Report Overview

A surging demand from thriving electric vehicles (EVs) and consumer electronics industries, renewable energy expansion, energy efficiency focus, material innovations, and smart grid infrastructure development are expected to boost the growth of Vietnam Soft Magnetic Materials Market during the forecast period between 2025 and 2031.

Vietnam Soft Magnetic Materials Market – Industry Trends & Forecast Report, 2031

Vietnam Soft Magnetic Materials Market size was estimated at USD 223.27 million in 2024. During the forecast period from 2025 to 2031, Vietnam Soft Magnetic Materials Market size is projected to grow at a CAGR of 8.60%, reaching a value of USD 397.77 million by 2031. The growth of Vietnam Soft Magnetic Materials Market is driven by rising demand for energy-efficient electrical systems, expanding electronics manufacturing, and rapid adoption of electric vehicles. Growth in renewable energy infrastructure, especially wind and solar power, boosts material usage. Technological advancements in magnetic alloys enhance performance and reduce core losses. Government initiatives supporting green energy and smart grid development further stimulate demand. Vietnam’s integration into global supply chains and increased industrial automation also contribute to the market’s upward trajectory.

Soft Magnetic Materials – Overview

Soft magnetic materials are easily magnetized and demagnetized, requiring minimal energy for these transitions. They exhibit high permeability, low coercivity, and low hysteresis loss, making them ideal for applications involving alternating magnetic fields. Common types include silicon steel, ferrites, and amorphous alloys. These materials are widely used in transformers, electric motors, inductors, and magnetic shielding. Their ability to reduce energy losses and enhance magnetic efficiency makes them essential in modern electronics, power systems, and renewable energy technologies.

Vietnam Soft Magnetic Materials Market 

Growth Drivers

Rising Demand for Electric Motors and Transformers

Vietnam Soft Magnetic Materials Market is witnessing robust growth driven by the surging demand for electric motors and transformers. As the country accelerates industrialization and embraces renewable energy, efficient magnetic components are essential for power conversion and transmission. Soft magnetic materials, known for low energy loss and high permeability, are increasingly used in automotive, electronics, and energy sectors. This rising demand is further fueled by Vietnam’s expanding electric vehicle market and infrastructure upgrades, positioning the nation as a key regional growth hub.

Challenges

Volatile Raw Material Prices

Vietnam Soft Magnetic Materials Market faces a key restraint in the form of volatile raw material prices. Core materials like silicon steel, nickel alloys, and cobalt are subject to global supply chain disruptions and fluctuating commodity markets. These price instabilities increase production costs and reduce profit margins for manufacturers, hindering long-term planning and investment. As Vietnam scales up its industrial and energy infrastructure, managing raw material volatility becomes critical to sustaining growth and maintaining competitiveness.

Impact of Escalating Geopolitical Tensions on Vietnam Soft Magnetic Materials Market 

Escalating geopolitical tensions are reshaping Vietnam Soft Magnetic Materials Market by disrupting global supply chains and increasing uncertainty in raw material sourcing. As firms diversify away from China due to Sino-U.S. friction, Vietnam emerges as a strategic alternative for rare earth magnet production. However, heightened policy risks and trade restrictions can hinder investment flows and delay infrastructure projects. These tensions may inflate costs and complicate cross-border partnerships, challenging Vietnam’s ambitions to become a regional hub for magnetic material manufacturing.

Vietnam Soft Magnetic Materials Market 

Segmental Coverage

Vietnam Soft Magnetic Materials Market – By Material Type

By material type, Vietnam Soft Magnetic Materials Market is divided into Silicon Steel, Ferrites, Amorphous Metals, and Nickel Alloys segments. The silicon steel segment is the largest material type in Vietnam Soft Magnetic Materials Market. Silicon steel is  extensively used in electric motors, transformers, and power generation equipment. Known for its high magnetic permeability and low core loss, silicon steel offers superior energy efficiency in alternating magnetic fields. Its dominance is reinforced by Vietnam’s growing industrial base and infrastructure development, which demand reliable and cost-effective magnetic components. As electrification expands, silicon steel continues to lead the market in both volume and value.

Vietnam Soft Magnetic Materials Market – By Application

Based on application, Vietnam Soft Magnetic Materials Market is divided into Power Transformers, Inductors & Chokes, Magnetic Storage Devices, and Electric Motors segments. The electric motors segment represents the largest application in Vietnam Soft Magnetic Materials Market, driven by rapid industrialization and the rise of electric vehicles. These motors rely heavily on soft magnetic materials for efficient energy conversion and minimal power loss. Vietnam’s growing manufacturing base and increasing adoption of automation technologies further fuel demand. As the country positions itself as a regional hub for electronics and automotive production, electric motors continue to dominate in both volume and revenue contribution.

Vietnam Soft Magnetic Materials Market – By Manufacturing Process

Vietnam Soft Magnetic Materials Market by manufacturing process is divided into Cold Rolling, Powder Metallurgy, Sputtering, and Casting segments. The cold rolling segment is the largest manufacturing process segment in Vietnam Soft Magnetic Materials Market. This method enhances the magnetic properties of materials like silicon steel by refining grain structure and reducing core losses. Its dominance stems from widespread use in producing high-efficiency components for transformers and electric motors. Cold rolling offers consistent quality, scalability, and cost-effectiveness, making it the preferred choice for industrial applications. As Vietnam’s energy and electronics sectors expand, demand for cold-rolled magnetic materials continues to surge.

Competitive Landscape

Major companies operating in Vietnam Soft Magnetic Materials Market include Hitachi Metals, Ltd, VACUUMSCHMELZE GmbH & Co. KG, Toshiba Materials Co., Ltd, Daido Steel Co., Ltd, Arnold Magnetic Technologies, GKN Powder Metallurgy, Mate Co., Ltd, Mahindra CIE Automotive Ltd, Sumitomo Metal Mining Co., Ltd, JFE Steel Corporation, and POSCO. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Material Type

• Silicon Steel

• Ferrites

• Amorphous Metals

• Nickel Alloys 

By Application

• Power Transformers

• Inductors & Chokes

• Magnetic Storage Devices

• Electric Motors

By Manufacturing Process

• Cold Rolling

• Powder Metallurgy

• Sputtering

• Casting