Highlights
- Permanent magnet market projected to surge at 5.45% CAGR, reaching $29.12 billion by 2033
- Key growth drivers include:
- Electric vehicles
- Wind turbines
- Industrial automation applications
- Market challenges:
- Raw material scarcity
- Geopolitical risks
- Asia-Pacific leading global production
The global permanent magnet market is poised for robust growth, projected to surge from USD 18.12 billion in 2024 to USD 29.12 billion by 2033, at a CAGR of 5.45%, according to Verified Market Reports (opens in a new tab)®. This growth is primarily driven by increasing demand for neodymium-iron-boron (NdFeB) magnets used in electric vehicles (EVs), wind turbines, consumer electronics, and industrial automation.
This is despite the change in policy in the United States, which has moved away from the Paris Agreement, electric vehicle targets, and similar measures.
Technological advancements in magnet manufacturing—such as hot deformation and grain boundary diffusion—are enhancing efficiency while lowering rare earth dependency. Rising applications in medical devices and automation, combined with the global shift toward sustainable energy, are cementing the role of permanent magnets in modern infrastructure and transportation systems.
Despite promising opportunities, the market faces constraints, including raw material scarcity, supply chain risks, and high production costs. Most rare earth elements essential to magnet production are sourced from China, leaving global manufacturers vulnerable to geopolitical tensions. Additionally, emerging technologies like superconductors and hybrid magnets pose competitive threats. Still, initiatives to localize rare earth supply chains in the U.S. and EU, along with growing magnet demand in healthcare and robotics, offer significant upside. Asia-Pacific leads the global market, with China dominating rare earth production, while North America and Europe push forward with innovation and sustainability efforts in magnet development.
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