USD 1.51 billion
Permanent Magnet for EV Market Size, Share, Growth Analysis, By Type(Neodymium Iron Boron, Ferrite, Samarium Cobalt, and Aluminum Nickel Cobalt), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG15J2078 |
Region:
Global |
Published Date: July, 2024
Pages:
165
|Tables:
37
|Figures:
74
Permanent Magnet for EV Market Insights
Global Permanent Magnet for EV Market size was valued at USD 1.51 billion in 2022 and is expected to rise from USD 1.91 billion in 2023 to reach a value of USD 9.92 billion by 2031, at a CAGR of 19.8% during the forecast period (2024-2031).
The permanent magnet for EV has grown vigorously with the accelerating worldwide adoption of electric vehicles. With the transforming change that the automotive industry is undergoing toward sustainable mobility, exceptional growth is underway for permanent magnets, an integral component at the heart of electric motors and drivetrains.
Based on Skyquest’s study, the growth in electric vehicle production and sales worldwide, with estimations reaching a projected market volume of US$ 956.6 billion by 2030, is a significant driver for the permanent magnet market. Projections indicate a steady annual growth rate of 9.36% between 2024 and 2030, further highlighting the robust expansion and potential for permanent magnets in the electric vehicle market. Growing investments and capacity expansions by key players underscore the industry's acknowledgment of increasing demand. For example, GKN Powder Metallurgy aims to produce up to 4,000 tons of permanent magnets annually by 2024, reflecting the proactive measures taken by companies to meet the rising demand driven by the surge in electric vehicle adoption.
Market Snapshot - (2024-2031)
Global Market Size
Largest Segment
Type
Fastest Growth
Type
Growth Rate
19.8%
Global Permanent Magnet for EV Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Permanent Magnet for EV Market Segmental Analysis
Permanent magnet for EV market segmentation is based on type and region. Based on type, the market is segmented into Neodymium Iron Boron (NdFeB), Ferrite, Samarium Cobalt (SmCo), and Aluminum Nickel Cobalt (AlNiCo). Based on region, the market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.
Analysis By Type
Based on type, the market is segmented into Neodymium Iron Boron (NdFeB), Ferrite, Samarium Cobalt (SmCo), and Aluminum Nickel Cobalt (AlNiCo)
In 2023, the Neodymium Iron Boron (NdFeB) segment dominated the market share and was valued at USD 1,798.69 million. However, by 2032, the Neodymium Iron Boron (NdFeB) segment is projected to reach USD 9,416.76 million. This segment also witnessed the highest CAGR of 19.0% during the forecast period, owing to its wider used in various applications. NdFeB magnets are small yet powerful, which makes them suitable for vehicles that wish to bring about a reduction in their weight. The trend of reduction in weight of vehicle is likely to continue and raise demand for NdFeB magnets. When demand for electric vehicles goes up, it will boosts demand for NdFeB magnets in this market.The Samarium Cobalt (SmCo) segment was valued at USD 61.98 million in 2023 and is expected to reach USD 306.02 million by 2032. The SmCo segment is projected to grow at a second highest CAGR of 19.2%. SmCo are in high demand for their thermal stability as well as their resistance to corrosion and oxidation. EV manufacturers want permanent magnets at the best costs on one hand and be resilient in supply chains on the other. Therefore, with SmCo magnets, the risks associated with rare earth elements are reduced, increasing demand.
Global Permanent Magnet for EV Market By Type
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Permanent Magnet for EV Market Regional Insights
Based on region, the market is segmented into Germany, France, UK, Italy, Spain, Belgium, Denmark, Greece, Netherlands, Poland, and Rest of Europe.
Asia Pacific generated maximum revenue, accounting for USD 1,281.91 million in 2023 and is projected to reach USD 6,955.96 million by 2031. Asia-Pacific is expected to witness the highest CAGR of 20.4% during the forecast period, owing to a booming EV adoption due to government support, growing environmental concerns and increasing disposable incomes. This translates to a higher demand for permanent magnets, crucial components of EV motors in Asia-Pacific. Countries in this region like China, Japan and South Korea have a well-established and cost-effective manufacturing base for permanent magnets and EV components. This enable them to scale-up their production quickly to meet the growing demand.
North America region is the second largest region in terms of revenue in global permanent magnet for electric vehicle market. The North America market exhibits considerable growth indicating a heightened demand for raw materials for EV component manufacturing in the country. Increasing focus on improving the share of EVs in the region is the key driving factor. With the US dominating revenue, it is projected to maintain an exciting CAGR of 19.2% during the forecast period. According to U.S. EPA, transportation sector accounted for 29% of the greenhouse gas emissions in the U.S. Similar trend is observed in neighboring country of Canada. Thus, to reduce their carbon footprints, government in these countries have formed policies and regulations promoting the adoption of EVs playing a crucial role in driving growth of permanent magnets in EVs market.
Global Permanent Magnet for EV Market By Geography
- Largest
- Fastest
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Permanent Magnet for EV Market Dynamics
Driver
- Increasing Government Support Through Subsidies, Tax Incentives, and Regulations Favoring Electric Vehicles:
Industry initiatives, increasing government support through subsidies, tax incentives, and regulations favoring electric vehicles are propelling market growth for permanent magnets. Various countries have implemented
supportive policies to stimulate the adoption of electric vehicles. For instance, Canada has set ambitious ZEV (zero-emission vehicle) targets and continues to support key infrastructure and ZEV incentives. Similarly, the European Union's Alternative Fuel Infrastructure Directive (AFID) guides the deployment of publicly accessible EV charging stations, with targets set for the decade up to 2030. These government initiatives create a conducive environment for the adoption of electric vehicles, thereby driving the demand for permanent magnets used in electric motors and drivetrains.
- Expanding EV Charging Infrastructure Globally is Pivotal for Accelerating EV Adoption:
The expansion of electric vehicle (EV) charging infrastructure globally is emerging as a crucial catalyst for driving the adoption of electric vehicles. This infrastructure development is propelled by substantial investments in various components. According to SkyQuest in-depth study, the global EV charging landscape is poised for significant expansion in the coming years. By 2025, there will be about 4.3 million slow chargers and 2.4 million fast chargers worldwide. This represents a substantial increase compared to the charging infrastructure available in 2022, indicating a remarkable advancement in the charging network to accommodate the growing number of electric vehicles on the roads. The deployment of fast charging infrastructure is particularly crucial in densely populated urban areas where access to home chargers may be limited. As the charging infrastructure expands and EV adoption accelerates, the demand for permanent magnets is expected to grow significantly, and is expected to continue to rise, presenting lucrative opportunities for industry players across the value chain.
Restraint
- Fluctuations in the Prices of Raw Materials Affecting Profit Margins and Pricing Strategies:
One of the major factors acting as restraint to permanent magnet market is fluctuating raw material prices, especially when it comes to rare earth elements like neodymium, praseodymium, dysprosium, and other materials like cobalt. Change in their prices result in major disturbances in production costs for producers of magnets, thus impacting profit margins and consequently the selling price of their products. As per SkyQuest’s detailed study, prices of rare earth elements are volatile and get affected due to various factors such as changes in supply, demand dynamics, and environmental regulations. It therefore puts the onus on some integrated effort from stakeholders in the industry, policymakers, and raw material suppliers regarding measures for mitigating supply chain risks, promoting transparent pricing mechanisms, and alternative sourcing strategies.
- Trade Policies and Geopolitical Tensions Can Disrupt Global Supply Chains and Create Uncertainties for Market Players:
Based on SkyQuest's in-depth study, trade policies, tariffs, and geopolitical tensions between major producing and consuming countries, particularly in the context of rare earth elements, have the potential to disrupt supply chains and create uncertainties for market players creating significant challenges for the global permanent magnet market. One of the examples is the US-China trade war, which inherently has long-term impact on the permanent magnet industry. The US-China trade war did not merely alter the manufacturing costs but also influenced the supply chain. Given that China holds the dominant position in rare earth production, there is an impact on global supply following restrictions on imports from China of rare earths necessary for permanent magnets. Permanent magnet manufacturer and the downstream industries dependent of permanent magnets found it hard to make any long-term planning and investment decisions. Against this backdrop of challenges, market participants in the permanent magnet industry have a few plans at hand to mitigate risks and make their supply chains more resilient.
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Permanent Magnet for EV Market Competitive Landscape
Based on Skyquest’s in-depth analysis, the Permanent magnet for EV market is a highly consolidated market. The market is notably distributed among a few major players, each contributing to its unique share. Geographic expansion is one of the pivotal strategies frequently employed by key market players in the market to capitalize on emerging opportunities and meet growing demand in different regions. Mergers and acquisitions also serve as a strategic avenue used by the market players to strengthen their market presence, enhance capabilities, and achieve synergies. For Instance, In May 2022, WeylChem Group executed a significant acquisition by obtaining INEOS Sulphur Chemicals Spain S.L.U., a merchant manufacturer of sulfuric acid in Spain, from INEOS Enterprises. This strategic move aimed to complement WeylChem Group's existing sulfuric acid production facility in northern France.
Top Players Company Profiles
- Proterial (Japan)
- Adams Magnetic Products Co. (US)
- Shin-Etsu Chemical Co. LTD. (Japan)
- Arnold Magnetic Technologies (US)
- Daido Steel Co., Ltd (Japan)
- TDK Corporation (Japan)
- Newland Magnetics (Europe)
- Ningbo Giantank Magnet Co., Ltd. (China)
- Compass Diversified Holdings LLC (US)
- Electron Energy Corporation (US)
- Hangzhou Permanent Magnet Group., Ltd. (China)
- Anhui Dadixiong New Materials Co., Ltd. (China)
- Tengam Engineering, Inc. (US)
- Yantai Zhenghai Magnetic Material CO. LTD. (China)
- Vacuumschmelze GmbH & Co. KG (Germany)
- Yantai Dongxing Magnetic Materials Inc (China)
- JL MARG Rare-Earth Co., Ltd. (China)
- MP Materials (US)
- Beijing Zhong Ke San Huan Hi-Tech Co., Ltd. (China)
- USA Rare Earth - (US)
Recent Developments
- In February 2024, South Korean company LS Cable & System (through its subsidiary LS Eco Advanced Materials) partnered with European magnet maker Vacuumschmelze (VAC) to produce neodymium magnets for electric vehicles (EVs). The joint venture aims to produce enough magnets for 500,000 EVs annually by 2027.
- In January 2024, e-VAC Magnetics, which is part of the VAC Group headquartered in Hanau, Germany, is set to establish US operations in South Carolina, building its first facility in Sumter County. The facility will house the production of permanent magnets for electric vehicles and defense applications.
- In July 2023, Proterial announced development and optimization of the design of a motor that uses proprietary high-performance ferrite magnet NMF-15 (ferrite magnet motor). The new design makes it possible to obtain the same level of output as an xEV drive motor that uses neodymium magnets.
- In February 2023, Vacuumschmelze GmbH & Co. KG (VAC), a producer of advanced magnetic materials and rare earth permanent magnets headquartered in Hanau, Germany, announced signing of a long-term supply partnership with GM for North American permanent magnet production.
Permanent Magnet for EV Key Market Trends
- Growing investments and Expansions Capacity of Businesses: Based on the comprehensive analysis conducted by SkyQuest, it is evident that growing investments and capacity expansions by companies are playing a pivotal role in meeting the rising demand for permanent magnets in the EV market. For instance, in October 2023 when Ara Partners, a private equity firm, acquired Vacuumschmelze (VAC), a German permanent magnet producer. This acquisition is expected to strengthen the rare earths value chain and enhance supply of permanent magnets to key industries such as electric vehicles. In addition to industry initiative, increasing government support through subsidies, tax incentive, and regulations favoring electric vehicles further propelling market growth for permanent magnets.
Permanent Magnet for EV Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our analysis, the global permanent magnet for electric vehicle market is poised for exponential growth, mirroring the growth of the electric vehicles market. It would be propelled by emission-reduction targets by governments and conglomerates, consumer-driven trends in EV, sustainability initiatives, technological innovations, and strategic collaborations. As the industry evolves and research on improvement of efficiency of rare earth-free magnets gains success to NdFeB magnets efficiency level, the demand for these magnets is projected to grow at robust CAGR through the forecast period. Companies operating in the market are heavily invested in the development of newer varieties of permanent magnets, especially those that don’t require rare earth elements to further boost their sustainability quotient. It would be advisable for new entrants to follow this trend and work alongside research organizations for the development of rare earth-free permanent magnets. With leading EV companies such as Tesla working on development of induction motors and yet not gaining efficacy as compared to PM motors, the replacement of these motors seems a distant dream and thus the market is projected to grow handsomely during the forecast period.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 1.51 billion |
| Market size value in 2031 | USD 9.92 billion |
| Growth Rate | 19.8% |
| Base year | 2023 |
| Forecast period | (2024-2031) |
| 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 |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Permanent Magnet for EV Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Permanent Magnet for EV Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
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.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Permanent Magnet for EV Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Permanent Magnet for EV 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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