The market for permanent magnets is expected to witness a CAGR of more than 6% globally during the forecast period. The rising number of electro-mechanical devices for sustainable energy and growing demand for electric vehicles is driving market growth. Competition from other materials and the associated costs are expected to hinder the market growth.
Key Market Trends
Growing Demand from Electro-mechanical Products
- Permanent magnets are increasingly being used in electro-mechanical products for better efficiency purposes. Permanent magnets find their application in renewable energy sources, generators, turbines, DC motors, and linear and rotational actuators, among others.
- Renewable energy sources, such as wind energy, solar energy, and hydro energy, use permanent magnets for the conversion of mechanical energy to electric energy.
- Asia-Pacific leads the power generation sector in terms of production capacity, owing to the presence of a large number of various power plants. Permanent magnets help generators and turbines by producing eddy currents to convert mechanical energy to electric energy, which is majorly witnessed in power generation plants.
- Rising environmental awareness, increasing demand for electric vehicles, and growing clean energy initiatives in developed regions are driving the demand for electro-mechanical converters, which in turn is expected to drive the market for permanent magnets through the years to come.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific is expected to dominate the global market owing to the highly developed sustainable energy sector in China, and Japan coupled with the continuous investments done in the region to advance the automotive technology sector through the years.
- Also, the growing population and expanding industrial production activities in the Asia-Pacific region increased the production and demand for electricity through various energy sources. This, in turn, has been supporting the demand for permanent magnets in multiple applications.
- According to the International Energy Agency, the Asia-Pacific region is the highest electricity consumer from all formats, such as fossil fuels and renewable energy sources.
- Permanent magnets are being used in automotive electric vehicles, and according to EV Volumes, recently, the electric vehicle automotive industry in Asia-Pacific has witnessed growth both in terms of production and sales.
- Applications of permanent magnets in the electronics industry include loudspeakers, sensors, digital players, mobile phones, ultrasonic generators, MRI scanners, and many more. Continuous growth in the electronics sector in recent years among the Asia-Pacific is expected to drive the market for permanent magnet through the years to come.
The permanent magnet market is fragmented in nature, with many players competing in the market. Some of the major companies are Hitachi Metals, Shin-Etsu Chemical Co. Ltd, TDK Corporation, Daido Steel Co., Ltd, and Lynas Corporation Ltd, among others.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support