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The global permanent magnets market size is expected to reach USD 39.70 billion by 2030 at a CAGR of 8.4%. The market is currently driven by the increasing support initiatives promoting healthcare infrastructure, especially the developing countries. The growing prominence of renewable energy sources like solar and wind is projected to positively impact the market growth during the forecasted year.
Permanent magnets retain their magnetic properties in the absence of a current or inducing field, converting electrical energy into mechanical, and vice versa to further use energy between magnets. Permanent magnets such as Neodymium Ferrite Boron (NdFeB) are used predominantly in wind turbine generators to expand their efficiency due to their benefits like high reliability and comparatively cheaper maintenance costs.
The COVID-19 pandemic had a negative impact on the permanent magnets market, especially on the operations of the key manufacturing and industrial sectors in the U.S. which resulted in a decline of the GDP of nearly 3.5% in FY 2020. Since 2021, the domestic market for permanent magnets has witnessed a steady recovery owing to the massive fiscal packages that were offered by the U.S. government for industrial production. In addition, the pandemic led to a rise in the demand in healthcare sectors resulting in the global expansion of the market. Permanent magnets are of significant use in several medical devices like surgical devices, blood separators, drug delivery systems, patient monitoring systems, dental equipment, magnetic resonance imaging (MRI) scanners, and various other healthcare devices.
The COVID-19 pandemic was the major driving factor for the investments in the development of healthcare infrastructure. The Government of India invested nearly 3% of its total GDP to upend its healthcare spending by 2022. Initiatives like this are projected to encourage the demand for permanent magnets in the healthcare system during the forecast period. The growing demand for consumer electronics is predicted to positively impact the permanent magnets market globally.
The Asia Pacific is considered a major manufacturing hub in the world with intense automotive and electronic productions with China, Japan, and South Korea being the center hub for computer hardware devices like computer chips, hard disks, and microprocessors manufacturing. This is one of the major factors determining the extensive consumption of permanent magnets by electronics and hardware manufacturers. Owing to industrial production, Europe is predicted to become the second-largest regional market during the forecast year.
The raw elements availability fluctuations and the increasing cost of energy are two of the major drawbacks for the permanent magnet market. Such factors are also challenging for the manufacturers, and disrupting the supply chain, causing hindrances to global market growth. However, owing to its significant usage in wearable electronic devices is expected to witness a high growth rate in the upcoming years. Drastic developments in technology with the development of smartphones, wearable electronic devices, and other smart technologies are projected to positively influence the demand for permanent magnets indirectly during the forecasted period.
Due to the presence of large-scale rare earth metal deposits in China, several manufacturers of small, medium, and large-scale industries are residing closer to the location. At present, the manufacturers are widely focusing on developing and introducing products with higher efficiency to cater mainly to the needs of defense, aerospace, and automation.
Research Support Specialist, USA