Global Soft Magnetic Material Market Overview
The Soft Magnetic Material Market Size was estimated at 16.43 (USD Billion) in 2022. The Soft Magnetic Material Industry is expected to grow from 17.25(USD Billion) in 2023 to 26.74 (USD Billion) by 2032. The Soft Magnetic Material Market CAGR (growth rate) is expected to be around 4.99% during the forecast period (2024 - 2032).
Key Soft Magnetic Material Market Trends Highlighted
Renewable energy, the rise in sales of electric vehicles (EVs), and automation will all boost global demand for soft magnetic materials. These are essential components of efficient electrical transmission and distribution systems because they have high permeability, low energy losses, and good magnetic properties. This growth is also fueled by government-sponsored programs on energy efficiency with regard to environmental sustainability.
Key market drivers include the increasing adoption of electric vehicles, requiring efficient motors and generators. Rapid urbanization and industrialization are intensifying the demand for electricity, necessitating reliable and efficient power transmission and distribution systems. Furthermore, the growing automation industry depends significantly on soft magnetic materials for sensors, actuators, and various magnetic devices.
Recent trends indicate a shift towards nanocrystalline and amorphous materials due to their superior magnetic properties and lower energy losses. The integration of soft magnetic materials into sensors and devices for the Internet of Things (IoT)and wearable electronics presents substantial growth opportunities. Moreover, the advancement of additive manufacturing technologies such as 3D printing has made it possible to manufacture complex or customized magnetic components that could lead to innovation in this sector.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Soft Magnetic Material Market Drivers
- Increasing Demand for Electric Vehicles
Electric vehicles’ popularity is going up fast, and this mainly drives the global soft magnetic materials market. Electric vehicles have electric motors, generators, and transformers that use soft magnetic materials. This means that as the demand for electric vehicles continues to rise, the need for soft magnetic materials will also increase. Some of these factors include environmental concerns, technological advancements, and government regulations, among others.
These zero tailpipe emissions reduce air pollution and fight climate change. Governments all over the world are introducing regulations to encourage people to buy EVs, such as tax incentives, subsidies, or investments in charging infrastructure. In addition, electric cars have become affordable, efficient, and powerful due to technological developments that have made them more appealing to consumers.
Growing Demand for Renewable Energy
The increasing adoption of renewable energy sources, such as solar and wind power, is another key driver of the Soft Magnetic Material Market. Soft magnetic materials are used in transformers, which are essential for converting the voltage of electricity generated from renewable energy sources to the voltage required for transmission and distribution. The growing demand for renewable energy is driven by a number of factors, including concerns about climate change, rising energy costs, and the desire for energy independence.Renewable energy sources are becoming increasingly cost-competitive with traditional fossil fuels, and governments around the world are implementing policies to promote their adoption. As the demand for renewable energy continues to grow, so too will the demand for soft magnetic materials.
Technological Advancements
The growth of the soft magnetic material market globally is also being driven by technological advancements. The development of new materials and manufacturing methods has resulted in the production of soft magnetic materials with improved characteristics, including higher magnetic permeability, lower core losses, and increased temperature stability. As a result, these advances have made soft magnetic materials more appropriate for use in a broader range of applications, such as high-performance electric motors, generators, and transformers.
In the next few years, this trend is expected to gain further momentum as more new technologies are developed in the soft magnetic material industry.
Soft Magnetic Material Market Segment Insights:
Soft Magnetic Material Market Sector Insights
The Soft Magnetic Material Market is segmented into Automotive, Aerospace Defense, Consumer Electronics, Telecommunications, and Power Generation sectors. Automotive: The automotive sector is the largest consumer of soft magnetic materials, constituting more than 50% of the worldwide market. This field’s expansion is driven by an increasing number of electric automobiles and hybrid electric vehicles demand. For instance, soft magnetic materials are used in e-vehicle motors, generators, and transformers. Aerospace Defense: Besides, the aerospace defense sector accounts for over 20% of global consumption of soft magnetic materials.
In aircraft engines, radar systems, and various military uses, soft magnetic materials are also applied. Furthermore, this segment is driven by a rise in demand for unmanned aerial vehicles (UAVs) and other advanced military systems. Consumer Electronics: The consumer electronics section can be attributed to approximately 15% of total sales figures for global market share on these types of metals. Soft magnetic materials are found in smartphones, laptops, and other devices such as tablets that use those kinds of magnets. In addition to this fact is the increase in portable and wireless devices, which has shown growth in this segment.
Telecommunications: With over 10% usage rate globally, among others, it’s another significant consumer group for soft magnetism items. Some of the telecommunication’s equipment that uses soft magnetism include antenna filters, transformers, etc. It is high data transmission rates demand which forces it to grow faster than any other segments here. Power Generation: The power generation industry consumes slightly above 5% worth of all world supplies of these goods. Generators, transformers, and other power generation equipment use these elements called “soft” or “magnetic” ones.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Soft Magnetic Material Market Material Type Insights
The Soft Magnetic Material Market is segmented by Material Type into Electrical Steel, Amorphous Metals, Nanocrystalline Alloys, and Soft Ferrites. Due to the fact that it has high magnetic permeability, low core losses, and cost-effectiveness, electrical steel holds the largest market share. It is commonly used in transformers, motors, and generators. On the other hand, amorphous metals have excellent soft magnetic properties, such as high saturation magnetization and low coercivity, thus witnessing high demand. For instance, nanocrystalline alloys combine high permeability with low loss, which makes them ideal for power electronics and telecommunications applications.
On the other hand, soft ferrites are better suited for lower-frequency applications because they have higher resistivity and lower eddy current losses. The rising market of Soft Magnetic Materials is driven by the increasing demand for energy-efficient devices like electric vehicles and renewable energy systems.
Soft Magnetic Material Market Application Insights
The Soft Magnetic Material Market is segmented by Application into Motors Generators, Transformers, Inductors, Magnetic Recording Systems, and Sensors. By 2023, the Motors Generators segment will have taken the lead in the market, contributing approximately 42.5% of the global revenue. The demand for energy-efficient motors is increasing within various industries such as car, industrial, and consumer electronics, thus driving this division. In 2023, transformers are projected to be the second largest segment, with a 28.6% market share.
This department is propelled by growth in the power transmission and distribution sector and an increase in renewable sources of energy adoption. The Inductors segment is estimated to register a CAGR of about 5.5% during the forecast period due to the rise in demand for inductors used in electronic devices, including smartphones, laptops, and tablets. The Magnetic Recording Systems segment is expected to grow at a CAGR of around 4.9% during the forecast period, driven by growing demand for high-density data storage devices. The sensors segment will grow at a CAGR of about 4.2 % over the coming years due to rising sensor applications across the automotive industry, medical sector, and even industrial automation fields.
Soft Magnetic Material Market Grade Insights
The Soft Magnetic Material Market is segmented by Grade into M36, M19, M15, M10, and M5. The biggest share of the market will be captured by M36. Of these, it is due to its high magnetic permeability and low core loss. Another growth is expected for M19 because it has a wide range of applications for electrical and electronic appliances. The use of M15 in High-frequency applications is expected to rise over the next few years. However, M10 and M5 will still be used in certain applications where their properties are needed despite them accounting for a smaller market share.
This increase results from the growing need for soft magnetic materials across different sectors like automotive, electronics, and energy.
Soft Magnetic Material Market End-Use Market Insights
The Soft Magnetic Material Market is segmented into various end-use markets, including Industrial Equipment, Medical Devices, Home Appliances, and Automotive Components. The market share of industrial equipment is anticipated to be dominated by the industrial equipment segment and will likely take up a big portion of it in 2023 due to the increasing demand for soft magnetic materials that are used in electric motors, generators, and transformers employed in industrial machinery as well as automation systems. The medical devices segment is also expected to grow steadily due to the use of such materials in MRI machines, medical imaging systems, and other healthcare devices.
The market expansion will receive contributions from segments like home appliances and automotive components, requiring energy-efficient appliances and soft magnetic materials for motors, actuators, sensors, etc., which are needed for electric/hybrid vehicles.
Soft Magnetic Material Market Regional Insights
The regional division of the Soft Magnetic Material Market will provide insight into geographical distribution and growth dynamics. North America recorded the largest share in 2023, with approximately 35.4% of the total revenue from this market. The fact that the automotive and electronics industries are concentrated in this region has made it lead globally in terms of consumption of soft magnetic materials. This was followed by Europe, which had a market share of approximately 29.1% in 2023 due to industrialization and increasing demand for energy-efficient technology.
APAC is expected to witness the highest growth rate over the forecast period because of the rapid expansion of the electronics automotive sectors, especially in China, India, and South Korea, among others. In South America and the MEA regions, urbanization and infrastructure development will enhance constant development rates.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Soft Magnetic Material Market Key Players And Competitive Insights:
Major players in the soft magnetic material market are constantly investing in research and development to improve the performance and efficiency of their products. This has led to the development of new materials with enhanced magnetic properties, such as high permeability and low core losses. Leading soft magnetic material market players are also focusing on developing new applications for their products, such as electric vehicles and renewable energy systems. The Soft Magnetic Material Market is expected to witness significant growth over the coming years, driven by the increasing demand for energy-efficient products and the growing adoption of electric vehicles.A prominent competitor in the Soft Magnetic Material Market is Arnold Magnetic Technologies. The company is known for its expertise in designing and manufacturing high-performance magnetic materials. Arnold Magnetic Technologies offers a wide range of soft magnetic materials, including iron-based, nickel-based, and cobalt-based alloys. The company also provides custom-engineered solutions to meet the specific needs of its customers.Another leading player in the Soft Magnetic Material Market is Vacuumschmelze GmbH Co. KG. The company specializes in the production of high-quality soft magnetic materials for various applications. Vacuumschmelze GmbH Co. KG has a strong global presence and serves a diverse customer base. The company is committed to innovation and continuously invests in research and development to improve the performance of its products.
Key Companies in the Soft Magnetic Material Market Include:
- Nippon Steel Corp.
- Carpenter Technology Corp.
- Hitachi Metals, Ltd.
- Baosteel Group Corp.
- Midrex Technologies, Inc.
- JFE Steel Corp.
- Aperam SA
- Kawasaki Steel Corp.
- Tata Steel Ltd.
- Voestalpine High Performance Metals GmbH
- Vacuumschmelze GMBH
- ArcelorMittal
- Thyssenkrupp AG
- Allegheny Technologies, Inc.
Soft Magnetic Material Market Industry Developments
The Soft Magnetic Material Market is projected to reach USD 26.74 billion by 2032, exhibiting a CAGR of 4.99% during the forecast period (2024-2032). Increasing demand for energy-efficient devices and the growing adoption of electric vehicles are driving market growth. Technological advancements, such as the development of amorphous and nanocrystalline materials, are also contributing to market expansion. Asia-Pacific is expected to remain the dominant regional market, with China and India being major contributors. Key industry participants include Hitachi Metals, Vacuumschmelze, and Carpenter Technology Corporation. Recent market developments include the launch of new products, such as high-performance magnetic cores and low-loss magnetic materials, as well as strategic partnerships and acquisitions aimed at expanding market presence and enhancing technological capabilities.
Soft Magnetic Material Market Segmentation Insights
- Soft Magnetic Material Market Sector Outlook
- Automotive
- Aerospace Defense
- Consumer Electronics
- Telecommunications
- Power Generation
- Soft Magnetic Material Market Material Type Outlook
- Electrical Steel
- Amorphous Metals
- Nanocrystalline Alloys
- Soft Ferrites
- Soft Magnetic Material Market Application Outlook
- Motors Generators
- Transformers
- Inductors
- Magnetic Recording Systems
- Sensors
- Soft Magnetic Material Market Grade Outlook
- Soft Magnetic Material Market End-Use Market Outlook
- Industrial Equipment
- Medical Devices
- Home Appliances
- Automotive Components
- Soft Magnetic Material Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
16.43(USD Billion) |
| Market Size 2023 |
17.25(USD Billion) |
| Market Size 2032 |
26.74(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
4.99% (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 |
Nippon Steel Corp., Carpenter Technology Corp., Hitachi Metals, Ltd., Baosteel Group Corp., Midrex Technologies, Inc., JFE Steel Corp., Aperam SA, Kawasaki Steel Corp., Tata Steel Ltd., Voestalpine High-Performance Metals GmbH, Vacuumschmelze GMBH, ArcelorMittal, Thyssenkrupp AG, Allegheny Technologies, Inc. |
| Segments Covered |
Sector, Material Type, Application, Grade, End-Use Market, Regional |
| Key Market Opportunities |
1 Rising demand for electric vehicles2 Growing adoption of renewable energy sources3 Increasing use in electronics and power equipment4 Technological advancements in material properties5 Expanding applications in aerospace and medical industries |
| Key Market Dynamics |
Growing Demand for Electric Vehicles Increasing Power Generation Capacity Technological Advancements in Soft Magnetic Materials Government Regulations Promoting Energy Efficiency Rising Industrial Automation |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Soft Magnetic Material Market is expected to reach a valuation of 17.25 billion USD by 2023.
The Soft Magnetic Material Market is projected to grow at a CAGR of 4.99% from 2024 to 2032.
North America region is expected to dominate the Soft Magnetic Material Market due to the increasing demand from the automotive and electronics industries.
Soft magnetic materials are primarily used in transformers, motors, generators, and other electrical devices that require magnetic properties.
Some of the key competitors in the Soft Magnetic Material Market include Hitachi Metals, Vacuumschmelze, Arnold Magnetic Technologies, and Magnetics International.
The growth of the Soft Magnetic Material Market is attributed to the increasing demand from the automotive and electronics industries, as well as the development of new technologies such as electric vehicles and renewable energy systems.
The Soft Magnetic Material Market faces challenges such as the volatility of raw material prices and the increasing competition from alternative materials.
Opportunities for the Soft Magnetic Material Market include the development of new applications in electric vehicles, renewable energy systems, and medical devices.
The COVID-19 pandemic had a negative impact on the Soft Magnetic Material Market due to disruptions in supply chains and the decline in demand from the automotive and electronics industries.
The future outlook for the Soft Magnetic Material Market is positive due to the increasing demand from the automotive and electronics industries, as well as the development of new technologies.
