Rare Earth NdFeB Magnet Market Booms, Forecast to Hit $7.8 Billion by 2031

Highlights

• NdFeB permanent magnet market expected to grow from $4.5B to $7.8B by 2031
• Annual growth rate of 7.5%
• Asia-Pacific dominates production
• North America and Europe invest in domestic rare earth supply chains
• Critical components for clean energy, electric vehicles, and advanced technologies
• Strategic global importance

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Global demand for neodymium-iron-boron (NdFeB) permanent magnets—critical components in electric vehicles, wind turbines, robotics, and smartphones—is surging. According to a new report from Market Research Intellect, the rare earth NdFeB magnet market is expected to more than double from $4.5 billion in 2024 to $7.8 billion by 2031, growing at a strong annual rate of 7.5%.

These powerful magnets deliver high performance in compact sizes, making them indispensable for clean energy and advanced technology sectors. As global electrification accelerates, industries are racing to secure long-term supply chains amid heightened geopolitical tensions and challenges in sourcing rare earth materials.

Asia-Pacific leads the market in both production and demand, with China remaining the dominant force. However, North America and Europe are ramping up investment in rare earth extraction, recycling, and domestic magnet manufacturing to reduce dependency and boost supply chain resilience.

The market is being driven by:

• Rapid growth in EVs and renewable energy tech
• Innovation in magnet recycling and processing
• Public and private sector investment in resilient supply chains

Major players in the space include Hitachi Metals, Shin-Etsu, TDK, China Northern Rare Earth Group, and VACUUMSCHMELZE GmbH, among others.

“NdFeB magnets are the backbone of the green industrial future. With clean energy demand rising and global supply chains shifting, this market is poised for sustained expansion,” said a Rare Earth Exchanges analyst.

Governments worldwide are also stepping in with supportive policies, infrastructure spending, and R&D funding, especially under initiatives like the

U.S. Inflation Reduction Act and the EU Critical Raw Materials Act.

Final Thoughts

As the world transitions to clean tech and electric mobility, rare earth NdFeB magnets are emerging as a strategic material with enormous commercial and geopolitical importance.