The global permanent magnets market size is expected to reach USD 39.67 billion by 2027, according to a new report by Grand View Research, Inc. It is expected to exhibit a CAGR of 7.5% in terms of revenue, during the forecast period. Increasing use of ferrite magnets in electronic and electrical devices, such as electric motors, earbuds, switching devices, laptops, transformers, inductors, smartphones, and signal processing devices is expected to drive the demand for permanent magnets.
Neodymium magnets are utilized in a majority of electronic devices such asHard Disk Drives (HDDs), CDs, DVDs, and earbuds owing to their high magnetic strength and ability to perform at a wide temperature range. According to Arnold Magnetic Technologies, the utilization of neodymium magnet in earbuds is approximated 0.2 grams per earbud. The increasing demand for earbuds and other electronic devices is anticipated to augment market growth over the forecast period.
High magnetization and superior performance of neodymium magnets at high temperatures make them suitable for use in generators in the energy sector. Therefore, neo magnets are increasingly used in the energy industry. Roughly 15% of the cumulative wind energy installations until 2015 were based on permanent magnets. According to the International Renewable Energy Association (IRENA), global wind energy capacity installation reached 563,726 megawatts in 2018. The increasing wind capacity installation is anticipated to augment the growth of the permanent magnets market.
In Asia Pacific, a rise in the production of electronics, passenger vehicles, and wind power generators is anticipated to increase the product application. Moreover, government initiatives such as Make in India by the Indian government, is leading the country to become the manufacturing hub in the region. Global manufacturing giants like Siemens (electric motor manufacturer), HTC (consumer electronics manufacturer), GE (Industrial motor and generator manufacturer), and Toshiba (Consumer electronics manufacturer) have either set up or in the process of establishing production plants in India. This is expected to significantly drive the demand for permanent magnets in the country.
Key market players include Hitachi Group; Arnold Magnetic Technologies; Adams Magnetic Products Co.; Molycorp, Inc.; Hangzhou Permanent Magnet Group; and Shin-Etsu. These companies are investing in capacity expansion and mergers and acquisitions to meet the growing demand from end-use industries. For instance, in June 2015, Daido Steel Company introduced a hot extrusion process to manufacture anisotropic Nd-Fe-B ring magnet named NEOQUENCH-DR, which is an isotropic bonded magnet mixed with SmFeN powder and resin bond.
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Further key findings from the report suggest:
- Neodymium Iron Boron magnets is anticipated to progress at a CAGR of 7.8%, in terms of revenue over the forecast period owing to the increasing demand from electric motors, air conditioning compressors and fans and energy storage systems
- Industrial application is projected to witness a CAGR of 5.8% in terms of volume over the forecast period owing to increasing demand for motors around the globe
- Energy is among the fast growing segments in terms of revenue, owing to the increasing demand for renewable energy sources such as wind energy in which wind turbine generator uses permanent magnets
- Asia Pacific is anticipated to expand at a CAGR of 5.8% in terms of volume over the forecast period owing to the growing automotive and electronics industries, especially in China, India, Japan, and South Korea
- Europe is expected to witness a CAGR of 5.0% in terms of revenue over the forecast period owing to the rising demand for electric vehicles on account of stringent regulations reducing fuel emissions in the region