Magnetic Materials Market
Report ID: SQMIG15E3041
Report ID: SQMIG15E3041
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Report ID:
SQMIG15E3041 |
Region:
Global |
Published Date: December, 2025
Pages:
184
|Tables:
66
|Figures:
70
Global Magnetic Materials Market size was valued at USD 33.6 billion in 2024 and is poised to grow from USD 36.19 billion in 2025 to USD 65.51 billion by 2033, growing at a CAGR of 7.7% during the forecast period (2026-2033).
This market is flourishing thanks to demand for energy efficient products, increasing penetration of electric vehicle (EV) trends, and rapid incorporation of magnetic materials in industrial automation, consumer electronics, and renewable energy offerings. In addition, the permanent magnet category is projected to hold most of the magnetic materials market share, due to demand for rare-earth magnets in motors, sensors, and actuators for automotive and wind energy applications.
In addition, the magnetic materials market possesses some key restraints that may inhibit growth. For example, fluctuating and import-based raw material pricing creates inconsistent supply and demand; this is evident when it comes to rare-earth magnets which are needed for much of the inventory supply. In addition, the global shift towards environmental sustainability and the rare-earth mineral mining operational process is impacting production capacity due to increasing restrictions in standards. Nonetheless, the emergence of magnetic nanomaterials is expected to drive growth as well as increased investments in domestic production capabilities.
How are emerging technologies like artificial intelligence and IoT transforming the Global Magnetic Materials Market?
The global magnetic materials market is evolving due to the emergence of artificial intelligence and the Internet of Things. Artificial intelligence is accelerating the discovery and development of complex magnetic materials by enabling rapid simulations, predictive modeling, and optimization of material properties. Costs are reduced, and product development time frames are significantly shortened. High-performance magnetic materials are being deployed more broadly as a direct result of the IoT-driven demand for magnetic sensors and componentry used in smart devices, predictive maintenance, and industrial automation.
In a significant accomplishment, researchers have recently utilized artificial intelligence (AI) to develop a permanent magnet, free of rare earth elements, which took less time to produce, compared to the current state of the art materials. The new intelligence technology was able to assess millions of potential compositions and discover the best of material, which is now cheaper, greener and provides a better performance. This technology will serve as a robust replacement for electric vehicle motors and renewable energy systems betas, allowing us to cut carbon emissions and the costs of raw materials. This finding is a prime example of how artificial intelligence is reshaping the field of materials magnets by facilitating a more rapid, cleaner, and efficient ways to innovate materials.
Market snapshot - 2026-2033
Global Market Size
USD 3.06 Billion
Largest Segment
Permanent Magnetic Materials
Fastest Growth
Semi-Hard Magnetic Materials
Growth Rate
5.9% CAGR
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Global Magnetic Materials Market is segmented by Material Type, Magnet Composition, Application, End User and region. Based on Material Type, the market is segmented into Hard / Permanent Magnetic Materials, Soft Magnetic Materials and Semi‑Hard Magnetic Materials. Based on Magnet Composition, the market is segmented into NdFeB (Neodymium Iron Boron), SmCo (Samarium Cobalt), Ferrite, Alnico and Other Alloys. Based on Application, the market is segmented into Automotive & Transportation, Electronics & Consumer Devices, Energy & Power Generation, Industrial Equipment and Medical & Others. Based on End User, the market is segmented into Electric Vehicles, Renewable Energy Systems, Consumer Electronics, Industrial Automation and Aerospace & Defense. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
The market is dominated by permanent magnetic materials because of their widespread application in consumer electronics, electric motors, and generators. Major factors contributing to this dominance include the expanding renewable energy sector, especially wind power, and the growing production of electric vehicles. Additionally, they are perfect for applications in a variety of high-growth industries due to their high magnetic strength, energy efficiency, and durability.
Soft magnetic materials are growing the fastest due to their increasing use in inductors, transformers, and power electronics. Growth is being driven by the transition to high-efficiency energy systems and the demand for smart grids. In addition, soft magnetic composites are becoming more common in industrial and power generation applications due to their advancements in reducing energy loss during magnetization and demagnetization cycles.
The automotive industry dominates the magnetic materials market due to the rapid adoption of electric vehicles (EVs), which rely heavily on magnets for motors, sensors, and battery systems. Growing investment in EV infrastructure, coupled with strict emission regulations supporting green mobility, has led to an unprecedented increase in demand. Furthermore, magnetic materials are used in safety systems, power steering, and infotainment systems, further solidifying automotive's place at the top of the industries where magnetics will play a role.
The medical segment has become the fastest-growing end-use industry, propelled by the expanding application of magnetic materials in diagnostic and therapeutic technologies. Their use in MRI systems, advanced biosensors, and minimally invasive devices continues to rise as healthcare shifts toward higher precision and early detection. Ongoing molecular innovations are further enabling applications such as targeted drug delivery, magnetic hyperthermia, and cancer treatment, underscoring how magnetic materials are steadily reshaping modern medical science and patient care.
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North America dominates the magnetic materials market strategies, due to strong demand from electric vehicles, renewable energy, and defense industries. Government initiatives to localize rare-earth production and reduce import dependency are driving growth. Investment in next-generation recycling innovations and sustainable sourcing reinforces the regional market. Critical manufacturers and research institutions combine capabilities to increase innovation and long-term supply chain robustness in magnetic materials in capital-intensive sectors.
The U.S. is developing a domestic magnetic materials market growth through strategic investments in rare-earth mining, processing, and recycling. Strong demand from the electric vehicle, aerospace, and healthcare sectors is driving market growth. Federal backing and defense-related procurement efforts are eliminating reliance on imported products. Research and development into rare-earth free magnets will continue while sustainability practices and infrastructure will help to solidify the U.S.A as the world leader in magnetic materials manufacturing and technology.
Canada is emerging as a key North American player through initiatives in rare-earth recycling and resource sustainability. Federal and provincial policies promote clean energy and critical mineral development. Investment in advanced magnet recovery processes is increasing Canadian capacity. Collaborating with global technology companies is improving supply chain reliability. Canada’s focus on sustainable production and its strong resource base in mining qualify it as a trusted supplier of magnetic material.
The Asia Pacific has become the fastest-growing region because of significant demand for electronics, electric vehicles, and clean energy. The region has rich reserves of rare-earth resources, inexpensive manufacturing capabilities, and established supply chains for the continued growth of the area. While China is a leader in processing the materials, Japan and South Korea focus on advanced and high-precision applications. Government policy support, technological innovation, and increasing investments in domestic supply chains are driving increased uptake of magnetic materials across industrial and consumer applications.
Japan is rapidly advancing in magnetic materials market regional outlook development, especially rare-earth alternatives for high-performance applications. Its strong automotive and electronics industries require precision magnetic components. The government is reducing dependency on foreign raw materials by encouraging domestic innovation and resource efficiency. Ongoing investment in R&D for magnets and sustainability initiatives is strengthening Japan’s status as a key producer of specialty magnetic materials in the Asia Pacific region.
South Korea Magnetic Materials Market
The magnetic materials market regional forecast in South Korea is rapidly expanding because of a vibrant electronics sector and a burgeoning electric vehicle market. As South Korea invests in high-performance magnet technology to support industry demand, initiatives are being launched by government entities to support local production and rare-earth independence. As the demand for energy-efficient materials continues to grow, South Korea is actively pursuing research and supply chain development to take a leadership position in the Asia Pacific magnetic materials landscape.
The magnetic materials market outlook in Europe is steadily developing with a focus towards sustainable development, recycling, and security of supply. Governments are supporting local rare-earth processing and recycling of magnets to reduce their significant reliance on imports. Growth is largely focused on applications in the automotive sector, renewable energy, and advanced manufacturing. Countries such as Germany, France, and the UK are taking steps, such as developing national policies and partnerships to grow domestic supply chains and become innovators, to establish Europe as a strategic position in this field.
Germany is a dominant force in Europe with growing demands in the automotive and wind energy sectors. The country has prioritized activities related to the recycling of magnets and the processing of rare-earth materials. Security of supply chain and developing a domestic supply of magnetic materials by recycling is a major focus. Germany's engineering and industrial capacity combined with demand for green technology development and the desire for a national supply chain have led to investment in these technologies. Sustainability and industrial ingenuity push Germany to be a leader and central hub for distributed magnetic materials in Europe.
France is expanding magnet applications in clean energy, aerospace, and medical technologies. Government initiatives are aimed at developing domestic capabilities and reducing reliance on foreign rare-earth imports. Investments in materials research, recycling, and processing are furthering competitiveness. France's strategic work around sustainability and innovation is helping it to exert a growing role as a player in the broader European region's magnetic materials industry.
The United Kingdom is investing in magnet technologies for electric vehicles and renewable energy. Public-private collaborations are promoting innovation in rare-earth alternatives and efficient production methods. The UK is ramping up the development of local processing and recycling infrastructures which emphasizes reducing dependence on imports; instead it is focusing on strategic financing and R&D support to drive market developments. Ultimately these investments put the UK, in a global context, as competitive and sustainable in terms of the magnet materials supply chain in Europe.
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Rising Demand from Electric Vehicles
Growth in Renewable Energy Installations
Volatility in Rare-Earth Material Prices
Environmental and Regulatory Constraints
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The global magnetic materials market strategies will see moderate concentration, with the impetus for competition increasingly shifting around supply chain integration and material localization. Participants in the market seek to manufacture according to a mine-to-magnet value chain, supporting supply access to relevant raw materials, reducing geopolitical risk factors, and providing pertinent regional markets. Recent manufacturing facility announcements in North America are a product of this process, and they will inform less reliance on imports and assistance with long-term contracts with new OEM partners in the automotive and defense sectors.
Competitive intensity is increasing due to technological disruption by startups focusing on rare-earth-free magnets and sustainable alternatives. These firms are utilizing advanced materials science to produce stable and sustainable magnetic solutions. Most recently, a startup is developing iron-nitride-based permanent magnets for commercialization to circumvent efforts to create endurable contacts with rare-earth materials, and the company is receiving significant financial support from international automakers, who are interested in robust supply chain solutions, and evolving environmentally sustainable policies. This trend is reshaping innovation-driven competition globally.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global magnetic materials industry is experiencing strong growth resulting from the increase in electric vehicle manufacturing that is impacting high-performance magnet demand for motors and batteries. At the same time, limited supply chain stability is stemming from fluctuating prices for rare-earth materials. North America is the leading region in the world, due to supply chain capabilities and demand from the electric vehicle and defense markets as well as regional rare-earth initiatives.
Permanent magnetic materials lead the market owing to their essential role in renewable energy and automotive applications. Also, an additional key driver is fast-growing renewable energy infrastructure, which includes an emphasis on wind turbines that make use of magnets to help improve energy efficiency. The use of sustainable and recyclable materials underpins the industry’s efforts to develop long-term resource security and transition to green technology.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 33.6 billion |
| Market size value in 2033 | USD 65.51 billion |
| Growth Rate | 7.7% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Magnetic Materials Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Magnetic Materials Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Magnetic Materials Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Magnetic Materials Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Global Magnetic Materials Market size was valued at USD 3.06 Billion in 2023 and is expected to grow from USD 3.24 Billion in 2024 to USD 5.12 Billion by 2032 growing at a CAGR of 5.9% during the forecast period 2025-2032.
The global magnetic materials market strategies will see moderate concentration, with the impetus for competition increasingly shifting around supply chain integration and material localization. Participants in the market seek to manufacture according to a mine-to-magnet value chain, supporting supply access to relevant raw materials, reducing geopolitical risk factors, and providing pertinent regional markets. Recent manufacturing facility announcements in North America are a product of this process, and they will inform less reliance on imports and assistance with long-term contracts with new OEM partners in the automotive and defense sectors. 'Hitachi Metals, Ltd. – Japan', 'TDK Corporation – Japan', 'Daido Steel Co., Ltd. – Japan', 'Arnold Magnetic Technologies – United States', 'VACUUMSCHMELZE GmbH & Co. KG (VAC) – Germany', 'Zhong Ke San Huan Hi-Tech Co., Ltd. – China', 'TDG Holding Co., Ltd. – China', 'Ningbo Yunsheng Co., Ltd. – China', 'Electron Energy Corporation – United States', 'Eclipse Magnetics Ltd. – United Kingdom', 'GKN Powder Metallurgy – Germany', 'Bunting Magnetics Co. – United States', 'Yantai Shougang Magnetic Materials Inc. – China', 'Lynas Rare Earths Ltd. – Australia', 'Shin-Etsu Chemical Co., Ltd. – Japan'
The explosive growth in electric vehicle (EV) manufacturing is contributing to substantial growth in demand for high-performance magnetic materials used in battery systems, motors, and sensors. Electric vehicle incentives from governments as well as emission legislation continue to drive stable market growth for magnets in general (rare-earth magnets in particular), due to their lightweight and energy-efficient application in automobiles.
Surge in Demand for High-Performance Magnets: The increasing adoption of electric vehicles and renewable energy technologies is driving demand, for high-performance magnetic materials market trends. Neodymium-based magnets, known for their superior strength-to-weight ratio, are increasingly favoured in automotive motors, wind turbines, and advanced electronics, significantly influencing product development strategies across various industrial applications.
Which Region Currently Dominates the Global Magnetic Materials Market and What Factors Support Its Leadership?
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