Growth in auto industry to drive demand for permanent magnets
The global market for permanent magnets is expected to reach $31.18 billion by 2020, driven in part by growth in the global automobile industry, according to a new study, “Permanent Magnets Industry Trends and Market Segment Forecasts to 2020,” by Grand View Research Inc., San Francisco. Permanent magnets are used in numerous automotive components, including motors, alternators, and gearboxes.
While the automotive industry emerged as the leading application market for permanent magnets and accounted for about half of the total consumption in 2012, energy generation, such as wind energy, is expected to be the fastest-growing application market, with an estimated compound annual growth rate of 9 percent from 2013 to 2020.
Ferrite magnets dominated the global market in 2012, accounting for more than 80 percent of total volume. However, in terms of revenue, ferrite magnets accounted for just more than 20 percent of the total revenue for the same year because of their lower cost. Neodymium magnets are expected to be the fastest-growing product segment, at an estimated CAGR of 9.4 percent from 2013 to 2020.
The Asia Pacific region dominated the overall market for permanent magnets, accounting for 80 percent of the total consumption in 2012. China accounted for 65 percent of world demand for that year.
The report is available to customers of Grand View Research, a market research and consulting company that provides customized research reports and consulting services, at www.grandviewresearch.com/industry-analysis/permanent-magnets-industry.