NdFeB Permanent Magnets (Neodymium Iron Boron) Market Dynamics, Forecasts To 2024, Sales And Revenue !LINK!
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global permanent magnets market report on the basis of material, application, and region:
NdFeB Permanent Magnets (Neodymium Iron Boron) Market Dynamics, Forecasts To 2024, Sales And Revenue
The global neodymium market size was valued at USD 2.07 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 15.0% from 2022 to 2030. The market is anticipated to be driven by the increasing usage of permanent magnets in the automotive industry. Neodymium-iron-boron (NdFeB) is of vital significance in electric motors, which are further used in electric vehicles (EVs) and wind energy-related applications. The growing focus on alternative energy has augmented the demand for wind energy and EVs, which, in turn, is boosting the market growth.
Asia Pacific held the largest revenue share of over 90.0% in 2021. China and Japan are significant markets in the Asia Pacific, with both countries being among the largest producers of permanent magnets in the world. However, developing economies such as India and Southeast countries such as Indonesia and Thailand has huge potential.
Based on type, the market is classified into neodymium iron boron (NdFeB), ferrite, samarium cobalt (SmCo), aluminum nickel cobalt (Alnico), and others. The NdFeB segment accounted for the highest revenue share. The growth of this segment is attributed to its high performances, small size, and low-cost features. These magnets are mainly utilized in electric motors and power tools. Furthermore, lack of efficient substitutes for NdFeB magnets, coupled with initiatives taken by several governments to encourage the use of green technologies is anticipated to add impetus to the market.
Following a Covid 19-related lull in 2020, the global consumption of NdFeB magnets leapt by 18.1% in 2021, mostly on the back of a surge in EV sales. Adamas forecasts that global shortages of NdFeB alloys and powders will amount to 66,000t a year by 2030 and 206,000t annually by 2035, almost one-third of the total market. From 2022 through to 2035, it forecasts that global demand for NdFeB magnets will jump at a compound annual growth rate (CAGR) of 8.6%, underpinned by double-digit growth from the EV and wind power sectors. However, over the same period it forecasts that global production of neodymium, praseodymium, dysprosium and terbium will collectively increase at a slower CAGR of only 5.4%.
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.
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.
The Neodymium oxide segment is projected to lead the rare-earth metals market, in terms of value, during the forecast period. Neodymium oxide is used to produce magnets which are found in most modern vehicles and aircraft as well as popular consumer electronics, such as headphones, microphones, and computer discs. It is used in high-strength permanent magnets that are also known as neodymium-iron-boron (NdFeB) magnets and are one of the strongest magnets in the world. Incresing use of Clean energy application has driven the market.
1.1.2 Bargaining Power of the BuyerBargaining power of buyers is expected to be low to moderate in the neodymium rare earth magnets market. The fluctuating price of rare earth metal along with its alloy mixes such as boron and iron has made magnet insensitive towards its selling price. This factor is expected to result in increasing the number of consumers as well as repeat purchases as secondary back-up by existing consumers. Large quantity of neo magnets required in wind power and electrical & electronic applications is projected to augment the demand, thereby supporting the sales of the magnet.