Permanent Magnets Market Size, Share & Trends Report

Permanent Magnets Market Size, Share & Trends Analysis Report By Material (Ferrite, Neodymium Iron Boron, Aluminum Nickel Cobalt), By Application, By Region, And Segment Forecasts, 2019 - 2025

  • Published Date: Sep, 2019
  • Base Year for Estimate: 2018
  • Report ID: 978-1-68038-058-3
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 117

Industry Insights

The global permanent magnets market size was valued at USD 19.23 billion in 2018 and is estimated to witness a CAGR of 8.3% from 2019 to 2025. The demand for the product is driven by the increasing production of electric vehicles, rising wind energy installations, & rapidly growing robotics industry.

Robotics represents the most lucrative area for permanent magnet manufacturers. According to the Motion Control & Motion Association (MCMA), the world population is estimated to reach nine billion with three service robots for every human on earth by 2050. Further, the average robot is predicted to contain over 100 motors. As a result, the product demand in robotic motors is expected to increase significantly over the coming years.

China permanent magnets Market

Increasing application of magnets in automobiles to reduce dependency on fuel as well as to enhance engine power is expected to positively impact the consumption of permanent magnets over the coming years. In addition, increasing automotive production is expected to further propel the market growth over the forecast period.

Energy sector is another key application of the product. Permanent magnet-based direct drive generators represent an excellent alternative to geared induction generators as they are light in weight, hence, providing low tower cost, low noise, and low maintenance. This is anticipated to augment the market growth over the forecast period.

Hard Disk Drives (HDD) is one of the largest markets for rare earth permanent magnets. However, SSD (Solid State Drives) is becoming a viable alternative to HDD, as they do not rely on permanent magnets.There is a growing demand for SSD owing to their lower operating cost and enhanced performance. These benefits encourage the manufacturers to stimulate the production of SSDs. As a result, SSD is expected to gradually capture the market share of HDD over the coming years, which in turn is anticipated to hamper the growth in HDD over the coming years.

Application Insights

Automotive segment is driven by the growing production for electric bicycles (EB), battery electric vehicles (BEV), and plug-in hybrid electric vehicles (PHEV). According to the International Energy Agency (IEA), the cumulative global electric vehicle stock reached 5.1 million units in 2018, out of which 2 million units were sold in 2018. This is likely to boost the demand for the product over the forecast period.

Consumer goods & electronics segment accounted for the largest revenue share of 27.0% in 2018 owing to their use in air conditioning compressors & fans, VCRs & camcorders, computer cables, DVDs, cameras, watches, earbuds, loudspeakers, microphones, and mobile phones.In addition, neodymium magnets are utilized in a majority of electronic devices owing to their high magnetic strength and ability to perform at a wide temperature range.

The demand for the product from oil & gas industry is rising at a significant rate. The oil & gas industry players have been focusing on enhancing the efficiency of energy-intensive technologies such as electronic submersible pumps (ESPs) and reducing power consumption, which is anticipated to represent a lucrative opportunity for product manufacturers.

The demand from medical application is expected to witness moderate growth from 2019 to 2025 owing to the increasing automation in healthcare sector. However, concerns regarding the accuracy of the automated medical devices coupled with their lack of ability to make reflex decisions based on the inputs are expected to restrain the market growth.

Material Insights

In terms of volume, ferrite was the dominant material segment with a share of 81.1% in 2018. They are primarily used in motor applications. In fact, over 65% of the total volume of ferrites are utilized in motor applications, with consumption in automotive, appliance, HVAC, and industrial & commercial motors. The ferrite segment is primarily driven by its low cost and high availability.

Neodymium Iron Boron (NdFeB) magnet is largely used in magnetic separation and motor applications in speakers & transducers, electric bicycles, HDD, and CDs & VCDs. NdFeB based products are now witnessing significant penetration in the motors of electric and hybrid electric vehicles, wind power generators, air conditioning compressors & fans, and energy storage systems.

Global permanent magnets Market

Aluminum Nickel Cobalt (Alnico) segment possess a high degree of corrosion & temperature resistance and lower coercive force. They are commonly used in various types of sensors, microphones, and loudspeakers.

Samarium cobalt segment accounted for a market revenue share of 2.4% in 2018. Samarium Cobalt (SmCo) magnets are ideal for automotive, aerospace, loudspeaker, sensor, motor, and military & defense applications. They are a preferred choice for mission-critical applications and are less temperature sensitive as opposed to ferrite and NdFeB magnets.

Regional Insights

Asia Pacific held the largest share of the global permanent magnets market, in terms of both revenue and volume, in 2018. China, Japan, and South Korea have become manufacturing hubs for computer hardware devices including hard disks, computer chips, and microprocessors. This has contributed to the rising demand for the product such as ferrite and NdFeB, which are being extensively consumed by electronics and hardware manufacturers.

In addition, China is the largest producer and consumer of permanent magnets in the world. In fact, China produced more than 70% of the permanent magnets in the world in 2018. The significant factor that has led to China’s dominance is due to the presence of electric motor, EV battery, electric vehicle, electronic component, and other magnetic assembly manufacturers abundantly in the country.

North America is a significantly smaller market as compared to Asia Pacific. The motor manufacturers are the major consumers for the market. However, there are a limited number of motor manufacturers in the region owing to lack of raw material availability. Unavailability of rarer earth oxides in the region represents a significant challenge for the North America market. As a result, North America is highly dependent on imports.

Europe represented the second largest market accounting for 10.8% of the global revenue share in 2018. High consumer buying capacity in the region is expected to drive the demand for electric vehicles, consumer electronics, and consumer goods, which in turn is predicted to drive the production of electric motors designed for the aforementioned industries. This will likely increase the demand for the product.

Global Permanent Magnets Market Share Insights

The global permanent magnets market is highly competitive in nature owing to the presence of major players like Molycorp, Inc., Adams, Hitachi Group, Shin-Etsu, and Hangzhou Permanent Magnet Group. Companies are increasingly focusing on expanding the scope of permanent magnets in applications such as wind turbine generator, medical treatment and electric vehicles.

The market is characterized by mergers & acquisitions. For instance, In November 2017, Hitachi Metals acquired Santoku Corporation, a rare earth element manufacturer, in order to enhance high performance magnet production and optimize material supply flow. This strategy was also aimed to enhance the company’s efforts toward the manufacturing of neodymium alloys.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation                                                  

Volume in Kilotons

Revenue in USD Million

CAGR from 2019 to 2025

Regional scope

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

Country scope

U.S., Canada, Germany, China, India, Japan, and Brazil

Report coverage              

Revenue forecast, company share, competitive landscape, growth factors and trends

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Segments covered in the report

This report forecasts revenue and volume growth at country & regional levels, and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. 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 (Revenue, USD Million; Volume, Kilotons; 2014 - 2025)

    • Ferrite

    • Neodymium Iron Boron (NdFeB)

    • Aluminum Nickel Cobalt (Alnico)

    • Samarium Cobalt (SmCo)

  • Application Outlook (Revenue, USD Million; Volume, Kilotons; 2014 - 2025)

    • Automotive

    • Consumer goods & electronics

    • Industrial

    • Aerospace & Defense

    • Energy

    • Medical

    • Others

  • Regional Outlook (Revenue, USD Million; Volume, Kilotons; 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

Key questions answered by the report
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