PUBLISHER: The Business Research Company | PRODUCT CODE: 1948184
PUBLISHER: The Business Research Company | PRODUCT CODE: 1948184
A rare earth magnet is a powerful permanent magnet made from alloys of rare earth elements, primarily neodymium (Nd-Fe-B) or samarium-cobalt (SmCo). These magnets exhibit powerful magnetic fields, high resistance to demagnetization and excellent performance even in compact sizes. A rare earth magnet is a powerful permanent magnet made from alloys of rare earth elements, primarily neodymium (Nd-Fe-B) or samarium-cobalt (SmCo). These magnets exhibit powerful magnetic fields, high resistance to demagnetization and excellent performance even in compact sizes.
The global rare earth magnet market reached a value of nearly $17,743.34 million in 2024, having grown at a compound annual growth rate (CAGR) of 4.33% since 2019. The market is expected to grow from $17,743.34 million in 2024 to $24,872.20 million in 2029 at a rate of 6.99%. The market is then expected to grow at a CAGR of 6.62% from 2029 and reach $34,276.02 million in 2034.
Increasing Adoption Of Electric Vehicles
During the historic period, the rare earth magnet market was mainly driven by the increasing adoption of electric vehicles. EV technology relies heavily on high-performance permanent magnets, particularly neodymium-iron-boron (NdFeB) magnets, which enable high torque, compact motor design and superior energy efficiency. As global transportation systems progressed toward electrification, the demand for these magnets increased significantly, supported by government incentives, stricter emission regulations and growing consumer acceptance of cleaner mobility solutions. The accelerating transition to electric mobility enhanced the need for advanced magnet materials that support efficient motor performance, long vehicle life and improved driving range. For instance, in April 2024, the International Energy Agency (IEA), an intergovernmental organization that provides authoritative analysis on global energy trends, released the Global EV Outlook 2024, reporting that electric car sales reached 14 million units in 2023, a 35% increase compared to the previous year. The report also highlighted that electric cars accounted for 18% of all car sales worldwide, up from 14% in 2020, reflecting the rapid acceleration of global EV adoption. This substantial rise in EV production and sales directly increased the demand for rare earth magnet used in traction motors. Therefore, the rare earth magnet market was mainly driven by the increasing adoption of electric vehicles.
Development Of Heavy-Rare-Earth-Free Neodymium Sintered Magnets To Meet High-Performance EV Motor Requirements
Major companies in the rare earth magnet market are focusing on the development of heavy-rare-earth-free neodymium sintered magnets designed to address the increasing performance demands of electric vehicle (EV) driving motors. These innovations aim to deliver high magnetic output, improved thermal stability and reduced resource dependency, while supporting the industry's shift toward more efficient and sustainable motor technologies. For instance, in July 2025, Proterial Ltd., a Japan-based materials manufacturer specializing in advanced magnetic products, introduced a new generation of heavy-rare-earth-free neodymium sintered magnets under the NMX(TM) series, engineered to achieve high residual flux density and high coercive force without relying on heavy rare earth elements. These magnets feature improved temperature performance and enhanced design flexibility, offering a more efficient and environmentally aligned solution for next-generation EV motors. By applying proprietary manufacturing techniques and extensive R&D expertise, the company aims to provide magnet solutions that combine durability, resource efficiency and high performance to meet the evolving needs of global EV and industrial markets.
The global rare earth magnet market is fairly concentrated, with large players operating in the market. The top ten competitors in the market made up to 26.01% of the total market in 2024.
Rare Earth Magnet Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global rare earth magnet market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for rare earth magnet? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The rare earth magnet market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider rare earth magnet market; and compares it with other markets.