Asia-Pacific to Increase Dominance in Permanent Magnets
Asia-Pacific accounted for the highest market share of the global permanent magnet market in 2015, holding 56.5% in terms of value.
The global market for permanent magnets should reach $13.4 billion and $20 billion in 2015 and 2020, respectively, reflecting a five-year compound annual growth rate (CAGR) of 8.4%, according to a recent report by BCC Research. Increasing demand for permanent magnets, in line with increasing demand for electronic devices, medical devices, electronic motors, and generators, will continue to expand the market of this dominant region. The global permanent magnet market has been increasing at an average rate of 10-15%, due to increased demand from intermediate and end-user industries. In this report, permanent magnets comprise four major types: alnico, neodymium, samarium-cobalt and ferrite/ceramic magnets.
In terms of volume, the neodymium magnet segment should grow the fastest among all segments, at a five-year CAGR of 9%. By 2020, this segment should reach 137.2 thousand tons and a market value over $10.7 billion. The ferrite/ceramic magnet segment, the second-highest growth in terms of value and volume, should grow at a five-year CAGR of 8.3% and total almost $8.6 billion.
The major growth drivers for the global permanent magnet market include global automotive industry growth; increasing reliance on electronic devices around the world; and increasing applications and demand for industrial purposes such as in renewable energy, healthcare, aerospace and defense, and IT industries.
Asia-Pacific accounted for the highest market share of the global permanent magnet market in 2015, holding 56.5% in terms of value. By 2020, Asia-Pacific should remain the largest market in the overall permanent magnet market, with a market share of 58.2%, in terms of value. However, North America is estimated to become the second-largest market, followed by Europe with market shares of 18.8% and 18.4%, respectively.
“For the forecast period, the consumption in Asia-Pacific should reach nearly 666.4 thousand metric tons, valued at $11.6 billion in 2020,” said Aneesh Kumar, research analyst. “The increase is primarily due to increasing demand for ferrite and rare earth magnets on the back of rapidly increasing demand for electronic devices, medical devices, electronic motors and generators, among others in the several emerging economies present in this region.”
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