Magnet is described as an element that is equipped with the ability to attract nickel, cobalt, iron, and related objects by producing a magnetic field. These elements are used in various applications due to their beneficial properties. They are adopted across sectors such as automotive, consumer electronics, and healthcare, just to name a few. There are three primary types of magnets, namely permanent, temporary, and electromagnet.
The global magnet market is reckoned to amplify with a significant CAGR over the estimated timeframe due to the presence of various expansion inducing factors.
The escalating demand for magnet from a wide range of end use sectors is the primary development catalyst for this marketplace.
Also, widespread industrialization, rising income levels of the masses, and technological advancements in the field of magnet extraction are adding momentum to the progression of this industry vertical.
The increasing pollution levels and stringent emission goals across the globe has elevated the demand for electric vehicles. Magnets are regarded as one of the basic constituents of these vehicles due to their ability of generating rotation utilizing the electric current passing through the wire loops. This in turn is stimulating the dynamics of global worldwide magnet industry.
There has been a growing adoption of magnets in the consumer electronics vertical. Magnets are used by computers to save and store data on the hard drives. They are further used to make tight seal on the freezer and refrigerator doors. These factors are accelerating the development of this marketplace.
Apart from that, the healthcare industry also makes use of magnetic components for various treatment and diagnostics procedures. They are predominantly used in MRIs (magnetic resonance imagers), which are scanning machines used by medical professionals to get proper images pertaining to various internal organs in human bodies. This has helped the business sphere to gain massive traction.
Moreover, advancements in various manufacturing technologies along with growing government efforts to save fossil fuels and reduce emission levels worldwide are positively swaying the outlook of this industry.
On the contrary, high costs pertaining to these elements, risks of health and environmental hazards caused by rare earth components like magnets, and limited availability of raw materials are hindering the remuneration scope of this market.
Besides, the COVID-19 pandemic outbreak led to a sharp decline in the development of this industry. The restrictive containment measures resulted in the closure of manufacturing units and other commercial complexes. Moreover, indefinite lockdowns and travel bans caused supply chain disruptions, thereby putting a halt to various construction and production activities worldwide.
The ferrite segment is anticipated to amass notable gains over the estimated timeframe owing to the fact that ferrite magnets undergo a simple and economical manufacturing process. Also, they are less vulnerable to demagnetization and therefore are widely used in automobile components, wireless connectors, microphones, and refrigerators, among others.
The automotive segment is poised to generate significant returns over the stipulated timeline. This is credited to the rising adoption electric vehicles, stringent emission goals across various nations, along with growing per capita income of the masses.
Considering the geographical frame of reference, the industry vertical is bifurcated into North America, Middle East & Africa, Europe, Asia Pacific, and Latin America. Among these, Asia Pacific is projected to capture a substantial revenue share over the forecast duration. This is ascribed to the rapid industrialization, increasing adoption of electric vehicles, and rising R&D investments in the field.
Meanwhile, the prominent players characterizing the competitive landscape of this industry sphere are Adams Magnetic Products Co., Earth-Panda Advance Magnetic Material Co., Ltd., Arnold Magnetic Technologies, Daido Steel Co., Ltd., Eclipse Magnetics Ltd., Electron Energy Corp., Goudsmit Magnetics Group, Hangzhou Permanent Magnet Group, Hangzhou Permanent Magnet Group, Magnequench International, LLC, Ningbo Yunsheng Co., Ltd., Ninggang Permanent Magnetic Materials Co., Ltd., Shin-Etsu Chemical Co., Ltd., TDK Corporation, Thomas & Skinner, Inc., Vacuumschmelze GMBH & Co. Kg, Ugimag Korea Co., Ltd., SsangYong Materials Corp., and Pacific Metals Co., Ltd.
Notably, in May 2018, Adams Magnetic Products Co. announced its decision to invest in equipment for two additional production lines with an aim to amplify it flexible magnet production capacity.