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The global permanent magnet market size was USD 17.85 Billion in 2018 and is projected to reach USD 34.70 Billion by 2026, exhibiting a CAGR of 8.7% during the forecast period.
A permanent magnet is an object that retains its magnetic properties even in the absence of a magnetizing force such as inducing field or current. The core structure of the material generates the magnetic field in permanent magnets. These magnets have low small permeability, large magnetic moments, and are stable to external magnetic fields. These magnets are also known as hard magnets. These magnets convert electrical energy into mechanical energy and vice versa, which further controls the electrons and use the repulsion between magnets. These magnets include alloy magnets, ferrite magnets, and bonded magnets. They are used in various types of motors, loudspeakers, appliances, and HVAC.
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Rising Use of Permanent Magnets for Hybrid Electric Vehicles in Automotive Industry
The increasing demand for magnets in hybrid electric vehicles will boost market growth. Hybrid electric vehicles contain both an internal combustion engine and an electric motor, which further requires about 2kg to 3kg of rare earth magnets. In addition to this, it is also used in several components such as door locks, windscreen wipers, speakers, and electric window regulators. Hence, the gradually increasing demand for hybrid electric vehicles will fuel the automotive industry, thereby promoting the hard magnet market growth.
Rising Demand for Consumer Electronics Considered Key Growth Driver
The rising demand for consumer electronics will increase the demand for permanent magnets. The beneficial properties of these magnets such as attraction, repulsion, and energy conversion will help augment its demand in various consumer electronics such as laptops, televisions, music systems, computers, and smart phones. The rising consumer preferences and advancements in technology have fueled the demand for consumer electronics, which will create lucrative growth opportunities for the market during the forecast period.
Rising Use of Neodymium Iron Boron (NdFeB) in Various Applications will Augment Market Growth
Neodymium Iron Boron (NdFeB) magnets are susceptible to oxidation and exhibit high magnetic stability, field strength, and low curie temperature. NdFeB magnets also provide the highest theoretical maximum energy than other hard magnets. These benefits increase its use in several applications such as automotive parts, wind turbines, actuators, speakers, electronics equipment, and domestic appliances. Hence, the growth of these applications will lead to a rise in demand for NdFeB magnets, thereby aiding to market growth.
Fluctuation in Prices of Raw Material May Hamper Growth
The rising energy costs and fluctuations in the availability of raw materials such as alloys of rare-earth elements create variations in the quality of magnets and their prices. This disrupts the supply chains and makes it challenging for manufacturers to deliver quality products at lower prices. These factors are anticipated to cause hindrance to the growth of the market in the coming years.
Neodymium Iron Boron (NdFeB) segment leads the Permanent Magnet Market
Based on type, the market is classified into neodymium iron boron (NdFeB), ferrite, samarium cobalt (SmCo), aluminum nickel cobalt (Alnico), and others. The NdFeB segment accounted for the highest revenue share. The growth of this segment is attributed to its high performances, small size, and low-cost features. These magnets are mainly utilized in electric motors and power tools. Furthermore, lack of efficient substitutes for NdFeB magnets, coupled with initiatives taken by several governments to encourage the use of green technologies is anticipated to add impetus to the market.
The ferrite magnets provide high-temperature operations, resistance to demagnetization, and are cost-effective. These properties increase its use in automotive components such as door closing, fuel pump, engine starter, windshield wipers, and antenna lift, thereby anticipating a notable growth in the forecast period.
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Electronics Segment to Account for Major Share during Forecast Period
In terms of end-use, the market is segmented into consumer electronics, automotive, general industrial, medical devices, energy, and others. The consumer electronics segment is the largest application of the hard magnet market. The growth in the use of magnets in this application is associated with the rising demand for consumer electronics products. The rising consumer disposable income and technological advancements are the factors propelling the demand for various electronic products such as air conditioning, cameras, compressors, loudspeakers, and mobile phones. Increasing demand for consumer electronics will raise the use of permanent magnets globally.
The automotive industry is expected to witness lucrative growth during the forecast period. In the automotive application, hard magnets are utilized in moving car parts, battery components, and engine components. The rising need for hybrid electric vehicles and electric vehicles, coupled with the growing automotive industry will surge the demand for hard magnets.
Asia Pacific Permanent Magnet Market Size, 2018 (USD Billion)
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The market size in Asia Pacific stood at USD 13.82 Billion in 2018 and emerged dominant. It is also the fastest-growing region in the market owing to the rising demand for permanent magnet from automotive, consumer electronics, and energy applications. China is the leading producer and consumer of these magnets owing to the abundance of rare-earth deposits in this region. In North America, the growth of hard magnets is attributed to the rapidly increasing demand for consumer electronics such as wearable devices, personal computers, medical devices, and mobile phones. The hard magnet market in Europe is expected to rise remarkably owing to a rapidly growing automotive industry. Additionally, the rising demand for electric vehicles and hybrid electric vehicles along with government regulations to increase the use of these vehicles over conventional vehicles will drive the market in Europe.
Key Players Blending Organic and Inorganic Growth Strategies to Continue Dominating Market
Permanent magnets are majorly produced in China due to the abundant availability of raw materials. China accounts for about 70% of the production volume. Hence, many players in the market have their branches in China and are investing a considerable amount of resources in research and development of customized permanent magnet products as per the needs of end-users.
Furthermore, these companies have adopted strategies for new product development, expansion, and acquisition to increase their product offerings, geographic presence, and efficiently serve customer demands. These strategies are projected to positively impact the global market during the forecast period as many companies would increase their market share.
The permanent magnet market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, types, and applications of the product. Besides this, the report offers insights into the market, current trends, and highlights key permanent magnet industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.
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Value (USD billion) and Volume (Kiloton)
Fortune Business Insights says that the global market size was USD 17.85 billion in 2018 and is projected to reach USD 34.70 billion by 2026.
In 2018, the market value stood at USD 17.85 billion.
Growing at a CAGR of 8.7%, the market will exhibit steady growth in the forecast period (2019-2026).
Neodymium Iron Boron (NdFeB) is expected to be the leading segment in this market during the forecast period.
Rising demand for consumer electronics is driving the market.
Asia Pacific held the highest market share in 2018.
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