Magnetic Materials Market

Magnetic materials are objects which produce a magnetic field. They include a wide variety of materials which are used in an extensive range of applications. Magnetic materials are majorly used in the production and distribution of electricity and are thus an integral part of various socio-economic factors globally. Moreover, advanced magnetic materials have been included as key components in many devices which serve as vital gears in modern electrical engineering and electronics. Magnetic materials are segmented on the basis of their properties, applications and hardness. If a material is easily magnetized and demagnetized, it is referred to as being soft magnetic. However, if the material is difficult to magnetize and demagnetize, it is referred to as semi-hard or hard. 

 

Growing demand for magnetic materials due to rising automotive industry is expected to be one of the major growth factors for the market. In addition, on account of the rising demand for electricity, the increasing consumption of magnetic materials in wind turbine energy generation industries is also expected to contribute towards the growth of the market. However, the fluctuating prices of rare earth metals such as dysprosium and neodymium is expected to slow down the growth of the market in the near future. The increasing application scope of magnets in hybrid electric vehicles (HEVs) coupled with rising demand for these vehicles is anticipated to open opportunities for the growth of the market over the next few years.

 

The global demand for magnetic materials was the highest for semi-hard magnetic materials which accounted for over 55% of the market share in 2012. Analog and digital recording is a significant industry using large quantities of semi-hard magnetic materials for media recording, as well as using miniature magnetic circuits in the “write” and “read” heads. Demand for other magnetic materials such as hard and soft magnets have been notably high owing to factors such as easy availability, low price of ferrites, significant performance properties and rapidly growing industrialization. Moreover, hard magnets such as NdFeB are considered to be the strongest permanent magnets and the demand for these magnets is expected to grow exponentially within the forecast period on account of their increasing use in various electronics, automotive and energy generation industries, and the subsequent growth of these industries.

 

The demand for magnetic materials was the largest from the automotive application segment at the end of 2012. The demand for magnetic materials has been growing rapidly due to the high growth numbers of the automotive industry, and these products are being used for a wide range of applications such as gearbox, alternators and pollution control. 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%, from 2013 to 2019.

 

Asia Pacific garnered the largest share in terms of consumption in the global market for magnetic materials and accounted for 79.0% of the global demand in 2012. The region has been significant in the magnetic materials industry on account of growing demand from manufacturing industries such as automotives and electronics. Europe was  the second largest consumer of magnetic materials owing to various factors such as high demand from current and emerging applications, modernization and development of infrastructure. In addition, Asia Pacific is expected to witness the fastest growth over the forecast period on account of rising demand for magnetic materials such as permanent magnets in China, Korea, Japan and other countries due to  growth of the wind power industry. 

 

A.K. Steel Holding Corporation, Arnold Magnetic Technologies, Electron Energy Corporation, Hitachi Metals, Ltd., Lynas Corporation Ltd. and Molycorp Inc., among others, are some of the key players present in the magnetic materials industry.