Magnetic Materials Market Analysis & Forecast: 2025-2032

Magnetic Materials Market Size and Trends Forecast – 2025 - 2032

The magnetic materials market is estimated to be valued at USD 33.20 Bn in 2025 and is expected to reach USD 48.98 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 5.7% from 2025 to 2032.

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Key Takeaways of the Magnetic Materials Market

• By product type, the soft magnetic materials segment is expected to contribute the highest market share of 49.6% in 2025.
• By application, the automotive & transportation segment is expected to contribute the highest market share of 29.8% in 2025.
• Asia Pacific is expected to hold the largest share of 71.7% in 2025.
• The Europe region is projected to experience the fastest growth over the forecast period.

Market Overview

Factors such as the increasing use of magnetic materials across various end-use industries including automotive and electric & electronics among others can drive the market growth. Furthermore, growing demand for electric vehicles and focus on energy efficient products can also drive the market growth. Wide application in motors, transformers, generators, and various other electromagnetic applications boosts demand for magnetic materials.

However, challenges such as fluctuating raw material prices and supply chain disruptions, which can impact production costs and availability.

Market Concentration and Competitive Landscape

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Current Events and Its Impact

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Market Trends

Growing Demand for Electric Vehicles and Hybrid Vehicles

The rising adoption of electric vehicles (EVs) and hybrid vehicles is significantly propelling the demand for advanced magnetic materials—a trend that is reshaping both the automotive and materials sectors. Magnetic materials such as neodymium-iron-boron (NdFeB) and ferrites play a critical role in the manufacturing of electric motors and generators, which are essential components of EV powertrains.

For instance, according to the International Energy Agency, global electric car sales are expected to increase by 25% in 2025. This surge is not only transforming the automotive industry but also driving innovation and growth in the advanced materials sector.

Segmental Insights

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Magnetic Materials Market Insights, by Product Type: Soft Magnetic Materials Leads the Market in 2025 with Widespread Applications

In terms of product type, soft magnetic materials segment is estimated to contribute the highest market share of 49.6% in 2025, owing to their widespread applications.

Soft magnetic materials such as iron, cobalt, and nickel are highly suitable for applications that require magnetic properties along with good electrical conductivity. These materials have low coercivity, which allows them to easily switch magnetic alignment or polarization when exposed to an external magnetic field. Their low retentivity enables them to lose magnetic polarization when the external field is removed.

Magnetic Materials Market Insights, by Application: Automotive & Transportation Contributes the Highest Market Share Due to Rising Electrification Trends

In terms of application, automotive & transportation segment is estimated to contribute the highest market share of 29.8% in 2025.

Automotive industry is undergoing rapid electrification with a growing focus on developing electric and hybrid vehicles. This transition towards electrification boosts demand for magnetic materials from the automotive sector. Electric vehicles utilize various magnetic components such as electric motors that require core materials with soft magnetic properties.

Emerging Innovations in the Magnetic Materials Market

• The Utilization of Advanced Manufacturing Techniques
  • Additive manufacturing (3D printing) and powder metallurgy technologies are increasingly used to fabricate complex-shaped magnets and soft magnetic components with enhanced precision and functionality. These techniques allow for the customization of magnetic properties by controlling microstructures and grain orientations, leading to magnets tailored for specific applications such as electric vehicle (EV) motors, wind turbine generators, and high-frequency transformers.
• The Integration of Computational Material Science and Machine Learning Algorithms
  • By simulating atomic and electronic behaviors, scientists can predict magnetic properties and identify promising compositions faster than conventional trial-and-error methods. This data-driven approach enhances the performance of magnetic materials, ensuring better coercivity, remanence, and temperature stability, which are critical parameters for demanding industrial uses.

Impacts of Artificial Intelligence (AI) on the Magnetic Materials Market

The magnetic materials market, essential for sectors ranging from electronics to renewable energy, is undergoing a transformative shift driven by artificial intelligence (AI). By integrating AI into their operations, companies are innovating product design, enhancing application efficiency, and delivering superior value to end users. This convergence is redefining industry standards and unlocking new growth avenues.

• Johnson Matthey, a specialty chemicals and sustainable technologies company, has enhanced its magnetic materials portfolio by integrating AI-based design tools. Their AI solution uses deep learning to simulate and optimize magnetic structures at the microscopic level, enabling the production of magnets with tailored properties suited for electric vehicle (EV) motors. This innovation has empowered EV manufacturers by offering magnets that improve motor efficiency and reduce reliance on scarce rare-earth elements.
• Siemens, a global powerhouse in electrification, has implemented AI-powered monitoring systems that analyze real-time data from magnetic components in electric motors. This system predicts component wear and faults before failure occurs, enabling proactive maintenance scheduling. The application of AI here has significantly reduced downtime and maintenance costs, while enhancing the reliability and efficiency of critical equipment used in industries such as automotive and renewable energy.

Regional Insights

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Asia Pacific Magnetic Materials Market Analysis and Trends

Asia Pacific is projected to hold the largest revenue share 71.7% of the global magnetic materials market in 2025. This regional dominance is attributed to its robust manufacturing and industrial sectors, which heavily rely on magnetic materials. Additionally, government support for research and development, along with partnerships between research institutions and industry stakeholders, has fostered ongoing advancements in the field.

For instance, according to the Oxford Institute for Energy Studies, China is currently the only major producer of heavy rare earth elements, which are critical for the production of high-performance permanent magnets. Although China holds only about 15% (or possibly less than 10%) of the world’s geological reserves of heavy rare earths, it accounts for approximately 70% of annual global mine output and 90% of global processing and refining capacity.

Europe Magnetic Materials Market Analysis and Trends

The Europe magnetic materials market is experiencing rapid growth, driven by expanding end-use industries such as consumer electronics, automotive, and healthcare, particularly in emerging economies. Supportive policies are encouraging domestic manufacturing and enhancing regional production capabilities. Additionally, foreign investments are boosting capacity and fostering new product development across the region.

For instance, according to the European Institute of Innovation & Technology (EIT), the European Raw Materials Alliance (ERMA) has identified investment opportunities spanning the entire value chain—from rare earth mining and urban mining to magnet production. These projects are distributed across Europe and represent a total investment volume of approximately USD 1.87 billion. The aim is to enable the European Union to meet 20% of its rare earth magnet needs by 2030—15 times more than current levels.

Magnetic Materials Market Outlook for Key Countries

China Magnetic Materials Market Analysis and Trends

China’s dominance in the magnetic materials market stems from its extensive control over rare earth mining and processing. The country’s focus on expanding its manufacturing base for electric vehicles and renewable energy technologies has intensified the demand for high-performance magnetic materials. Government initiatives supporting technological innovation and infrastructure development further bolster China’s leading position in this sector.

For instance, as per the NITI AYOG, global output of mined graphite is highly concentrated with China accounting for almost three-fifths (59.1%).

Japan Magnetic Materials Market Analysis and Trends

Japan drives the magnetic materials market through its strong emphasis on advanced electronics and automotive industries. The country’s commitment to developing energy-efficient technologies and hybrid vehicles relies heavily on specialized magnetic materials. Continuous investment in research and development enables Japan to innovate in magnetic materials, ensuring high-quality and sustainable supply chains.

Supporting this innovation ecosystem, the 28th International Workshop on Rare Earth and Future Permanent Magnets and Their Applications (REPM2025) is scheduled to be held from July 27 to 31, 2025, in Tsukuba, Japan, highlighting Japan’s central role in advancing rare earth and magnetic materials technologies.

Germany Magnetic Materials Market Analysis and Trends

Germany’s growth in the magnetic materials market is fueled by its robust automotive and industrial machinery sectors. As a pioneer in electric mobility and renewable energy integration, Germany requires sophisticated magnetic materials for electric motors and generators. Government policies encouraging green technologies and industrial digitization enhance the demand for advanced magnetic solutions.

India Magnetic Materials Market Analysis and Trends

India’s expanding industrial base and increasing focus on renewable energy are contributing to a growing demand for magnetic materials. The country is enhancing its domestic production capabilities and promoting partnerships to reduce dependency on imports. Additionally, infrastructure development and the rising adoption of electric vehicles are key drivers of the market growth in India.

According to Autocar Professional, as of July 2025, India sourced over 80% of its approximately 540 tons of magnet imports from China during the previous fiscal year.

Pricing Analysis of the Magnetic Materials Market

• North America:
  • Permanent Magnets (AlNiCo):
  • Price Range: USD 60–90/kg
  • Key Brands: Dexter Magnetic Technologies (US), Adams Magnetic Products (US)
  • Applications: Automotive sensors, industrial motors
• Europe:
  • Rare-Earth-Free Magnets (Ferrite):
  • Price Range: USD 7–12/kg
  • Key Brands: VACUUMSCHMELZE (Germany), Bunting Magnetics (UK)
  • Applications: Industrial automation, renewable energy systems
• Asia Pacific:
  • Permanent Magnets (Neodymium Iron Boron - NdFeB):
  • Price Range: USD 80–120/kg (high-grade), USD 40–60/kg (standard)
  • Key Brands: Hitachi Metals (Japan), TDK Corporation (Japan), Zhong Ke San Huan (China)
  • Applications: EV traction motors, wind turbine generators, consumer electronics
• Latin America:
  • Ferrite magnets dominate (USD4–USD12/kg), with Goudsmit Magnetics (Brazil) as a key supplier.
  • NdFeB imports priced 20–30% above Asian averages due to tariffs.
• Middle East/Africa:
  • Electrical steel: USD4–USD9/kg (infrastructure projects drive demand).
  • Limited local production; >90% reliance on imports.

Market Report Scope

Magnetic Materials Market Report Coverage

Magnetic Materials Industry News

• In June 2025, Massachusetts Institute of Technology (MIT) physicists demonstrated a new form of magnetism that could one day be harnessed to build faster, denser, and less power-hungry “spintronic” memory chips.
• In April 2025, TDK presented the world's first “Spin Photo Detector” capable of 10X data transmission speeds for the next generation of AI. Concepted and developed by TDK, the magnetic device can detect both near-infrared and visible light.
• In July 2025, Apple committed USD 500 million in a multi-year partnership with MP Materials, the sole fully integrated rare earth producer in the United States. Through this agreement, Apple will source American-made rare earth magnets manufactured at MP Materials’ flagship Independence facility in Fort Worth, Texas.
• In August 2024, Electron Energy Corporation (“EEC”) partnered with Magnetic Holdings, LLC, the parent company of Dexter Magnetic Technologies (“Dexter”) and Magnetic Component Engineering (“MCE”). The transaction creates a group of leading permanent magnet firms, each with unique and complementary capabilities to solve customers’ most demanding challenges.

Analyst View

• The magnetic materials market is poised for robust expansion, driven primarily by the accelerating adoption of electric vehicles globally, which extensively utilize permanent magnets in traction motors and power systems. Industrial automation trends further amplify demand, particularly for high-efficiency motors and sensors critical in manufacturing and robotics.
• Additionally, the expansion of consumer electronics and industrial automation continues to fuel the need for high-performance magnets, particularly rare-earth types, which offer superior magnetic properties.
• Concurrently, renewable energy infrastructure development such as wind turbines and solar inverters relies heavily on advanced soft magnetic materials for efficient power conversion and distribution.
• However, supply chain vulnerabilities around rare-earth elements pose significant restraints, prompting manufacturers to explore alternative compositions and recycling initiatives to mitigate material scarcity risks. Opportunities are emerging in next-generation technologies like magnetocaloric cooling systems for sustainable refrigeration and magnetic levitation transport solutions.
• The proliferation of 5G networks also unlocks new applications, requiring specialized ferrites for high-frequency signal processing in telecommunications hardware.
• Innovation in material science—particularly magnetic 3D printing and nanocrystalline alloys—will enable lighter, more efficient components across aerospace and IoT-connected devices. Strategic partnerships between automakers and material suppliers will likely shape competitive dynamics, focusing on performance optimization and supply chain resilience.

Market Segmentation

• Product Type Insights (Revenue, USD, 2020 - 2032)
• Soft Magnetic Materials
• Permanent Magnetic Materials
• Semi-Hard Magnetic Materials
•  Application Insights (Revenue, USD, 2020 - 2032)
• Automotive & Transportation
• Electronics
• Energy
• Others
• Regional Insights (Revenue, USD, 2020 - 2032)
• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East
• GCC Countries
• Israel
• Rest of Middle East
• Africa
• South Africa
• North Africa
• Central Africa
• Key Players Insights
• AK Steel Holding Corporation
• Arnold Magnetic Technologies
• Electron Energy Corporation
• Hitachi Metals, Ltd.
• Lynas Corporation Ltd.
• Molycorp Inc.
• OM Group
• Shin-Etsu Chemicals Co., Ltd.
• Tengam Engineering Inc.
• TDK Corporation
• Daido Steel Co. Ltd

Sources

Primary Research Interviews

• Magnetic Materials Manufacturers
• Industry Experts
• Component Suppliers
• Research & Development Professionals
• Others

Magazines

• Materials Today
• Advanced Materials & Processes
• IEEE Spectrum
• Magnetics Magazine
• Others

Journals

• Journal of Magnetism and Magnetic Materials
• IEEE Transactions on Magnetics
• Materials Science and Engineering Reports
• Others

Newspapers

• The Wall Street Journal
• Financial Times
• The Economic Times
• Others

Associations

• International Magnetics Association (IMA)
• IEEE Magnetics Society
• The Minerals
• Metals & Materials Society (TMS)
• Magnetic Materials Society
• Others

Public Domain Sources

• U.S. Geological Survey (USGS)
• World Bank Data
• Eurostat
• National Institute of Standards and Technology (NIST)
• Others

Proprietary Elements

• CMI Data Analytics Tool – Magnetic Materials Market
• CMI Existing Repository of Information for the Last 8 Years

*Definition: The magnetic materials market encompasses the production, distribution, and application of materials that exhibit magnetic properties, such as ferromagnetism or paramagnetic. These materials—including types like neodymium magnets, ferrites, and alnico—are essential components in various industries, powering devices such as electric motors, generators, sensors, data storage, and electronics. The market covers raw material sourcing, manufacturing processes, and end-use sectors like automotive, electronics, healthcare, and renewable energy.