Magnetic materials are materials that produce magnetic fields and are used in the production and distribution of electricity. They are also used in modern electrical engineering and electronics components. Magnetic materials are widely used across automotive, electronics, industrial, power generation, and other end-user industries.
The global magnetic materials market is estimated to be valued at US$ 103,486.7 million in 2021 and is expected to exhibit a CAGR of 8.9 % over the forecast period (2021-2028).
In March 2019, Arnold Magnetic Technologies, a global manufacturer of rare earth magnets, magnetic assemblies, and precision thin metals, has opened a research and development facility at the MGE Innovation Center in Madison, WI
In May 2019, Rare earths producer Lynas Corp announced that it has signed a memorandum of understanding with Texas-based Blue Line Corp to set up a rare earths separation facility in the United States.
Asia Pacific held dominant position in the global magnetic materials market in 2020, accounting for 76.12% share in terms of value, followed by Europe and North America, respectively. Asia-Pacific is the largest and fastest-growing market for magnetic materials owing to high demand from major markets, such as China, India, and Japan. The growing automotive industry in the region is also driving the market for magnetic materials.
Figure 1. Global Magnetic Materials Market Value (US$ Mn), by Region, 2020
Robust growth in the automotive industry due to the increasing production of automobiles is primarily fueling the market growth of the magnetic materials. Magnetic materials such as soft magnets and hard magnets are widely used in the automotive industry. They are used in motors, alternators, and gearboxes as they require permanent magnets in their mechanism. Moreover, large magnets especially NdFeB and ferrite are used in the moving car parts, engine components, and battery components.
Increasing investment in the development of high-speed locomotive systems that employs electromagnets are projected to foster market growth. Moreover, the development and modernization of infrastructures coupled with the increasing use of permanent magnets in the motors of train doors and lift doors are again propelling the market growth of the magnetic materials. All these factors are projected to accelerate the market growth of the magnetic materials over the forecast period.
The growing demand for magnetic materials in hybrid electric vehicles (HEVs) is expected to bring new market opportunities over the forecast period. Magnetic materials are widely used in the development of hybrid electric vehicles. Thus, increasing the penetration of hybrid electric vehicles is projected to foster market growth. According to the Bureau of Transportation Statistics, Plug-in hybrids and all-electrics combined accounted for 2.1% of the light vehicle market in 2019.
High demand for the electrical & electronics products is expected to offer lucrative growth opportunities over the forecast period. Increasing use of electronic and electrical appliances among the consumer due to increasing disposable income and growing penetration of the internet around the globe is again projected to foster the demand for electrical & electronics products. This is in turn is expected to propel the market growth of the magnetic materials over the forecast period.
|Base Year:||2020||Market Size in 2021:||US$ 103,486.7 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||
|2028 Value Projection:||US$ 188,569.6 Mn|
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., and TDK Corporation
|Restraints & Challenges:||
The expansion of the telecommunication industry due to growing investment and population is projected to positively impact the market growth of the magnetic materials. Increasing urban population and improving standard of living of consumers is again projected to propel the market growth of the magnetic materials. According to the United Nations, in 2018, 55% of the world’s population lives in urban areas, a proportion that is expected to increase to 68% by 2050.
Increasing investment by key manufacturers in the development of magnetic materials is positively shaping the industrial growth. For instance, in September 2018, SHEENSENS MAGNETICS announced that it is investing 200 million yuan to expand the production capacity of NdFeB magnetic materials. At present, the Sheensen NdFeB magnetics material has an annual production capacity of 1,800 tons.
Figure 2. Global Magnetic Materials Market Share, By Product Type, 2020
Key Takeaways of the Graph:
Huge investment in R&D is expected to negatively affect the market growth of the permanent magnets. These factors impede the development of innovative products thus hindering the market growth of the magnetic materials over the forecast period.
The slowdown of the economy due to the COVID- 19 pandemic is projected to hamper the demand and supply of the products. This is expected to inhibit the market growth of the magnetic materials over the forecast timeframe.
Magnetic materials are used all over the world for a variety of purposes. Some materials have the property to retain different shapes when they are exposed to an alternating magnetic field. These materials can be used in mechanical and electrical engineering to create anisotropic, non-permanent magnetic structures which are very important in the aerospace industry. The materials also perform well in resisting impact, heat, and even heat damage. The materials also provide an efficient energy source through their ability to store electrical energy and convert it directly into mechanical energy.
Rapid growth in the automotive industry is driving growth of the magnetic materials market. Increasing penetration of electric vehicles is also fostering growth of the market. Growing usage of electrical &electronics is further projected to augment growth of the magnetic materials market. According to European Union, in 2019, electric car registrations were close to 550 000 units, having reached 300 000 units in 2018. This represents an increase from 2 to 3.5 % of total car registrations. The uptake of electric vans also increased, from 0.8 % of total registrations in 2018 to 1.3 % in 2019.
On the other hand, the high investment required for R&D is expected to hinder growth of the magnetic materials market.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.