Soft Magnetic Materials Market Size, Share, Industry Trends and Forecast to 2030

Soft Magnetic Materials Market Size & CAGR

The global soft magnetic materials market size was valued at USD 15.2 billion in 2021 and is projected to reach USD 22.5 billion by 2026, growing at a CAGR of 8.2% during the forecast period. The market is driven by the increasing demand for soft magnetic materials in various industries such as automotive, electronics, and energy.

The forecast growth rate for the soft magnetic materials market from 2023 to 2030 is expected to be around 6.5% CAGR. This growth can be attributed to the rising adoption of soft magnetic materials in emerging applications such as renewable energy generation, electric vehicles, and wireless power transfer systems.

COVID-19 Impact on the Soft Magnetic Materials Market

The COVID-19 pandemic has had a significant impact on the soft magnetic materials market. The lockdowns and restrictions imposed to curb the spread of the virus disrupted the supply chain and production activities, leading to a temporary slowdown in the market. However, as the economy gradually recovers, the demand for soft magnetic materials is expected to rebound stronger than before.

The pandemic has also accelerated the adoption of technologies that rely on soft magnetic materials, such as electric vehicles and renewable energy systems. As governments worldwide push for decarbonization and sustainability, the demand for soft magnetic materials is expected to continue growing in the post-pandemic era.

Soft Magnetic Materials Market Dynamics

Driver: Growing Demand for Electric Vehicles

One of the key drivers of the soft magnetic materials market is the increasing demand for electric vehicles (EVs). Soft magnetic materials are essential components in EV motors, transformers, and charging systems. As the automotive industry transitions towards electrification, the demand for soft magnetic materials is expected to soar.

Restraint: Volatility in Raw Material Prices

One of the challenges faced by the soft magnetic materials market is the volatility in raw material prices. Fluctuations in prices of key raw materials such as iron, cobalt, and nickel can impact the profitability of manufacturers. Companies in the market need to develop effective strategies to mitigate the risks associated with raw material price fluctuations.

Opportunity: Increasing Focus on Renewable Energy

The growing emphasis on renewable energy sources such as wind and solar power presents a significant opportunity for the soft magnetic materials market. Soft magnetic materials are crucial in the efficient operation of generators, transformers, and other components in renewable energy systems. As the world shifts towards a greener energy mix, the demand for soft magnetic materials is expected to rise.

Challenge: Intense Competition from Substitute Materials

One of the challenges faced by the soft magnetic materials market is the intense competition from substitute materials. With advancements in material science, alternative materials with similar magnetic properties are being developed. Market players need to innovate and differentiate their products to stay ahead in the competitive landscape.

Segments and Related Analysis of the Soft Magnetic Materials Market

By Type

1. Soft Ferrite 2. Electrical Steel 3. Amorphous Steel 4. Cobalt-based Alloys 5. Others

By Application

1. Transformers 2. Motors 3. Inductors 4. Generators 5. Others

By End-Use Industry

1. Automotive 2. Electronics 3. Energy 4. Industrial 5. Others

Soft Magnetic Materials Market Analysis Report by Region

Asia Pacific Soft Magnetic Materials Market Report

The Asia Pacific region dominates the global soft magnetic materials market, driven by the rapid industrialization and infrastructural development in countries like China, Japan, and South Korea. The increasing demand for consumer electronics, automotive components, and renewable energy systems is boosting the growth of the market in this region.

North America Soft Magnetic Materials Market Report

North America is a significant market for soft magnetic materials, owing to the presence of key automotive and electronics manufacturers in the region. The growing adoption of electric vehicles and the emphasis on renewable energy are driving the demand for soft magnetic materials in North America.

Europe Soft Magnetic Materials Market Report

Europe is a mature market for soft magnetic materials, with a strong presence of manufacturers specializing in electrical steel and amorphous alloys. The focus on energy efficiency and sustainability is propelling the demand for soft magnetic materials in the region.

Middle East and Africa Soft Magnetic Materials Market Report

The Middle East and Africa region are witnessing a gradual growth in the soft magnetic materials market, driven by the increasing investment in infrastructure and renewable energy projects. The demand for transformers and generators in the energy sector is boosting the market in this region.

South America Soft Magnetic Materials Market Report

South America is an emerging market for soft magnetic materials, with countries like Brazil and Argentina showing promising growth prospects. The expanding automotive and electronics industries are driving the demand for soft magnetic materials in South America.

Soft Magnetic Materials Market Analysis Report by Technology

The soft magnetic materials market can be segmented by technology into traditional manufacturing processes and advanced fabrication techniques. Traditional methods involve the production of soft magnetic materials through casting, rolling, and annealing processes. On the other hand, advanced fabrication techniques include powder metallurgy, rapid solidification, and sintering processes.

Soft Magnetic Materials Market Analysis Report by Product

The soft magnetic materials market offers a wide range of products such as soft ferrites, electrical steel, amorphous steel, cobalt-based alloys, and others. These products cater to different applications in industries like automotive, electronics, energy, and industrial sectors.

Soft Magnetic Materials Market Analysis Report by Application

Soft magnetic materials find applications in transformers, motors, inductors, generators, and other electromagnetic devices. These applications require materials with specific magnetic properties such as high permeability, low coercivity, and low core losses.

Soft Magnetic Materials Market Analysis Report by End-User

The end-users of soft magnetic materials include automotive manufacturers, electronics companies, energy producers, industrial firms, and others. These end-users utilize soft magnetic materials in various components and systems to improve performance, efficiency, and reliability.

Key Growth Drivers and Key Market Players of Soft Magnetic Materials Market

Key Growth Drivers:

• Rising demand for electric vehicles
• Increasing focus on renewable energy
• Growing industrialization in emerging economies
• Technological advancements in soft magnetic materials

Key Market Players:

• Hitachi Metals, Ltd.
• VACUUMSCHMELZE GmbH & Co. KG
• TDK Corporation
• Carpenter Technology Corporation
• Nippon Steel Corporation

Soft Magnetic Materials Market Trends and Future Forecast

The soft magnetic materials market is witnessing several trends that are expected to shape its future. These trends include the shift towards high-performance materials, the development of nanostructured alloys, the integration of smart technologies, and the adoption of sustainable manufacturing practices. The market is poised for growth as industries seek innovative solutions to meet the evolving demands of a dynamic market landscape.

Recent Happenings in the Soft Magnetic Materials Market

1. Hitachi Metals, Ltd. announced the launch of a new soft magnetic material with improved saturation magnetization and low core losses.

2. TDK Corporation introduced a series of ferrite cores for power supplies, offering enhanced efficiency and performance in high-frequency applications.

3. VACUUMSCHMELZE GmbH & Co. KG partnered with a leading automotive manufacturer to develop custom soft magnetic components for electric vehicle powertrains.