Soft Magnetic Material Market Analysis

Q: What is the key market trend for Soft Magnetic Material Market?

Development of Nanocrystalline and Amorphous Alloys: low core loss, high permeability, and excellent thermal stability offered by nanocrystalline and amorphous alloys is allowing them to emerge as the next-generation soft magnetic materials. Growing use of these novel soft magnetic materials in power electronics, transformers, and electric vehicle applications is slated to make this an indispensable soft magnetic material market trend for companies through 2032.

Soft Magnetic Material Market Dynamics

Drivers

High Demand for Electric Vehicles

High emphasis on sustainability and adoption of clean mobility solutions is driving up the sales of electric vehicles around the world. Soft magnetic materials are extensively used in electric motors, transformers, and inductors to enhance their energy efficiency and reduce power losses. Hence, increased sales of electric vehicles are expected to benefit the global soft magnetic material market outlook.

Growing Demand for Renewable Energy Generation

Soft magnetic materials are vital in the manufacturing and production of power electronics, generators, and inverters. All these components are highly essential in renewable energy generation, which is gaining popularity on a global level. Surging investments in renewable energy generation infrastructure development are driving up the demand for efficient electromagnetic components thereby also favoring soft magnetic material adoption.

Restraints

High Costs of Production

The use of complex manufacturing processes and expensive raw materials to produce soft magnetic materials results in a costly product. Limited availability of raw materials and fluctuations in their availability are also contributing to high costs of soft magnetic material thereby limiting their adoption in underdeveloped and developing countries going forward.

Competition from Substitute Materials

Soft magnetic materials are facing severe competition from alternative materials, such as superconductors and high-performance polymers that are being used in multiple applications. If these alternative materials are able to provide similar performance to soft magnetic materials at a cheaper price they are expected to hurt the adoption of soft magnetic material in the long run.

FAQs

Global Soft Magnetic Material Market size was valued at USD 58.63 Billion in 2023 and is poised to grow from USD 63.38 Billion in 2024 to USD 113.04 Billion by 2032, growing at a CAGR of 7.5% during the forecast period (2025-2032).

Soft magnetic material companies should focus on increasing affordability of their offerings to maximize their sales potential. Collaborations are also expected to play a crucial role in promoting product innovation for soft magnetic material companies going forward. Use of soft magnetic materials in electric vehicles and EV charging infrastructure is slated to boost revenue generation for all companies as per this global soft magnetic material market analysis. 'Arnold Magnetic Technologies', 'GKN Sinter Metals Engineering GmbH', 'Hitachi Metals Group', 'JFE Steel Group', 'Mahindra CIE', 'MATE CO., LTD', 'Meyer Sintermetall AG', 'Sintered Specialties, LLC', 'Steward Advanced Materials LLC', 'VACUUMSCHMELZE GmbH & Co. KG', 'NBTM New Materials', 'POCO', 'TDK', 'DMEGC', 'MAGNETICS', 'TDG', 'Acme Electronics'

High emphasis on sustainability and adoption of clean mobility solutions is driving up the sales of electric vehicles around the world. Soft magnetic materials are extensively used in electric motors, transformers, and inductors to enhance their energy efficiency and reduce power losses. Hence, increased sales of electric vehicles are expected to benefit the global soft magnetic material market outlook.

Development of Nanocrystalline and Amorphous Alloys: low core loss, high permeability, and excellent thermal stability offered by nanocrystalline and amorphous alloys is allowing them to emerge as the next-generation soft magnetic materials. Growing use of these novel soft magnetic materials in power electronics, transformers, and electric vehicle applications is slated to make this an indispensable soft magnetic material market trend for companies through 2032.

Asia Pacific is estimated to emerge as the top regional market in the global soft magnetic material industry. Rapidly increasing urbanization and industrialization in this region are promoting investments in development of grids thereby creating new opportunities for soft magnetic material suppliers. The presence of leading electric vehicle manufacturers, high demand for electric motors, and launch of initiatives to promote electricity accessibility in remote areas are also cementing the dominance of this region. China, Japan, India, and South Korea are slated to remain the most opportune countries for soft magnetic material suppliers operating in this region.