ID: PMRREP35599
Format: PPT*, PDF, EXCEL
Last Updated: 10 Sep 2025
Industry: Chemicals and Materials
Number of Pages: 183
The global rare earth magnets market size is likely to value at US$ 31.3 Bn in 2025 and is expected to reach US$ 69.7 Bn by 2032, growing at a CAGR of 12.1% during the forecast period 2025 - 2032.
Key Industry Highlights:
| Global Market Attribute | Key Insights |
|---|---|
| Rare Earth Magnets Market Size (2025E) | US$ 31.3 Bn |
| Market Value Forecast (2032F) | US$ 69.7 Bn |
| Projected Growth (CAGR 2025 to 2032) | 12.1% |
| Historical Market Growth (CAGR 2019 to 2024) | 11.6% |
The growth is primarily driven by the surging adoption of electric vehicles, expansion of renewable energy projects, and increasing use of high-performance magnets in electronics and industrial automation.
Rare earth magnets, particularly neodymium-iron-boron (NdFeB) and samarium-cobalt (SmCo), are critical in applications demanding high efficiency, durability, and compact design. With rising emphasis on clean energy transitions and advanced technologies, the market is poised for robust demand while facing challenges related to supply security and price volatility.
The global demand for rare earth magnets is witnessing significant growth, driven by the rapid adoption of electric vehicles and renewable energy projects. According to the International Energy Agency, global EV sales surged past 17 million units in 2024, accounting for over 20% of all car sales, compared to just 4% in 2020.
Rare earth permanent magnets such as neodymium-iron-boron (NdFeB) are crucial for EV motors due to their high efficiency and lightweight properties, which enhance driving range. The Neodymium Magnets Market plays a critical role in enabling the transition to clean mobility and power generation.
Similarly, the wind energy sector heavily relies on these magnets, with the Wind Power Equipment Market projected to expand by over 680 GW between 2024 and 2030. Leading companies like General Motors and Tesla are investing in securing rare earth supply chains to support long-term electrification goals. This growing alignment between government renewable energy policies and automotive electrification highlights the strong outlook for the Permanent Magnet Motor Market and the broader Electric Vehicle Market.
The Rare Earth Elements Market faces significant challenges due to supply chain concentration, with China accounting for nearly 90% of global rare earth magnet production as of 2023. This dominance creates a strategic risk, especially with recent reports highlighting China’s tightening export controls on rare earths to safeguard its domestic industries.
Prices of neodymium and dysprosium have experienced sharp fluctuations in the last three years, impacting the profitability of manufacturers dependent on imports. In 2022 alone, neodymium prices surged by over 80% due to trade disruptions and geopolitical tensions.
Countries such as the United States, Japan, and members of the European Union have raised concerns over critical mineral dependencies and are actively working on diversification strategies. However, in the short term, limited supply chain resilience and high import reliance remain key restraints that could hamper the steady expansion of the Permanent Magnet Market.
The rising global push for sustainability and resource efficiency is opening new opportunities for rare earth magnet recycling. With growing pressure to reduce dependence on mined rare earths, companies and governments are increasingly investing in circular economy solutions.
The European Union has set a target of recovering 15% of rare earths from waste streams by 2030, while Japan has already initiated large-scale recycling programs for discarded consumer electronics and automotive motors. In 2023, Hitachi Metals and other industry players announced advancements in closed-loop recycling technologies that allow the recovery of neodymium and dysprosium without significant performance loss.
Considering that demand for rare earth magnets in EVs, wind turbines, and electronics is projected to triple by 2035, recycling provides both an economic and strategic advantage. Establishing localized recycling supply chains could reduce dependency on imports, stabilize prices, and create a sustainable growth pathway for the E-bike Motor Market, the E-bike Market, and the wider rare earth magnets industry.
Neodymium-based rare earth magnets account for nearly 70% of total revenue share in the global rare earth magnets market, driven by their superior magnetic strength, high thermal stability, and compact form factor. These Neodymium Iron Boron magnets are indispensable in advanced energy storage systems, hybrid power solutions, and renewable energy grids.
In consumer electronics, NdFeB magnets are critical to both the Smartphones Market and the Hard Disk Drive (HDD) Market, where demand for miniaturization and energy efficiency continues to rise. In smartphones, these magnets are used in compact speakers, haptic feedback vibration motors, and camera stabilization systems, supporting the expansion of the global smartphones market, which recorded over 1.2 billion shipments in 2023.
In the HDD market, they enable high-speed data storage and retrieval, addressing the growing need for efficient digital storage. With the global PC market surpassing 260 million units annually, demand from HDDs further reinforces the strategic importance of NdFeB magnets in mass-market electronics applications.
In the global rare earth magnets market, motors remain the leading application segment, holding about 58% market share, primarily due to the superior strength and efficiency of neodymium-iron-boron magnets. While electric vehicles and hybrid cars are major demand drivers, these magnets are also extensively used in motors across diverse industries.
Rare earth magnets power high-performance motors in industrial automation systems, robotics, wind turbine pitch control systems, HVAC equipment, consumer appliances, and medical devices such as MRI scanners.
Their ability to deliver high torque in compact designs makes them indispensable in applications where efficiency, durability, and space optimization are critical. This broad spectrum of uses, coupled with the accelerating electrification trend, positions motors as the most dominant application for rare earth magnets worldwide.
The North America rare earth magnets market is driven by strong demand from automotive, aerospace, defense, and renewable energy industries. The U.S. Department of Energy has implemented initiatives to strengthen domestic rare earth supply chains and reduce reliance on imports, while incentives under the Inflation Reduction Act encourage EV and wind power adoption, boosting magnet demand. The U.S. automotive industry produced over 10 million vehicles in 2023, highlighting significant consumption potential.
The expansion of offshore wind projects, which are expected to reach over 30 GW capacity by 2030, further drives neodymium-based magnet demand. The growing Energy Storage Systems Market in North America, supported by renewable energy integration and grid modernization efforts, is also fueling magnet usage in high-performance storage and hybrid power applications. Moreover, the defense sector, with substantial spending on advanced systems, adds another layer of strategic importance to securing rare earth magnet supply in the region.
In Europe, rare earth magnet demand is primarily fueled by the automotive industry’s rapid transition toward electrification, as well as the expansion of renewable energy. The European Union’s Critical Raw Materials Act emphasizes securing local supply chains and reducing dependence on external suppliers. Europe produced 13 million passenger cars in 2024, making it a core consumer of rare earth magnets in electric motors.
Additionally, the European wind energy sector, with 19 GW of new capacity installed in 2023, is another key demand driver. EU-led recycling initiatives and partnerships with resource-rich countries aim to secure sustainable magnet supply. Strict environmental policies and climate neutralisty goals by 2050 further support the adoption of rare earth magnets in green technologies across the region.
Asia Pacific dominates the global rare earth magnets market with 65% market Share due to its large-scale manufacturing, rising industrial demand, and favorable government policies. China is the world’s largest producer and consumer of rare earth magnets, with strong integration across mining, refining, and end-use industries.
In 2023, China produced over 30 million EVs and hybrid vehicles, demonstrating its dominant role in automotive magnet consumption. Japan and South Korea also significantly contribute, particularly in electronics, robotics, and renewable energy. Trade policies in China prioritize domestic value addition while restricting rare earth exports, influencing global supply dynamics.
India’s “Make in India” and renewable energy initiatives are expected to accelerate demand for rare earth magnets in both power generation and mobility applications. With strong electronics manufacturing hubs and increasing clean energy adoption, Asia Pacific remains the leading and fastest-growing consumer of rare earth magnets worldwide.
The global rare earth magnets market is witnessing increasing competition as companies focus on capacity expansion, vertical integration, and regional diversification to reduce supply risks. Firms such as Lynas Rare Earths, MP Materials, VACUUMSCHMELZE GmbH, Shin-Etsu Chemical, and TDK Corporation are strengthening their positions through long-term supply agreements and technological advancements in high-performance neodymium-iron-boron (NdFeB) magnets.
MP Materials is investing in downstream magnet production in the U.S. to build a resilient domestic supply chain, while Lynas continues to expand processing capacity in Australia and Malaysia. European players like VAC are emphasizing advanced magnet solutions for automotive and renewable applications.
Strategic partnerships with EV and wind turbine manufacturers, along with government-backed initiatives for critical mineral independence, are expected to enhance supply security and shape competitive dynamics in the years ahead.
The global rare earth magnets market is projected to grow from US$ 31.3 Bn in 2025 to US$ 69.7 Bn by 2032, registering a strong CAGR of 12.1% during the forecast period.
Key growth drivers include the expanding electric vehicle (EV) market, rising investments in renewable energy projects such as wind power, and growing use of high-performance magnets in electronics and industrial automation.
Neodymium-iron-boron (NdFeB) magnets dominate the market, accounting for nearly 86% of revenue share due to their superior strength, thermal stability, and widespread use in EVs, wind turbines, and consumer electronics.
The market faces challenges from supply chain concentration in China (nearly 90% of production), export restrictions, and price volatility of critical minerals such as neodymium and dysprosium.
One of the biggest opportunities is rare earth magnet recycling, which reduces reliance on mined resources. Global initiatives, especially in Europe and Japan, are focusing on circular economy solutions to ensure supply security and sustainability.
The largest demand comes from electric motors used in EVs, hybrid cars, industrial automation, robotics, wind turbines, HVAC systems, consumer appliances, and medical devices such as MRI scanners.
Asia Pacific dominates due to large-scale EV and electronics manufacturing in China, Japan, and South Korea. Europe and North America are also strong markets, driven by EV adoption, renewable energy projects, and defense applications.
Leading companies include Lynas Rare Earths, MP Materials, VACUUMSCHMELZE GmbH, Shin-Etsu Chemical, and TDK Corporation, with strategies focused on capacity expansion, recycling, and supply chain diversification.
| Report Attribute | Details |
|---|---|
| Historical Data/Actuals | 2019 - 2024 |
| Forecast Period | 2025 - 2032 |
| Market Analysis Units | Value: US$ Bn, Volume: Tons |
| Geographical Coverage |
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| Segmental Coverage |
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| Competitive Analysis |
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| Report Highlights |
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| Customization and Pricing | Available upon request |
By Magnet Material
By Magnet Type
By Application
By End Use
By Region
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