The global neodymium market size is expected to reach USD 7.30 billion by 2030, according to a new report by Grand View Research, Inc., expanding at a CAGR of 15.0% from 2022 to 2030. The market is anticipated to be driven by rising demand for neodymium magnets from wind energy and electric vehicle industries.
China is the largest producer of both rare earth and permanent magnets in the world. The country accounts for over 70% of the global permanent magnet production and 60% of the global rare earth production according to the global mining data published by the USGS. The significant factor that has led to China’s dominance, especially in rare earth permanent magnet production, is the abundance of rare earth deposits in China.
In terms of value, magnets are anticipated to register the fastest CAGR during the forecast period. Their growing demand from electronics, wind energy, and automotive end-uses is propelling segment growth. The primary consumers of neodymium magnets include electric motor manufacturers, EV manufacturers, electronic component (sensors, microphones, earphones, HDD) manufacturers, and other magnetic assembly manufacturers. Thus, growing demand from end-use industries such as automotive and electronics is propelling segment growth.
Wind energy is projected to provide opportunities for the market and the segment is anticipated to register a revenue-based CAGR of 15.3% during the forecast period. Its growth is attributed to the increasing shift towards renewable energy and sustainable energy practices. Wind turbine demand is expected to positively impact market growth. As per the Global Wind Energy Council, 2021 witnessed around 93 GW of installed capacity addition, an increase of 53% from 2020.
In terms of volume, North America is a significantly smaller market as compared to Asia Pacific. The lesser availability of rare earth oxides in the region makes the region import-reliant on China. The catalyst producers are the prominent consumers of neodymium in North America, which cater to the tire and oil and gas industries. The commercial uses of neodymium catalysts are limited owing to their expensive nature. They are used in refinery petroleum cracking, polymerization, and photovoltaic wastewater treatment.
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Based on application, magnets held the largest revenue share of over 55.0% in 2021. The growing usage of permanent magnets is propelling the market growth
Based on end-use, the electrical and electronics segment is anticipated to register a CAGR of 14.9%, in terms of revenue, across the forecast period. The widespread application scope of neodymium in fiber optic technology, speakers, and other electronic components is boosting segment growth
Europe held the second-largest revenue share in 2021. The rising demand for magnets in end-use industries including automotive and wind energy is anticipated to augment the market growth over the forecast period
The favorable policies and governments’ initiatives toward economic recovery after the pandemic are anticipated to augment the demand for neodymium over the coming years. For instance, investments by the Chinese automotive manufacturer, BYD Auto Industry Co., Ltd., and Japanese automotive player, Toyota, to set up a manufacturing facility in Central and South America are expected to boost automotive production, thereby propelling the need for neodymium magnets
Grand View Research has segmented the global neodymium market on the basis of application, end-use, and region:
Neodymium Application Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2030)
Ceramics & Glass
Neodymium End-use Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2030)
Electrical & Electronics
Neodymium Regional Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2030)
Central & South America
Middle East & Africa
List of Key Players of the Neodymium Market
China Rare Earth Holdings Limited
Lynas Rare Earths Ltd.
METALL RARE EARTH LIMITED
Peak Rare Earths
Rainbow Rare Earths Limited
Texas Mineral Resources Corp.
HEFA Rare Earth
Greenland Minerals Ltd.
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