Global Permanent Magnet Market Set to Witness Prolofic Demand—Projected to Reach worth USD 59.3 billion by 2027
Published | 21 October 2021
The permanent magnet market is expanding due to increased demand for permanent magnets in a variety of applications around the world. The booming automotive industry is propelling the permanent magnet market forward…
A study, recently conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the global permanent magnet market was worth USD 31.7 billion in 2020 and is further projected to reach USD 59.3 billion by 2027, at a CAGR of 9.4 % during the forecast period (2021-2027). The consumer goods and electronics industry is heavily reliant on permanent magnets, which are widely employed in a variety of applications, including smartphones and personal gadgets. The booming automotive industry is also propelling the permanent magnet market forward. Additionally, the medical industry is an important market segment that is favoring the market growth. With the increasing number of COVID-19 cases around the world, demand for ventilators is skyrocketing, propelling the growth of the permanent magnet market worldwide.
The Increase in Demand for Permanent Magnets in Hybrid Electric Vehicles is Creating Immense Opportunities for Permanent Magnet Manufacturers
Permanent magnets are increasingly being employed in hybrid electric vehicles in the automotive industry. In high-performance hybrid electric vehicles, rare earth magnets weigh between 2 and 3 kg. Hybrid electric vehicles are powered by both an electric motor and an internal combustion engine. According to Statista, around 17,600 plug-in hybrid electric vehicles were sold to customers in the United States between July and September 2020. In the United States, plug-in hybrid electric vehicles accounted for around a fifth of all plug-in electric vehicle sales. Moreover, the use of hybrid electric vehicles is projected to increase in areas with high pollution levels. Governments in numerous places are implementing more environmentally efficient electric motor systems. Furthermore, rising gasoline prices will raise demand for electric vehicles in the foreseeable future. This would result in a considerable need for permanent magnets over the estimated time span.
Global Permanent Magnet Market: By Type
Based on types, the global permanent magnet market is categorized into neodymium iron boron magnets, ferrite magnets, samarium cobalt magnets, alnico magnets, and others. Ferrite magnet accounted for the largest market share in 2020 and is likely to dominate the segment during the forecast period. Ferrite magnets, unlike rare earth magnets, are produced from iron ore, which is abundant in the earth's crust. These magnets have strong coercivity and corrosion resistance, making them ideal for high-temperature motors.Research attempts to identify ways to increase the use of ferrite magnets are being fueled by factors such as exceptional qualities, abundant availability, and inexpensive cost. Greenspur Renewables, for example, created a permanent magnet generator (PMG) concept employing ferrite, which could be useful in creating large 25MW offshore wind turbines.
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Impact of COVID-19
Due to the COVID-19 outbreak, the permanent magnet industry has been negatively impacted in 2020. The lethal virus has wreaked havoc around the globe, particularly in Asia and Europe. Companies had to shut down their operations and manufacturing facilities. Construction activities were also halted to prevent the virus from spreading further. As a result, the use of permanent magnets in various applications witnessed a shartp decline. Automobile manufacturing, for instance, witnessed a downfall of 15.8% in 2020 compared to the previous year. Additionally, electronic component suppliers have been unable to meet rising demand, which has negatively impacted the electronics industry.
Asia-Pacific Leads the Global Permanent Magnet Market
Asia-Pacific region held the largest market share in 2020 and is likely to dominate the market during the forecast period. This can be attributed to China and Japan's highly developed sustainable energy sectors and ongoing investments in the area to enhance the automotive technology sector over time. In addition, the Asia-Pacific region's growing population and expanding industrial production activities raised the production and demand for power from various energy sources. As a result, the need for permanent magnets in a variety of applications has grown. According to the International Energy Agency (IEA), the Asia-Pacific region consumes the most power in all forms, including fossil fuels and renewable energy sources. In 2019, China added 66 gigawatts (GW) of renewable energy capacity, with 82 GW planned by 2021. In India, renewable capacity additions were roughly 12 GW in 2019 and are expected to rise to 16 GW by 2021.
The global permanent magnet market is fragmented due to the presence of numerous players involved in the market. Companies that are active in new product development, expansion, and acquisition remain competitive in the market. Additionally, some of the major players are expanding their global footprint by acquiring international producers.
Some key players in the global permanent magnet market are Hitachi Metals, Ltd., Arnold Magnetic Technologies, Yantai Shougang Magnetic Materials Inc., Tdk Corp., Shin–Etsu Chemical Co., Ltd., Electron Energy Corporation, Adams Magnetic Products Co., Inc., Bunting Magnetics Co., Tengam Engineering, Inc., Ningbo Yunsheng Co., Ltd., Chengdu Galaxy Magnets Co. Ltd., Goudsmit Magnetics, Eclipse Magnetics, Earth–Panda Advance Magnetic Material Co., Ltd., Hangzhou Permanent Magnet Group, JPMF Guangdong Co., Ltd., and other prominent players.
In March 2021, Arnold Magnetic Technologies Corporation, a subsidiary of Compass Diversified and leading global manufacturer of high-performance magnets, magnetic assemblies, precision thin metals, and highly loaded composites, announced that it had acquired Ramco Electric Motors, Inc.—a manufacturer of stators, rotors, and full electric motors. The financial terms of the transaction were not disclosed.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global permanent magnet market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the global permanent magnet market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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- Permanent Magnet Market- Global Industry Size, Share, Trend Analysis, Outlook, Growth, Opportunity and Forecast, 2017-2027, Segmented By Type (Neodymium Iron Boron Magnets, Ferrite Magnets, Samarium Cobalt Magnets, Alnico Magnets, and Others); By Application (Consumer Electronics, General Industrial, Automotive, Medical Technology, Environment & Energy, Aerospace & Defense, and Others); By Region (North America, Europe, the Asia-Pacific, Latin America, and the Middle East & Africa)
Publish Date: October 2021
The permanent magnet market is expanding due to increased demand for permanent magnets in a variety of applications around the world. The booming automotive industry is propelling the permanent magnet market forward.
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