Bonded Magnets Market: Current Analysis and Forecast (2022-2030)

A bonding magnet comprises a magnetic powder, adhesive, and suitable additives, making for a complicated combination. Bonded magnets are highly valued in the area of rare earth permanent magnets due to their benefits such as consistent performance, accurate size, complex shape, and efficient material use. Their mechanical properties are favorable, and they exhibit greater electrical resistivity when compared to sintered magnets.

The Bonded Magnets Market is expected to grow at a steady rate of around 6.94% owing to the burgeoning adoption of electric vehicles over the world. The implementation of new technology and the global move towards the electrification of vehicles has a significant growth in the bonded magnets. Moreover, the persistent endeavor of various countries, including the U.S., China, and India, to adopt electric vehicles, are geared towards curbing pollution and minimizing carbon emissions in the environment. Magnets are a primary component in electric motors, powered by an electric motor rather than an internal combustion engine. These cars rely on a large traction battery pack for power. To ensure the battery's longevity, the electric motor must work in an exceptionally efficient manner. An electric vehicle's motor operates when a coil of wire, encircled by strong magnets, spins. The electric current induced in the coil emits a magnetic field, which opposes the magnetic field emitted by the strong magnets that drive the wheel of the cars. For instance, In 2021, according to the international energy agency(IEA), Consumers spent USD 120 billion on electric car purchases in 2020, a 50% increase from 2019, which breaks down to a 41% increase in sales and a 6% rise in average prices. Moreover, in February 2023, according to a report published by the U.S. Bureau of Labor Statistics, the consumer demand for EVs has risen significantly from 22000 EVs on the road in 2011 to a little over 2 million in a decade till 2021.

Therefore, the growing adoption of electric vehicles over the world drives the bonded magnets market.

Based on the product type, the market is divided into rare earth bonded, ferrite bonded, and hybrid magnets. The hybrid magnet segment accounted for the highest market share in the historic period and is anticipated to dominate the market in the forecast period. Major factors contributing to the growth of the segments owing to its better magnetic property compare to rare earth magnets, and ferrite magnets due to its affordability compare to others. In the forecast period, there is a growing demand for hybrid bonded magnets due to the increasing use of these magnets in various industries, including automotive, industrial machinery, and medical devices. This demand is primarily fueled by the growth of the automotive sector.

On the basis of process type, the market is categorized into injection molded magnets, compression bonded magnets, calendaring bonded magnets, and extrusion bonded magnets. Among these, the injection molded segment held a significant share of the market in 2021. This is mainly due to the extensive level of production volume that can be achieved by using this method. The injection molded process is highly automated and can produce magnets more quickly and efficiently, which is too cost-effective for manufacturers to become the primary choice. This process allows for excessive precision and accuracy, which is essential for ensuring that the magnets perform constantly through the years. Moreover, injection molded magnets have a tendency to have an excessive magnetic field strength, making them suitable for an extensive variety of applications.

On the basis of end-user industry, the market is categorized into automotive, consumer electronics, HVAC equipment, pharmaceutical, industrial, and others. Among them, the automotive become the focal point and has led the market in 2021, and is expected to register the highest growth rate in the forecast period. This is mainly due to the increasing production of vehicles worldwide, bonded magnets are extensively used in various parts such as motors, and generators. Moreover, the production of hybrid and electric vehicles has increased in the last few years, and these vehicles use a range of electrical components that require bonded magnets to operate efficiently. For instance, In 2021 consumers across the world spent an estimated USD*250*billion on EV purchases. Therefore, the growing demand for electric vehicles cater to the demand for bonded magnets in the forecast period.

For a better understanding of the market adoption of the bonded magnets industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Mexico, Rest of North America), Europe (Germany, U.K., France, Italy, Spain, Russia, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Rest of Asia-Pacific), Rest of World. The Asia Pacific region is projected to be the dominating region in the forecast period as the region has the highest number of automotive manufacturers and production units that caters to the demand for bonded magnets. The foremost factors attributed to the boom of the market are the increasing urbanization populace within the region as India and China cover nearly 36% of the overall world populace. With the paradigm shift of population increase within the cities in the location seeking out better dwelling requirements, accordingly, the call for consumer electronics home equipment, and electric equipment has accelerated which is the primary give-up-consumer of bonded magnets. The Asia Pacific region is the hub for manufacturing industries such as automotive, and consumer electronics, and the government initiatives to set up the manufacturing behemoths such as HTC, Siemens, Toshiba, and GE establishing or in the process of establishing manufacturing plants. For instance, According to OICA, automobile production in China and India witnessed a growth of 53% in the first nine months of 2021 when compared to the same period in 2020. Moreover, the growing industrialization in the region has witnessed substantial growth in the last couple of years, fueling the demand for bonded magnets.

Some of the major players operating in the market include: Advanced Technology & Materials Co., Ltd.; Xiamen Yuxiang Magnetic Materials Technology Co. Ltd.; Allstar Magnetics; Arnold Magnetic Technologies; VACUUMSCHMELZE GmbH & Co. KG; Neo Magnequench; Stanford Magnets; Evitron; Dexter Magnetic Technologies, Inc.; MS-Schramberg GmbH & Co. KG.