According to a new report published by Allied Market Research, titled, "Soft Magnetic Materials Market by Material and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2019-2026," the global soft magnetic materials market was valued at $47.3 billion in 2018, and is projected to reach $87.2 billion by 2026, growing at a CAGR of 8.8% from 2019 to 2026.
Soft magnetic material responds to the applied magnetic field either in the form of attraction or repulsion by generating magnetization or demagnetization property. The material that can be easily demagnetized and magnetized is known as soft magnet. Soft magnetic materials such as cobalt, iron, nickel, electrical steel, soft ferrite, and amorphous nano-crystalline alloys, are used in different industry verticals such as electrical & electronics, automotive, energy & power, telecommunication, healthcare, and aviation as they provide high permeability and prevent eddy current loss.
Soft magnetic material is an important component of the motor drive system as it reduces the vehicle weight. Use of soft magnetic material in electric motor offers various advantages such as low noise, compact design, and energy savings. The increase in use of electric motors across countries such as China, the U.S., and Europe, is expected to drive revenue growth of the global soft magnetic materials market. However, fluctuation in raw material prices is estimated to restrain the market growth.
Based on material, the market is divided into cobalt, iron, nickel, electric steel, and others. Cobalt based soft magnetic materials are widely used in electric motors that are used in electric vehicles owing to their properties such as high power, light weight, and high saturation polarization. Cobalt based soft magnetic material is anticipated to offer promising growth during the forecast period due to its high demand in electric vehicle batteries. Cobalt is witnessing a supply crunch; however, there is an increase in the demand for cobalt. Electric steel is anticipated to maintain its lead in the global market due to its wide applications in the electronics & electrical, energy &power, and automotive industries.
Based on industry vertical, the soft magnetic materials market is categorized into automotive, electrical & electronics, telecommunication, energy & power, and others. Although the electricals and electronics industry dominated the global soft magnetic material market, the automotive industry has much to explore in terms of growth. In the automotive industry, soft magnetic materials are used for anti-lock brake systems, fuel injectors, motors, compressors, and various rotating devices. Shift in trend from fuel based vehicles to electric vehicles in the automotive industry is expected to drive the use of soft magnetic material in automotive applications. Considering the adoption of electric vehicle over the past three years, the automotive industry is anticipated to offer promising future for soft magnetic material during the forecast period.
Based on region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific is expected to emerge as the global leader in the soft magnetic materials market, owing to increase in base of automotive manufacturers and rise in investment in establishment of advanced electronics and telecommunications industries. The growth in demand is encouraging major players to shift their focus from developed nations to the developing nations such as China, India, and South Korea. These factors are anticipated to increase the demand for soft magnetic materials across Asia-Pacific and boost the growth of the global soft magnetic materials market from 2019 to 2026.
Some of the key players operating in the global soft magnetic material includes AMES, DAIDO STEEL, Grundfos A/S, Hitachi, Ltd, MATE CO., LTD , Melrose Industries PLC , SG Technologies, Sumitomo Metal Mining Co., Ltd., TOSHIBA MATERIALS CO., LTD.
Key Findings of the Soft Magnetic Materials Market :
- The Asia-Pacific soft magnetic materials market is predicted to account for a share of over 38.60% by 2026
- The electric steel segment is expected to dominate the market, garnering a soft magnetic materials market share of 64% during the projected period
- The automotive segment is projected to hold a share of over 25.2% by 2026
- The Europe soft magnetic materials market is predicted to hold a share of over 27.4% by 2026