Magnetic Materials (Soft Magnetic, Permanent Magnetic and Semi-Hard Magnetic) Market For Automotive, Electronics, Energy Generation and Other Applications – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019″ the global demand for magnetic materials was valued at USD 48.00 billion in 2012 and is expected to reach USD 87.18 billion in 2019, growing at a CAGR of 8.9% from 2013 to 2019.
Increasing demand for magnetic materials on account of the growing automotive industry is expected to be one of the major factors for the growth of the market. In addition, the growing consumption of soft and hard magnets in wind turbines in energy generation industries due to the rising demand for electricity is also expected to contribute towards the growth of the market. However, the fluctuating prices of rare earth metals, particularly, neodymium and dysprosium, is expected to restrain the growth of the market in the near future. The increasing application scope of magnets in hybrid electric vehicles (HEVs) coupled with growing demand for these vehicles are expected to favor the growth of the market over the next few years.
Semi-hard magnetic materials exhibited the highest demand of all magnetic materials, accounting for over 55% of the market share in 2012. Semi-hard magnets are popularly used in relay magnets, magnetic chucks, sensor magnets and level sensors among others. In addition, semi-hard magnetic materials such as thin films are widely used in magnetic recording as recording media. Demand for other magnetic materials such as soft and hard magnets have been notably high on account of key factors such as easy availability, low price of ferrites, significant performance properties and rapidly growing industrialization. In addition, permanent magnets such as NdFeB are considered to be the strongest permanent magnets and the demand for these magnets has been growing significantly over the past few years.
The automotive applications segment exhibited the highest demand for magnetic materials of all the application segments in 2012. The growing automotive industry has been boosting the demand for magnetic materials as these products are being used for a wide range of applications such as gearbox, alternators, motors and pollution control among others. However, future market growth is anticipated to be from the energy generation application segment on account of rising demand for electricity due to various factors such as rapid industrialization and population growth. The energy generation segment is expected to grow at a CAGR of 8.8% between 2013 and 2019.
In 2012, the demand for magnetic materials was significantly high in Asia Pacific, accounting for 79.0% of the global demand. China has played a significant role in the growth of the magnetic materials industry owing to growing demand from manufacturing industries such as automotives and electronics. Europe was the second largest consumer in the magnetic materials market due to various factors such as high demand from current and emerging applications, modernization and development of infrastructure. Moreover, Asia Pacific is anticipated to witness the fastest growth over the forecast period on account of rising demand for magnetic materials such as permanent magnets in other economies of Asia Pacific, due to the growth of wind power industry.