Market Research Report
Permanent Magnets Market Forecasts to 2028 - Global Analysis By Type (Ferrite Magnets, Samarium Cobalt Magnets, Aluminium Nickel Cobalt (AlNiCo)), End User (Automotive, Aerospace & Defense) and By Geography
|Permanent Magnets Market Forecasts to 2028 - Global Analysis By Type (Ferrite Magnets, Samarium Cobalt Magnets, Aluminium Nickel Cobalt (AlNiCo)), End User (Automotive, Aerospace & Defense) and By Geography|
Published: February 1, 2022
Stratistics Market Research Consulting
Content info: 200+ Pages
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According to Stratistics MRC, the Global Permanent Magnets Market is accounted for $34.40 billion in 2021 and is expected to reach $73.70 billion by 2028 growing at a CAGR of 11.5% during the forecast period. A permanent magnet is an object which maintains a lasting magnetic field around it without the use of an external power source. Permanent magnets are manufactured from special alloys such as iron, nickel, and cobalt, several alloys of rare-earth metals, and minerals such as lodestone. They generate a persistent magnetic field without the need for any external source of magnetism or electrical power. They are used to convert electrical force to mechanical force and vice versa.
Growing demand from the automobile industry
Emerging economies such as China are witnessing burgeoning demand for electric vehicles that employ permanent magnet motors. Rapid urbanization is prompting individuals to purchase automobiles, prompting massive investments in the global automobile industry. Companies such as GM, Tata Motors, VW Group, Toyota, Honda, and Hyundai are expanding their production capacities. This high growth in the automobile sector is fueling the demand for permanent magnets.
Fluctuating cost of raw material
There have been fluctuations in prices of rare earth metals and other such raw materials used to manufacture permanent magnets. This affects the quality and quantity of permanent magnets produced. Manufacturers pass the additional costs to consumers. This sometimes results in reduced consumption of permanent magnets and also tarnishes their image of being cost-effective materials. In the case of rare earth permanent magnets, the prices of rare earth materials such as dysprosium and neodymium are highly volatile due to increasing supply constraints from China.
Increasing demand for hybrid electric vehicles
Hybrid electric vehicles are major application cases of permanent magnets. High-performance hybrid electric vehicles require about 2 kg to 3 kg of rare earth magnets. Hybrid electric vehicles use both an electric motor and an internal combustion engine to propel the vehicle. The use of hybrid electric vehicles is expected to increase in regions experiencing high pollution. Governments are implementing more environmentally friendly electric drive systems in various regions. In addition, high gasoline prices will also drive the demand for electric vehicles soon. This would create a huge demand for permanent magnets during the forecast period.
High investments for research & development activities
The research & development cost in terms of man-hours, materials, and technology is very high. There are limited elements that can be used to manufacture permanent magnets, and the resulting permanent magnets have to guarantee minimum features at different conditions for them to be actually considered for usage. The product, once identified for usage, has to deliver optimum efficiency that has not only long-term benefits but also has visible short-term benefits. Many market players do not have access to advance technology, capital, and human expertise to manufacture environmentally friendly, efficient, and effective permanent magnets that come at a competitive price.
The consumer electronics segment is expected to be the largest during the forecast period
The demand for permanent magnet in consumer electronics industry is expected to increase mainly due to improving standards of living and rising disposable income of the consumers. In the consumer electronics segment, permanent magnets are used in magnetic heads of Hard Disk Drives (HDD) and CDs. The increasing usage of cloud computing and related development resulted in the growing demand for data centers to store enormous amount of data. The growing demand from data centers for HDD pushes the demand for permanent magnets. These magnets are also used in air conditioners, washing machines, dryers, cooling fan motors in computers, fans, microwaves, loudspeakers, and VCR tape drive motors, among others. Permanent magnets help enhance the efficiency of such appliances. Increasing investments in smartphones, laptops, and household electronic devices are expected to augment product demand during the forecast period. For instance, Samsung announced to invest USD 500 million in setting up a plant in India. An increase in the production of smartphones shall eventually boost market growth.
The ferrite magnets segment is expected to have the highest CAGR during the forecast period
Ferrite magnets are obtained from iron ore that is available in abundance in the earth's crust. Additionally, these provide corrosion resistance, along with high coercivity at low cost, making them ideal for high-temperature motors. Factors such as phenomenal characteristics, abundant availability, and low cost are propelling research activities to find out ways for increasing the consumption of ferrite magnets. For instance, Greenspur Renewables developed a permanent magnet generator (PMG) concept using ferrite that could become beneficial in designing giant 25MW offshore wind turbines.
Region with largest share:
Asia Pacific is projected to hold the largest market share owing to the ising demand from domestic industries in the region. China has been a prominent market in the region. The country not only excels in gaining a high consumption share owing to large-scale production of electronics, electric vehicles, and medical equipment but also has the advantage of possessing large reserves of rare earths, which is an important raw material. In addition, rising government initiatives in the developing economies of Asia Pacific towards the growth of the manufacturing sector are expected to open new opportunities for the market over the coming years.
Region with highest CAGR:
Europe is projected to have the highest CAGR due to the increasing vehicle manufacturing, along with electronics production in the region, is expected to augment product demand in the near future. The resumption in manufacturing operations post lockdown situation is anticipated to create demand for the product.
Key players in the market
Some of the key players profiled in the Permanent Magnets Market include Bunting Magnetics Co., Adams Magnetic Products Co., Inc., TDK Corporation, Galaxy Magnets, Hitachi Metals, Ltd, Arnold Magnetic Technologies, Molycorp Inc, Magx America, Inc., Electron Energy Corporation, Daido Steel Co., Ltd, Tengam Engineering, Inc, Lynas Corporation Ltd, Intermetallics Japan Corporation, Ningbo Co-Star Materials Hi-Tech Co., Ltd, JPMF Guangdong Co., Ltd, Danfoss Editron, and USA Rare Earth LLC.
In March 2021: Arnold Magnetic Technologies announced the acquisition of Ramco Electric Motors, Inc. This transaction further advances Arnold's strategic priorities to deliver new materials and engineered solutions that empower customers to develop next generation technologies.
In July 2020: Danfoss Editron increased the manufacturing rate of power electronics by 13% and permanent magnet motors by 8% compared to the previous month at its facility in Finland.
In April 2020: USA Rare Earth LLC acquired NdFeB permanent magnet manufacturing equipment from Hitachi Metals America, Ltd. This acquisition will aid in re-establishing rare earth magnet production in the U.S., and the company is expected to have an annual production capacity of 2 kilotons of rare earth magnets.
In May 2018: Adams Magnetic Products Co. has expanded its flexible magnet production service capabilities by investing in equipment for two additional production lines. Full production lines were added both in Elmhurst, IL and Carlsbad, CA that can run flexible magnet strip material at more than 300 feet per minute, applying laminate and slitting to the desired width.
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Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.