Demand Shortage of Goods & Services Affects Market Growth during COVID-19 Pandemic

Negative ramifications of the coronavirus (COVID-19) outbreak are reflecting in economic activities of the bonded magnet market. Bonded magnets have opened up a plethora of applications, but the pandemic has caused a slowdown in the world economy. International trade has been affected due to heavy taxes on import and export duties. Transportation regulations are also affecting growth of the bonded magnet market. Hence, manufacturers are developing contingency plans to ascertain future risks.

A sharp fall in demand for goods & services due to the COVID-19 crisis has left manufacturers scurrying for business opportunities. Countries such as China, Japan, and Australia bode well for current business activities since the pandemic has drastically subsided in these regions. Manufacturers are maintaining regular business operations for clients involving mission-critical projects.

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Meeting Project-specific Requirements Help Scale Business Activities

The bonded magnet market is projected to surpass the revenue of US$ 3 Bn by the end of 2030. Injection molded magnets are being used to design complex shapes and can be inserted molded directly onto other components to manufacture assembly parts. As such, compression bonded magnets offer higher magnetic output compared to injection molded magnets. However, the former can only be used in simple geometries. Hence, manufacturers in the bonded magnet market are increasing their product portfolio in both types of materials to meet different specifications and requirements in end-use cases.

Magnetic Materials & Components (MMC)— a company headquartered in New York, is increasing its production capacities to develop rare-earth and ferrite-bonded magnets. The recycling of critical metals from sintered neodymium (NdFeB) permanent magnets has acquired popularity over the years.

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Limitations in Recycling Activities Lead to Import Expenditures for European Manufacturers

The bonded magnet market is expected to register a favorable CAGR of ~6% during the assessment period. This can be attributed to rare-earth high-performance magnets playing a vital role in the production of electronics, wind turbines, electric vehicles, and the likes. Manufacturers are increasing their production capabilities to produce polymer-bonded rare-earth magnets since these magnets are compatible in injection molding and 3D printing applications.

Polymer-bonded rare-earth magnets are being highly publicized for their resistance to corrosion and flexibility in shape. However, import duties add to the production cost of companies in the Europe bonded magnet market since these manufacturers import rare earths from outside Europe. Companies are increasing efforts to better industrial recycling processes to minimize import duties.


Shape Diversity Crucial for Manufacturing of Electronics and Electric Vehicles

The ever-increasing consumer electronics sector is creating incremental opportunities for manufacturers in the bonded magnet market. These small magnets are heading toward the trend of miniaturization, high performance, and complicated shapes. Companies in the bonded magnet market are increasing efforts to fabricate neodymium iron boron-based permanent magnets using sintering and hot deformation methods to enhance their magnetic performance. However, sintering and hot deformation for complicated-shaped magnets would augment the manufacturing cost. Hence, manufacturers are preparing neodymium iron boron-based permanent magnets using bonding method to exhibit advantages in shape diversity.

Shape diversity of bonded magnets is highly preferred in the production of e-bikes and electronics. In order to achieve this, manufacturers are using binders such as solid epoxy resins, owing to its advantages of easy molding and processing. They are increasing their R&D muscle to incorporate high temperature resistance in bonded magnets.

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Analysts’ Viewpoint

Companies in the bonded magnet market are scaling business activities in countries such as China, Japan, and Australia where the demand for products is gradually rising after COVID-19 has drastically subsided. Manufacturers are exploring value-grab opportunities in the automotive and transportation sector. However, import duties are emerging as a challenge for European manufacturers due to the scarcity of rare-earths. Hence, European manufacturers should collaborate with researchers and industrial partners to innovate in feasible recycling methods such as rapid solidification to reduce import expenditures. With the help of rapid solidification, manufacturers can produce polymer-bonded magnets. The growing consumer electronics and electric vehicles sector is generating business streams. Shape diversity and miniaturization are important trends in the market landscape.

Bonded Magnet Market: Overview

  • In terms of value, the bonded magnet market is expected to cross US$ 3 Bn by 2030
  • Rise in demand for bonded magnet, owing to its wide usage in electrical & electronics and automotive applications is anticipated to propel the global bonded magnet market during the forecast period
  • Based on application, electrical & electronics is projected to be a highly lucrative segment of the global bonded magnet market in the near future

Bonded Magnet Market: Key Drivers and Restraints

  • Bonded magnet is employed in a wide range of electrical & electronics applications. It is used in mobile phones, scanners, hard disks, etc. Therefore, growth of the electronics industry is estimated to drive the demand for bonded magnets, owing to their wide usage in electronic equipment. According to the Indian Brand Equity Foundation (IBEF), the appliance & consumer electronics (ACE) market in the country was valued at US$ 31.48 Bn in 2017. It is expected to reach US$ 48.37 Bn by 2022. Policies supported by the Government of India play a major role in the rising demand for hardware across the country.
  • Ring, bar, and horseshoe-type 3D bonded magnet structures can be printed and cured in air at 100°C without degrading their magnetic properties. The method provides a new pathway for fabricating NdFeB bonded magnets with complex geometry at low temperature, and presents new opportunities for fabricating multifunctional hybrid structures and devices. This is anticipated to provide new opportunities for the global bonded magnet market in the near future.
  • The maximum operating temperature of bonded magnet is limited by temperature characteristics of polymers. Higher tooling cost is required for injection and extrusion molding processes. The magnetism of bonded magnets is about 5% of that of sintered magnets. The energy product of sintered magnets can reach more than 50M, while bonded magnets are generally below 10M, whereas the ideal is 12M. Properties of bonded magnets are generally 15M, and 10.5M of magnetization is produced after bonded magnets are made. Therefore, presence of strong substitutes such as sintered magnet is projected to adversely impact the bonded magnet market during the forecast period.

Bonded Magnet Market: Major Products

  • Based on product type, the global bonded magnet market has been segmented into rare-earth bonded magnets, ferrite bonded magnets, and hybrid bonded magnets
  • Ferrite bonded magnets was a high-value product segment of the global bonded magnet market in 2019. This trend is expected to continue during the forecast period. The rare-earth bonded magnets segment has also been expanding at a significant pace since the last few years. The segment is likely to expand considerably during the forecast period.

Bonded Magnet Market: Prominent Applications

  • Based on application, the global bonded magnet market has been divided into automotive & transportation, electrical & electronics, industrial, medical, power generation, military & aerospace, and others
  • The electrical & electronics segment is expected to dominate the global bonded magnet market during the forecast period. Bonded magnets are being employed in most electronic devices on a large scale due to their better performance as well as cost-effectiveness vis-à-vis substitutes such as sintered magnets. Bonded magnets are major components of all forms of motors and sensors, which are key components in any electronic device.
  • The trend of bonded magnets being employed in electronics and electrical devices is projected to increase in the near future due to various benefits that are offered by bonded magnets

Asia Pacific to be Highly Lucrative Region of Bonded Magnet Market

  • In terms of demand, China has been a lucrative country of the global bonded magnet market since the last few years. The country accounted for more than 60% share of the bonded magnet market in Asia Pacific in 2019.
  • Asia Pacific is projected to dominate the global bonded magnet market during the forecast period. The bonded magnet market in Japan expanded significantly in 2019. The country is anticipated to exhibit a lucrative trend for the bonded magnet market in the near future.

Bonded Magnet Market: Competition Landscape

  • Key manufacturers operating in the global bonded magnet market include
    • Advanced Technology Materials Co. Ltd.
    • Arnold Magnetic Technologies
    • Magnequench International
    • LLC
    • Alliance LLC
    • DEXTER MAGNETIC TECHNOLOGIES

Bonded Magnet Market – Scope of the Report

The new study on the global bonded magnet market published by Transparency Market Research (TMR) presents a wealth of information on key market dynamics, including drivers, market trends, and challenges, as well as structure of the global bonded magnet market. TMR’s study offers valuable information on the global bonded magnet market to illustrate how growth would discern during the forecast period of 2020 to 2030.

Key indicators of market growth, which include value chain analysis as well as supply chain analysis and compounded annual growth rate (CAGR) have been elucidated in TMR’s study in a comprehensive manner. This data can help readers interpret quantitative growth aspects of the global bonded magnet market during the forecast period.

An extensive analysis of leading market players’ business strategies has also been featured in TMR’s study on the global bonded magnet market. This can help readers understand principal factors to foresee the growth of the global bonded magnet market. In this study, readers can also find specific data on avenues for qualitative and quantitative growth of the global bonded magnet market, which would guide market players in making apt decisions in the near future.

Key Questions Answered in TMR’s Study on Bonded Magnet Market

  • What would be the Y-o-Y growth rate of the global bonded magnet market between 2020 and 2030?
  • What is the influence of changing trends on the global bonded magnet market?
  • Would Asia Pacific continue to remain the most profitable region for manufacturers of bonded magnet in the near future?
  • Which factors would hamper the global bonded magnet market during the forecast period?
  • Which are the leading companies of the global bonded magnet market?

Research Methodology

A unique research methodology has been utilized by TMR to conduct comprehensive research on the global bonded magnet market and arrive at conclusions on growth prospects for the market. This research methodology is a combination of primary and secondary research, which helps analysts warrant the accuracy and reliability of the conclusions drawn.

Secondary sources referred to by analysts during the production of the report on the global bonded magnet market include statistics from company annual reports, SEC filings, company websites, World Bank database, investor presentations, regulatory databases, government publications, and market white papers. Analysts also interviewed senior managers, product portfolio managers, CEOs, VPs, and market intelligence managers, who contributed to the production of TMR’s study on the global bonded magnet market as a primary source.

These primary and secondary sources provided exclusive information during interviews, which served as a validation from leading players operating in the global bonded magnet market. Access to an extensive internal repository and external proprietary databases allows this report to address specific details and questions about the global bonded magnet market with accuracy. The study also uses the top-down approach to assess numbers for each segment and the bottom-up approach to counter-validate them. This has helped in making TMR’s estimates on future prospects of the global bonded magnet market more reliable and accurate.

 

 

The bonded magnet market has been divided into the following segments.

Product

  • Rare Earth Magnets
    • Isotropic
    • Anisotropic
  • Ferrite
    • Plastic Ferrite
    • Rubber Ferrite
  • Hybrid

Process

  • Calendaring
  • Injection Molding
  • Extrusion
  • Compression

Application

  • Automotive
  • Electrical & Electronics
  • Industrial
  • Others (Medical, Power Generation etc.)

Regional

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • Italy
    • U.K.
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America

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Bonded Magnet Market

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