Amorphous Soft Magnetic Materials Market Size, Share & COVID-19 Impact Analysis, By Application (Electronic Article Surveillance, Flexible Antenna, Magnetic Sensors, Magnetic Shielding, Transformers, and Others), and Regional Forecast, 2020-2027

The global amorphous soft magnetic materials market size was USD 522.4 million in 2019 and is projected to reach USD 728.5 million by 2027, exhibiting a CAGR of 4.7% during the forecast period.

Soft magnetic materials are materials that can be easily magnetized and demagnetized. In general, amorphous type of soft magnetic materials possess low coercivity, less remnant magnetization, low eddy current, low hysteresis losses, and high permeability. The exceptional magnetic properties of these materials make them apt for an extensive range of applications such as transformers, shielding, high-frequency inductors, electronic article surveillance systems, sensors, and more.

COVID-19 Is Boosting Demand for Amorphous Soft Magnets in Medical Equipment Sector

The outbreak of COVID-19 has suddenly increased the demand for medical equipment such as CT-Scanner, MRI machines, and ventilators among others. In March 2020, the Society of Critical Care Medicine estimated that around 9,60,000 patients would be put on ventilators at some point during the pandemic in the U.S. To meet the rising demand, local ventilator manufacturers increased their production capacity. GE Healthcare doubled its production capacity since the COVID-19 outbreak and teamed up with Ford to simplify the existing ventilator design and to quickly produce the same. This, in turn, is expected to increase the demand for this type of soft magnetic material from the electrical motor, magnetic switches, and magnetic sensors manufacturers for medical applications.

Leading manufacturers are aiming to meet the rising demand for medical instruments. To achieve product standards, amorphous soft magnetic materials are widely adopted as they have the potential to develop high quality products. Hence, the COVID-19 outbreak is expected to create a potential growth market for soft magnetic materials in the manufacturing of medical equipment.

LATEST TRENDS

Combination of Amorphous Soft Magnetic Materials with Nano-crystalline Alloys is a Key Trend

Due to excellent mechanical and functional properties, both amorphous and nanocrystalline alloys gained popularity among researchers. Though these materials have individual good performance, certain fundamental issues such as poor ductility and lower thermal stability are still to be resolved. Therefore, continuous research is going on to develop new fabrication methods to combine these two material type applications to achieve amorphous-nanocrystalline alloys with outstanding magnetic properties, good thermal stability, and ductility.

DRIVING FACTORS

Advantages of Amorphous Soft Magnetic Materials to Drive the Market

The amorphous alloys consist of mainly iron, nickel and/or cobalt with boron, carbon, phosphorus, or silicon. Magnetic components made from amorphous alloys are helping industrial consumers to conduct operations in an efficient, energy-saving manner with reduced operating cost. Important properties such as lower core losses at higher frequencies, higher & wide range of permeability, increased operational temperatures, low coercive field, core weight & volume reduction ability, excellent corrosion resistance, versatility, good mechanical strength, flux density, and various hysteresis loops, among others make amorphous soft magnetic materials ideal for most of the electrical & electronics applications. It would further propel this market growth.

RESTRAINING FACTORS

Availability and Wide Acceptance of Other Soft Magnetic Materials to Restrain Growth

The other soft magnetic materials such as grain-oriented electrical steel, non-oriented electrical steel, soft ferrites, Ni-Fe, CO-Fe, and iron/powder core are widely available in the soft magnetic materials market. They are also used to manufacture electrical & electronic components. Grain-oriented electrical steel and non-oriented electrical steel together account for more than 80% share in the global soft magnetic materials market. On the other hand, amorphous and nanocrystalline alloys account for merely 2-3% share in soft magnetic material production. Therefore, the availability and wide acceptance of substitute soft magnetic materials represent a key challenge for the global amorphous soft magnetic materials market growth.

SEGMENTATION

By Application

Transformers Segment to Hold the Largest Share in the Market

The amorphous metal transformer is the largest and fastest-growing application segment in the global market for amorphous soft magnetic materials. With an increasing demand for this type of soft magnetic materials in the manufacturing of distribution transformers, the segment is projected to lead the market throughout the forecast period.

The magnetic core of these transformers is made up of amorphous alloys instead of the traditional electrical steel. Due to its excellent strength-to-weight ratio, the amorphous metal core plays an important role in reducing the overall weight of the transformer and offers improved energy efficiency. Moreover, reduced energy consumption and operating temperatures helps to maintain low CO₂ emission. Thus, amorphous metal transformers are playing an important role in developing sustainable solutions in the field of energy distribution. Therefore, the demand for these transformers would further surge the demand for amorphous soft magnetic materials during the forecast period.

REGIONAL INSIGHTS

Asia Pacific accounted for the largest share in the global amorphous soft magnetic materials market in 2019. In this region, China is one of the leading manufacturers of amorphous metal transformers. Therefore, the demand for these materials is higher in the country. Also, increasing adoption of electric vehicles is projected to create growth opportunities for the market in China. For instance, according to the International Energy Agency, in 2018, 45% of the electric cars were on the road in China, as compared to 39% in 2017. It is the largest and the fastest-growing market for electric vehicles in the world and is considered as the global hub for electronic & electrical component manufacturing.

Leading electric vehicle manufacturers such as Tesla are investing into the Chinese market to tap the potential opportunities in this segment. Therefore, the demand for amorphous soft magnetic materials in the manufacturing of electric vehicle components is expected to increase in China during the forecast period.

Europe held the second largest global amorphous soft magnetic materials market share followed by North America. In Europe, Germany is the leading market for electronics products in terms of consumption and production. In terms of manpower, the electronics & micro-technology industry in Germany is the second largest. The industry is continuously focusing on developing electronics solutions for the manufacturing and automotive industry. This is due to an increased focus on smart manufacturing, e-mobility and energy transition towards sustainable energy.

Germany is the top FDI destination for electronics manufacturing. Within 2013-2017, Germany received 277 new investment electronics projects. Therefore, continuous investment backed by increasing R&D spending on developing newer electronic solutions is creating potential demand for soft magnetic materials in Germany.

KEY INDUSTRY PLAYERS

Leading Players Launch New Products to Meet Growing Demand in the Market

With constant evolving magnetic technologies in electrical & electronics industries, the need for developing technologically advanced materials is increasing. The development of new fabrication methods by leading players is changing the dynamics of the global market for soft magnetic materials. Hitachi Metals, Ltd., a leading manufacturer of magnetic materials is launching new products to expand their product portfolio in terms of application and geography. The company is significantly investing into research & development activities to offer new solutions to its customers across the world.

LIST OF KEY COMPANIES PROFILED:

• Hitachi Metals, Ltd. (Tokyo, Japan)


• VACUUMSCHMELZE GmbH Co KG (Hanau, Germany)


• CHINA AMORPHOUS TECHNOLOGY CO., LTD. (Guangdong, China)


• BOMATECH (Höri, Switzerland)


• Toshiba Materials Co., Ltd. (Yokohama, Japan)


• AMES SA (Barcelona, Spain)


• Advanced Technology & Materials Co., Ltd. (Beijing, China)


• MK Magnetics Inc. (California, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2018: Hitachi Metals developed a Magnetic Domain Control Type Fe-base Amorphous Metal, MaDC-A, a new product with significantly reduced core loss.

REPORT COVERAGE

The market research report provides both qualitative & quantitative insights for the global market for the amorphous soft magnetic material. Quantitative insights include the global market sizing in terms of value (USD Million) across each segment, sub-segment, and region profiled in the scope of the study. Also, the report covers market share analysis and growth rates of the segment, sub-segments, and key counties across each region. Qualitative insight covers the elaborative analysis of market drivers, restraints, growth opportunities, key market trends related to the market. The competitive landscape section covers detailed company profiling of the key players operating in the global market.

Report Scope & Segmentation