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The Global Soft Magnetic Materials Market Size accounted for USD 19.2 Billion in 2023 and is estimated to achieve a market size of USD 30.1 Billion by 2032 growing at a CAGR of 5.2% from 2024 to 2032.
A magnet is a piece of iron or any other material having its component atoms ordered in such a way that the material displays properties of magnetism such as attracting iron made object or aligning themselves to an external magnetic field. Soft magnetic material is the one that responds to the applied magnetic field either in the form of attraction or repulsion by generating magnetization or demagnetization property. The material that can be easily demagnetized and magnetized is known as soft magnet. Soft magnetic materials such as soft ferrite, electrical steel, cobalt, and others are used in various different industry verticals such as electronics & telecommunication, automotive and electrical as they provide high permeability and prevent eddy current loss.
Market |
Soft Magnetic Materials Market |
Soft Magnetic Materials Market Size 2023 |
USD 19.2 Billion |
Soft Magnetic Materials Market Forecast 2032 |
USD 30.1 Billion |
Soft Magnetic Materials Market CAGR During 2024 - 2032 |
5.2% |
Soft Magnetic Materials Market Analysis Period |
2020 - 2032 |
Soft Magnetic Materials Market Base Year |
2023 |
Soft Magnetic Materials Market Forecast Data |
2024 - 2032 |
Segments Covered |
By Material Type, By Application, By End User Industry, and By Geography |
Regional Scope |
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
Key Companies Profiled |
Toshiba Materials Co., Ltd., Daido Steel Co. Ltd., Sumitomo Metal Mining Co. Ltd., Mate Co. Ltd., GKN Sinter Metals Inc., Sintex A/S, Hitachi Metals Ltd., Ames S.A., Daido Kogyo Co. Ltd., Steward Advanced Materials Inc., GKN Plc, and SA Technologies Limited. |
Report Coverage |
Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Covid-19 Analysis, Regulation Analysis |
The growing global usage of electric vehicles is a primary driver of the soft magnetic materials industry. For instance according to the International Energy Agency, the global electric vehicle market is rapidly expanding, with sales exceeding 10 million units in 2022. Electric vehicles accounted for 14% of all new automobile sales that year, up from over 9% in 2021 and less than 5% in 2020. These materials are critical to the efficiency and performance of EV motors, chargers, and powertrains. With governments and organizations working for carbon neutrality, EV manufacturing is increasing, resulting in a greater demand for innovative soft magnetic materials that ensure energy efficiency. Soft ferrites and amorphous alloys are employed in EV components because they reduce energy losses while increasing power conversion efficiency. This trend is expected to continue as global EV sales increase, creating a higher demand for unique magnetic solutions.
The global move to renewable energy sources, such as wind and solar power, is increasing demand for soft magnetic materials. These materials are critical in transformers, generators, and other energy-conversion equipment. Wind turbine generators, for example, require soft magnetic cores in order to efficiently convert mechanical energy into electricity. The market for soft magnetic materials is predicted to expand rapidly as investments in renewable energy infrastructure increase and government policies encouraging clean energy improve.
The proliferation of 5G technology and internet of things (IoT) devices has created numerous prospects for soft magnetic materials. These materials are required in electronic components such as inductors and sensors, allowing for downsizing and improved signal processing. Demand for smart gadgets is expected to increase as they become more popular worldwide.
The worldwide market for soft magnetic materials is split based on material type, application, end user industry, and geography.
According to soft magnetic materials industry analysis, electrical steel accounted for the major share of the market. Electrical steel and soft ferrite are majorly used in the automotive industry as they offer advantageous properties such as good permeability and help in reduction of core loss. The low cost of these materials contributed to the mass usage in various industries. Soft ferrite is estimated to be the fastest growing material type. This is due to high permeability and low cost of the material.
The motor application is the biggest and fastest growing application area for soft magnetic materials owing to its growing demand in automotive and electric industries. The automotive industry is expected to be the major driving force for the growth of motor application. In addition, growing demand for electric motors, due to rapid industrialization, urbanization, and growing middle class population is further expected to drive the market for soft magnetic materials.
The end-use industry segments include automotive, electronics & telecommunication, electrical and others. Automotive end-user is the largest and fastest growing segment in the soft magnetic materials market. The usage of magnetic material in automotive sector is highest owing to the demand for high quality soft magnetic materials which are used in applications such as antenna core and fuel injection systems. In addition, the electronics industry is expected to witness a significant growth in developing economies such as China and India owing to the increasing disposable income and increasing middle class population. The electronics industry demands long lasting magnetic materials that increase the performance and improves quality of electronic systems.
North America
Europe
Asia-Pacific
Latin America
The Middle East & Africa
The Asia-Pacific region controls the global soft magnetic materials market, having emerged as both the largest and fastest-growing. This leadership is due to the region's rapidly increasing industrial and manufacturing sectors, which drive demand for soft magnetic materials in a variety of applications including electric motors, transformers, and inductors. Countries like China, Japan, and India are at the forefront of this expansion because to their strong manufacturing capacities and increased emphasis on energy efficiency.
China is leading the charge with large expenditures in renewable energy infrastructure and electric vehicle (EV) production, both of which rely heavily on soft magnetic components for peak performance. For instance according to the International Energy Agency, China contributes for over 60% of the new renewable capacity estimated to be operational worldwide by 2028. Japan and South Korea are well-known for their advanced electronics and automotive industries, increasing demand for these materials. Meanwhile, India's growing renewable energy projects and government efforts to boost domestic output contribute to the region's robust industry growth.
Asia-Pacific's expansion is aided by the availability of low-cost raw resources, cheap production costs, and skilled labor. Moreover, the region’s growing use of 5G and IoT technologies drives up demand for soft magnetic materials in telecom and consumer electronics. With increasing investments and technical advances, Asia-Pacific is expected to maintain its dominance in the soft magnetic materials market forecast period.
Some of the top soft magnetic materials companies offered in our report includes Toshiba Materials Co., Ltd., Daido Steel Co. Ltd., Sumitomo Metal Mining Co. Ltd., Mate Co. Ltd., GKN Sinter Metals Inc., Sintex A/S, Hitachi Metals Ltd., Ames S.A., Daido Kogyo Co. Ltd., Steward Advanced Materials Inc., GKN Plc, and SA Technologies Limited.
The soft magnetic materials market size was valued at USD 19.2 Billion in 2023.
The CAGR of soft magnetic materials is 5.2% during the analysis period of 2024 to 2032.
The key players operating in the global market are including Toshiba Materials Co., Ltd., Daido Steel Co. Ltd., Sumitomo Metal Mining Co. Ltd., Mate Co. Ltd., GKN Sinter Metals Inc., Sintex A/S, Hitachi Metals Ltd., Ames S.A., Daido Kogyo Co. Ltd., Steward Advanced Materials Inc., GKN Plc, and SA Technologies Limited.
Asia-Pacific held the dominating position in soft magnetic materials industry during the analysis period of 2024 to 2032.
Asia-Pacific region exhibited fastest growing CAGR for market of soft magnetic materials during the analysis period of 2024 to 2032.
The current trends and dynamics in the soft magnetic materials industry include rising adoption of electric vehicles (EVs) boosts demand for soft magnetic materials in motors and batteries, and growth in renewable energy projects increases the need for efficient transformers and generators.
The automotive end user industry held the notable share of the soft magnetic materials industry.