, Spain, France, and Italy is expected to aid the demand for ferrite magnets owing to growing application of the product in the automotive industry in different kinds of motors and other systems. The demand for ferrite for automotive in Europe is expected to grow at a CAGR of 8.0% over the forecast period.
The companies engaged in the industry compete on easy manufacturing technology, volatile raw material cost which is likely to boost the demand for the product over the forecast period. In addition, the minimal price changes pertaining to the raw materials are generally absorbed by the manufacturers thereby keeping the overall magnet price to a limited value.
The manufacturers are involved in extensive product customization to meet the varying needs of the consumers in the market. The customization results in an additional price from the consumers, increasing the profit margin for the companies. Large scale manufacturers are engaged in substituting the neodymium with ferrite on account of price variations.
This report forecasts revenue growth at regional and country levels and provides an analysis on the industry trends in each of the sub-segments from 2013 to 2024. For the purpose of this study, Grand View Research has segmented the permanent magnet market report on the basis of product, application and regions:
Product Outlook (Volume, Kilotons; Revenue, USD Million; 2013 - 2024)
Application Outlook (Volume, Kilotons; Revenue, USD Million; 2013 - 2024)
Regional Outlook (Volume, Kilotons; Revenue, USD Million; 2013 - 2024)
Central & South America
Middle East & Africa
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