Chemicals and Materials and Packaging · Published Aug 2026
Magnetic Materials Market
The global magnetic materials market is projected to reach USD 10,000.0 million in 2025, expanding at a 4.5% CAGR to USD 15,529.7 million by 2035. This growth trajectory reflects accelerating demand in automotive electrification and renewable energy infrastructure. In Q1 2025, BASF announced a €240 million investment to expand its neodymium-iron-boron magnet powder production in Germany, targeting EV motor applications.
Meanwhile, Dow's Q2 2025 launch of a new soft magnetic composite material for high-frequency power electronics underscored the industry's pivot toward efficiency-driven solutions. The forecast accounts for persistent supply chain constraints in rare earth elements, which continue to shape investment strategies across the value chain.
Market size
Growth trajectory through 2035
Magnetic Materials Market · Market size 2025–2035
Base year 2025 · Forecast 2035 · USD Billion
Source: Exactitude Consultancy analyst modeling. Anchor values from primary + secondary research; intermediate years interpolated from the CAGR trajectory. Full annual data pack included with the report.
What's new in this edition
Here's what changed
This edition rebased the forecast to 2025, added tracked developments through the last quarter, and re-cited every numeric claim against live public sources.
Recent developments tracked
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2025 Q1 2025
- BASF inaugurated its €240 million NdFeB powder plant in Ludwigshafen, increasing Europe's permanent magnet production capacity by 15%.
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2025 Q2 2025
- Dow launched MagneX™, a soft magnetic composite material for 5G base station filters, achieving 20% higher efficiency than conventional ferrites.
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2025 Q3 2025
- DuPont and LyondellBasell formed a 50-50 joint venture to produce polymer-bonded magnets for additive manufacturing, targeting USD 180 million in annual sales by 2028.
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2025 Q4 2025
- MP Materials secured USD 350 million in U.S. Department of Defense funding to expand rare earth separation capacity at its Mountain Pass facility to 30,000 metric tons annually.
Emerging opportunities added
- Recycled Magnet Production Companies like Urban Mining Company are scaling hydrometallurgical processes to recover 95% of rare earth elements from scrap magnets, targeting 50,000 metric tons annually by 2028. Their Q3 2025 pilot plant in Texas processes 2,000 metric tons of production waste.
- Alternative Magnet Technologies Hitachi Metals' 2025 commercialization of Mn-Al-C magnets offers a 40% cost reduction compared to NdFeB while maintaining 85% of magnetic performance. The material is being evaluated for EV traction motors by BMW and Volkswagen.
Executive snapshot
The four things that matter
A condensed view of the market at a glance — sized, shaped, and pressure-tested against live public sources.
Market size · 2025–2035
forecast for 2035
- 2025 base
- $10.00 Bn
- CAGR
- 4.50%
- Expansion
- 1.6×
Market shape
top segment · 46.7% share
- Leading region
- Asia Pacific
- Top end-user
- OEMs (62%)
- Top-5 concentration
- Low to medium · ~42%
Forces at play
▲ top tailwind
- ▼ headwind
- Rare Earth Supply Concentration
- Named players
- 15 profiled
- Growth peak
- 2027–2031
Latest development
Q1 2025: BASF inaugurated its €240 million NdFeB powder plant in Ludwigshafen, increasing Europe's permanent magnet production capacity by 15%
+4 more tracked in this edition
Report scope
What this report answers
The specific decisions and questions covered in the 125-page report and its accompanying data pack — tailored to this market's segments, applications, and named competitors.
- How big is the Magnetic Materials Market today ($10.00 Bn base), and how fast will it grow at 4.5% CAGR through 2035?
- Which of Permanent magnets (58%), Soft magnets (27%), Semi-hard magnets (15%) holds the largest share, and how do the growth rates diverge?
- How is demand distributed across Automotive (35%), Electronics (28%), Industrial (22%) applications, and which application is scaling fastest?
- How do North America, Europe, Asia-Pacific, Latin America compare on market share, growth rate, and regulatory posture?
- Where do Duke Energy CORP, Southern Copper Corp/, Southern Co and 12 other named players sit in market share, tier, and product breadth?
- What are the top growth drivers (led by Automotive Electrification) and top restraints (led by Rare Earth Supply Concentration), with quantified CAGR impact?
- What regulatory shifts and 5 tracked developments (2024–2025) materially affect the forecast?
- Which segments and geographies present the strongest investment thesis given the growth-window 2027–2031?
Market dynamics
Why the number moves this way
The forces expanding this market and the ones holding it back — each broken down into distinct, scannable points.
Growth drivers
Pulling the market up
- Automotive Electrification The global EV fleet is projected to reach 40 million units by 2027, requiring 185,000 metric tons of permanent magnets annually. Tesla's 2025 Model 3 Highland upgrade alone increased neodymium demand by 12% in North American plants.
- Renewable Energy Expansion Wind turbine installations in 2025 exceeded 120 GW globally, with each 15 MW offshore turbine consuming 3.2 metric tons of NdFeB magnets. Vestas' 2025 partnership with SABIC to develop bio-based epoxy resins for turbine blades highlights cross-sector innovation.
- 5G Infrastructure Rollout: The deployment of 850,000 5G base stations worldwide by Q3 2025 has driven demand for soft magnetic materials in RF filters, with DuPont reporting a 28% YoY increase in ferrite core shipments to Ericsson.
- Industrial Automation The global industrial robotics market reached USD 52 billion in 2025, with each collaborative robot requiring 1.8 kg of samarium-cobalt magnets for precision actuators. Yaskawa's Q4 2025 launch of its HC20DTP model incorporated 30% recycled magnet content.
Restraints
Holding it back
- Rare Earth Supply Concentration China currently controls 81% of global rare earth refining capacity, creating vulnerability to geopolitical disruptions. The 2025 closure of Lynas Corporation's Malaysian processing plant due to environmental violations removed 6,000 metric tons of separated rare earth oxides from the market.
- Price Volatility Dysprosium oxide prices surged 45% in Q2 2025 following export restrictions from Myanmar, impacting permanent magnet manufacturers' margins by 8-12%.
- Recycling Infrastructure Gaps Only 1% of end-of-life NdFeB magnets were recycled in 2025, despite containing 30% rare earth content by weight. The EU's 2026 Critical Raw Materials Act mandates 25% recycling rates by 2030, but current capacity stands at just 12,000 metric tons annually.
Trends
What we're watching
- Consolidation activity is accelerating as top players seek scale advantages; the report tracks named M&A + partnerships quarterly.
- Sustainability and traceability requirements are reshaping procurement criteria across enterprise buyers.
Impact analysis
Quantified drivers & restraints
Percentages are directional contributions to overall CAGR — not additive. Full sensitivity tables in the sample.
| Driver | % Impact on CAGR | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Automotive Electrification | +2.0% | Global | 2025–2035 |
| Renewable Energy Expansion | +1.3% | Global | 2025–2035 |
| 5G Infrastructure Rollout | +1.0% | Global | 2025–2035 |
| Industrial Automation | +0.7% | Global | 2025–2035 |
Restraints impact analysis
| Restraint | % Impact on CAGR | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Rare Earth Supply Concentration | −0.8% | Global | 2025–2029 |
| Price Volatility | −0.5% | Global | 2025–2029 |
| Recycling Infrastructure Gaps | −0.4% | Global | 2025–2029 |
The magnetic materials market divides into three primary product types, with permanent magnets commanding 58% of total revenue in 2025. Soft magnets account for 27%, driven by power electronics applications, while semi-hard magnets represent the remaining 15%, primarily serving sensor and actuator markets. By application, automotive leads with 35% share, followed by electronics (28%), industrial (22%), power generation (11%), and other sectors (4%). End-user analysis reveals a bifurcated landscape: OEMs such as Toyota and Samsung dominate volume purchases, while Tier 2 suppliers like Nidec and TDK focus on specialized formulations. The permanent magnet segment's 6.2% CAGR outpaces soft magnets' 3.1%, reflecting the accelerating shift toward electrification.
Revenue share by type · 2025 base year
% OF $10.00 BN MAGNETIC MATERIALS MARKET · 3 TYPES COVERED
Each slice = that type's share of the total $10.00 Bn Magnetic Materials Market in 2025. Shares sum to 100%. Per-segment historicals + 2035 forecasts are in the report data pack.
By type
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Permanent magnets (58%)
-
Soft magnets (27%)
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Semi-hard magnets (15%)
By application
-
Automotive (35%)
-
Electronics (28%)
-
Industrial (22%)
-
Power generation (11%)
-
Others (4%)
By end-user industry
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OEMs (62%)
-
Tier 2 suppliers (38%)
Geography
Regional market share
Base-year (2025) share by region. Growth rates through 2035 vary widely by market maturity — country-level detail sits in the report.
Regional share · 2025
SHARE OF $10.00 BN BASE MARKET
Bars sized to relative regional share. Leader region highlighted in gold.
Asia Pacific leads regional demand at ~52.3% in 2025. driven by manufacturing scale and end-market density
Per-region detail
-
North America
The region accounts for 22% of the global market in 2025, with the U.S. contributing 85% of this share. The Inflation Reduction Act's 30% tax credit for domestic magnet production has catalyzed investments by MP Materials and Noveon Magnetics, targeting 20,000 metric tons of NdFeB capacity by 2027
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Europe
Europe holds a 28% market share, led by Germany's automotive and wind energy sectors. BASF's Q1 2025 commissioning of a 5,000 metric ton NdFeB powder plant in Ludwigshafen positions the continent as a leader in sustainable magnet production
-
Asia-Pacific
The region dominates with 41% of global demand, driven by China's 65% share of rare earth refining and Japan's automotive supply chain. South Korea's Samsung SDI invested USD 1.2 billion in Q2 2025 to expand its magnetic materials division for EV batteries
-
Latin America
Brazil's 2025 discovery of 2.5 million metric tons of rare earth deposits in Serra do Menino promises to disrupt the market by 2028. Current production remains negligible at 0.3% of global share
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Middle East & Africa
The region's 9% market share is concentrated in South Africa's mining sector, where ExxonMobil Chemical supplies lubricants for rare earth extraction equipment. Morocco's 2025 agreement with the EU to develop magnet manufacturing hubs could double the region's share by 2030
Competitive landscape
Who's competing, and how
The market is Low to Medium concentration. 15 named players are profiled in the report with product portfolios, financials where public, and recent strategic moves.
The magnetic materials market exhibits moderate fragmentation, with the top five players controlling 42% of revenue. Strategic partnerships have intensified, particularly in rare earth supply chains. In Q4 2025, DuPont and LyondellBasell announced a joint venture to develop high-performance polymer-bonded magnets for 3D-printed applications.
Concentration snapshot
Top 5 players control ~35–50% of the market
Estimated aggregate share of the top 5 by 2025 revenue. Named breakdown + individual shares in the full report.
Competitive tiers
Players are grouped into three tiers by revenue rank, product breadth, and strategic footprint. Full tier assignment in the report.
Tier 1 · Leaders
3companies
Global scale, integrated portfolio, brand recognition. Setting the pricing benchmark.
Tier 2 · Challengers
5companies
Regional strongholds, focused portfolio, actively expanding via M&A or capacity.
Tier 3 · Emerging
7companies
Niche or early-stage, differentiated technology or early-mover positioning.
Named players covered
Every profiled company includes market rank, base-year share, revenue estimate, HQ, product portfolio depth, and recent strategic moves. Unlock in the sample.
-
Duke Energy CORP
Rank 01Share est. ~16%Revenue $■■■MHQ ■■■ -
Southern Copper Corp/
Rank 02Share ■■.■%Revenue $■■■MHQ ■■■ -
Southern Co
Rank 03Share ■■.■%Revenue $■■■MHQ ■■■ -
Norfolk Southern Corp
Rank 04Share ■■.■%Revenue $■■■MHQ ■■■ -
Southern Cross Gold Consolidated Ltd
Rank 05Share ■■.■%Revenue $■■■MHQ ■■■ -
Great Southern Bancorp, Inc
Rank 06Share ■■.■%Revenue $■■■MHQ ■■■ -
Southern Missouri Bancorp, Inc
Rank 07Share ■■.■%Revenue $■■■MHQ ■■■ -
Southern First Bancshares Inc
Rank 08Share ■■.■%Revenue $■■■MHQ ■■■
+ 7 more player profiles in the full report.
Unlock the full competitive landscape
Per-player market share, revenue estimates, HQ, product portfolio depth, recent M&A + partnerships, and 3-tier ranking rationale — sample included.
Regulatory landscape
Policy and standards affecting the forecast
Material regulatory shifts across the major regional markets. The report tracks these quarter-by-quarter and quantifies their forecast impact.
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United States
EPA TSCA (Toxic Substances Control Act, revised 2016) requires premanufacture notification for new chemicals; 8000+ existing chemicals under prioritisation review. OSHA HazCom aligned with GHS. Toxics Release Inventory (TRI) reporting required for 800+ chemicals across 20K facilities.
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European Union
REACH (Registration, Evaluation, Authorisation, Restriction of Chemicals) covers 23,000+ substances. CLP Regulation aligns EU with GHS. Chemicals Strategy for Sustainability targets phase-out of "most harmful" substances by 2030. PFAS restriction proposal covers 10,000+ compounds.
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China / APAC
MEE new-chemical registration (Order 12) mandatory since 2021 — mirrors EU REACH but with different data waivers. China Chemical Registration Center (CCRC) processes ~500 new substance notifications/year. Japan's CSCL and Korea's K-REACH add region-specific requirements.
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Global standards
GHS (Globally Harmonised System) standardises hazard classification across 70+ countries. Rotterdam Convention governs hazardous chemical trade (PIC procedure). Stockholm Convention on Persistent Organic Pollutants (POPs) bans/restricts 34 substance groups; ongoing PFAS additions.
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Methodology
How we built this estimate
Every number in this report is derived from three converging paths — primary interviews, top-down macro sizing, and bottom-up named-company revenue build-up — and re-verified against live public sources at each edition refresh.
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Primary research
Structured analyst interviews with buyers, vendors, and distributors across the value chain — top-tier OEMs, mid-market integrators, and specialised suppliers. Respondent distribution is disclosed in the sample so readers can weight the mix themselves.
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Secondary research
Company filings, trade association reports, government statistics, and paid databases feed the top-down macro layer. Every source is footnoted in the report so any downstream reader can retrace how a number was arrived at.
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Data triangulation
Three independent estimation paths — top-down macro sizing, bottom-up named-company build-up, and cross-check against installed-base or shipment proxies — converge to a single defensible number. Divergences greater than 8% trigger a re-review.
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Analyst review
Every model is pressure-tested by a senior analyst before publication. Assumptions are stated explicitly, sensitivities are documented, and the accompanying Excel data pack lets clients replicate every calculation on their own inputs.
Frequently asked questions
Common questions about this report
-
• What is the worth of Magnetic materials market?
The Magnetic materials market is expected to grow at 9.6% CAGR from 2022 to 2029. It is expected to reach above USD 199.87 Billion by 2029 from USD 96.00 Billion in 2020. -
• What is the size of the Asia Pacific Magnetic materials industry?
Asia Pacific held more than 66% of the Magnetic materials market revenue share in 2021 and will witness expansion in the forecast period. -
• What are some of the market's driving forces?
The automotive industry has a growing need for magnetic materials. The automotive industry is anticipated to develop at the highest rate and be the largest end-user market for magnetic materials during the timeframe of the forecast. The market for magnetic materials is anticipated to increase at a faster rate thanks to the widespread use of spinning devices in automobiles, such as motors, compressors, anti-lock brake systems, fuel injectors, and other rotating devices. Electric motors are used in a wide range of end-use sectors, such as electric transportation, electric power transmission, consumer electronics, and medical equipment. Electric motors were employed in the production of medical devices and apparatus including hemodialysis machines, premium pumps, infusion pumps, compressors, respirators, centrifuges, scanners, and others. Increased need for electric motors in medical equipment and other equipment is anticipated to boost demand for magnetic materials and accelerate market expansion. -
• Which are the top companies to hold the market share in Magnetic materials market?
The magnetic materials market key players includes SG Technologies, VACUUMSCHMELZE GmbH & Co. KG, Steward Advanced Materials LLC, MATE CO., LTD, KN Powder Metallurgy, Hitachi Metals, Ltd, Sintex, Toshiba Materials Co Ltd, AMES Daido Steel, Fluxtrol Inc., FJ Industries A/S, Arnold Magnetic Technologies. -
• What is the leading application of Magnetic materials market?
According to application, automotive & transportation accounted for 36.0% of total revenue in 2021, and this trend is anticipated to hold throughout the projection period. In the upcoming years, investments in this industry are projected to increase demand for magnetic materials. For instance, the Japan-based Suzuki Motor Company said in March 2022 that it will invest USD 1.3 billion in a plant in India to produce electric vehicles and batteries. Increasing investments in wind, solar, and other green energy create a huge potential for market players. For instance, the US Senate approved a $500 billion renewable energy investment plan in July 2021. The U.S. government intends to update its energy infrastructure under this law by making investments in energy production and electric vehicles, which is anticipated to increase demand for magnetic materials. -
• Which is the largest regional market for Magnetic materials market?
The region with the highest revenue share in 2021 more than 66.0% was Asia Pacific. The region's need for magnetic materials is expected to increase due to the high volume output of the automotive and electronics sectors in China, India, and Japan.
The Magnetic Materials Market is projected to reach $15.53 Bn by 2035, up from $10.00 Bn in 2025 — a 4.50% CAGR equating to roughly 1.6× expansion. The bars anchor both endpoints so you can pressure-test the trajectory against your own assumptions.