Automotive Magnetic Products Market Size, Share, Growth 2032
Automotive Magnetic Products Market Size and Forecast (2025 - 2032), By Product Type (Permanent Magnets, Electromagnets), By Application (Motors, Sensors, Actuators), By Vehicle Type (Passenger Vehicles, Commercial Vehicles, Electric Vehicles), By End-Use (OEMs, Aftermarket), and Geography.
Market Overview:
The Automotive Magnetic Products Market is expected to reach a high CAGR of 6.8% over the Forecast Period 2025-2032. The market value is expected to increase from USD XX billion in 2024 to USD YY billion by 2032. Asia-Pacific is anticipated to be the dominant region in this market. Key metrics include increasing adoption of electric vehicles, rising demand for advanced driver assistance systems (ADAS), and growing focus on vehicle electrification. The market is experiencing robust growth driven by technological advancements in magnetic materials and the automotive industry's shift towards more efficient and sustainable solutions.
Market Dynamics:
Market Trend: Increasing adoption of rare-earth magnets in automotive applications drives market growth
The automotive magnetic products market is undergoing a significant shift towards the use of rare-earth magnets, notably neodymium-iron-boron (NdFeB). These magnets offer excellent magnetic properties, such as high remanence and coercivity, making them ideal for a wide range of automotive applications, including electric motors, sensors, and actuators. The automobile sector is driving the trend by emphasising vehicle performance, efficiency, and weight reduction. Rare-earth magnets enable the development of more compact and powerful electric motors, which contribute to the electrification of automobiles and the advancement of hybrid and electric vehicle technologies. Furthermore, the growing demand for advanced driver assistance systems (ADAS) and self-driving cars drives up the demand for high-performance magnetic sensors, hastening this trend. As automakers continue to develop and build more sophisticated vehicle systems, demand for rare-earth magnets in automotive applications is expected to rise, influencing the future of the automotive magnetic products market.
Market Driver: Rapid growth of electric vehicle market boosts demand for magnetic components
The rapid growth of the electric vehicle (EV) sector is a significant driver of the automotive magnetic products market. As governments around the world tighten pollution regulations and offer incentives for EV adoption, demand for electric and hybrid vehicles has grown. The drive towards electrification has led in a significant increase in the demand for magnetic components, particularly in electric motors and power electronics. EVs are driven by electric motors that generally use permanent magnets, and their performance directly affects the vehicle's efficiency and range.
The global electric vehicle market is expected to grow at a 22.5% CAGR from 2024 to 2031, with sales reaching YY million units by 2031. This expansion generates a substantial demand for automotive magnetic products, as each EV requires numerous magnetic components. For example, a typical electric vehicle's powertrain has up to 3 kilogrammes of permanent magnets, as opposed to less than 1 kg in a classic internal combustion engine vehicle. As the production of electric vehicles grows, so does the demand for high-performance magnetic materials and components, propelling the automotive magnetic products market ahead.
Market Restraint: Volatility in rare-earth material prices impacts market stability
The automotive magnetic products sector faces significant problems as rare-earth element prices fluctuate. Geopolitical concerns, supply chain interruptions, and market speculation all contribute to price fluctuations in rare-earth elements, which are essential for the creation of high-performance magnets used in a wide range of automotive applications. These price increases may increase production costs for automotive magnetic devices, lowering profit margins for manufacturers and suppliers. For example, in 2021, the price of neodymium, a key component in NdFeB magnets, jumped by more than 40% due to supply limitations and rising demand.
Segment Overview:
The permanent magnets segment is expected to dominate the Automotive Magnetic Products Market throughout the forecast period.
Permanent magnets are projected to maintain their dominance in the automotive magnetic goods market due to their vital role in many vehicle systems. These magnets offer high magnetic strength, stability, and efficiency, making them important in electric motors, sensors, and actuators. The growing use of electric and hybrid vehicles is boosting demand for permanent magnets, particularly neodymium-iron-boron (NdFeB). These magnets are necessary for the production of high-performance electric traction motors, which form the basis of EV powertrains.
Recent technological breakthroughs have underlined the increasing importance of permanent magnets in the automotive industry. For example, large manufacturers have made enormous investments to protect their rare-earth magnet supply chains. In 2023, a major European automaker formed a strategic relationship with a rare-earth mining company to ensure a consistent supply of magnetic materials for its growing EV manufacturing line.
The permanent magnet sector also benefits from continuous research and development efforts to improve magnet performance and lessen reliance on critical rare-earth minerals. A recent breakthrough by a Japanese research institute shown the feasibility of creating high-performance magnets with lower dysprosium concentrations, allaying concerns about the availability and cost of this critical material. This research could lead to more cost-effective and sustainable permanent magnets for automotive applications, increasing their market domination.
Regional Outlook:
Asia-Pacific is expected to dominate the Automotive Magnetic Products Market during the forecast period.
The Asia-Pacific region's dominance in the automotive magnetic goods market can be attributed to a variety of factors, including the presence of major automotive manufacturing hubs, rapid industrialisation, and increasing use of electric vehicles. China, Japan, and South Korea are in the forefront of EV production, and their governments have implemented policies to stimulate the electrification of transportation.
Recent news underlines the region's expanding importance in the automotive magnetic goods industry. In 2023, a major Chinese magnet manufacturer announced plans to boost production capacity by 40% to meet increased demand from domestic and international automakers. This expansion is expected to strengthen China's position as a key supplier of automotive magnetic goods globally.
Key data demonstrate the region's dominance:
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In 2023, China accounted for more than half of global electric vehicle sales, creating a considerable demand for automotive magnetic components.
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Japan and South Korea collectively control more than 30% of global patents covering permanent magnet technologies for automotive applications.
In terms of country-specific improvements, India has emerged as a rapidly growing market for automotive magnetic devices. The Indian government's push for electric mobility, which includes initiatives like the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) project, has resulted in increased investment in the sector. In 2023, a major Indian automaker announced a partnership with a global magnet supplier to establish a domestic production unit for high-performance NdFeB magnets to assist the country's growing EV industry.
Competitive Intelligence:
The automotive magnetic goods industry is marked by severe competition among top players seeking to develop and acquire market dominance. Leading companies are prioritising R&D to increase product performance and efficiency while cutting costs. Mergers, acquisitions, and strategic partnerships are common strategies for strengthening market positions and extending product ranges.
According to a financial research, the top five market participants account for around YY% of the global market. These organisations have had sustained revenue growth, with an average annual increase of 7-8% over the last three years. Investment in new technologies, particularly the development of high-performance magnets for use in electric vehicles, has been a top priority.
Recent market advances include the creation of recyclable magnetic materials in response to environmental concerns, as well as the investigation of alternative magnetic materials to reduce dependency on rare-earth elements. Several firms have begun efforts to tighten their supply chains, with a focus on obtaining long-term contracts for critical raw commodities.
Looking ahead, the industry is expected to face more competition from new entrants, particularly in emerging regions. To maintain their competitive advantage, established companies would most likely focus on expanding their presence in high-growth countries like Asia-Pacific and investing in new manufacturing technology.
Analyst Opinion:
The vehicle Magnetic Products Market is predicted to grow rapidly because to the increasing electrification of the automobile sector. The expanding number of electric and hybrid vehicles, combined with advancements in autonomous driving systems, will increase demand for high-performance magnetic components. However, market participants must contend with challenges like as raw material price volatility and the need for sustainable production methods.
The development of magnetic materials with lower rare-earth content is an emerging topic to watch out for, since it has the potential to upset current market dynamics. Furthermore, the introduction of magnetic devices into new automotive applications, such as wireless charging systems for EVs, opens up exciting opportunities for market growth.
Major Players:
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Hitachi Metals, Ltd.
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TDK Corporation
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Magnequench International, LLC
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Arnold Magnetic Technologies
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Ningbo Yunsheng Co., Ltd.
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Vacuumschmelze GmbH & Co. KG
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Shin-Etsu Chemical Co., Ltd.
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Daido Steel Co., Ltd.
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Adams Magnetic Products Co.
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Electron Energy Corporation
Key Developments:
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In June 2023, TDK Corporation announced the development of a new high-performance NdFeB magnet with improved heat resistance for vehicle traction motors.
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August 2023: Hitachi Metals, Ltd. established a strategic partnership with a leading EV manufacturer to provide specialised magnetic components for their next-generation electric powertrains.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium)
5. COMPANY PROFILES
5.1. Hitachi Metals, Ltd.
5.2. TDK Corporation
5.3. Magnequench International, LLC
5.4. Arnold Magnetic Technologies
5.5. Ningbo Yunsheng Co., Ltd.
5.6. Vacuumschmelze GmbH & Co. KG
5.7. Shin-Etsu Chemical Co., Ltd.
5.8. Daido Steel Co., Ltd.
5.9. Adams Magnetic Products Co.
5.10. Electron Energy Corporation (*LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Increasing adoption of rare-earth magnets in automotive applications
6.1.2. Growing demand for lightweight magnetic components in vehicles
6.1.3. Rising integration of magnetic sensors in advanced driver assistance systems
6.2. Market Drivers
6.2.1. Rapid growth of electric vehicle market
6.2.2. Increasing focus on vehicle electrification and efficiency
6.2.3. Advancements in magnetic material technology
6.3. Market Restraints
6.3.1. Volatility in rare-earth material prices
6.3.2. Complex manufacturing processes and high initial costs
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY PRODUCT TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
7.1. Permanent Magnets
7.1.1. Neodymium Iron Boron (NdFeB)
7.1.2. Ferrite
7.1.3. Samarium Cobalt (SmCo)
7.1.4. Alnico
7.2. Electromagnets
7.2.1. Solenoids
7.2.2. Coils
7.2.3. Others
8. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
8.1. Motors
8.1.1. Traction Motors
8.1.2. Starter Motors
8.1.3. Pump Motors
8.2. Sensors
8.2.1. Position Sensors
8.2.2. Speed Sensors
8.2.3. Temperature Sensors
8.3. Actuators
8.3.1. Valve Actuators
8.3.2. HVAC Actuators
8.3.3. Others
9. BY VEHICLE TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
9.1. Passenger Vehicles
9.1.1. Sedans
9.1.2. SUVs
9.1.3. Hatchbacks
9.2. Commercial Vehicles
9.2.1. Light Commercial Vehicles
9.2.2. Heavy Commercial Vehicles
9.3. Electric Vehicles
9.3.1. Battery Electric Vehicles (BEVs)
9.3.2. Hybrid Electric Vehicles (HEVs)
9.3.3. Plug-in Hybrid Electric Vehicles (PHEVs)
10. BY END-USE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
10.1. OEMs
10.2. Aftermarket
11. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
11.1. North America
11.1.1. United States
11.1.2. Canada
11.1.3. Mexico
11.2. South America
11.2.1. Brazil
11.2.2. Argentina
11.2.3. Rest of South America
11.3. Europe
11.3.1. Germany
11.3.2. United Kingdom
11.3.3. France
11.3.4. Italy
11.3.5. Spain
11.3.6. Russia
11.3.7. Rest of Europe
11.4. Asia-Pacific
11.4.1. China
11.4.2. Japan
11.4.3. India
11.4.4. Australia
11.4.5. South Korea
11.4.6. Rest of Asia-Pacific
11.5. Middle-East
11.5.1. UAE
11.5.2. Saudi Arabia
11.5.3. Turkey
11.5.4. Rest of Middle East
11.6. Africa
11.6.1. South Africa
11.6.2. Egypt
11.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
By Product Type:
- Permanent Magnets
- Electromagnets
By Application:
- Motors
- Sensors
- Actuators
By Vehicle Type:
- Passenger Vehicles
- Commercial Vehicles
- Electric Vehicles
- By End-Use:
- OEMs
- Aftermarket
By Region:
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East & Africa
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