Rare Earth Magnet Market

Rare Earth Magnet Market Overview

The global Rare Earth Magnet market size was valued at USD 19.1 billion in 2023 and is predicted to reach USD 30 billion by 2030 with a CAGR of 6.7% from 2024-2030. A rare earth magnet (REM) is a type of permanent magnet made from alloys of rare earth elements. 

These high-performance magnets are known for their exceptional strength and magnetic properties, making them widely used in various industries for the creation of compact and powerful devices such as electric motors, generators, sensors, and magnetic separators, and magnetic resonance imaging (MRI) machines. Their strength relative to size and weight makes them indispensable in applications where space and efficiency are critical concerns, including automotive, electronics, aerospace, and renewable energy sectors.

Market Dynamics and Trends

The increasing demand for electric vehicles (EVs) fuels the rare earth magnet market growth as these vehicles rely heavily on REM for their high-efficiency motors and powertrains. REMs are crucial components in EVs due to their strong magnetic properties, which contribute to the motors' performance and energy efficiency. According to a report published by the International Energy Agency (IEA), global sales of electric cars accounted for USD 14 million in 2023 that is a growth of 14% as compared to the previous year. This growing demand drives the rare earth magnet market expansion, fostering advancements in magnet technology and supporting the development of new, more efficient EV models.

Moreover, the growing aerospace and defense industry further propels the market growth as REMs are essential in the production of high-performance components used in aircraft, satellites, and defense systems due to their strength, durability, and ability to operate in extreme conditions. 

As per the latest report published by the PricewaterhouseCoopers (PwC), the aerospace and defense industry recorded a revenue of USD 829 billion in 2023 up from 11% from the previous year. As the industry expands to meet global security and technological demands, the need for magnetic sensors intensifies, driving further growth and innovation in the rare earth magnet market.

Furthermore, the rapidly growing consumer electronics industry further drives the rare earth magnet market demand as it drives the need for high-performance components in devices such as smartphones, laptops, and wearable technology. According to the latest report published by the Institute for Printed Circuits (IPC), the electronics industry experienced a revenue growth of 5.4% in 2023 and it is projected to reach to 9.4% in 2024. Rare earth magnets are essential for miniaturization and enhanced functionality in these products, leading to increased adoption and innovation within the electronics sector, which, in turn, boosts market expansion.

However, the high upfront cost of extraction, processing, and manufacturing associated with rare earth magnets hinders the growth of the market. On the other hand, the introduction of nanotechnology and the growing focus on developing magnet recycling techniques to recover and reuse rare earth materials from end-of-life products create future growth opportunities in the market. 

As these advancements enhance the efficiency and sustainability of rare earth magnet production, they offer a path toward reducing dependence on raw material extraction, lowering costs, and minimizing environmental impact. This, in turn, is expected to drive innovation and expand the market's potential across various industries, including automotive, electronics, and renewable energy.

Market Segmentations and Scope of the Study

The rare earth magnet market report is segmented on the basis of type, product, application and region. On the basis of type, the market is divided into neodymium (Nd-Fe-B) and samarium cobalt (SmCo). On the basis of product, the market is divided into countersunk magnets, circular disc magnets, hook & eyebolt magnets, cylindrical rod magnets, circular ring magnets, rectangular, self-adhesive, pot & clamping magnets. On the basis of application, the market is divided into automotive industry, food & drink processing, aerospace industry, renewable energy, consumer electronics, deep sea exploration, and others. Regional breakdown and analysis of each of the aforesaid segments include regions comprising North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

Asia Pacific dominates the rare earth magnet market share at present and is expected to continue its dominance during the forecast period. This is due to the larger contribution in manufacturing and supplying of electric vehicles (EVs) by the countries such as China, South Korea, and India. 

According to the latest report published by the India Brand Equity Foundation (IBEF), India’s EV market valued at USD 3.21 billion in 2022 and it is forecasted to reach USD 113.99 billion by 2029. As the leading players in EV manufacturing and exports continue to expand, the demand for rare earth magnets is expected to surge, fueling market growth and reinforcing the importance of these critical materials in the industry.

Moreover, increase in production of electronic devices, gadgets and smartphones in Asia pacific countries such as China, Taiwan, and South Korea are further fuels the rare earth magnet market trends in the region. As per the latest report published by Semiconductor Industry Association, China stands out as the top producer of electronics goods around the world, accounting 36% of world’s electronics production including smartphones, computers, and other smart devices. As neodymium magnets are used in various applications in electronic devices such as vibrating motors, speaker systems, and cameras of a smartphone, its demand in this region is anticipated to grow significantly in the coming years.

On the other hand, North America is considered fastest growing region in the rare earth magnet industry. This is due to the expanding aerospace and defense sector as it necessitates the demand for advanced technologies such as precision-guided munitions, radar systems, and jet engines. 

According to the latest report published by the World Bank Group, the U.S.’s military expenditure accounted for USD 876.94 billion in 2022 as compared to USD 646.75 billion in 2017. This surge in defense spending reflects a focus on enhancing military capabilities including advancements in missile systems, aircraft, and other defense technologies that heavily rely on rare earth magnets.

Furthermore, the government initiatives towards rare earth magnets further fuel the growth of the market in the region as policies supporting the exploration, production, and development of rare earth resources create a favorable environment for industry expansion. 

According the report published by the U.S. Department of Defense (DOD) in 2024, DOD invested more than USD 439 million to establish domestic rare earth element supply chains. This includes separating and refining rare earth elements mined in the U.S., as well as developing downstream stateside processes needed to convert those refined materials into metals and then magnets. These initiatives the establishment of supply chains, which collectively enhance the availability and application of rare earth magnets across various sectors, driving market growth.

Competitive Landscape

The rare earth magnet industry comprises of various market players that includes Texas Mineral Resources Corp, Arnold Magnetic Technologies Corporation, Neo Performance Materials Inc., Ningbo Yunsheng Co., Ltd., MP Materials Corp., Thomas and Skinner inc., Maginito Limited, Yantai Dongxing Magnetic Materials Inc., K&J Magnetics, Inc., Shin-Etsu Chemical Co., Ltd., and others. These companies are adopting various acquisition and business expansion across various regions to maintain their dominance in the sector. 

For instance, in August 2023, Maginito Limited acquired Hypromag to enhance its capabilities to recycle rare earth magnets, which are traditionally challenging to process and end up in landfills. This acquisition aims to address the challenges associated with processing these magnets, enabling more efficient recycling and reducing environmental impact. 

Moreover, in July 2023, Neo Performance Materials Inc. inaugurated first rare earth magnet manufacturing facility in Europe to create supply chain for rare earth permanent magnets, which are crucial for electric vehicles, wind turbines, and other clean energy technologies. 

Key Benefits

• The report provides quantitative analysis and estimations of the rare earth magnet market from 2024 to 2030, which assists in identifying the prevailing industry opportunities.

• The study comprises a deep-dive analysis of the current and future rare earth magnet market trends to depict prevalent investment pockets in the industry.

• Information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Rare Earth Magnet Market Key Segments.

By Type

• Neodymium (Nd-Fe-B)

• Samarium Cobalt (SmCo) 

By Product

• Countersunk Magnets

• Circular Disc Magnets

• Hook & Eyebolt Magnets

• Cylindrical Rod Magnets

• Circular Ring Magnets

• Rectangular

• Self-Adhesive

• Pot & Clamping Magnets

By Application

• Automotive Industry

• Food & Drink Processing

• Aerospace Industry

• Renewable Energy

• Consumer Electronics

• Deep Sea Exploration

• Others.

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

 

Parameters	Details
Market Size in 2023	USD 19.1 Billion
Revenue Forecast in 2030	USD 30.0 Billion
Growth Rate	CAGR of 6.7% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	The increasing demand for electric vehicles (EVs) fuels the growth of the market The growing aerospace and defense industry further propels the market growth The rapidly growing consumer electronics industry further drives the growth of the market
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

Key Players

• Texas Mineral Resources Corp

• Arnold Magnetic Technologies Corporation

• Neo Performance Materials Inc.

• Ningbo Yunsheng Co., Ltd.

• MP Materials Corp.

• Thomas and Skinner inc.

• Maginito Limited

• Yantai Dongxing Magnetic Materials Inc.

• K&J Magnetics, Inc.

• Shin-Etsu Chemical Co., Ltd.