Permanent Magnet for EV Market
Report ID: SQMIG15J2083
Report ID: SQMIG15J2083
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Report ID:
SQMIG15J2083 |
Region:
Global |
Published Date: August, 2025
Pages:
189
|Tables:
37
|Figures:
74
Global Permanent Magnet for EV Market size was valued at USD 2.29 Billion in 2024 and is poised to grow from USD 2.74 Billion in 2025 to USD 11.63 Billion by 2033, growing at a CAGR of 19.8% in the forecast period (2026–2033).
The swift global shift toward electric mobility is a major driver of the permanent magnet market. Governments are enforcing stringent emission norms and offering incentives like tax rebates and subsidies to encourage EV adoption. This rising demand for electric vehicles necessitates high-efficiency, compact motors, where permanent magnets—especially rare-earth types—play a crucial role in enhancing torque, energy efficiency, and overall vehicle performance. As EV production scales up, manufacturers increasingly rely on permanent magnets to meet performance standards, directly fuelling the growth of the global permanent magnet market.
The supply and accessibility of rare-earth elements, such as neodymium, praseodymium, and dysprosium, are key trend driving the global permanent magnet for EV sector. These materials are essential for producing high-performance permanent magnets used in EV motors. Geopolitical concentration of rare-earth mines, primarily in China, creates supply risks and price volatility. Limited availability increases manufacturing costs and can constrain production volumes. Consequently, manufacturers must optimize magnet design, improve material efficiency, or explore alternative compositions. This dependence on scarce raw materials directly impacts production strategies, pricing, and ultimately the market’s growth trajectory, making material supply a critical consideration.
AI is increasingly influencing the Global Permanent Magnet for EV Market by optimizing motor design and material efficiency. Advanced AI algorithms can simulate magnetic performance, thermal behavior, and energy efficiency, enabling manufacturers to design magnets that deliver higher torque with less rare-earth material. This reduces production costs and dependence on scarce resources, directly impacting market growth. Additionally, AI-driven supply chain analytics improve forecasting for raw materials, mitigating risks from price volatility and geopolitical supply constraints. For instance, companies like Hitachi Metals are integrating AI in research to develop high-performance, low-rare-earth magnets, enhancing EV motor efficiency while controlling costs.
In June 2025, UK-based deep-tech company Monumo leveraged its AI-driven Anser engine to redesign electric motor components, achieving an 11.4% reduction in the bill of materials (BOM) and a 23% decrease in magnet volume. This optimization led to significant cost savings for OEMs—up to €50 million per million motors produced—while maintaining motor efficiency.
Market snapshot - 2026–2033
Global Market Size
USD 44.4 billion
Largest Segment
Neodymium Iron Boron Magnets
Fastest Growth
Samarium Cobalt Magnets
Growth Rate
8.9% CAGR
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The global permanent magnet for EV market is segmented based on magnet type, application, end user, and region. In terms of magnet type, the market is segmented into neodymium iron boron magnets, samarium cobalt magnets, ferrite magnets, and alnico magnets. Based on application, the market is grouped into traction motors, power steering systems, braking systems, battery management & cooling systems, and charging systems. Based on end user, the market is bifurcated into OEMs and aftermarket. Based on region, the market is segmented into North America, Europe, Asia-Pacific, Central & South America and the Middle East & Africa.
Based on the global permanent magnet for EV market forecast, Neodymium Iron Boron (NdFeB) magnets dominate the industry due to their exceptionally high magnetic strength and energy density, enabling compact, lightweight, and highly efficient electric motors. Innovations focus on enhanced thermal stability and reduced rare-earth content to lower costs and improve sustainability. Their superior performance in torque, efficiency, and EV range makes NdFeB the preferred choice, driving widespread adoption across passenger, commercial, and high-performance electric vehicles.
Samarium Cobalt (SmCo) magnets are poised for fastest growth in the global permanent magnet for EV market due to their exceptional thermal stability and corrosion resistance, making them ideal for high-performance EV motors in extreme conditions. Rising demand for long-lasting, reliable motors in luxury and commercial EVs drives SmCo adoption.
Traction motors dominate the global permanent magnet for EV market as they are critical for converting electrical energy into efficient vehicle propulsion. Innovations focus on high-efficiency designs using NdFeB magnets, lightweight construction, and improved thermal management, enhancing EV range and performance. Their widespread adoption in passenger and commercial electric vehicles is driven by the need for compact, energy-efficient, and high-torque motors, making traction applications the primary contributor to permanent magnet demand.
Power steering systems are set to be the fastest-growing application in the global permanent magnet for EV market due to increasing adoption of electric power-assisted steering (EPAS). Permanent magnets enable compact, energy-efficient motors, improving steering precision and reducing energy consumption, driving demand in passenger and commercial electric vehicles globally.
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As per the global permanent magnet for EV market analysis, the Asia Pacific is the dominating region, driven by rapid EV adoption, government incentives, and strong manufacturing capabilities in China, Japan, and South Korea. High demand for traction and auxiliary motors fuels permanent magnet consumption. Investments in rare-earth material production, motor efficiency innovations, and AI-driven design enhance performance and cost-effectiveness, positioning the region as a global hub for permanent magnet production and advanced electric vehicle technologies.
Japan Permanent Magnet for EV Market
Japan is a key contributor to the Asia Pacific permanent magnet for EV market due to its advanced automotive industry, early EV adoption, and emphasis on high-performance electric motors. Leading manufacturers like Toyota and Honda drive demand for traction motors and auxiliary systems using NdFeB and SmCo magnets. Continuous innovation in magnet efficiency, thermal management, and lightweight motor design strengthens Japan’s position, supporting both domestic EV growth and global market leadership in permanent magnet technologies.
South Korea Permanent Magnet for EV Market
South Korea contributes significantly through its rapid EV adoption, robust automotive manufacturing, and government incentives promoting green mobility. Companies like Hyundai and Kia rely on permanent magnets for efficient traction motors, steering systems, and auxiliary applications. Focused innovation in rare-earth optimization, high-temperature performance, and AI-driven motor design enhances motor efficiency, reduces costs, and positions South Korea as a strategic player in the Asia Pacific and global permanent magnet for EV market.
North America’s permanent magnet for EV market is expanding rapidly, driven by strong EV adoption, government incentives, and stringent emission regulations. The U.S. leads with significant investments in electric vehicle production and advanced motor technologies. Rising demand for high-efficiency, lightweight motors in passenger and commercial EVs boosts permanent magnet consumption. Additionally, growing domestic research in rare-earth alternatives and AI-driven motor optimization strengthens the region’s competitive position in the global market.
US Permanent Magnet for EV Market
The U.S. is a key contributor to North America’s permanent magnet for EV market due to its rapid EV adoption, robust automotive manufacturing base, and supportive government policies like tax incentives and emission regulations. Leading EV manufacturers such as Tesla, GM, and Ford drive demand for high-performance permanent magnets in traction and auxiliary motors. Ongoing R&D in motor efficiency, AI-based design, and rare-earth material optimization further strengthens the U.S.’s market position.
Canada Permanent Magnet for EV Market
Canada contributes to the Asia Pacific permanent magnet market through growing EV adoption, clean energy initiatives, and domestic rare-earth mining activities. Government incentives and policies promote electric vehicle integration, increasing demand for high-efficiency permanent magnets in traction and power steering motors. Canadian research institutions and automotive startups focus on innovative magnet designs, thermal management, and lightweight motors, enhancing market growth while supporting sustainability and technological advancement in the North American EV sector.
Europe’s permanent magnet for EV market is experiencing steady growth, fueled by stringent emission regulations, government incentives, and strong EV adoption, particularly in Germany, France, and the UK. Demand for high-efficiency, lightweight motors in passenger and commercial electric vehicles drives permanent magnet consumption. Additionally, the region emphasizes sustainable sourcing of rare-earth materials and advanced motor innovations, with research initiatives enhancing performance, reliability, and energy efficiency, strengthening Europe’s position in the global market.
Germany Permanent Magnet for EV Market
Germany is a major contributor to the Europe permanent magnet for EV market, driven by its robust automotive industry, leading EV manufacturers, and stringent emission standards. High demand for efficient traction motors and auxiliary systems increases permanent magnet usage. Ongoing research in motor optimization, rare-earth alternatives, and lightweight designs strengthens Germany’s market position, supporting sustainable EV production and advanced electric mobility solutions across Europe and globally.
France Permanent Magnet for EV Market
France contributes significantly in Europe permanent magnet for EV market through government incentives, growing EV adoption, and strong automotive R&D. French manufacturers focus on high-performance traction motors and power steering systems, increasing permanent magnet demand. Innovation in energy-efficient motor designs, rare-earth material optimization, and sustainable production practices enhances France’s competitiveness, driving regional growth and supporting the global expansion of permanent magnet applications in electric vehicles.
UK Permanent Magnet for EV Market
The UK’s role in the Europe permanent magnet for EV market stems from accelerated EV adoption, government subsidies, and advanced automotive R&D. Demand for efficient traction and auxiliary motors in passenger and commercial EVs boosts permanent magnet consumption. The UK emphasizes AI-driven motor design, rare-earth reduction strategies, and lightweight high-performance motors, strengthening its position in Europe and contributing to the global evolution of permanent magnet-based EV technologies.
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Growing Focus on Energy Efficiency
Advancements in Motor Technology
Rare-Earth Material Scarcity
Environmental and Regulatory Challenges
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The global permanent magnet for EV market outlook is highly competitive, with key players like Hitachi Metals, Shin-Etsu Chemical, VACUUMSCHMELZE, and TDK Corporation driving innovation. Companies focus on R&D for high-performance NdFeB and SmCo magnets, AI-driven motor optimization, and rare-earth material efficiency. Hitachi Metals emphasizes advanced magnet design for EV traction motors, while VACUUMSCHMELZE pursues strategic partnerships with EV OEMs to expand supply, strengthening market presence and technological leadership globally.
As per the global permanent magnet for EV industry analysis, the startup landscape in the market is dynamic, with companies leveraging advanced technologies to innovate motor designs and reduce reliance on rare-earth materials. These startups focus on AI-driven motor optimization, alternative materials, and novel motor architectures to enhance efficiency, reduce costs, and address supply chain challenges. Their contributions are pivotal in shaping the future of sustainable and efficient electric vehicle propulsion systems.
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 permanent magnet for EV industry is being driven by the rapid adoption of electric vehicles, government incentives, and stringent emission regulations. Rising EV demand necessitates high-efficiency, compact motors, where NdFeB and SmCo magnets enhance torque, energy efficiency, and performance. Concurrently, supply limitations and price volatility of rare-earth elements compel manufacturers to optimize magnet design, reduce material usage, and explore alternatives.
AI integration accelerates motor design, improves performance, and mitigates supply chain risks, while regional investments, particularly in Asia Pacific and North America, strengthen manufacturing capabilities. Together, these factors foster sustainable innovation, cost-effective production, and high-performance EV motor adoption, positioning the global permanent magnets for EV market revenue as indispensable components for the evolving electric mobility ecosystem.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 2.29 Billion |
| Market size value in 2033 | USD 11.63 Billion |
| Growth Rate | 19.8% |
| 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 Permanent Magnet for EV 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 Permanent Magnet for EV 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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Global Permanent Magnet for EV Market size was valued at USD 2.29 Billion in 2024 and is poised to grow from USD 2.74 Billion in 2025 to USD 11.63 Billion by 2033, growing at a CAGR of 19.8% in the forecast period (2026–2033).
The global permanent magnet for EV market outlook is highly competitive, with key players like Hitachi Metals, Shin-Etsu Chemical, VACUUMSCHMELZE, and TDK Corporation driving innovation. Companies focus on R&D for high-performance NdFeB and SmCo magnets, AI-driven motor optimization, and rare-earth material efficiency. Hitachi Metals emphasizes advanced magnet design for EV traction motors, while VACUUMSCHMELZE pursues strategic partnerships with EV OEMs to expand supply, strengthening market presence and technological leadership globally. 'Hitachi Metals (Japan)', 'Shin-Etsu Chemical (Japan)', 'VACUUMSCHMELZE GmbH & Co. KG (Germany)', 'TDK Corporation (Japan)', 'NEOMAX (Japan)', 'Arnold Magnetic Technologies (USA)', 'Bunting Magnetics Co. (USA)', 'Magnequench (USA)', 'VAC Magnetics (Germany)', 'Hangzhou Permanent Magnet Group (China)', 'Shanghai Metal Corporation – Magnets Division (China)', 'Goudsmit Magnetics (Netherlands)', 'Daido Steel Co., Ltd. (Japan)', 'Adams Magnetic Products Co. (USA)', 'Ferroxcube (Singapore)'
The demand for energy-efficient EVs is rising, emphasizing motors that maximize performance while minimizing power loss. Permanent magnets, particularly NdFeB types, enhance torque density and motor efficiency, directly contributing to longer driving ranges. This focus on energy optimization drives adoption of permanent magnets in both passenger and commercial electric vehicle applications.
The global permanent magnet for EV market is increasingly emphasizing rare-earth-efficient magnets to reduce dependence on scarce elements like dysprosium and terbium. Innovations in NdFeB and SmCo magnets maintain high performance while lowering costs, mitigating supply chain risks, and supporting sustainable electric vehicle production across passenger and commercial segments.
As per the global permanent magnet for EV market analysis, the Asia Pacific is the dominating region, driven by rapid EV adoption, government incentives, and strong manufacturing capabilities in China, Japan, and South Korea. High demand for traction and auxiliary motors fuels permanent magnet consumption. Investments in rare-earth material production, motor efficiency innovations, and AI-driven design enhance performance and cost-effectiveness, positioning the region as a global hub for permanent magnet production and advanced electric vehicle technologies.
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