The trend of energy generation using electric motors incorporated in windmills is gaining significant traction, owing to which Permanent Magnet Market will observe a lucrative growth in the years ahead, subject to the product usage in windmills. Permanent magnet market will collect attractive revenue, owing to the increasing product demand across the globe in wind farms and wind energy stations to overcome the deficiency of non-renewable energy resources such as fossil fuels. The installation of windmills has been exponentially increasing across the globe, which will thereby significantly fuel the demand for permanent magnets. Many leading organizations in the world are creating awareness among the public regarding eco-friendly energy generation to reduce environmental pollution, which will further spur permanent magnet market. According to Global Market Insights, Inc., “Permanent Magnet Market will collect a revenue of over USD 50 billion by 2024 with an annual growth rate of more than 10% over the period of 2016 to 2024.”
Apart from energy generation, permanent magnets find extensive applications in the automotive sector. Permanent magnet market size from automotive applications was more than USD 10 billion in 2015 and is anticipated to exhibit a flourishing CAGR over the years ahead. These devices are also used for energy conversion in motors embedded in alternators, speakers, actuators, and sensors. The demand for automobiles and other commercial vehicles is increasing exponentially across the globe, which will result in significant growth of permanent magnet industry.
U.S. Permanent Magnet Market size, by application, 2013 - 2024 (USD Billion)
U.S. produced more than 12 million units of commercial vehicles and passenger cars in 2015. North America permanent magnet market, having had a revenue of USD 4 billion in 2015, will register an annual growth rate of more than 9% over the coming years of 2016 to 2024. U.S. will be a key revenue contributor. In fact, the U.S. had implemented wind energy power generation plants of capacity around 75 GW in 2015 and will expand the installation capacity over the years ahead, which will stimulate regional permanent magnet market.
China is one of the prominent revenue contributors of the global permanent magnet industry share, as this country has accumulated a major share in several markets such as wind energy generation, electronic products, and automobiles. As per reliable statistics, China covered more than 25% of the global automotive production in 2015. The region is also involved in the installation of windmills with a capacity of more than 145 GW, which will contribute to the regional permanent magnet market. Furthermore, most of the established industry giants have a major presence in China pertaining to availability of large number of earth metal mines. They have been investing heavily in R & D activities not only to improve the manufacturing techniques, but also to reduce the overall processing cost. For instance, in 2016, Hitachi Metals Ltd. financed the production of ferrite and NdFeB magnet. Such measures are bound to fuel APAC permanent magnet market.
Neodymium alloy accounted for more than 65% of the revenue contribution in the product landscape of permanent magnet market and will record an annual growth rate of more than 10% over the period of 2016 to 2024. Ferrite based product was worth USD 5 billion in 2015 and is anticipated to register a flourishing growth rate over the coming seven years. The attributing factor toward the industry growth is the low cost of the product coupled with the easy raw material availability.
Energy generation is one of the most notable application segments, which will generate a revenue of USD 6.5 billion with an annual growth rate of more than 10% over the coming years of 2016 to 2024, owing to rising wind energy requirement. The capacity of the currently installed wind energy power plants across the globe is about 400 GW. Additionally, the UN is aiming to generate 100% emission free energy by 2050, which in turn, will stimulate permanent magnet market size noticeably over the coming timeframe.
Industry players are involved in strategic mergers and acquisitions to sustain their market position. Product differentiation is another vital growth strategy adopted by market players to attract more customers. The key participants in permanent magnet market are Adams Magnetic Products, Hitachi Metals, Ltd., TDK Corporation, Hangzhou Permanent Magnet Group, Arnold Magnetic Technologies, Anhui Earth-Panda Advance Magnetic Material Co., Ltd, and Electron Energy Corporation.