Permanent Magnet Market Size

Permanent Magnet Market Size

Permanent Magnet market size was valued at around USD 27.97 billion in 2021 and is anticipated to depict a CAGR of 7.4% from 2022 to 2030. Growing number of electric car registrations and government initiatives supporting advanced EV charging infrastructure will be key drivers for the business growth.

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The growing automotive business and acceptance of electric vehicles serve as key contributors to the permanent magnet market expansion. Variable speed motor drives utilize permanent-magnet motors, where the rotor is powered by an electronically controlled, variable-frequency source, and variable voltage.

In many of the Asia Pacific countries such as China, the demand for electric vehicles has risen considerably. The rate of plug-in electric car registrations, for instance, rose to around 3.2 million in 2021, representing a hike of over 153% from a year earlier. The country is also the largest electric vehicle industry growth contributor, with over 257,000 units added to the total of 645,000 units during the first half of 2021, according to statistics from EV-Volumes.

Despite the promising growth environments, challenges associated with raw material prices act as a major roadblock to steady permanent magnet market growth, particularly in North America and Europe. In these regions, the price of raw materials has increased due to the expansion of the rare-earth metal reserves across China and other APAC countries