Global Neodymium Magnet Market Insights Forecasts to 2032

• The Global Neodymium Magnet Market Size was valued at USD 2.3 Billion in 2022.
• The Market Size is Growing at a CAGR of 5.2% from 2022 to 2032
• The Worldwide Neodymium Magnet Market Size is expected to reach USD 3.83 Billion by 2032
• North America is expected To Growth the fastest during the forecast period

The Global Neodymium Magnet Market Size is expected to reach USD 3.83 Billion by 2032, at a CAGR of 5.2% during the forecast period 2022 to 2032.

A neodymium magnet, often known as a Neo magnet, is the most common type of rare-earth magnet that can be found. Neodymium magnets are also widely employed in magnetic separating devices, filtration systems, ionizers, the manufacture of on-off switches, the safety sector, and surveillance systems. They are also used for awnings on machinery and cars, as well as the fabrication of magnetic tool belts. Furthermore, they are also utilized in jewelry clips, identity badges, and manufacturing of baby strollers that are magnetically linked to carriers.

In addition to their capacity to produce a static magnetic field, neodymium magnets are also used in the health industry in medical devices for the diagnosis and treatment of conditions such as chronic pain syndrome, arthritis, wound healing, headaches, sleep disorders, and a number of other diseases. One such example is the use of magnetic resonance imaging (MRI) devices. Furthermore, over the past ten years, there has been a rise in their use of treatment and diagnosis. While shortages of supplies and high pricing drive manufacturers to explore alternatives, rare earth elements are still employed in several technologies, and as a result of their demand, the detrimental health effects caused by these strong magnets, as well as their environmental repercussions, must be considered.

The major players in the Global Neodymium Magnet include MP MATERIALS, Peak Rare Earths, China Rare Earth Holdings Limited, Chengdu Galaxy Magnets, TDK Corporation, Arnold Magnetic Technologies, Hitachi Metals, and Goudsmit Magnetics. Major growth strategies, market penetration assessment, and market positioning analysis of the aforementioned competitors internationally are also included in the market environment segment.

Driving Factors

As the vehicle industry increases, so does the demand for permanent magnets. In the automobile industry, permanent magnets are now more frequently being employed in hybrid electric automobiles. In high-performance hybrid electric vehicles, magnets made from rare earths weighs between 2 and 3 kg. Hybrid electric vehicles are expected to become more popular in locations with high pollution levels.

Furthermore, as the application of neodymium magnets in consumer products continues to grow, so does the need for these magnets. They tend to be the most favored choice for many consumer, commercial, industrial, and technical applications due to their high magnetic strength and inexpensive cost. The rising diminishing of automotive equipment, including power tools, sensors, and other components, is driving the market for neodymium magnets. In addition, governments in various countries are implementing more sustainable electric motor systems. Furthermore, growing gasoline prices are likely to increase interest in electrically powered cars and trucks. Neodymium magnets are commonly employed in satellite communications, remote control telemetry, radar technology, electronic countermeasures, and electronic tracking. Neodymium magnets are also widely employed in a variety of transport-related applications, including magnetic suspension trains and permanent magnet devices for luxury automobiles. As a result, the increased use of neodymium as a permanent magnet is expected to boost the worldwide neodymium magnet market over the anticipated time frame.

Growing demand for energy from environmentally friendly sources and expansion in the neodymium magnet industry are driving growth in the neodymium magnet market. In windmills, neodymium magnets are utilized to develop magnetic mounting systems that firmly connect ladders and various other equipment to steel structure frames. As a result, an increase in the use of neodymium magnets in windmills for producing electricity is expected to propel the neodymium magnet market during the forecast time frame.

Restraining Factors        

One of the major issues limiting the growth of the neodymium magnet market is fluctuating raw material costs. Unprecedented hurdles, such as increased energy costs and unpredictable swings in raw material prices, are disrupting supply chains and making it more difficult for manufacturers to deliver quality products at cheap prices and earn profits. The expense of R&D with respect to materials and technology is exorbitant. Additionally, a lot of industry players lack the cutting-edge tools, materials, and human expertise necessary to manufacture cost-effective permanent magnets that are also effective, efficient, and effective from an environmental standpoint.

Market Segmentation

By Product Insights

The sintered segment accounted for the largest revenue share of more than 54.2% over the forecast period.

On the basis of product, the global neodymium magnet market is segmented into sintered and bonded. Among these, the sintered segment is dominating the market with the largest revenue share of 54.2% over the forecast period. Sintered magnets are typically constructed of an iron, boron, and neodymium alloy. Some elements such as copper, cobalt, gadolinium, and dysprosium are employed to make it corrosion-resistant. In the bonding procedure, the magnetic and epoxy binding materials are employed in a 97:3 ratio. Neodymium magnets are produced and graded uniquely for manufacturers. The growing popularity of neodymium magnets in electric vehicles, electronics, electric power plants, medical devices, and other applications will boost the market.

By End-Use Insights

The electrical & electronics segment is dominating the market with the largest revenue share over the forecast period.

On the basis of end-use, the global neodymium magnet market is segmented into the automotive, electrical & electronics, energy & power, semiconductors, and others. Among these, the electrical & electronics segment is dominating the market with the largest revenue share of 48.6% over the forecast period. The growing adoption of magnets in this industry has been attributed to an increasing need for electrical and electronic equipment. Increased consumer disposable income and technological advancements are driving demand for a variety of electronic products such as cameras, air conditioning, loudspeakers, compressors, and mobile phones.

Furthermore, the automobile industry is expected to increase rapidly within the forecasted time span. Hard magnets are utilized in the automotive industry to move battery components, vehicle parts, and engine components. The rising demand for strong magnets will be spurred by rising demand for hybrid and electric vehicles, as well as the developing automotive industry.

Regional Insights

Asia Pacific dominates the market with the largest market share over the forecast period.

Asia Pacific is dominating the market with more than 87.3% market share over the forecast period. The strong economic development, increasing financial freedom, and in conjunction increase in the manufacturing of passenger automobiles, electronic goods, and wind power generators in emerging economies such as China, India, and Japan are a result of Asia Pacific's potential for development. The country's contribution to market expansion has been aided by its readily accessible supply of raw materials, electric vehicles, large-scale electronics, and medical equipment producers. Furthermore, directives from various governments in the Asia Pacific region and other growing countries are likely to drive the neodymium magnet market even higher due to a significant increase in demand from manufacturing industries. As two of the world's top producers of permanent magnets, China and Japan represent major markets in the Asia Pacific region. Nevertheless, there is also an excessive amount of demand for emerging nations like India and Southeast Asian nations like Thailand and Indonesia.

North America, on the contrary, is expected to grow the fastest during the forecast period. The United States is an important market for rare earth elements. The region's demand for NdFeB magnets is predicted to expand fast due to increasing requirements from high-end applications such as robots, wearable gadgets, EVs, and wind energy. Manufacturers of wind turbines are being forced to innovate and release new products as a result of the increasing onshore industry investments. The growing demand for magnets in a variety of end-use industries has compelled leading producers to establish new operations. Furthermore, the U.S. is one of the biggest markets in North America for electric vehicles, and demand for neodymium magnets is likely to expand in tandem with the growth of the electric vehicle market.

The Europe market is expected to register a substantial CAGR growth rate during the forecast period. This can be attributed to the region's increasing need for energy from renewable sources and electric automobiles. Nations like Germany and the UK have set high goals for decreasing carbon emissions while also making significant investments in renewable energy.

List of Key Market Players

• MP MATERIALS
• Peak Rare Earths
• China Rare Earth Holdings Limited
• Chengdu Galaxy Magnets
• TDK Corporation
• Arnold Magnetic Technologies
• Hitachi Metals
• Goudsmit Magnetics
• Yantai Shougang Magnetic Materials Inc.
• Ningbo Yunsheng Co Ltd.
• Shin Etsu Chemical Co Ltd.
• Electron Energy Corporation
• Tengam Engineering Inc
• Texas Mineral Resources Corp.
• ARAFURA RESOURCES
• Greenland Minerals Ltd.
• HEFA Rare Earth

Key Market Developments

• On April 2023, Arafura Rare Earths Limited has agreed to deliver Neodymium and Praseodymium (NdPr) rare earths from the company's Nolans Project in Central Australia to Siemens Gamesa Renewable Energy. The offtake agreement calls for the project to deliver NdPr to Siemens Gamesa for a five-year period that might be extended by mutual agreement for another two years. The contract volumes for NdPr metal are 200 tonnes per annum (tpa) beginning in 2026, growing to 360tpa in year two and 400tpa in years three to five to match with the project's ramp-up, according to Arafura.

• On November 2022, Arafura Rare Earths have entered into a contractual offtake agreement with Hyundai and Kia to provide neodymium and praseodymium, or "NdPr" from its Nolans project in the Northern Territory. Once production at the Nolans project achieves nameplate capacity, Hyundai will supply up to 1500 tonnes of NdPr oxide, or its equivalent in NdPr metal, over a seven-year period. Nolans supply is projected to commence in 2025, subject to project financing, completion, and commissioning.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2032. Spherical Insights has segmented the Global Neodymium Magnet Market based on the below-mentioned segments:

Neodymium Magnet Market, Product Analysis

• Sintered
• Bonded

Neodymium Magnet Market, End-Use Analysis

• Automotive
• Electrical & Electronics
• Energy & Power
• Semiconductors
• Others

Neodymium Magnet Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa