Global Rare Earth Magnet Market Overview
As per MRFR analysis, the Rare Earth Magnet Market Size was estimated at 22.73 (USD Billion) in 2022. The Rare Earth Magnet Market Industry is expected to grow from 24.31(USD Billion) in 2023 to 44.4 (USD Billion) by 2032. The Rare Earth Magnet Market CAGR (growth rate) is expected to be around 6.92% during the forecast period (2024 - 2032).
Key Rare Earth Magnet Market Trends Highlighted
The global market for rare earth magnets is projected to experience steady growth over the coming years due to increasing demand from end-use industries such as consumer electronics, automotive, and renewable energy sectors. The growing adoption of electric vehicles is a key driver for the demand for rare earth magnets used in electric motors and battery systems.
Important market trends include the movement towards more miniaturized and lightweight structures, the creation of higher performance grade magnets, and greater spending in new technology applications to boost productivity. Such growth is driven by the rapid growth of renewable energy sectors, particularly applications, which are opening vast opportunities for the expansion of the rare earth magnet market.
Increasing facts about energy efficiency and emission cut targets of the automotive and other industries have increased demand for rare earth magnets with better energy density and efficiency. As sustainability issues are gaining importance, manufacturers are looking for ways to mine and recycle rare earth materials in a greener way which will be beneficial for the rare earth magnet market in coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Rare Earth Magnet Market Drivers
Increasing Demand for Electric Vehicles
The rising popularity of electric vehicles (EVs) is a significant driver of growth in the global rare earth magnet market. Rare earth magnets are essential components in EV motors, providing the necessary power and efficiency. As governments worldwide implement stricter emission regulations and consumers become more environmentally conscious, the demand for EVs is expected to surge in the coming years, leading to a corresponding increase in the demand for rare earth magnets.
Growth in Renewable Energy
Another important factor that impacts the global rare earth magnet market is the transition to the use of renewable resources, such as wind and solar power. These magnets are being used in the generators of the wind turbines and in the inverters of the solar panels. As such, with the continuing tendency towards renewable energy around the world, the demand for these magnets is likely to increase.
Technological Advancements
Ongoing advancements in technology are also contributing to the growth of the global rare earth magnet market. The development of new and improved magnet materials, as well as more efficient production processes, is expanding the applications of rare earth magnets. For instance, the development of neodymium-iron-boron (NdFeB) magnets has revolutionized the electronics industry, leading to the miniaturization of devices and improved performance.
Rare Earth Magnet Market Segment Insights
Rare Earth Magnet Market Product Type Insights
The global Rare Earth Magnet Market is segmented based on product type into Sintered NdFeB, Bonded NdFeB, SmCo, PrNdFeB and DyNdFeB. Sintered NdFeB magnets refer to which are made by sintering a mixture of neodymium, iron, and boron. They have high strength, high temperature stability, and high corrosion resistance. Bonded NdFeB magnets refer to which are made by a mixture of neodymium, iron, and boron and bonded together using a resin or other binder. They are less strong than their sintered cousins, but they are more flexible, and they can be molded into more shapes and shapes using standard machining techniques.
Bonded NdFeB magnets are used in various applications such as motors, sensors and speakers. SmCo magnets are made from a mixture of samarium and cobalt. They are less strong than NdFeB magnets, but they are more resistant to high temperature and corrosion. SmCo magnets are used in a variety of applications, including aerospace, medical, and military applications. PrNdFeB magnets are made from a mixture of praseodymium, neodymium, iron, and boron. They are stronger than SmCo magnets, but they are also more expensive. PrNdFeB magnets are used in a variety of applications, including motors, generators, and wind turbines.
DyNdFeB magnets are made from a mixture of dysprosium, neodymium, iron, and boron and are the strongest type of rare earth magnet, but they are also the most expensive. DyNdFeB magnets are used in a variety of applications, including motors, generators, and medical devices. The growth of the market is attributed to the increasing demand for rare earth magnets in various industries, including automotive, electronics, and renewable energy.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Rare Earth Magnet Market Application Insights
By application, the global rare earth magnet market is segmented into automotive, consumer electronics, industrial machinery, medical devices, and renewable energy. In 2023, the automotive segment held largest market share. The growth of the segment is attributed to the increasing demand for electric vehicles and hybrid vehicles. The consumer electronics segment is anticipated to attain significant growth owing to the increasing demand for smartphones, laptops, and other electronic devices. The industrial machinery segment is also anticipated to achieve noteworthy growth due to the increasing use of rare earth magnets in robotics and automation.
However, the growth of the segment is anticipated to be steady. The medical devices segment is anticipated to grow moderately owing to the increase in the use of rare earth magnets in medical imaging and diagnostic equipment. Lastly, the renewable energy segment is anticipated to achieve tremendous growth as a result of the increasing demand for wind turbines and other renewable energy technologies.
Rare Earth Magnet Market Grade Insights
The Grade segment is a crucial aspect of the Global Rare Earth Magnet Market, influencing its segmentation and market dynamics. The market is broadly classified into three performance categories: High-Performance, Mid-Performance, and Low-Performance. High-Performance magnets are characterized by their powerful magnetic properties and are primarily used in advanced applications such as electric vehicles, wind turbines, and MRI systems. The demand for High-Performance magnets is projected to rise due to the increasing adoption of electric vehicles and the growing emphasis on renewable energy sources.
Major players in this segment include Molycorp and Hitachi Metals. Mid-Performance magnets offer a balance between magnetic strength and cost, making them suitable for a wide range of applications including loudspeakers, sensors, and industrial machinery. The Mid-Performance segment is expected to witness steady growth driven by the increasing demand from the consumer electronics and automotive industries. Prominent companies in this segment include Shin-Etsu Chemical and TDK. Low-Performance magnets are the most affordable option and are commonly used in low-power applications such as toys, magnetic closures, and souvenirs.
The Low-Performance segment is expected to grow at a modest pace due to its limited applications and the availability of more efficient alternatives. Key players in this segment include Ningbo Magnet and Zhejiang HangYang Rare Earth. Overall, the Grade segment of the Global Rare Earth Magnet Market presents a diverse range of applications and growth opportunities. With the increasing demand for advanced technologies and the growing awareness of energy efficiency, the market for Rare Earth Magnets is poised for significant growth in the coming years.
Rare Earth Magnet Market End-User Industry Insights
The End-User Industry segment plays a crucial role in shaping the Global Rare Earth Magnet Market landscape. Among the key end-user industries, Automotive Transportation holds a significant market share, driven by the increasing demand for electric vehicles and hybrid vehicles. The Aerospace Defense sector also presents substantial growth opportunities, as rare earth magnets are utilized in various aircraft and defense systems. Electronics Computers, Industrial Machinery Equipment, and Medical Devices Healthcare are other prominent end-user industries, contributing to the overall market growth.
These industries rely on rare earth magnets for their compact size, high efficiency, and ability to withstand extreme conditions. The Global Rare Earth Magnet Market revenue is anticipated to reach approximately USD 26.18 billion by 2024, showcasing a steady market growth trajectory due to the increasing adoption of rare earth magnets across diverse end-user industries.
Rare Earth Magnet Market Regional Insights
The Global Rare Earth Magnet Market segmentation by region includes North America, Europe, APAC, South America, and MEA. The APAC region is projected to hold the largest market share in 2023, owing to the increasing demand from the automotive and consumer electronics industries. The region is home to major manufacturing hubs such as China, Japan, and South Korea, which are driving the growth of the rare earth magnet market. Europe is the second-largest market, followed by North America. The MEA region is expected to witness significant growth in the coming years, due to the increasing demand from the automotive and renewable energy industries.
South America is also expected to experience growth, driven by the increasing demand from the consumer electronics and automotive industries.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Rare Earth Magnet Market Key Players and Competitive Insights
Major players in Rare Earth Magnet Market are constantly striving to gain a competitive edge by investing in research and development, expanding their product portfolios, and establishing strategic partnerships. Leading Rare Earth Magnet Market players are focusing on developing innovative and cost-effective solutions to cater to the evolving needs of end-users. The Rare Earth Magnet Market industry is characterized by intense competition, with key players vying for market share through various strategies. Rare Earth Magnet Market development is influenced by technological advancements, changing regulatory frameworks, and the emergence of new market segments. The competitive landscape is expected to remain dynamic as new entrants and established players continue to shape the market.
A leading company in the Rare Earth Magnet Market is Shin-Etsu Chemical. The company is known for its strong research and development capabilities, enabling it to produce high-performance rare earth magnets. Shin-Etsu Chemical has a global presence, with manufacturing facilities in Japan, China, and the United States. The company's product portfolio includes a wide range of rare earth magnets, including neodymium, samarium-cobalt, and dysprosium. Shin-Etsu Chemical is a key supplier to various industries, including automotive, aerospace, and consumer electronics.
A competitor company in the Rare Earth Magnet Market is Neo Magnequench. The company is headquartered in the United States and has a strong presence in North America and Europe. Neo Magnequench is known for its expertise in the production of neodymium-iron-boron (NdFeB) magnets. The company's product portfolio includes a variety of NdFeB magnets, ranging from small, precision magnets to large, high-energy magnets. Neo Magnequench is a major supplier to the automotive industry and also serves customers in the aerospace, renewable energy, and consumer electronics sectors.
Key Companies in the Rare Earth Magnet Market Include:
- Jiangsu Rare Earth
- Vacuumschmelze
- Beijing Zhongke Sanhuan HighTech
- Ningbo Ronghua Rare Earth
- Magnequench
- Sumitomo Special Metals
- REECO
- ShinEtsu Chemical
- Ningbo Yunsheng Magnetic Materials
- TDK
- Hitachi Metals
- Shenghe Resources
- Baotou RareEarth
- Guangzhou Tinci Materials Technology
- Arnold Magnetic Technologies
Rare Earth Magnet Market Industry Developments
The global Rare Earth Magnet market is expected to grow from USD 24.31 billion in 2023 to USD 44.4 billion by 2032, at a CAGR of 6.92%. This growth is attributed to increasing demand from various end-use industries, such as automotive, consumer electronics, and healthcare. The automotive industry is the largest consumer of rare earth magnets, accounting for over 50% of the market share.
Growing demand for electric vehicles is expected to further drive the growth of the rare earth magnet market. China is the dominant player in the global rare earth magnet market, accounting for over 90% of the global production. However, other countries, such as the United States, Canada, and Australia, are investing in rare earth mining and processing to reduce their dependence on China.
Recent news developments in the rare earth magnet market include the discovery of new rare earth deposits in Greenland and the development of new technologies for extracting and processing rare earth elements.
Rare Earth Magnet Market Segmentation Insights
Rare Earth Magnet Market Product Type Outlook
- Sintered Neodymium-Iron-Boron (NdFeB)
- Bonded Neodymium-Iron-Boron (NdFeB)
- Samarium-Cobalt (Samco)
- Praseodymium-Neodymium-Iron-Boron (PrNdFeB)
- Dysprosium-Neodymium-Iron-Boron (DyNdFeB)
Rare Earth Magnet Market Application Outlook
- Automotive
- Consumer Electronics
- Industrial Machinery
- Medical Devices
- Renewable Energy
Rare Earth Magnet Market Grade Outlook
- High-Performance
- Mid-Performance
- Low-Performance
Rare Earth Magnet Market End-User Industry Outlook
- Automotive Transportation
- Aerospace Defense
- Electronics Computers
- Industrial Machinery Equipment
- Medical Devices Healthcare
Rare Earth Magnet Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
22.73(USD Billion) |
| Market Size 2023 |
24.31(USD Billion) |
| Market Size 2032 |
44.4(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
6.92% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Jiangsu Rare Earth, Vacuumschmelze, Beijing Zhongke Sanhuan HighTech, Ningbo Ronghua Rare Earth, Magnequench, Sumitomo Special Metals, REECO, ShinEtsu Chemical, Ningbo Yunsheng Magnetic Materials, TDK, Hitachi Metals, Shenghe Resources, Baotou RareEarth, Guangzhou Tinci Materials Technology, Arnold Magnetic Technologies |
| Segments Covered |
Product Type, Application, Grade, End-User Industry, Regional |
| Key Market Opportunities |
Electric vehicle growth Renewable energy expansion medical device advancements Aerospace amp defense advancements Consumer electronics miniaturization |
| Key Market Dynamics |
Increasing adoption of electric vehicles Growing demand for renewable energy Favorable government policies High material costs Supply chain disruptions |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The global Rare Earth Magnet Market reached a valuation of USD 24.31 Billion in 2023 and is projected to grow at a CAGR of 6.92% to reach USD 44.4 Billion by 2032.
The key regions for the Rare Earth Magnet Market are Asia-Pacific, North America, Europe, South America, and the Middle East and Africa. Asia-Pacific is expected to hold the largest market share due to the increasing demand from the automotive and electronics industries in the region.
The major applications of Rare Earth Magnets include electric vehicles, wind turbines, consumer electronics, and medical devices. The increasing demand for electric vehicles and wind turbines is expected to drive the growth of the Rare Earth Magnet Market.
The key competitors in the Rare Earth Magnet Market include Shenghe Resources, China Minmetals, and Molycorp. These companies are investing in research and development to improve the performance and efficiency of Rare Earth Magnets.
The Rare Earth Magnet Market faces challenges such as the volatility of raw material prices, geopolitical risks, and environmental concerns. The increasing demand for Rare Earth Magnets is putting pressure on the supply chain and leading to price fluctuations.
The growth opportunities for the Rare Earth Magnet Market include the increasing demand from emerging economies, the development of new applications, and the adoption of sustainable practices. The increasing awareness of the environmental impact of Rare Earth Magnets is expected to drive the demand for sustainable and eco-friendly alternatives.
The key trends in the Rare Earth Magnet Market include the miniaturization of magnets, the development of new materials, and the integration of magnets into electronic devices. The increasing demand for smaller and more efficient magnets is driving the development of new materials and technologies.
The COVID-19 pandemic had a negative impact on the Rare Earth Magnet Market in the short term, due to disruptions in the supply chain and a decrease in demand from key industries. However, the market is expected to recover in the long term as the global economy recovers and demand for Rare Earth Magnets increases.
The Rare Earth Magnet Market is subject to various regulatory considerations, including environmental regulations and trade restrictions. The increasing awareness of the environmental impact of Rare Earth Magnets is leading to stricter regulations on the production and disposal of these magnets.
The future outlook for the Rare Earth Magnet Market is positive, with increasing demand from key industries and the development of new applications. The growing adoption of electric vehicles and wind turbines is expected to drive the demand for Rare Earth Magnets in the long term.
