Global Soft Magnetic Composite Market Overview
The Soft Magnetic Composite Market Size was estimated at 12.76 (USD Billion) in 2022.The Soft Magnetic Composite Industry is expected to grow from 13.74(USD Billion) in 2023 to 26.9 (USD Billion) by 2032. The Soft Magnetic Composite Market CAGR (growth rate) is expected to be around 7.74% during the forecast period (2024 - 2032).
Key Soft Magnetic Composite Market Trends Highlighted
Various key drivers, opportunities, and recent trends contribute to the expanding global market of soft magnetic composites (SMC).
Firstly, growth in demand for energy-efficient equipment, particularly in the automotive and electronic industry, is a catalyst for the SMC market. SMC materials offer better electromagnetic properties that make them best suited for electric motor, transformer, and actuator applications. On top of this, there has been an increase in the use of SMCs due to efforts towards carbon emission reductions and sustainability improvement in renewable energy systems and electric vehicles.
Secondly, improving sintering technology and particle shape and size optimization have made it possible for manufacturers to produce SMCs with superior magnetic properties at low costs. Consequently, such factors have led to increased saturation flux density, reduced core losses, and higher thermal conductivity. These developments expanded the application area for SMCs, which made them suitable for several industries, such as aerospace, medicine, and telecommunications, among others.
Lastly, lucrative growth opportunities are emerging from new applications of SMCs within the fields of wireless power transfer and microelectronics. In fact, some features that are unique to the materials used by these systems include efficient energy transfer and miniaturization of electronic components that are needed by the increasing population using wireless charging devices and smart gadgets.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Soft Magnetic Composite Market Drivers
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Rising Demand for Energy-Efficient Motors and Transformers
The increasing global focus on energy efficiency is driving the demand for Soft Magnetic Composite (SMC) materials in the manufacturing of energy-efficient motors and transformers. SMCs offer superior magnetic properties compared to traditional materials, enabling manufacturers to design more efficient and compact motors and transformers. This growing demand for energy-efficient solutions in industries such as automotive, power generation, and distribution is expected to continue driving the growth of the Soft Magnetic Composite Market Industry.
Advancements in Power Electronics and Electric Vehicles
The rapid advancements in power electronics and the growing adoption of electric vehicles are creating new opportunities for SMCs. SMCs are well-suited for high-frequency applications and can handle the demanding requirements of power electronics systems. Additionally, the increasing popularity of electric vehicles is boosting the demand for SMCs used in traction motors and powertrain components.
Growing Adoption in Aerospace and Defense Applications
SMCs are increasingly being used in aerospace and defense applications due to their lightweight and high-performance characteristics. SMCs can withstand extreme temperatures and harsh environments, making them ideal for use in aircraft, spacecraft, and military equipment. The growing demand for lightweight and efficient materials in these industries is expected to drive the adoption of SMCs in the Soft Magnetic Composite Market Industry.
Soft Magnetic Composite Market Segment Insights:
Soft Magnetic Composite Market Shape Insights
The Shape segment of the Soft Magnetic Composite Market is projected to witness significant growth in the coming years, driven by the increasing demand for toroidal cores, closed-ring cores, and gapped cores in various industries. Toroidal Cores: Toroidal cores are widely used in high-frequency applications due to their low core losses and high permeability. They are commonly found in power transformers, inductors, and filters. The Soft Magnetic Composite Market for toroidal cores is expected to reach a valuation of USD 4.2 billion by 2024, growing at a CAGR of 8.5%.Closed-ring Cores: Closed-ring cores are characterized by their closed magnetic circuit, which minimizes leakage flux and improves efficiency. They are commonly used in power supplies, motors, and generators. The Soft Magnetic Composite Market for closed-ring cores is projected to grow to USD 3.5 billion by 2024, with a CAGR of 7.8%. Gapped Cores: Gapped cores are designed with a gap in the magnetic circuit, which allows for precise control of inductance. They are commonly used in sensors, relays, and solenoids. The Soft Magnetic Composite Market for gapped cores is anticipated to reach USD 2.9 billion by 2024, expanding at a CAGR of 7.2%.The growth of the Shape segment is attributed to the rising demand for efficient and compact magnetic components in various industries, including automotive, electronics, and renewable energy. The increasing adoption of electric vehicles and the growing popularity of smart devices are expected to further drive the demand for Soft Magnetic Composite materials in the coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Soft Magnetic Composite Market Application Insights
The Soft Magnetic Composite Market is segmented by Application into Automotive, Industrial Machinery, Power Electronics, and Renewable Energy. The Automotive segment is expected to hold the largest market share in 2023, accounting for over 35% of the Soft Magnetic Composite Market revenue. This is due to the increasing demand for electric vehicles, which use soft magnetic composites in their motors and generators. The Industrial Machinery segment is expected to grow at the fastest CAGR during the forecast period, driven by the increasing adoption of soft magnetic composites in industrial automation and robotics applications.The Power Electronics segment is expected to account for a significant market share, driven by the growing demand for energy-efficient power electronics devices. The Renewable Energy segment is expected to witness substantial growth, driven by the increasing adoption of soft magnetic composites in wind turbines and solar energy systems.
Soft Magnetic Composite Market Material Composition Insights
The Material Composition segment of the Soft Magnetic Composite Market is categorized into Iron-Based SMCs, Nickel-Based SMCs, and Cobalt-Based SMCs. Among these, Iron-Based SMCs account for the majority of the market share due to their high saturation magnetization, low coercivity, and cost-effectiveness. The Soft Magnetic Composite Market revenue for Iron-Based SMCs is projected to reach USD 11.25 billion by 2024, exhibiting a significant growth rate. Nickel-based SMCs, known for their high permeability and temperature stability, are gaining traction in applications requiring high-performance magnetic materials.Cobalt-based SMCs, though relatively niche, offer exceptional magnetic properties and are utilized in specialized applications. The increasing demand for Soft Magnetic Composites in industries such as automotive, power generation, and electronics is driving the growth of the Material Composition segment.
Soft Magnetic Composite Market Market Verticals Insights
The Soft Magnetic Composite Market is segmented based on market verticals into Consumer Electronics, Healthcare, Telecommunications, Aerospace, and Defense. The Consumer Electronics segment is expected to account for the largest revenue share in the market in 2023, owing to the increasing demand for soft magnetic composite materials in smartphones, laptops, and other electronic devices. The Healthcare segment is also expected to witness significant growth, driven by the rising demand for soft magnetic composite materials in medical imaging devices and surgical instruments.The Telecommunications segment is expected to grow steadily, driven by the increasing adoption of soft magnetic composite materials in antennas and other telecommunications infrastructure. The Aerospace and Defense segment is also expected to witness growth, driven by the increasing demand for soft magnetic composite materials in aircraft and military applications.
Soft Magnetic Composite Market Regional Insights
The Soft Magnetic Composite Market is segmented into regions, namely North America, Europe, APAC, South America, and MEA. North America held the largest market share in 2023 due to the established automotive and electronics industries in the region. The APAC region is expected to grow at the fastest CAGR during the forecast period due to the increasing demand for soft magnetic composites in the region's automotive, electronics, and renewable energy industries. Europe is also a significant market for soft magnetic composites, with growing demand from the region's automotive and industrial sectors.South America and MEA are expected to witness moderate growth in the soft magnetic composite market due to the increasing adoption of these materials in various industries. The growth in the regional market is driven by factors such as rising demand for energy-efficient and lightweight materials, government regulations promoting sustainable practices, and increasing investments in infrastructure development.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Soft Magnetic Composite Market Key Players And Competitive Insights:
Major players in the soft magnetic composite market are constantly engaged in research and development to improve their product offerings and gain a competitive edge. This has resulted in the emergence of new technologies and products that cater to specific customer needs. Leading Soft Magnetic Composite Market players are also focusing on expanding their global presence through strategic partnerships and acquisitions. The Soft Magnetic Composite Market development is driven by the increasing demand for energy-efficient devices and the growing adoption of electric vehicles. The competitive landscape is expected to remain fragmented, with several key players holding significant market shares.A prominent competitor in the Soft Magnetic Composite Market is Hganäs, a leading provider of metal powders. The company offers a wide range of soft magnetic composite materials, including isotropic and anisotropic powders, as well as bonded and pressed components. Hganäs has a strong global presence, with production facilities in Europe, North America, and Asia. The company is known for its high-quality products and its commitment to innovation. Another major competitor in the Soft Magnetic Composite Market is GKN Sinter Metals, a leading manufacturer of powder metal components. The company offers a range of soft magnetic composite materials, including isotropic and anisotropic powders, as well as bonded and pressed components. GKN Sinter Metals has a strong global presence, with production facilities in Europe, North America, and Asia. The company is known for its high-quality products and its expertise in powder metallurgy.Furthermore, VACUUMSCHMELZE GmbH & Co. KG is a prominent player in the Soft Magnetic Composite Market. The company specializes in the production of high-performance magnetic materials, including soft magnetic composites. VACUUMSCHMELZE has a strong global presence, with production facilities in Europe, North America, and Asia. The company is known for its high-quality products and its commitment to innovation. These companies are continuously striving to develop new products and technologies to meet the evolving needs of their customers.
Key Companies in the Soft Magnetic Composite Market Include:
- Aperam
- JFE Steel
- Tata Steel
- Kobe Steel
- Sumitomo Chemical
- Carpenter Technology
- Hitachi Metals
- Magnequench
- Nisshin Steel
- Voestalpine
- Hoogovens
- VACUUMSCHMELZE
- Molycorp
Soft Magnetic Composite Market Industry Developments
The Soft Magnetic Composite (SMC) market is projected to witness significant growth over the forecast period, driven by rising demand from the automotive and electronics industries. In 2023, the market was valued at USD 13.74 billion, and it is expected to reach USD 26.9 billion by 2032, exhibiting a CAGR of 7.74%.Recent developments in the SMC market include the introduction of new products and technologies. For instance, in January 2023, Hganäs AB launched Somaloy 500 DC, a new SMC material designed for high-performance power inductors. This product is expected to cater to the growing demand for efficient and compact power electronics in various applications.Moreover, strategic partnerships and collaborations are shaping the market landscape. In February 2023, Hitachi Metals, Ltd. and Kobe Steel, Ltd. announced a joint venture to establish a new company focused on the production of SMC materials. This partnership aims to leverage the strengths of both companies and enhance their competitiveness in the global SMC market.
Soft Magnetic Composite Market Segmentation Insights
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Soft Magnetic Composite Market Shape Outlook
- Toroidal Cores
- Closed-ring Cores
- Gapped Cores
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Soft Magnetic Composite Market Application Outlook
- Automotive
- Industrial Machinery
- Power Electronics
- Renewable Energy
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Soft Magnetic Composite Market Material Composition Outlook
- Iron-Based SMCs
- Nickel-Based SMCs
- Cobalt-Based SMCs
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Soft Magnetic Composite Market Market Verticals Outlook
- Consumer Electronics
- Healthcare
- Telecommunications
- Aerospace and Defense
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Soft Magnetic Composite Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
12.76(USD Billion) |
| Market Size 2023 |
13.74(USD Billion) |
| Market Size 2032 |
26.9(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
7.74% (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 |
Aperam, JFE Steel, Tata Steel, Kobe Steel, Sumitomo Chemical, Carpenter Technology, Hitachi Metals, Magnequench, Nisshin Steel, Voestalpine, Hoogovens, VACUUMSCHMELZE, Molycorp. |
| Segments Covered |
Shape, Application, Material Composition, Market Verticals, Regional |
| Key Market Opportunities |
1 Increasing Electric Vehicle Production2 Growing Demand for Energy-Efficient Motors3 Expansion of Renewable Energy Sector4 Innovation in Soft Magnetic Composite Materials5 Growing Aerospace and Defense Industries |
| Key Market Dynamics |
Growing demand from the automotive industryIncreasing adoption of renewable energy applicationsTechnological advancements and product innovationsExpanding use in aerospace and defense sectorsRising focus on energy efficiency and sustainability |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Soft Magnetic Composite Market is expected to reach a valuation of 13.74 billion USD in 2023.
Rising demand for energy-efficient motors and generators, increasing adoption in automotive and aerospace industries, and government initiatives promoting electric vehicles are key growth drivers.
North America is projected to dominate the Soft Magnetic Composite Market due to rapid industrialization, rising automotive production, and increasing government support for electric vehicle adoption.
The market is expected to grow at a CAGR of 7.74% from 2024 to 2032.
Major applications include automotive motors, generators, transformers, and power electronics due to their high efficiency, low noise, and compact size.
Leading players include VACUUMSCHMELZE, Hganäs AB, Hitachi Metals, and Arnold Magnetic Technologies.
Challenges include high material costs, limited supplier base, and competition from traditional magnetic materials.
Trends include the development of new alloys, advanced manufacturing techniques, and increasing demand for lightweight and compact solutions.
Soft Magnetic Composites contribute to energy savings and reduce carbon emissions due to their high efficiency in electrical applications.
The market is projected to reach a valuation of 26.9 billion USD by 2032.
