Magnetic Materials Market by Type & by Application – Global Forecasts to 2020
The global magnetic materials market is projected to reach USD 96.00 Billion by 2020, registering a CAGR of 9.6% between 2015 and 2020. The growth of the market is primarily driven by the automotive industry. Automobile uses magnetic materials in various parts, such as motors, sensors, actuators, and switches. Increasing concerns to enhance the fuel economy of vehicles force manufacturers to extensively reduce vehicle weight and increase combustion efficiency.
The automotive application dominated the magnetic materials market in 2014; however, the application is projected to register the highest growth rate in the overall market between 2015 and 2020. The increased need for high-quality magnetic materials used in processing automotive bodies and use of advanced technologies boost the market.
The magnetic materials market is classified on the basis of type into semi-hard magnet, soft magnet, and hard/permanent magnet. The market is dominated by semi-hard magnet owing to global demand for technological systems & devices providing innovative products. Some of the related products are antitheft articles, electronic systems, automotive devices, and smart electronic bank cards. Semi-hard magnet is estimated to register high growth during the forecast period.
The industry is highly fragmented in terms of segments to which the products are offered, which increases the market competition for small players. Moreover, the players are focusing on developing innovative products to meet the growing demand from end-use industries.
Currently, Asia-Pacific is the largest and fastest-growing market for magnetic materials owing to high demand from major markets, such as China, India, and Japan. The growing automotive industry in the region is also driving the market for magnetic materials.
The major factor restraining growth of the magnetic materials market is volatile raw materials prices in North America and Western Europe. However, Asian countries such as, China and Japan have increased the production and utilization of magnetic materials. Some of the important magnetic materials companies are Hitachi Metals Ltd. (Japan), Daido Steel Co. Ltd. (Japan), Molycorp Magnequench (Canada), Shin-Etsu Chemical Co. Ltd. (Japan), and TDK Corp. (Japan). The players in this market need to compete with each other with respect to prices and offering wide product range to meet the market requirements.