Advanced Magnetic Materials Market 

• The development of new industrial robots and increasing demand for electric vehicles (EVs) are driving the market growth.

The market CAGR for Advanced Magnetic Materials is being driven by the development of new industrial robots and increasing demand for electric vehicles (EVs). According to the Industrial Federation of Robotics, the World Robotics report revealed that a record-breaking 517,385 new industrial robots were installed in factories worldwide in 2021, representing a remarkable 31 percent year-on-year growth. According to the Association for Advancing Automation (A3), which tracks industrial robot sales in North America, companies placed orders for 44,196 robots in 2022, marking an 11% increase compared to 2021.

Advanced magnets are pivotal in the advancement of highly compact and powerful servomotors and actuators utilized in various motion control systems, including industrial robots that demand rapid response, robust torque, and precise positioning. The escalating demand for industrial robots is propelling the growth of the advanced magnetic materials market.

This signifies an increase of 2.1 million individuals breathing polluted air compared to the previous year. This awareness of poor air quality is expected to boost the demand for air purifiers, and technological innovations have facilitated the deeper penetration of smart air purifiers in the industry.

As a result, it is anticipated that throughout the projection period, demand for the Advanced Magnetic Materials Market will increase due to the Development of new industrial robots and increasing Demand for electric vehicles (EVs). Thus, driving the Advanced Magnetic Materials Market revenue.

The Global Advanced Magnetic Materials Market Industry is poised for substantial growth, with projections indicating a market value of 27244.1 USD Billion in 2024 and an anticipated increase to 69389.8 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 8.87% from 2025 to 2035, reflecting the increasing demand for advanced magnetic materials across various sectors. The market's expansion is driven by factors such as technological advancements, rising demand for electric vehicles, and the growing renewable energy sector. These dynamics collectively indicate a robust future for the industry.

The Global Advanced Magnetic Materials Market Industry benefits from the expanding renewable energy sector, particularly in wind and solar energy. Magnetic materials play a vital role in the efficiency of generators and transformers used in renewable energy systems. As countries strive to meet sustainability targets, investments in renewable energy infrastructure are increasing. This trend is expected to drive the demand for advanced magnetic materials, contributing to a compound annual growth rate (CAGR) of 8.87% from 2025 to 2035. The integration of these materials in renewable technologies enhances energy conversion efficiency, further supporting market growth.

The Global Advanced Magnetic Materials Market Industry experiences a surge in demand due to the increasing adoption of electric vehicles (EVs). As automakers pivot towards sustainable transportation, the need for efficient magnetic materials in electric motors and batteries becomes paramount. In 2024, the market is projected to reach 27244.1 USD Billion, driven by innovations in magnetic materials that enhance energy efficiency and performance. This trend is expected to continue, with the market potentially expanding as EV sales increase, indicating a robust growth trajectory for advanced magnetic materials in the automotive sector.

The expansion of the consumer electronics market significantly impacts the Global Advanced Magnetic Materials Market Industry. With the continuous introduction of new gadgets and devices, the demand for advanced magnetic materials is likely to rise. These materials are essential for enhancing the performance of audio equipment, smartphones, and home appliances. As consumer preferences shift towards high-quality and efficient products, manufacturers are increasingly incorporating advanced magnetic materials into their designs. This trend is expected to contribute to the overall growth of the market, aligning with the projected increase in market value over the coming years.

Technological advancements in electronics significantly influence the Global Advanced Magnetic Materials Market Industry. The proliferation of smart devices, wearables, and IoT applications necessitates high-performance magnetic materials for miniaturized components. These materials are crucial for improving the efficiency and functionality of electronic devices. As the global electronics market evolves, the demand for advanced magnetic materials is likely to escalate, contributing to a projected market value of 69389.8 USD Billion by 2035. This growth reflects the ongoing integration of advanced magnetic materials in next-generation electronic applications.

Increased investment in research and development (R&D) within the Global Advanced Magnetic Materials Market Industry fosters innovation and the development of new materials. Governments and private sectors are allocating substantial resources to explore advanced magnetic materials with superior properties. This focus on R&D is likely to lead to breakthroughs that enhance the performance and applicability of magnetic materials across various industries. As a result, the market is expected to witness sustained growth, driven by the introduction of innovative products that meet evolving industry demands and applications.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The anticipated expansion of the Advanced Magnetic Materials market in North America can be attributed to several key factors. The demand for advanced magnetic materials across diverse sectors such as electronics, automotive, healthcare, and energy is surging in North America. This surge is primarily driven by the increasing adoption of consumer electronics, electric vehicles, medical devices, renewable energy systems, and industrial automation.

Notably, electric vehicle (EV) sales witnessed a significant rise, with numbers climbing from approximately 125,000 in Q1 2021 to 185,000 in Q4 2021 and from about 300,000 in Q1 2023 to 375,000 in Q3 2023. Moreover, 2023 marked a milestone as annual EV sales in the U.S. surpassed 1 million for the first time, achieved by Q3. Sales during the first three quarters of 2023 were approximately 58% higher compared to the same period in 2022. Advanced magnetic materials are essential components in electric vehicle motors, particularly in the development of high-efficiency, lightweight, and compact electric motors.

As the demand for EVs continues to rise, so does the need for advanced magnetic materials to improve motor efficiency, power density, and overall performance.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, and South Korea.

Figure 2: Advanced Magnetic Materials Market Share By Region 2023 (USD Billion)Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe's Advanced Magnetic Materials Market accounts for the second-largest market share as Europe is actively involved in the advancement of magnetic materials, with countries like Germany, France, and the Netherlands distinguished for their proficiency across multiple sectors, such as automotive engineering, renewable energy systems, and electronics. Our preliminary estimates indicate that in 2022, 22.5% of the energy consumed in the EU originated from renewable sources, marking a slight rise from 2021, primarily attributed to significant growth in solar power.

The EU has set targets to attain a 20% share of renewable energy in energy consumption by 2020 and aims for 32% by 2030. Further, the German Advanced Magnetic Materials Market held the largest market share, and the UK Advanced Magnetic Materials Market was the fastest-growing market in the European region.

The Asia-Pacific Advanced Magnetic Materials Market is expected to grow at the fastest CAGR from 2024 to 2032. The significant production volumes in the automotive and electronics sectors in China, India, and Japan are anticipated to drive the demand for magnetic materials in the region. For example, in 2021, China accounted for 32.5% of automotive production, according to the International Organization of Motor Vehicle Manufacturers (OICA). Additionally, in October 2020, Pacifico Energy commenced construction on a 54-MW solar project in Sano-shi, Tochigi Prefecture, Japan, marking the company's 13th plant in Japan.

Furthermore, JERA Co. has announced plans to increase its renewable energy investment to 5 GW of capacity by 2025. The growth in such energy projects is expected to fuel the demand for magnetic materials in the region in the forthcoming years. Moreover, China’s Advanced Magnetic Materials Market held the largest market share, and the Indian Advanced Magnetic Materials Market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Advanced Magnetic Materials market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Advanced Magnetic Materials industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Advanced Magnetic Materials industry to benefit clients and increase the market sector. In recent years, the Advanced Magnetic Materials industry has offered some of the most significant advantages to the technological and industrial sectors. Major players in the Advanced Magnetic Materials Market, including Hitachi Metals Ltd. (Japan), TDK Corporation (Japan), Daido Steel Ltd. (Japan), Shin-Etsu Chemical Co. Ltd. (Japan), Arnold Magnetic Technologies (US), Electron Energy Corporation (US), Anhuui Sinomag Technology Co.

Ltd. (China), Neo (Canada), Yantai Dongxing Magnetic Materials Inc. (China), Dexter Magnetic Technologies, DMEGC (China) are attempting to increase market demand by investing in research and development operations.

Neo Performance Materials Inc., previously known as Molycorp, Inc., specializes in manufacturing and selling custom-engineered rare earth and rare metal products. Their product lineup includes advanced magnetic materials, Magnequench products, chemical and oxide products, as well as rare metals and water purification solutions. The company also engages in rare metal recycling. These products find applications in various sectors, such as clean energy technologies, transportation systems, communications, consumer electronics, aerospace, industrial technologies, and healthcare.

Neo operates production facilities, sales offices, and customer service centers across multiple countries, including Japan, China, Thailand, Estonia, Singapore, Germany, the UK, Canada, the US, and South Korea. The company is headquartered in Toronto, Ontario, Canada. In June 2023, Neo Performance Materials, Inc. signed a subscription agreement to acquire shares of Magnet Venture Pte Ltd. worth USD 84.7 million. In April 2023, Neo Performance Materials, Inc. acquired a controlling interest in SG Technologies Group Limited to enhance their rare earth processing and magnet manufacturing capabilities in Europe.

Hitachi Ltd (Hitachi) is a multinational conglomerate with a broad presence spanning information technology, electronics, power systems, social infrastructure, industrial systems, and construction machinery sectors. The company manufactures and markets a wide range of products, including information and telecom systems, power systems, social infrastructure and industrial systems, construction machinery, electronic systems and equipment, automotive systems, and smart life and eco-friendly systems. These offerings cater to various industries such as manufacturing, communications, finance, healthcare, government, energy, automobile, aerospace, transportation, nuclear, and technology. Hitachi operates through its affiliates, subsidiaries, associates, and joint ventures across Asia-Pacific, North America, and Europe.

Headquartered in Chiyoda-Ku, Tokyo, Japan, in October 2020, Hitachi Metals unveiled a groundbreaking achievement by introducing a new type of magnet known as the RE-free magnet, made from rare-earth-free materials. The company stated that this magnet exhibits high magnetic properties comparable to conventional magnets made with rare earth metals.