The rare earth elements market is estimated to be valued at 161,354.65 ton in 2022, and it is expected to register a CAGR of more than 4% during 2022-2027.
The factors driving the growth of the market studied are the high demand from emerging economies and dependency of "Green Technology" on rare earth elements.
On the flip side, an inconsistent supply of rare earth elements may act as a barrier to the growth of the market studied.
The increasing scandium usage in aerospace applications is likely to provide opportunities for the market during the forecast period.
Asia-Pacific dominated the global market, owing to the increasing production of rare earth metals and rising demand from industries such as consumer electronics.
Key Market Trends
Increasing Demand for Magnets
Magnets stand to be one of the largest applications for rare earth elements. Magnets find extensive applications in various industries, such as electronics, automotive, power generation, and medical.
Magnets are used in computer hard drives, microwave power tubes, anti-lock brakes, automotive parts, disk drive motors, frictionless bearings, power generation, magnetic refrigeration, microphones and speakers, communication systems, and MRI.
Industries such as automotive, electronics, and healthcare have been witnessing innovation and development, driving the demand for magnets in such industries.
In 2021, approximately 85% of automakers were using neodymium-incorporated permanent magnet motors, and there are projections that the automotive demand for rare earth will rise by 25% in 2022.
Magnets used for EVs and wind turbines are neodymium, praseodymium, and dysprosium, with samarium and cobalt as potential substitutes, which may further drive the market in the future.
Additionally, magnets are used in medical equipment, such as MRI machines, pacemakers, sleep apnea machines, and insulin pumps. The healthcare industry has been witnessing huge investments in regions such as Asia-Pacific and Middle-East and Africa.
Hence, all such trends are expected to noticeably drive the demand for magnets, which is further projected to increase the demand for rare earth elements in the coming years.
The Asia-Pacific Region is Expected to Dominate the Market
The Asia-Pacific region dominated the global market share. With increasing investments in the healthcare industry and the rising ceramic demand and production, the consumption of rare earth elements is projected to increase noticeably in the region.
According to OICA, the total number of motor vehicles produced in 2019 in China and India was 25.75 million units and 4.52 million units, respectively. However, in 2020, this value in production declined by around 2%. This decline in production was majorly due to the impact of the COVID-19 pandemic. However, in the first nine months of 2021, the production of vehicles in the country reached 18,242,588 units, registering a growth rate of 8% compared to the same period in 2020.
At present, most of the world's supply of these high-value rare earth elements originates from China, making the global rare earth elements market supply sensitive to changes in China’s manufacturing sector. In 2020, 58% of the global production of rare earth elements came from China, as per data from the US Geological Survey.
Asia Pacific has been the electronics production base of the world, with investments coming in from several companies establishing their presence in countries like India, Vietnam, and Japan, as the COVI-19 pandemic exposed the supply chain problems with China.
Furthermore, the demand for and production of ceramics is the highest in Asia-Pacific. The increasing ceramic demand from industries such as aerospace and defense, energy, healthcare, and consumer goods is driving the production of ceramics in the region.
Hence, such market trends are likely to significantly impact the rare earth elements market in the coming years.
The rare earth elements market is partially fragmented in nature, with numerous players holding insignificant shares to affect the market dynamics individually. Some of the prominent players in the market include (not in any particular order) Lynas Rare Earths Ltd, Aluminum Corp of China, Iluka Resources Limited, and Arafura Resources Limited, among others.
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1.2 Scope of the Study
4.1.1 High Demand from Emerging Economies
4.1.2 Dependency of 'Green Technology' on Rare Earth Elements
4.2.1 Inconsistent Supply of Rare Earth Elements
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
22.214.171.124 Other Elements
126.96.36.199 Other Elements
5.1.6 Yttrium and Scandium
5.1.7 Other Elements
5.2.4 Glass and Polishing
5.2.7 Other Applications
188.8.131.52 South Korea
184.108.40.206 Rest of Asia-Pacific
5.3.2 North America
220.127.116.11 United States
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
5.3.4 South America
126.96.36.199 Rest of South America
5.3.5 Middle-East and Africa
188.8.131.52 Saudi Arabia
184.108.40.206 South Africa
220.127.116.11 Rest of Middle-East and Africa
6.2 Market Share (%) Analysis**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Aluminum Corporation of China Ltd
6.4.2 ARAFURA RESOURCES
6.4.3 Avalon Advanced Materials Inc.
6.4.4 Minmetals Land Limited
6.4.5 China Nonferrous Metal Industry's Foreign Engineering and Construction Co. Ltd
6.4.7 Iluka Resources Limited
6.4.8 MEDALLION RESOURCES LTD
6.4.9 NORTHERN MINERALS
6.4.10 Peak Resources
6.4.11 Rare Element Resources Ltd
6.4.12 Rio Tinto
6.4.13 Shin-Etsu Chemical Co. Ltd
6.4.14 Ucore Rare Metals Inc.
6.4.15 Xiamen Tungsten Co. Ltd
6.4.16 Lynas Rare Earths Ltd
A selection of companies mentioned in this report includes:
- Aluminum Corporation of China Ltd
- ARAFURA RESOURCES
- Avalon Advanced Materials Inc.
- Minmetals Land Limited
- China Nonferrous Metal Industry's Foreign Engineering and Construction Co. Ltd
- Iluka Resources Limited
- MEDALLION RESOURCES LTD
- NORTHERN MINERALS
- Peak Resources
- Rare Element Resources Ltd
- Rio Tinto
- Shin-Etsu Chemical Co. Ltd
- Ucore Rare Metals Inc.
- Xiamen Tungsten Co. Ltd
- Lynas Rare Earths Ltd