As we begin to close on 2020, general trends have appeared in the industrial magnet market that have existed before and will carry beyond what has been a somewhat volatile year. Here are just a few interesting patterns we’ve noticed that will resonate into 2021 and beyond.

NdFeB vs SmCo magnets

While NdFeB magnets generally offer a higher magnetic field strength, they tend to be more vulnerable to oxidation. SmCo magnets, on the other hand, though weaker in magnetic field strength, and more susceptible to chipping, offer a higher curie temperature and a high resistance to oxidation. Their use continues to be in niche applications in aerospace and defence.

The global rare earth market overall has grown at CAGR of 7.45% between 2011-2018, with a market value of $12.62 Billion USD. This is projected to rise further still as China, both the biggest producer and consumer, increases its industrial applications.

While China’s appetite continues to rise, there has also been an increase in spending in the defense and aerospace sectors. Coupled with the fact that there are a variety of government initiatives to promote green technologies (to decrease carbon emissions), we’re projecting a continued need for and interest in rare earth magnets.

Various Industry Trends

There are promising growth opportunities across a variety of industries, including:

Consumer Goods. This market accounted for the largest revenue share (more than 26% in 2019). Increased investment in electronic items such as smartphones, laptops, and other household devices will continue to boost market growth internationally.

Automotive. Steady growth is expected in the industry as the trend towards adopting electronic vehicles expands. Electric motors that utilize permanent magnets (like neodymium) save energy (20% savings) and provide better induction. Pressure from government initiatives will also push growth.

Energy. Wind turbine manufacturers are showing a preference for permanent magnets over electromagnets due to advanced efficiency and lower installation costs. Over the coming years, this market segment will continue to grow.

Other Trends to Watch

Some high-level trends to keep an eye on include:

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