As per Adroit Market Research analysis, permanent magnet industry in today’s world is consumer-centric hence, customization is the key for maximum returns. Permanent magnets industry require substantial upfront infrastructure investment in high volume applications. Furthermore, Dozens of worthy competitors are present in today’s permanent magnet industry making the competition aggressive. But, the key fact is over capacity and fluctuating prices are hindering the growth of this market.

Players are making lower margins as the price of rare earth metals is fluctuating. Furthermore, the picture is different when it comes to low volume application as the players can make a higher margin owing to less competition. At present, the permanent magnet industry is attractive owing to technological advancement in terms of manufacturing as well as selling. However, overcapacity in Asia Pacific region mainly in China has led to price wars owing to unregulated and uncontrolled growth of rare earth elements (REE) industry.

Amongst 200 magnet producers worldwide, nearly 100 are selling their product online. At present, there are ample of applications that utilize these magnets hence more buyers. For instance, various end-use of these magnets include convertible top controls, airbag systems, trunk closers, dental drills, elevator doors, flywheel storage systems, magnetic fasteners, liquid level switches, golf cart motors, 3-D printing systems, laser weapon systems, sub-sea pumps, security tags, autopsy saws, magnetic bandages, pacemaker pumps, surgical robots, etc.

Neo (NdFeB) held a lion share of nearly more than 60% in the year 2018 in the global permanent magnet market size and is estimated to be the fastest growing permanent magnet type over the foreseeable future. However, increasing price of neodymium owing to favorable demand and attractive production of rare earth metals is hindering its production in terms of volume. Furthermore, ferrite permanent magnet type held the major market revenue share in terms of volume, in the year 2018.

Neo (NdFeB) are the strongest permanent magnet available today and are known as rare earth magnets. It was the ultra-compact neodymium magnet that first made possible to develop world’s slimmest speakers. Even today, most of the Neo (NdFeB) is used in the voice coil motors in the hard disk drives of PCs. Other ranges of neodymium application include sensors, loudspeakers, brushless DC motors, magnetic separation, generators, etc.

Application wise, the global permanent magnet industry is dominated by the automotive industry with a market revenue share of more than 40% in the year 2018. Lately, neodymium magnets have gradually been used in the manufacture of automobile motors. In other words, the development of hybrid car would have been difficult if neodymium magnets did not exist. Hence, with the expansion of automobile production, such as hybrid and electric vehicles, the demand for neodymium magnets is expected to upsurge over the forecast period.

In terms of region, Asia Pacific dominated the global permanent magnet industry with market revenue and volume share of more than 80% in the year 2018. This region is anticipated to witness a similar trend over the forecast period owing to the development of rare earth magnetic material mining industry.

China is the leading producer of magnet-related applications, such as electric cars, air conditioners, motors, elevators, and acoustic devices. Hence, these applications are expected to drive the need for inexpensive and improved permanent magnets. The growing market size of permanent magnet in this region is further supported by the fact that the production of rare earth permanent magnet (REPM) in China is more than the actual demand.

Permanent magnets industry is witnessing huge potential in the practice of recycling. Recycling of permanent magnets consists of a collection of waste, extraction of the magnet, and recycling of the extracted magnets. Europe is taking initiatives by collecting post-production wastes and limited extraction of NdFeB magnets from a different application. No wonder, the European Union (EU) is to become world number one in renewables over the foreseeable future.

Major players operating in the Asia Pacific permanent magnets include., Shin-Etsu Chemical Co., Ltd., Yantai Zhenghai Magnetic Materials Co., Ltd., Daido Steel Co., Ltd., Tokyo Denki Kagaku Kogyo K.K., TDK Corporation, Ningbo Yunsheng Co., Ltd., and others.