Advanced Magnetic Materials Market

The advanced magnetic materials market is projected to grow from USD 24.2 billion in 2023 and is projected to reach USD 38.2 billion by 2028, at a CAGR of 9.5%. Over the world, the advanced magnetic materials market is expanding significantly, and during the forecast period, a similar trend is anticipated. The demand for advanced magnetic materials has been driven by several factors, including the increasing demand for high efficiency motors and actuators in automotive and industrial applications. The major end-use segments of advanced magnetic materials include automotive, electronics, industrial, power generation, medical and others.

In the automotive industry, with a significant increase in usage of electric vehicles over the years, the need for increasing the energy efficiency of the motors. The advanced magnetic materials requirement will be driven by the new-generation motors and sensors for improved energy efficiency and self driving assistance in these electric vehicles. The companies are actively developing newer advanced AlNiCo and ferrite based magnets for electric motors which are energy efficient and light weight to reduce the dependence over rare earth magnets as the recycling of the rare earth magnets is a challenge for environmental conservation.

In the electronics industry, the advanced magnets are used in several applications such as semiconductor manufacturing, flash memory, sensors and high quality loudspeakers. The advanced magnets are used in semiconductor chip manufacturing for sorting the raw materials based on its size, separation of unwanted particles and maintain the concentration of the raw materials for ensuring the quality of the end product. It is also used in aligning and keeping the particles in its place during the lithography process. The need for advanced storage systems to meet the requirements of the advanced computing power and complement it, the magnetic materials are used for developing the flash storage systems using its magnetic properties like magnetic spin for storing the data from high speed advanced computers.

Attractive Opportunities in Advanced Magnetic Materials Market Trends

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Advanced magnetic materials Market Dynamics

Driver: Development of new industrial robots

According to industrial federation of robotics, The World Robotics report found that a record-breaking 517,385 new industrial robots were installed in factories around the world in 2021. It also represented 31 percent of year-on-year growth. Industrial robots require fast response, high torque, and accurate positioning. Advanced magnets enable precision movements in robotic arms, hands, and actuators by providing the necessary magnetic force.

Advanced magnets are essential for the development of highly compact, powerful servomotors and actuators that are used in a variety of motion control systems, including industrial robots that require fast response, high torque, and accurate positioning. Increasing demand of industrial robots drive the advanced magnetic materials market.

Restraint: Recent trade bans imposed by Chinese government on new technologies which affect the market

China produces more than two-thirds of the world's rare earth magnets and controls the majority of the global refining and processing capacity. China has dominant position in the global rare earth magnets market and countries like the US, Japan, Netherlands, South Korea, Italy, and other countries rely on China for rare earth magnets. Japan is the largest importer of rare earth magnets from China. In 2021, Japan’s import accounts for almost 36 percent of exports of China.

The majority of rare earth magnets mined in the US are refined in China before being sent back to the United States. In 2023, China plans to impose ban on the exports of certain rare earth magnet technologies to counter the US's advantage in the high-tech arena. This move can affect the advanced magnetic material market of US, Japan, and other countries.

Opportunity: Development of magneto calorific materials for HVAC

The Heating, Ventilation, and Air Conditioning (HVAC) systems are essential for thermal comfort and indoor air quality, but they also contribute to climate change. Greenhouse gases (GHGs) trap heat in the atmosphere, causing global warming. The Intergovernmental Panel on Climate Change (IPCC) estimates that GHGs are responsible for about 1 degree Celsius of warming since the pre-industrial era. Countries are working to reduce their emissions of GHGs, and HVAC systems are a major source of these emissions.

The current HVAC system is based on a 130-year-old technology that is energy-inefficient. This means that it uses more energy than necessary to heat and cool buildings. As a result, it produces more GHG emissions. There are new HVAC technologies that are more efficient and less harmful to the environment. These technologies are becoming more affordable, and they are being adopted by businesses and governments around the world.

Magnetocaloric materials (MCMs) are materials that change their temperature significantly when exposed to a magnetic field. This phenomenon is known as the magnetocaloric effect. The magnetocaloric effect is caused by the alignment of the magnetic moments of the atoms in the material with the magnetic field. When the magnetic field is applied, the magnetic moments align, which releases heat. When the magnetic field is removed, the magnetic moments become disordered, which absorbs heat.

Challenge: Huge investments required in R&D

Advanced magnets are used in small quantities for miniaturization or other purposes. The research and development cost is high in terms of manpower, materials, and technology. There are limited elements that can be used to manufacture certain permanent magnets, and the resulting permanent magnets must meet minimum performance requirements under different conditions to be considered for use. The product must deliver optimum efficiency that has both long-term and short-term benefits. Many market players do not have access to advanced technology, capital, and human expertise to manufacture environmentally friendly, efficient, and effective advanced magnets at a competitive price.

The advanced magnetic materials market is facing a number of challenges, including the high cost of manufacturing, the need for constant research and development, and the demands of different industries. One of the biggest challenges is the high cost of manufacturing. The production of permanent magnets requires the use of rare earth minerals, which are a limited resource. This drives up the cost of production and makes it difficult for smaller companies to enter the market. Another challenge is the need for constant research and development. New technologies are constantly being developed that can improve the performance of permanent magnets. This means that manufacturers need to invest heavily in research and development in order to stay ahead of the curve. Finally, the demands of different industries are also a challenge. Permanent magnets are used in a wide variety of applications, each of which has different requirements. This means that manufacturers need to be able to customize their products to meet the specific needs of each industry.

All of these challenges are making it difficult for the permanent magnet market to grow. However, the market is still expected to grow in the coming years, albeit at a slower pace than in previous years.

Permanent magnetic material type of advanced magnetic materials products to be the fastest growing market by 2028, in terms of value.

The permanent magnetic material segment is expected to witness the highest CAGR in the next five years with the significant increase in the usage of magnets in automobiles and power generation in order to increase the energy efficiency. In permanent magnet, the applications. Permanent magnets are categorized into four types, namely, alnico, hard ferrite, samarium cobalt (SmCo), and neodymium iron boron (NdFeB). Permanent magnets are critical components in various modern technologies, enabling efficient energy conversion, motion control, and magnetic sensing systems. This type of magnet retains its magnetic strength even after removal of the external magnetizing force. This magnet exhibits high magnetic flux density, high coercivity, which makes it suitable for various high-end applications.

Power generation end-use industry segment to be the second largest segment in the advanced magnetic materials market, in terms of value.

The use of advanced magnets in the global power generation industry is still small. The requirements of the industry to develop highly efficient generators and transformers to reduce the energy loss during the generation and transmission of power to the consumer. The advanced magnetic materials are used to develop the generators which has the less energy loss during the power generation from mechanical work. The magnets are designed in different shapes and sizes to test the energy loss during the conversion of mechanical energy to electrical energy and changes are made to the magnetic wire woundings also to tap the magnetic flux generated by these new magnets developed using advanced magnetic materials. Similarly, the companies are testing the usage of advanced magnetic materials to improve the efficiency of energy transfer during transmission of power from the point of generation or transmission to the consumers.

Asia Pacific to be the fastest growing market in the advanced magnetic materials market.

Asia Pacific holds the largest market share in the advanced magnetic materials market. The growth of the advanced magnetic materials market in this region is mainly driven by the automotive, increasing use of renewable energy for power generation and demand from medical and healthcare industry. Low interest rates, the presence of established players, and stringent environmental regulations emphasizing the use of electric vehicles, which are expected to drive the market. The country has the presence of automobile manufacturers in the region. The growing EVs market drives advanced magnetic materials in Asia Pacific. The end-use industries in the country has been involved in research and development of advanced applications using the advanced magnetic materials to improve the efficiency of the applications. The demand for improving the efficiency in the automotive, power generation and industrial end-use segments is expected to boost the consumption of advanced magnetic material in the country.  China is the leading manufacturer of permanent magnets in the world, as the country has the major source of rare earth metals in the world.

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Key Market Players

The advanced magnetic materials market is dominated by a few globally established players such as Hitachi Metals Ltd. (Japan), TDK Corporation (Japan), Daido Steel Ltd. (Japan), Shin-Etsu Chemicval 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), Master Magnetics Inc. (), Adams Magnetic Products Co. Inc. (US), Viona Magnetics, Guangdong Lingyl Co. Ltd. (China), Tengam, Engineering, Bogen Magnetics GmbH, Bunting Magnetics Co., Ningbo Yunsheng Co. Ltd. (China), Vacuumschmelze GmbH & Co. KG (Germany), among others, are the key manufacturers that secured major contracts in the last few years.

These companies are pursuing a variety of inorganic and organic strategies in order to gain a foothold in the advanced magnetic materials market. The research includes a detailed competitive analysis of these key players in the advanced magnetic materials market, including company profiles, recent developments, and key market strategies.

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Scope of the Report

The study categorizes the advanced magnetic materials market based on Glass type, Product type, Application, and Region.

By Type:

• Permanent Magnetic Materials
• Semi-Hard Magnetic Materials
• Soft Magnetic Materials

By End-User:

• Automotive
• Electronics
• Industrial
• Power Generation
• Medical
• Others

By Region:

• North America
• Asia Pacific
• Europe
• South America
• Middle East & Africa

Recent Developments

• In June 2023, Neo Performance Materials, Inc. entered into a subscription agreement to purchase 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 expand neo’s rare earth processing and magnet manufacturing footprint in Europe.
• In August 2022, Neo Performance Materials, Inc. signed an agreement with HUDSON RESOURCES, INC. to acquire exploration license from HUDSON RESOURCES, INC. covering the Sarfartoq Carbonatite Complex in southwest Greenland.
• In August 2021, Anhui Sinomag Technology Co., Ltd. signed a contract with CPC Lujiang County Committee on the Sinomag Science Park project. This project has supplemented and strengthened the magnetic material industry. It will build four new projects which will provide the annual production of  15000 tons of dry pressed powder of permanent ferrite, and  10000 tons of high-performance wet pressed magnetic tile.

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