Permanent Magnets Market Comprised largely of neodymium iron...

Permanent Magnets Market

• Comprised largely of neodymium iron boron magnets, ferrite magnets, samarium cobalt magnets, and alnico magnets

Permanent Magnets Market by Material and Geography - Forecast and Analysis 2022-2026

Published: December 2021 by: Technavio

The permanent magnets market share is expected to increase by USD 13.63 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 10.10%.

• The increasing demand from the automobile sector is notably driving the permanent magnets market growth, although factors such as fluctuating cost of raw materials may impede market growth.
• The demand for automobiles is increasing in major economies such as the US, China, India, and Japan.
• Advancements in the automotive industry force manufacturers to respond to the swiftly increasing need to produce vehicle control systems that are more sophisticated, use less fuel, and produce lower emissions.
• There has been a significant increase in the complexity of vehicle electrical control systems, which has increased the demand for powerful permanent magnets used in the manufacture of automotive actuators and drives.
• This has resulted in the need for rare earth metals and the production of compact and powerful SmCo and NdFeB magnets.
• The shift in vehicle control systems from mechanical, pneumatic, and hydraulic control towards electrical control has inspired the need for magnets in motors, sensors, and actuators to help drastically improve vehicle control systems.
• Price fluctuations in rare earth raw materials negatively affect the quality and production rate of the permanent magnets.
• Vendors globally depend on steady supply of rare earth materials, any delays in the production often lead to high price fluctuations, disrupting the supply to them.
• The prices of rare earth materials such as dysprosium and neodymium are highly volatile due to increasing supply constraints from China.
• 52% of the market's growth will originate from APAC during the forecast period. China, Japan, and India are the key markets for permanent magnets in APAC. Market growth in APAC will be faster than the growth of the market in other regions.
• The growing demand from data centers for hard drives will facilitate the permanent magnets market growth in APAC over the forecast period.
• The permanent magnets market share growth by the Neodymium-Iron-Boron (NdFeB) magnets segment will be significant during the forecast period. Some of the factors which augment the growth of the NdFeB magnets segment across the globe include the increasing and extensive applications of NdFeB magnets in sectors such as electronics, military, automotive, heartcare, and others, along with limited availability of substitutes.