The global soft magnetic material market size is anticipated to reach USD 26.12 billion by 2027, according to a new report by Grand View Research, Inc. The market is expected to expand at a revenue-based CAGR of 3.9% from 2020 to 2027. The rapid expansion in electricity grids and power distribution is anticipated to boost the demand in the market.
The
demand for soft magnetic materials is driven by the phenomenal character of
getting magnetized and demagnetized with ease. This characteristic is quite
essential in electrical and electronic circuits as the magnetic energy is
converted back to electrical energy easily before being reintroduced in the
circuit. This is not possible in case of hard or permanent magnetic materials,
as their magnetization and demagnetization require a large amount of energy. As
a result, soft magnetic materials find applications in motors, transformers,
generators, and others.
Motors
held the largest volume share of the market in 2019. Soft magnetic materials
are used in motors where they enhance the field produced by motor windings and
channel the flux in permanent magnet motors. Electric motors have ample
applications in machine tools, pumps, power tools, turbines, ships, mills,
vehicles, home appliances, HVAC equipment, and medical equipment, among others.
The use of motors in various industries is boosting its demand.
Electric
vehicles are a prominent end-use segment of motors. The growing production of
electric vehicles owing to environmental concerns related to conventional
vehicles and government initiatives is anticipated to positively influence the
demand for motors. Due to the growing demand, manufacturers are compelled to
expand their motor production capacities.
For
example, in February 2020, Nidec announced its intention to invest a sum of
¥200 billion (USD 1.8 billion) in EV powertrains rush. The investment of the
company shall be split into three new plants in China, Poland, and Mexico.
Together the three facilities are expected to produce 8.4 electric motors
annually.
Electrical
steel or silicon steel is the most prominent type of soft magnetic
material and is used in transformers, motors, and generators. Owing to its high
silicon content, it helps increase electrical resistivity thus, reducing eddy
current losses. Grain-oriented silicon steel is preferred in transformers because
of its orientation, which helps minimize magnetic losses.
Electrical
steel has high demand in its end-use segments, which has propelled its
production. For example, in January 2019, U. S. Steel Košice announced about
building a new non-grain oriented electrical steel line in Kosice worth an
investment of USD 130 million and an annual production capacity of 100
kilotons. The plant was expected to be operational by the fourth quarter of
2020. However, on account of the outbreak of COVID-19 virus across the world,
the U.S. Steel Corporation had to take certain actions in order to preserve
long-term growth, under which the above-mentioned investment remains delayed,
as of March 2020.
Asia
Pacific held the largest share of the market in 2019 and this trend shall
continue over the forecast period, owing to increasing emphasis on power
distribution, electric vehicle production, and growth in consumer goods and
medical equipment in developing economies. Countries such as India have huge
potential for investment as the electricity demand in the country is expected
to reach over 15,000 TWh by 2040. The gradual shift towards renewable energy
sources is another driving factor for the power sector, thus, a positive sign
for market growth.
The
competitive scenario of the market is high with the presence of various
players, who are engaged in developing strategies in order to gain a
competitive edge in the market. For example, in July 2019, Carpenter Technology
announced that it shall help provide soft magnetic alloys for electric aircraft
engine demonstrators. The company had made an investment of USD 100 million in
a precision strip mill for expanding its soft magnetic capabilities for
catering to the aerospace and other industries.
Full Research Report On Soft Magnetic Materials Market Visit Here:
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Soft Magnetic
Materials Market Report Highlights
- Middle East
& Africa expected to register the fastest growth rate of 5.0% in terms
of revenue over the forecast period, owing to the huge potential for the
power sector to flourish in the region
- Asia Pacific
constituted a volume share of over 46.0% in 2019 of the global market,
which is attributable to the increasing manufacturing activities in terms
of automotive, medical equipment, consumer goods, and infrastructure in
developing economies of the region
- Motors is
anticipated to witness the fastest growth rate of 4.1% in terms of revenue
across the forecast period, considering its wide range of applications
which is accelerating in electric vehicles and power distribution sectors
- Ferrites held
a revenue share of over 12.0% in 2019 of the global market owing to their
high cost than electrical steel
- The market
growth is sluggish as of 2020 owing to the covid-19 pandemic, which has
disrupted the manufacturing sector, where demand for soft magnetic materials
exists. However, the demand in the healthcare sector persists, owing to
increasing patients and their rising need for medical equipment such as
ventilators.
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Soft Magnetic
Materials Market Segmentation
Grand View Research has
segmented the global soft magnetic materials market report on the basis of
application, product, and region:
Soft Magnetic
Materials Application Outlook (Volume, Kilotons; Revenue, USD Million,
2016 - 2027)
- Motors
- Transformers
- Alternators
- Others
Soft Magnetic
Materials Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 -
2027)
- Electrical Steel
- Ferrite
- Permalloys
- Others
Soft Magnetic
Materials Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 -
2027)
- North America
- The U.S.
- Canada
- Mexico
- Europe
- Germany
- Italy
- Turkey
- Asia Pacific
- China
- Japan
- South Korea
- Central & South America
- Brazil
- The Middle East & Africa
List of Key
Players of Soft Magnetic Materials Market
- Arnold Magnetic Technologies
- GKN Sinter Metals Engineering GmbH
- Hitachi Metals Group
- JFE Steel Group
- Mahindra CIE
- MATE CO., LTD
- Meyer Sintermetall AG
- Sintered Specialties, LLC
- Steward Advanced Materials LLC
- VACUUMSCHMELZE GmbH & Co. KG
About Grand View Research
Grand
View Research, Inc. is a U.S. based market research and consulting company,
registered in the State of California and headquartered in San Francisco. The
company provides syndicated research reports, customized research reports, and
consulting services. To help clients make informed business decisions, we offer
market intelligence studies ensuring relevant and fact-based research across a
range of industries, from technology to chemicals, materials and healthcare.
For more info visit @ https://www.grandviewresearch.com
