Rare Earth Magnet Market Size is valued at USD 19.5 Bn in 2024 and is predicted to reach USD 40.5 Bn by the year 2034 at a 7.7% CAGR during the forecast period for 2025 to 2034.
Rare Earth Magnet Market Size, Share & Trends Analysis Report By Type (Neodymium-Iron-Boron Magnet (NdFeB), Samarium Cobalt Magnet (SmCo)), Product, Application, By Region, And By Segment Forecasts, 2025 to 2034
A rare-earth magnet is an exceptionally powerful permanent magnet composed of rare-earth element alloys. Rare earth magnets are exceptionally strong permanent magnets made of neodymium, iron, and boron. They are small but powerful and have applications in electronics, motors, medical devices, sensors, etc. However, they are sensitive to high temperatures and corrosion. Their strength makes them valuable but has raised supply and environmental concerns.
Alloys of rare earth elements are used to create rare-earth magnets, the strongest permanent magnet on the market. Growth in the automotive sector due to technological advancements, population growth, and higher consumer goods demand are all projected to propel the rare earth magnet market during the forecast period. The expanding sales of electronic gadgets, including mobile phones, tablets, TVs, and laptops, are driving the worldwide rare earth elements market due to rising consumer expenditure and internet penetration worldwide.
In addition, governments across the globe continue to stress the importance of transitioning to renewable energy sources. The market for rare earth magnets can provide magnets for wind turbines and other such technologies. In addition, rare earth magnets are used in the aerospace and defence industries for applications, including military hardware and aviation systems. Growth and development in technology affect the demand in this sector. However, rapid urbanization, industrialization, expanding access to energy, and rising degrees of automation across a variety of industries are expected to boost the market.
However, despite their excellent performance, rare earth magnets have limitations, such as susceptibility to corrosion and magnetism loss at high temperatures. The availability of rare earth elements, which are not uniformly distributed around the globe, is also crucial to manufacturing rare earth magnets. In addition to COVID-19, the rare earth magnet industry took a huge hit, as nearly every government decided to shut down all production facilities except those engaged with creating vital items. Due to the lockdown, progress on the rare-earth magnet system's manufacture was slowed. In the wake of the lockout, the increased demand for rare earth magnets in the manufacturing of electric vehicles, consumer goods, and technologies has contributed to the expansion of the rare earth magnet market.
The rare earth magnet market is segmented based on Type, Product and Application. Based on type, the market is segmented into neodymium-iron-boron magnets (NdFeB) and samarium cobalt magnets (SmCo). By Product, the market is segmented into countersunk magnets, circular disc magnets, hook & eyebolt magnets, cylindrical rod magnets, circular ring magnets, rectangular, self-adhesive, and pot & clamping magnets. By application, the market is segmented into the automotive industry, food & drink processing, aerospace industry, renewable energy, consumer electronics, deep sea exploration, and others.
The neodymium-iron-boron magnet rare earth magnet category is expected to record a major global market share in 2022 because there is a rising need for compact versions of many kinds of machinery. Their superior magnetic qualities make them the most popular type of permanent magnet.
The consumer electronics segment will likely to grow rapidly in the global rare earth magnet market. Products in the consumer electronics market are rising in popularity because of the high level of sophistication they provide. Products like this not only keep us amused but also facilitate our productivity, especially in countries like the US, Germany, the UK, China, and India.
The North American rare earth magnet market activity is anticipated to record the maximum market share in revenue in the near future. It can be attributed to the rising numbers of people, greater demand for electric vehicles, and higher electricity prices have all contributed to the development of new wind farms. In addition, Asia Pacific is estimated to grow rapidly in the global rare earth magnet market because as the population grows and more people buy electric cars, wind power-producing plants must boost their output to meet the rising electricity demand.
| Report Attribute | Specifications |
| Market Size Value In 2024 | USD 19.5 Bn |
| Revenue Forecast In 2034 | USD 40.5 Bn |
| Growth Rate CAGR | CAGR of 7.7% from 2025 to 2034 |
| Quantitative Units | Representation of revenue in US$ Bn and CAGR from 2025 to 2034 |
| Historic Year | 2021 to 2024 |
| Forecast Year | 2025-2034 |
| Report Coverage | The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
| Segments Covered | By Type, Product, Application |
| Regional Scope | North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
| Country Scope | U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico ;The UK; France; Italy; Spain; China; Japan; India; South Korea; South East Asia; South Korea; South East Asia |
| Competitive Landscape | Hitachi Metals Group, Shin-Etsu, TDK, VAC, Arnold Magnetic Technologies, ADAMS Magnetic Products Co., Bunting Magnetics Co., Eclipse Magnetics Ltd., Hangzhou Permanent Magnet Group (HPMG) Ltd., Ningbo NGYC (Ninggang Permanent Magnetic) Materials Co. Ltd., Ningbo Ketian Magnet Co.Ltd., Thomas & Skinner Inc., Beijing Zhong Ke San Huan Hi-Tech, Yunsheng Company, YSM, JL MAG, ZHmag, Jingci Material Science, Urban Mining, Lynas Corporation, MP Materials Inc., Texas Mineral Resources Corp., Earth-Panda Advance Magnetic Material Co., Ltd., Others. |
| Customization Scope | Free customization report with the procurement of the report, Modifications to the regional and segment scope. Particular Geographic competitive landscape. |
| Pricing And Available Payment Methods | Explore pricing alternatives that are customized to your particular study requirements. |
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This study employed a multi-step, mixed-method research approach that integrates:
This approach ensures a balanced and validated understanding of both macro- and micro-level market factors influencing the market.
Secondary research for this study involved the collection, review, and analysis of publicly available and paid data sources to build the initial fact base, understand historical market behaviour, identify data gaps, and refine the hypotheses for primary research.
Secondary data for the market study was gathered from multiple credible sources, including:
These sources were used to compile historical data, market volumes/prices, industry trends, technological developments, and competitive insights.
Primary research was conducted to validate secondary data, understand real-time market dynamics, capture price points and adoption trends, and verify the assumptions used in the market modelling.
Primary interviews for this study involved:
Interviews were conducted via:
Primary insights were incorporated into demand modelling, pricing analysis, technology evaluation, and market share estimation.
All collected data were processed and normalized to ensure consistency and comparability across regions and time frames.
The data validation process included:
This ensured that the dataset used for modelling was clean, robust, and reliable.
The bottom-up approach involved aggregating segment-level data, such as:
This method was primarily used when detailed micro-level market data were available.
The top-down approach used macro-level indicators:
This approach was used for segments where granular data were limited or inconsistent.
To ensure accuracy, a triangulated hybrid model was used. This included:
This multi-angle validation yielded the final market size.
Market forecasts were developed using a combination of time-series modelling, adoption curve analysis, and driver-based forecasting tools.
Given inherent uncertainties, three scenarios were constructed:
Sensitivity testing was conducted on key variables, including pricing, demand elasticity, and regional adoption.