Global Magnetic Materials Market Analysis
The global market for Magnetic Materials is forecast to reach US$33 billion by the year 2018, buoyed by strong global demand for Magnetic Materials that is largely driven by Asia, particularly China. The rapid technological advancements and continued strong demand from existing applications are driving growth in the global Magnetic Materials market. Asia-Pacific is the leading market for magnetic materials in the world.
Rapid industrialization especially in emerging nations and advanced technological developments in developed countries has surged demand for magnetic materials that find applications in a variety of industries. Evolution of new end-use applications, and consistent demand from existing end-use markets is expected to fuel strong demand for highly advanced magnetic materials and its applications.
Magnetic materials have become ubiquitous in consumer products and contribute greatly to modern lifestyles. From personal computers to communication, and automotive to consumer products, magnetic materials provide the energy-efficiency needed in all of these dynamic markets. For instance, the proliferation of high-definition TV, digital video cameras, air conditioner, audio equipment, and digital electronic products have spurred the demand for high-grade magnetic materials. Globally, demand for magnetic materials is expected to surge at a healthy rate. New technology innovations, emerging niche markets, extensive applications, improved electrical, magnetic, and mechanical performance of soft and hard magnetic materials and readily available improved materials represent the major factors influencing demand for magnetic materials.
Although, increasing demand creates market growth prospects, profitability is generally low due to stiff price competition. Majority of OEMs have shifted production or established joint venture operations in low-cost regions such as the Far East. Market conditions have led to a spate of company closures and acquisitions, and increased consolidation and rationalization activities. In the recent years, several leading magnetic material manufacturers based in the developed western nations such as the US and Europe, relocated manufacturing operations to low-cost in Asia, mainly China. Other factors attracting global manufacturers to the country include plentiful availability of raw materials, high performance and low-costs benefits of end-use products and continuous R&D activities targeted to improve product quality. However, the technical performance of China-made magnet products is considered to be low in comparison to that of other nations. Uncertainties with regards to product quality and quality assurance systems have caused end-users to source materials from other nations. The country is facing aggressive competition from South Africa, Brazil, and South East Asian nations, such as India are surfacing as major exporters of low-cost magnetic materials.
Energy saving is rapidly emerging as one of the prime agendas in the electronics industry all over the world and this has propelled the global trend towards use of energy saving equipment, and reduction of CO2 and other GHG emissions in line with Kyoto Protocol. Neodymium motor magnets emerge as the greatest beneficiary of this transformation. In developed countries such as Japan, electric motors account for more than 50% of overall domestic power consumption. In the face of global economic uncertainty and sustainability drives, motor efficiency and energy consumption have emerged to become indispensable for key end-user industries. Neodymium magnets help in reducing the size and improving the performance of electric motors. Use of neodymium magnets has risen in a myriad of industries such as information equipment, air conditioners, and hybrid cars. Over the years, the proportion of neodymium magnets used in electric motors has also increased, which caused sharp spikes in production volumes. For example, with increased production of next-generation automobiles, such as electric and hybrid cars, production and demand of neodymium magnets is also expected to increase.
Soft Magnetic Materials, comprising Soft Ferrites and Electrical Steel, represents the largest product segment in the Global Magnetic Materials market. Powder-based soft magnetic products such as soft ferrites and other iron-based powder components are expected to witness growth in the near future mainly driven by the growing demand from end-use industries such as high frequency power electronics and information technology. Other important category is the Permanent Magnetic Materials that includes Alnico Magnets, Hard Ferrite, Samarium Cobalt Magnets and NdFeB Magnets.
As stated by the new market research report on Magnetic Materials, Asia-Pacific is the leading market for magnetic materials in the world. China’s magnetic materials industry has witnessed a rapid growth and leads the world in terms of production, yield, and output of magnetic materials. Based on the favorable investment climate, ferrite magnet enterprises in developed nations such as Europe and America have relocated manufacturing operations to China and surrounding countries in the Asia-Pacific region.
Global market for magnetic materials is a highly competitive one. Major players in the global marketplace include Advanced Technology & Materials Co., Ltd., Beijing Jingci Magnetism Technology Co., Beijing Zhong Ke San Huan Hi-Tech Co., Ltd., Electron Energy Corp., Hengdian Group DMEGC Magnetics Co., Ltd., Hitachi Metals Ltd., Magnetics, Inc., Ningbo Yunsheng Hi-Tech Magnetics Co., Ltd., and TDK Corp., among others.
The research report titled “Magnetic Materials: A Global Strategic Business Report” provides a comprehensive market overview, impact of recession, current market trends, key growth drivers, recent industry activity, and profiles of major/niche global market participants. The report provides annual sales estimates and projections for the years 2010 through 2018 in value terms (US$ million) for geographic markets including the US, Canada, Japan, Europe (France Germany, Italy, UK and Rest of Europe), Asia-Pacific, Latin America, and Rest of World. Key segments analyzed include Soft Magnetic Materials (Soft Ferrite and Electrical Steel) and Permanent Magnetic Materials (Alnico Magnets, Hard Ferrite, Samarium Cobalt Magnets and NdFeB Magnets). The study also provides historic data for an insight into market evolution over the period 2004 through 2009.
Details of the new report, table of contents and ordering information can be found on Electronics.ca Publications’ web site. View the report: Magnetic Materials: A Global Strategic Business Report.