Global Magnets

Report Overview

This global study on magnets analyzes the supply of and demand for permanent magnets, which are defined as “hard” materials that can be magnetized (gain the ability to attract iron and other ferromagnetic objects) by an external magnetic field and remain magnetized after the external field is removed.

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The major products that are used to make permanent magnets are:

• neodymium (also called neodymium-iron-boron (NdFeB), neo, or rare earth)
• ferrite (or ceramic)
• samarium cobalt (SmCo or rare earth)
• alnico
• other magnets, including copper nickel iron (CuNiFe), iron chromium cobalt (FeCrCo), iron cobalt vanadium (also referred to as FeCoV and vicalloy), iron cobalt vanadium chromium (FeCoVCr), and samarium iron nitride (SmFeN) types

The major markets for magnets analyzed in the study are:

• electronics, including CD and DVD players, computers, electronic calculators, electronic cameras and camcorders, electronic game systems, electronic watches, garage door openers, hearing aids, home entertainment systems, mobile phones, portable music and video players, and printers
• industrial machinery of all types, including air and gas compressors, construction and other heavy mobile equipment, industrial power transmission systems, material handling equipment (conveyors, forklift trucks, etc.), metalworking and plastics processing machinery, packaging equipment, pumps, and turbine generators
• automotive, including components and parts used in light vehicles, buses, trucks, and vans
• other markets, including aerospace and military equipment, all-terrain vehicles, electric bicycles and scooters, furniture and fixtures (catches and closures), guitars and other musical instruments, heating and cooling equipment, household appliances, ICE-powered motorcycles, locomotives, MRI machines and other medical equipment, refrigerator magnets, scientific instruments, ships and boats, and toys

At the world level, industrial magnet demand is broken out by application (electric motors and other); automotive magnet demand is broken out by vehicle type (conventional, including mild and micro hybrids; and full/plug-in hybrids and electric vehicles) and application (electric motors and other); and demand for magnets used in other markets is broken out by segment (electric bicycles and motorcycles, and all other).

Also provided at the global level is demand by magnet type in metric tons.

Demand figures presented here represent the value of finished magnets and do not include the value of magnet-containing subassemblies or devices.

Historical data (2008, 2013, and 2018) and forecasts for 2023 are provided on a region-by-region basis for magnet value demand (by product type and by market) and for select countries (US, Canada and Mexico, China, Japan). Total magnet demand is also provided in a yearly series from 2004 through 2018 on a country-by-country basis.

The global permanent magnet market was valued at $12.3 billion in 2018 and is forecast to climb 7.7% annually through 2023 to $17.9 billion, driven by increasing demand for efficient and smaller industrial parts – including sensors, switches, and electronic systems – along with technological advancements, which are boosting sales of more expensive products.

Key Findings in the Magnets Study:

Key Product Trends Through 2023

• Neodymium, the strongest magnet type currently available, dominates dollar sales, while ferrite magnets, the least expensive on a per kilogram basis, account for the largest share of demand in volume terms.
• Neodymium magnets are expected to post the fastest value gains of any magnet type, driven by the superior performance they can provide as well as their widespread use in electric vehicles, computers, smartphones, and sensors.
• China and Japan together produce more than 95% of the global neodymium magnet supply.

Key Market Trends Through 2023

• The Asia/Pacific region is by far the largest regional market for magnets, commanding 70% of world sales in 2018, due to the presence of China, which is the largest national market by a substantial margin, based on its very large electronics and automobile industries.
• China alone will account for 56% of all additional magnet sales through 2023.
• Additionally, China is one of the largest producers of magnetic materials. Although the nation manufactures all of the major magnet types in substantial quantities, neodymium and samarium cobalt magnets account for above average shares of the country’s output, reflecting the easy access to and favorable prices for rare earths that Chinese firms enjoy.
• In large markets such as electronics and motor vehicles, ongoing efforts to minimize product size and weight while simultaneously adding new features will contribute to growth in sales of neodymium magnets.
• Automotive-related magnet demand is expected to grow robustly, spurred by increases in motor vehicle output and the number of magnet-using devices installed in the average vehicle. Expanding production of full and plug-in hybrids and electric vehicles, which utilize more magnetic materials than conventional vehicles, will also support market gains.

Study Coverage

This Freedonia industry study analyzes the $12.3 billion global magnet market. It presents historical demand data (2008, 2013, 2018) and forecasts for 2023 by product (neodymium, ferrite, samarium cobalt, alnico), market (electronics, industrial, automotive), and major region. The study also evaluates company market share and analyzes industry competitors including Bejing Zhong Ke San Huan Hi-Tech, Daido Steel, Hengdian Group, Hitachi, JL MAG Rare Earth, Ningbo Yunsheng, Shin-Etsu Chemical, and TDK.