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Permanent Magnet Market By Type (NdFeB, Ferrite, SmCo, and Alnico) & Industry Worth $18,800 Million by 2018 – New Report by Marketsandmarkets
Date:9/9/2013

fforts of western governments might bear fruit in future, and these issues may be sorted in the next five to ten years.

The enormous potential of this market attracts various small and big level industry players. The permanent magnets market is globally growing at a rapid pace. Though the market size is large in Asia-Pacific, it is growing at a fast pace due to rising demand from end-user industries, especially in countries such as China and Japan. The market is growing slowly in Europe, but will continue to grow at a significant rate in the North American region. The permanent magnet market is still in its infancy in Africa and Latin America, but these regions are experiencing high growth on account of increased infrastructure spending and a low base effect. The market will experience an escalation in the demand of permanent magnets in the years to come.

The permanent magnet market has a number of small manufacturers coupled with a few medium sized manufacturers. The market is dominated by Chinese manufacturers. There is a scarcity of manufacturers that are scattered globally for rare earth magnets. Only a few companies in the world offer alnico or ferrite magnets and the ones that do so produce them in small quantities. To source rare earth magnets, long term supply contracts have to be inked so as to provide the buyer with a buffer from fluctuating magnet prices.

The customers therefore have a limited number of options from which they can buy the right product that meets their specifications both technically and economically. Only a few big companies such as Hitachi Metals (Japan) and Shin-Etsu (Japan) offer permanent magnets for almost all end-user segments. A majority of the companies in this market have been relying on expansion (either geographic or capacity expansion) as a growth strategy for this market to increase their sales margin. The companies have also undertaken R&D to develop highly sophisticated products.

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