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May 2025
The global magnetic materials market size was accounted for USD 33.19 billion in 2024 and is expected to be worth around USD 58.05 billion by 2034, growing at a compound annual growth rate (CAGR) of 5.75% during the forecast period 2025 to 2034. Rising adoption of electric vehicles, renewable energy sources, and the growing needs for power distribution increases demand of magnetic materials, drives the market.
Magnetic materials are substance which possesses strong magnetic properties, meaning they are strongly attracted to magnets. These materials plays very important role in various technologies due to their ability to interact with magnetic fields. Iron, cobalt, nickel, neodymium, and their alloys are used to create permanent magnets.
Booming automotive and electronics industry demands magnetic materials drive the market. In the automotive sector magnets are used for electric motors in hybrid and electric vehicles, fuel pumps, and various control systems. In electronics, they are used for motors, transformers, sensors, and magnetic storage. Advancement in neodymium-iron-boron magnets, alter magnetic materials, and nanostructured magnets are showing impact on various industries including electronics, renewable energy, and transportation, further boost the magnetic materials market.
| Report Attributes | Details |
| Market Size in 2025 | USD 35.10 Billion |
| Expected Market Size by 2034 | USD 58.05 Billion |
| Growth Rate from 2025 to 2034 | CAGR 5.75% |
| Base Year of Estimation | 2024 |
| Forecast Period | 2025-2034 |
| High Impact Region | Asia Pacific |
| Segment Covered | By Type, By Application, By Region |
| Key Companies Profiled | Daido Steel Co. Ltd., Arnold Magnetic Technologies Corporation, Electron Energy Corporation, Tengam Engineering, Inc., Hitachi Metals Ltd., TDK Corp,Shin-Etsu Chemical Co. Ltd., Molycorp Magnequench, Lynas Corporation Ltd. |
Booming automotive and electronic industries shows significant market opportunities for magnetic materials market. Rising adoption of the electric vehicle demands magnetic materials, particularly in electric motors and power electronics systems. Increasing concern about fuel economy and vehicle weight are allowing to use lighter and more efficient magnetic materials in automotive components like motors actuators and sensors shows future market opportunities for magnetic materials. Magnetic materials is used in electronic industry in wide arrange of electronic devices, including computer and mobile phones, may drive the market in future.
Innovations in energy, electronics, and transportation shows future market opportunities for magnetic materials. Lighter and more energy efficient magnetic materials are very important for electric vehicles and other transportation application demands magnetic materials. Emerging technologies like spin electron in magnetic materials to develop the ultra fast and low power electronic devices, may open the door for future market opportunities. Magnetic materials are used in hard disk drives and other data storage technologies are also showing future magnetic materials market opportunities.
Raw material volatility and availability significantly limit the magnetic materials market. Unexpected price fluctuation and shortage hinder the growth of industry. Increased cost makes it difficult to compete with producers. Instability of raw material prices leads uncertainty about the long term viability of investment in the industry, limits the market. Disruption in the supply chain causes delays in production, increases the transportation cost and impact overall cost of magnetic materials. The high cost and volatility of rare earth element, like those used in permanent magnet for motors and other applications make them less accessible and more expensive to manufacture, further limits the market.
Strong industrial growth, technological advancements, and high demand in various sectors contribute to the market growth across this region. In Asia Pacific rapid economic growth particularly in countries like China, India, and South Korea increases demand of magnetic materials in various applications. Various technological advancements in industries increase the demand for advanced magnetic materials with improved performance and efficiency. Booming automotive industry, specifically growth of electric vehicle market, significantly boosts the demand for magnetic materials used in electric motors and generators. Asia pacific region is major center of electronic manufacturing which increases need of magnetic materials in telecommunication and consumer electronics boost the market.
Rapidly growing industry, vast rare earth resources and low labor cost increases demand of magnetic materials in China. Various countries in Asia Pacific region including US, Japan, and South Korea is dependent on China for rare earth magnets. Additionally, the expansion of automotive, electronics and telecommunication industries contribute to market growth. China is world’s leading producer of Neodymium-Iron-Boron magnets which is a critical material used in various applications, including wind turbines, electric vehicles (EVs), and electronics, further boost the market.
Europe expects fastest growth in the market during the forecast period. Increased demand of power electronics, automotive electrification, and renewable energy generation contribute to market growth of magnetic materials market. In Europe rising adoption of electric vehicle and renewable energy needs efficient power conversion, which depends mainly on magnetic materials in inverters and onboard charges. Wind turbines is a significant contributor to renewable energy generation and increases demand of magnetic materials for high performance and further drive the market. Europe is a global leader of green technology, drives the need of energy efficient technologies. Europe is also focusing on securing domestic supply chain for rare earth elements, which may drive the market of magnetic materials in future.
The soft magnetic materials segment held the dominating share of magnetic materials market in 2024. Due to versatility of soft magnetic materials along with application in various sectors including vehicle, renewable energy, and consumer electronics contribute to market growth of soft magnetic materials segment. The expansion of renewable energy sources like wind and solar power needs the soft magnetic material in generator and converter. This material is also used in automotive industry including electric motors and alternators, boost market growth. Soft magnetic material helps to reduce energy losses and improve the overall efficiency of electronic equipment’s which increases their demand in variety of applications.
The hard or permanent magnetic materials segment observed to grow at the fastest rate during the forecast period. Hard magnetic materials including alnico and ferrite are known as permanent magnet which has coercive force and remanence. They are difficult to demagnetize, requires strong external magnetic field to reverse magnetization. Wide range of application of permanent magnets in the electric motors, generator and loudspeakers, boost the market.
The automotive & transportation segment held the dominating share of magnetic materials market in 2024. Rising adoption of electric vehicles and hybrid vehicles increases demand of magnetic materials. Advanced magnetic materials help to improve the efficiency of electric motors and other components, which is important for extending the range and reducing energy consumption of electric vehicles. The use of magnetic materials can reduce overall vehicle weight and improves fuel efficiency further driving the market growth of automotive segment. Magnetic levitation and Evacuated Tube Transportation technologies are high-speed transportation options, dependent on magnetic materials for levitation and propulsion further drives the market.
The electronics application segment observed to grow at the fastest rate during the forecast period. Increased demand of consumer electronics, telecommunication, and electric vehicles contribute to market growth of electronics application segment. Rising popularity of smart phones and other consumer electronic devices increases need of smaller and more efficient magnetic component in various applications, boost the market. Advanced computing power and storage system are also benefiting by using magnetic materials in flash memory and other storage technologies, further drive the market
Hirst
Anchor Magnets
Bunting Magnetics Europe
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By Region
May 2025
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