NdFeB Magnets Market

NdFeB Magnets Market Outlook (2024 to 2034)

The global NdFeB Magnets market is projected value at US$ 2,144.2 million in 2024 and expand at a CAGR of 7.9% to end up at US$ 4,586.6 million by 2034.

NdFeB Magnet product offers a wider temperature range of work, high magnetic energy, and a strong capacity to resist demagnetization forces; these properties are now being fully required by electric vehicles. Electric vehicles require high-performance magnets for motors and generators. This factor, along with the growing demand for electric vehicles in Asia-Pacific and North America, is augmenting the growth of the NdFeB magnets market.

One of the major challenges in the recycling of NdFeB magnets is their heterogeneous constitution. With the development in the technology of recycling, this rate of recycling of the NdFeB magnets would increase to avoid waste and other associated environmental impacts. For example, Tesla electric vehicle motors use the NdFeB magnets, the reason these vehicles are high performance, efficient in range, and reliable. This trend is likely to continue with burgeoning demand for electric vehicles spinning the NdFeB magnets market.

• Between 2024 and 2034, the end use in consumer electronics is expected to produce an absolute dollar opportunity US$ 617.7 million.
• In 2024, the Sintered NIB Magnets holding a 58.1% market share in the NdFeB Magnets type are estimated to be worth US$ 1,245.8 million.

Report Attributes	Details
Market Size (2023A)	US$ 2,011.8 million
Estimated Market Value (2024E)	US$ 2,144.2 million
Forecasted Market Value (2034F)	US$ 4,586.6 million
Global Market Growth Rate (2024 to 2034)	7.9% CAGR
South Asia & Pacific Market Share (2024E)	37.8%
East Asia Market Growth Rate (2024 to 2034)	8.1% CAGR
China Market Growth Rate (2024E)	8.2% CAGR
Key Companies Profiled	Arnold Magnetic Technologies; Lynas Corporation Ltd.; Electron Energy Corporation; Daido Steel Co., Ltd.; Hitachi Metals Ltd.; Shin-Etsu Chemical Co., Ltd.; Huatai Xinding Metal Materials Co.; Zhejiang Zhongke Magnetic Industry Co., Ltd.; Linkup Magnet; Urban Mining; MP Materials Inc.; USA Rare Earth; Other Prominent Players.

Sales Analysis of NdFeB Magnets (2019 to 2023) vs. Market Forecasts (2024 to 2034)

The NdFeB Magnets market grew at a growth rate of 7.7% from 2019 to 2023, and by the end of 2023, it was valued at US$ 2,011.8 million. It can also be envisioned in the market that huge investment shall be made in new production facilities and research and development for enhancing the technology of recycling to reduce environmental impacts. Rising demand for high-performance magnets further drives innovation with better manufacturing processes for more efficiency and lower costs.

Historical Report Attributes	Details
Market Size (2019A)	US$ 1,466.1 million
Market Size (2023A)	US$ 2,011.8 million
Historical CAGR (2019-2023)	7.7%
Forecasted CAGR (2024-2034)	7.9%

• Short Term (2024 to 2027): In short period, electric vehicles will be the major driver of demand from the auto and consumer electronics. North America and Europe will push to the demand for high-performance magnets for electric vehicles. Demand for magnets used in the wind turbine and photovoltaic cell groups will rise with growing demand for the renewable sources of energy such as solar and wind power.
• Medium Term (2027 to 2030): The growing demand for high-performance magnets in the medium term will pressure-cycle the process of production down the cost curve. Other key drivers of growth will come from new technologies that need high-performance magnets-5G, artificial intelligence, etc. In addition, increasing demand for renewable sources of energy will keep up a steady demand for magnets applied in wind turbines and solar panels.
• Long Term (2030 to 2034): In long period, drivers will be emerging technologies related to quantum computing and advanced medical devices, which use high performance magnets in their applications. Growing demand for renewable energy sources will be yet another, mainly through the application of magnets in wind turbines and solar panels. Another long-term drive in growth will be the increasing demand for electric vehicles in regions like Africa and Middle East.

According to Fact.MR, the market size for NdFeB magnets in 2024 is expected to be valued at around US$ 2,144.2 million. The demand would experience a growth of about 7.9% over this period to attain an estimated US$ 4,586.6 million by 2034.

Market Dynamics

What driving forces influence the demand for NdFeB Magnets?

“Growing the number of electric cars on the road and building infrastructure for charging stations”

In 2024, the global NdFeB Magnets market is projected to rise at a growth rate of 7.9%. The increasing electric vehicle fraction and the associated charging station infrastructure are boosting NdFeB magnetic demand. With the rising electric vehicle applications, more calls are made for powerful magnets as driving devices in electric motors and generators.

For instance, Tesla Motors' Model 3 is powered by an electric motor that requires a high-performance magnet known as a "Tesla Magnet". It is made from NdFeB. The vehicle's electric motor is powered by the Tesla Magnet, which allows the car to travel more than 250 miles between charges. Propelling the requirement for NdFeB magnets will rise in tandem with the expanding demand for electric vehicles, like Tesla's Model 3.

The estimated net worth of South Asia & Pacific NdFeB Magnets, with a compound annual growth rate of 8.0%, is around US$ 810.5 million in 2024.

“Increasing need for NdFeB magnets produced using sustainable power generation sources like sun and wind”

Interest in renewable sources of energy is accelerating and the world is fast embracing solar and wind power; thus, an apparent need for NdFeB magnets produced from renewable energies. The production of the magnets consumes a high amount of energy traditionally obtained through fossils. Its production with renewable energy will help minimize the environmental effect created by the production of NdFeB magnets.

One such factor is the rising demand coming from the wind turbine industry for use in generators and bearings. High-performance magnets are needed to generate electricity efficiently. Such magnets have, until now, been manufactured using fossil fuels that contribute to greenhouse gas emissions. However, even companies such as Vestas, one of the largest wind turbine manufacturers are now into researching a way to use renewable energy sources like wind and solar power during the production process for their NdFeB magnets. This kind of sustainable production drives growth in the market of renewable energy-produced NdFeB magnets.

What are the Primary Constraints Faced by the Market Competitors for NdFeB Magnets?

“Primary challenges of Environmental Issues for Manufacturing and Disposal by NdFeB Magnets Market”

The major restraints to this market is represented by environmental worries related to the huge process of creation and disposal of NdFeB magnets. The large amount of energy and water spent in extracting and processing rare earths like neodymium and dysprosium triggers environmental pollution. Moreover, NdFeB magnets cannot be easily discarded at the end of their life, since they are not degradable and biologically intensive; they also cannot easily be recycled.

For instance, production of NdFeB magnets involves mining rare earth elements, processes of which more often than not involve open-pit mining, and hence lead to soil and water pollution. Moreover, the processing of these elements includes the use of chemicals and energy, which could further give rise to greenhouse-gas emissions. For example, the processing of one ton of neodymium requires up to 3 tons of coal, which makes it one of the major contributors to the greenhouse effect. This hence supports the need for sustainable and environment-friendly manufacturing practices to make NdFeB magnets.

Country-wise Insights

Country-wise Forecast CAGRs for the NdFeB Magnets Market

Country	CAGR
U.S.	7.8%
China	8.2%
Japan	8.0%
South Korea	8.1%

Which countries expect to have a rise in demand for NdFeB Magnets?

“NdFeB Magnet Demand Bolstered by China's Electric Vehicles Expansion"

Specifically, the NdFeB magnet industry in China is likely to grow at an annual growth rate of 8.2% from 2024 through 2034, largely because domestic production of electric vehicles has increased. Production of electric vehicles in China is gaining rapid ground, making a huge jump in demand likely to happen for NdFeB magnets. It has set very ambitious targets for electric vehicle adoption in China: by 2025, 50% of new automobile sales should be electric. It is investing billions in EV infrastructure and pushing local carmakers to raise output with a view to hitting this ambitious target.

For instance, BYD Co. Ltd. of China said it would triple its EV production capacity to 200,000 units annually and that it has plans to augment its production facilities in the coming years. Therefore, it implies that if the demand from EV makers is increased, then the supply of NdFeB magnets will increase. Secondly, it is said that the Chinese government has a strategy to ban internal combustion engines in some cities and to popularize electric vehicles for public transportation, which will increase the demand for NdFeB magnets.

China market will have a value of US$ 518.0 million by 2024, with a total absolute dollar opportunity worth US$ 622.9 million between 2024 and 2034.

Why is U.S. potentially a profitable market for manufacturers of NdFeB Magnets?

“High Demand for NdFeB Magnets from Growing US Renewable Energy Sector”

Between 2024 and 2034, the U.S. market is predicted to expand at a compound annual growth rate of 7.8%. The market will also grow for NdFeB magnets used in solar panels and wind turbines with the growth of renewable energy production in the US. Application of renewable energy sources, such as solar and wind power, is forecasted to increase in the coming years due to their falling costs and government incentives. In that case, it is proper to expect an increase in demand for NdFeB magnets applied in solar panel trackers and wind turbine generators as installations of the two technologies increase.

Vestas, one of the world's largest wind turbine manufacturers, announced recently that it would increase US wind turbine production in response to rapidly growing demand for renewable energy. High-performance magnets determine how efficient a generator is going to be-like those used by this company in its wind turbines, which run on NdFeB magnets. In a reverse development, Vestas' capacity expansion will pose a huge demand for the NdFeB magnets in the US market. The trend is to take a worse turn as the US renewable energy industry expands in the near future, hence increasing demand for the NdFeB magnets.

By 2034, the market for U.S. NdFeB Magnets is projected to be worth US$ 238.4 million.

Category-wise Insights

Which End use segments plan to generate high demand for NdFeB Magnets?

“Stimulate growth in demand for NdFeB magnets used in motors, generators, and consumer electronics”

The consumer electronics end-use category drove the market and allowed for a 8.3% growth rate in 2024. It is anticipated that NdFeB magnet demand would rise significantly in the upcoming years due to uses in consumer electronics, motors, and generators. The growing market for electric cars and energy-efficient appliances is driving up demand for high-performance magnets like NdFeB.

For example, NdFeB magnets are needed to power high-performance motors in Tesla's electric automobiles. The demand for NdFeB magnets in the automobile industry is rising due to Tesla's ambition to expedite the global transition to sustainable energy. Similarly, the energy sector's growing reliance on renewable energy sources like solar and wind power is driving up demand for NdFeB magnets. As a result, it has forced NdFeB magnet manufacturers to do research and development in order to improve the functionality and efficiency of their goods, which may further fuel the growing demand.

According to projections, the worldwide consumer electronics end use segment category will generate value of US$ 506.0 million by 2024.

Why is the fastest growth expected in Sintered NIB Magnets?

“Demand for the Sintered NdFeB Magnet Market Boosted by Increasing Demand for Electronic Devices”

The sintered NIB magnets type segment is forecasted to capture 58.1% in the global market by 2024. Mounting demand for electronic devices such as smartphones, laptops, and tablets has been driving the surging demand for sintered NdFeB magnets. These magnets find use in a host of devices within these products, such as motors, generators, and sensors. Increasing demands of electronic devices are ever-growing and are fuelled by the increasing demands in Internet connectivity, online entertainment, and working from home.

For example, Apple's iPhone series has a vibration motor that includes sintered NdFeB magnets. It provides users with a haptic feedback experience, which has been in demand due to ever-increasing demand for iPhones, thus increasing demand for the sintered NdFeB magnets. Similarly, demand for laptops and tablets drives demand for sintered NdFeB magnets. Therefore, in the next few years, there will be an increase in demand for sintered NdFeB magnets since electronic devices have always been in high demand.

In 2024, the global NdFeB Magnets market for sintered NIB magnets type segment will generate a net worth of US$ 1,245.8 million.

Competitive Landscape

The market growth for NdFeB Magnets is being driven by leading companies such as Arnold Magnetic Technologies, Lynas Corporation Ltd., Electron Energy Corporation, Daido Steel Co., Ltd., Hitachi Metals Ltd., Shin-Etsu Chemical Co., Ltd., Huatai Xinding Metal Materials Co., Zhejiang Zhongke Magnetic Industry Co., Ltd., Linkup Magnet, Urban Mining, MP Materials Inc., and USA Rare Earth among other prominent players.

These important companies used a variety of primary strategies, such as product releases, mergers and acquisitions, expansions, and deals, to strengthen their positions in the NdFeB Magnets market. Major attention was paid to the deals and expansions.

As an instance :

• In June 2022, MP Materials Inc. announced it had entered into a long-term agreement with General Motors for the supply of rare earth-based materials, including neodymium iron boron magnets, for use in GM's next-generation EVs.
• In Jan 2022, USA Rare Earth declared that it has teamed up with Texas Mineral Resources to build a rare earth mine and processing plant in Texas to supply the market with high-purity neodymium iron boron (NdFeB) magnets.

Fact.MR has provided detailed information about the price points of key manufacturers of NdFeB Magnets positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of NdFeB Magnets Market

• By Type :

  • Sintered NIB Magnets
  • Bonded NIB Magnets

• By End Use :

  • Consumer Electronics
  • Automotive
  • Oil & Gas
  • Aerospace & Defense
  • Medical Devices
  • Other End Uses

• By Region :

  • South Asia & Pacific
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa