MAGNETIC MATERIALS MARKET SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS (2023 - 2028)

The Magnetic Materials Market is segmented by Type (Hard Magnetic Materials, Soft Magnetic Materials, Semi-Hard Magnetic Materials), End-User Industry (Automotive, Electronics, Power Generation, Industrial, and Other End-user Industries) and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa)

Magnetic Materials Market Analysis :

The market for magnetic materials is expected to grow at a CAGR of approximately 7% globally during the forecast period.

The rising usage of electronics around the globe and the growing need for electricity and power conversion are driving the market growth.

The high cost of rare earth materials and mining regulations are expected to hinder the market growth.

Magnetic Materials Market Trends

This section covers the major market trends shaping the Magnetic Materials Market according to our research experts:

Growing Demand from Power Generation Sector

Magnetic Materials have been increasingly used in the power generation sector. These materials are used in motors to generate power and transmission of electricity. Magnetic materials majorly finds their application in equipment such as motors, generators, transformers, actuators, amongst others.

Electric machines are made of hard magnetic materials and are used for one basic function, which is to provide magnetic flux. Hard magnetic materials have high coercivity in order to resist demagnetization from the electric circuit and thermal demagnetization under high operating temperatures.

Generators are majorly used in power generation plants to produce electricity. Magnetic materials in generators use electromagnetism mechanism and convert energy from mechanical to electrical energy.

According to the International Energy Agency (IEA), Asia-Pacific has become the largest producer and consumer of electricity in recent years due to increase in population and industries in this region.

Rising usage of electricity, growing population, and technological advancements in developing regions are driving the demand for power generators, which in turn is expected to drive the market for magnetic materials through the years to come.

Asia Pacific Region to Dominate the Market

The Asia-Pacific region is expected to dominate the global market owing to the highly developed power generation sector in China and India, coupled with the continuous investments done in the region to advance the electronics and automotive sector through the years.

Moreover, the growing environmental issues in the Asia-Pacific region have increased government regulations on combustion engine vehicles. This has increased the need for electric vehicles in the region, in turn supporting the consumption of magnetic materials in various applications.

According to the EV volumes, even though China witnessed a steep decline in sales of electric vehicles, China has the largest consumption share globally in electric vehicles currently.

According to the International Renewable Energy Agency (IRENA), governments are majorly investing in solar energy sources and it has the largest share compared to other renewable sources in Asia-Pacific.

Conversion technologies for wind and solar also require magnetic converters to convert solar or wind energy into electrical energy. Continuous growth in renewable energy sectors in Asia-Pacific is expected to drive the market for magnetic materials through the years to come.

Magnetic Materials Industry Overview

The global magnetic materials market is partially consolidated in nature with a few major players dominating a significant portion of the market. Some of the major companies are Hitachi Metals Co. Ltd, Daido Steel, Arnold Magnetic Technologies, Lynas Corporation, and Shin-Etsu Chemical, amongst others.