Permanent Magnet Market - Growth, Trends, and Forecasts (2022 - 2027)

The Global Permanent Magnet Market is projected to register a CAGR of over 6% during the forecast period (2022-2027).

The market was negatively affected by the outbreak of novel coronavirus. During the pandemic situation, various industries such as automotive and electronics have halted production for quite a long period. That restricted the growth of the market. However, in 2022, the situation is coming on track and now the market is stable and growing steadily.

Key Highlights

• Over the medium term, the increasing electro-mechanical applications are the major factor driving the growth of the market studied.
• On the flip side, competition from substitutes is hindering the growth of the market studied.
• Asia-Pacific is expected to account for the largest share and is likely to dominate the market studied during the forecast period.

Key Market Trends

Growing Demand from Electronics Industry

• Permanent magnets are increasingly being used in electro-mechanical products for better efficiency purposes.
• Permanent magnets have wide applications in electronics such as refrigerators, electric motors, loudspeakers, and sensors among others.
• The electronics industry is continuously making remarkable progress and development, and the demand for the market studied is growing, rapidly. The production of cellular phones, portable computing devices, gaming systems and other personal electronic devices will continue to spark the demand for electronic components which further is expected to boost the demand for permanent magnets.
• The Asia-Pacific market is expected to register a growth of more than 7% in 2022. Countries such as China, India, and Japan are the top manufacturers of electronics globally.
• China dominates electronics production in the global market. The country's electronics production which was steadily increasing through the years, has recently suffered from deceleration owing to the ongoing trade war between China and United States, forcing various electronics producers to shift their base from China to other countries in Asia-Pacific region.
• India is expected to have a digital economy of USD 1 trillion by 2025 and India's Electronics System Design and Manufacturing (ESDM) sector is expected to generate over USD100 billion in economic value by 2025. Several policies such as Make in India, National Policy of Electronics, Net Zero Imports in Electronics, and Zero Defect Zero Effect, offer a commitment to growth in domestic manufacturing, lowering import dependence, energizing exports, and manufacturing.
• Europe is also witnessing significant growth owing to the increasing investments in the region. Germany has the largest electronic industry in Europe. According to Germany electrical and electronic association, the country's electricity and electronic production have declined by about 6% to about EUR 182 billion in 2020. However, in December 2021, the sales of the domestic electro and digital industry in Germany amounted to EUR 18.1 billion, registering a growth rate of 8.5% compared to December 2020.​
• The United Kingdom is one of the largest European market for high-end consumer electronics products, with about 18,000 UK-based electronics companies in the market. According to the Department for International Trade, the electronics sector in the United Kingdom is worth GBP 16 billion, each year, to the local economy.
• All the aforementioned factors are expected to significantly impact the demand for the market studied during the forecast period.

Asia-Pacific Region to Dominate the Market

• Asia-Pacific region is expected to dominate the market owing to the highly developed sustainable energy sector in China, and Japan coupled with the continuous investments occurring in the region to advance the automotive technology sector throughout the years.
• Additionally, the growing population and expanding industrial production activities in the Asia-Pacific region increased the production and demand for electricity through various energy sources. This, in turn, has been supporting the demand for permanent magnets in multiple applications.
• Global additions of solar PV capacity are on course to break new records both this year and next, with the annual market reaching 200 GW in 2023. Solar growth in China and India is accelerating, driven by strong policy support for large-scale projects, which can be completed at lower costs than fossil fuel alternatives.
• The Indian government announced an exceptionally ambitious plan to double installed capacity over the coming decade and to do so primarily through accelerated deployment of renewable energy. From April 2020 to February 2021, India installed 9.7 gigawatt (GW) of power generation capacity.
• According to the International Organization of Motor Vehicle Manufacturers (OICA), China is the largest producer of automobiles. The country alone produced 1,82,42,588 vehicles from Q1 to Q3 o f 2021, which accounted for about 31.86% of the global volume. The production of vehicles for 2021 accounted for 2,60,82,220 units.
• The Indian electronics market is expected to reach USD 400 billion by 2025. Additionally, India is expected to become the fifth-largest consumer electronics and appliances industry in the world by 2025.​
• All the factors, in turn, are projected to have a significant impact on the market growth in the region during the forecast period.

Competitive Landscape

The global permanent magnet market is fragmented in nature. Some of the major players of the market studied include Hitachi Metals, Ltd., Shin-Etsu Chemical Co., Ltd., TDK Corporation, Daido Steel Co., Ltd., and Lynas Rare Earths Ltd., among others (not in any particular order).

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support