Magnetics Business & Technology - January/February 2021 - 26

INDUSTRY NEWS

Permanent Magnet Market Will Rise to Nearly $37 Billion by 2027
electromagnets. Also, different types of permanent magnets,
such as NdFeB, Fe, Alnico, and SmCo can be used in place of
each other. Increasing demand for soft magnets and electromagnets owing to their low cost and ease of handling is expected
to hamper the growth of the permanent magnets market in the
forthcoming years.

Applications

The global permanent magnets market size is projected to grow
about 7.5% annually, rising to $36.9 billion in 2027 from its level
of $20.7 billion in 2019, according to a market report by Grand
View Research.
Increasing demand for electronics such as computers, laptops,
music systems, televisions and smart phones is likely to drive the
growth. Increasing demand for smart electronic devices owing to
changing preferences and rising standards of living and disposable income are expected to boost the consumer electronics
market. According to the International Monetary Fund, global
sales of smartphones reached nearly 1.5 billion units in 2016.
About 40% of global population is expected to own a smartphone
by 2021. Increasing demand for smart phones is anticipated to
further augment the demand for permanent magnets.
In China, the presence of a large number of electronic device
manufacturers along with the enhancing television sizes with
resolutions such as 4K and 8K for the High Dynamic Range
(HDR) quality is anticipated to augment the demand for permanent magnets in the forthcoming years. In September 2019,
Xiaomi launched three new 4K televisions with screes size of 43
inches, 55 inches, and 65 inches in China.

Automotive segment is projected to witness a compound annual
growth rate (CAGR) of 6.5% in revenues from 2020 to 2027. The
exponential growth in the electric vehicles market is estimated
to provide a lucrative opportunity to the neodymium magnet
manufacturers. According to the International Energy Agency,
the global electric vehicle sales is expected to reach 44 million
each year by 2030.
In the energy segment, the market is driven by the rising demand
from the oil and gas industry and renewable energy sources,
such as wind energy and solar energy. Oil and gas producers
are focusing on energy-intensive technologies such as electronic
submersible pumps to enhance efficiency and to reduce power
consumption. The electric motors used in the pumps are manufactured using permanent magnets. The developments in these
technologies are anticipated to drive the product demand in near
future.
Consumer goods and electronics is expected to be the fastest
growing segment in terms of volume from 2020 to 2027. It accounted for a volume share of 26.9% in 2019, attributed to the
increasing disposable incomes and rising standards of living driving the demand for air conditioning, cameras, compressors, fans,
loudspeakers, microphones, mobile phones and other products.
Industrial applications of permanent magnets include robot
motors, robot arms, magnetic couplings, pumps, servo motors,
bearings, lifting magnets, sensors in industrial equipment, sheet
separator, clamping plates, generators, and other industrial motors. On average, a single robot is estimated to contain over 100
motors. The increasing demand for robots is anticipated to boost
the product utilization in motors over the forecast period.

Materials

With ever-increasing concerns regarding environmental pollution
caused by fossil fuels, there is a fast-growing demand for electric
vehicles and hybrid electric vehicles from automakers, governments, and customers. In 2017, the EV30@30 campaign was
launched at the Eighth Clean Energy Ministerial to increase the
market share of electric vehicles up to 30% of the total vehicles
(excluding two-wheelers) by 2030. The increasing demand for
electric vehicles is anticipated to augment growth of the market
for permanent magnets during the forecast period.
Despite the growing demand, there are few challenges in the
market such as substitution in the form of soft magnets and

Magnetics Business & Technology * January/February 2021

Ferrite magnets, known as ceramic magnets, is the largest
material segment accounting for a revenue share of 29.8% in
2019 owing to their increasing use in automotive components
such as antenna lift, door closing, engine starter, fuel pump, and
windshield wipers. Advantages such as cost-effectiveness, high
temperature operations, and resistance to demagnetization make
permanent magnets suitable in automotive, appliance, and heating, ventilation and air conditioning industries.
Neodymium Iron Boron (NdFeB) magnets exhibit low curie temperature, high magnetic field strength and magnetic stability, and
are susceptible to oxidation. As a result, they are used in electric
motors and power tools. Initiatives by various governments to
promote the use of green technologies along with availability of
limited substitutes of NdFeB magnets are anticipated to drive the
market growth.
Samarium cobalt is projected to witness a CAGR of 3.8% in
terms of volume from 2020 to 2027 owing to the growing automo-

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Magnetics Business & Technology - January/February 2021

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