According to a new research report by Global Market Insights., the rare earth metals market size is forecast to exceed USD 19.8 billion by 2026. The growing demand in the for rare earth metals in the hybrid and electrical vehicles is anticipated to generate substantial revenue gains during the forecast period. Moreover, the growing metal mining especially in Asia Pacific coupled with the propelling demand for electric vehicles in the region shall further augment the product demand.
China has over 44 kilo tons of rare earth oxide reserves, followed by Vietnam 22 and India accounts for over 6.9 metric tons as of 2019. This growing rare earth mining activities along with the increasing demand for colorant and catalyst application is anticipated to be a major factor boosting the overall rare earth metals market during the review period of 2020-2026. Asia Pacific accounts for over 55% of the market 2019 and is projected grow at a CAGR of over 10.1% throughout the forecast period.
The growth indicators in the global renewable energy penetration shall also positively affect the rare earth metals market value in the coming years. Rare earth magnets owing to their excellent coercive strength and non-demagnetizing abilities are widely used in wind turbines across the globe. Neodymium, dysprosium and praseodymium are some of the widely used rare earth metals in the wind industry. Neodymium is likely to account close to 35% in the global RE metals market in 2026. Wide-ranging use to neodymium magnets across various industry verticals will be principal factor resulting in such dominant share in the coming years.
Browse key industry insights spread across 532 pages with 925 market data tables & 28 figures & charts from the report, “Rare Earth Metals Market By Metal (Cerium, Dysprosium, Erbium, Europium, Gadolinium, Holmium, Lanthanum, Lutetium, Neodymium, Praseodymium, Promethium, Samarium, Scandium, Terbium, Thulium, Ytterbium, Yttrium), By Application (Magnets, Colorants, Alloys, Optical Instruments, Catalysts), Industry Analysis Report, Regional Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast, 2020-2026” in detail along with the table of contents:
The major constituents in the global rare earth metals market share includes mining, processing, separation, refining, and end-users. The proficient companies in the market are seen to enter into various agreement to earn a share in the rare earth properties across the globe. Furthermore, with the dominance of China in the global market many players are seeking to look for opportunities across the globe to reduce their sole dependency on the Chinese reserves. For instance, in October 2017, The Canada Rare Earth Corp. announced the letter of intent (“LOI”) to form a joint venture with the owners of a prospective rare earth property located in South America.
Optical instruments held a market share of over 10% in 2019
Optical instruments is another application sector of rare earth metals and is projected to grow at a CAGR of over 6.9% during the review period 2020-2026. Optical instrument includes photodetectors, lasers, lamps, LED, optical filters, lenses and other instruments. Moreover, the propelling investments R&D activities for advanced electronics shall further augment the rare earth metals market application in the optical instrument segment.
The other application segment will hold a market share of over 5% in 2026 and is anticipated to show similar trends throughout the assessment period. The other application segment includes solar panels, wind turbines, energy equipment and healthcare.
North America and Europe to exhibit steady growth during the forecast period
The North American will hold a market share of over 18% in 2026. U.S. is working to reduce its dependence for rare earth metals on other countries for which it is investing heavily on product R&D and production. Moreover, rare earth metals market segments such as magnets, optical instruments, colorants and alloys demand in the region is high and forecast to grow with a prominent CAGR during the forecast period.
The major players in the rare earth metals industry are seen to adopt various strategies to expand their product capacities for a larger share in the market. For instance, Lynas Corporation Limited announced the start of their final separation process to expand its neodymium production capacity to 100% Some of the prominent mining companies include, Ucore Rare Metals Inc, Arafura Resources Limited, Iluka Resources Limited, Lynas Corporation, Baotou Jinmeng Rare Earth Co and Northern Minerals Limited among others.
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