Soft Magnetic Materials Market - Forecast (2022 - 2027)

The Soft Magnetic Materials Market size is forecast to reach $79.17 billion by 2027, after growing at a CAGR of 9.2% during 2022-2027. The use of soft magnetic materials is becoming critical in the various end-user industries and applications as it provides high permeability and helps minimize eddy current losses. Soft magnetic material is popularly used in the motor application as it enhances the field produced by motor winding.

Report Coverage

The report: “Soft Magnetic Materials Market- Forecast (2022-2027)” covers an in-depth analysis of the following segments of the Soft Magnetic Materials industry.

• By Type: Iron Silicon Alloys, Nickel Iron Alloys, Pure Iron, Soft Ferrites, Amorphous Nano Crystalline Alloys, Others.
• By Application: Electric Circuits, Motors, Transformers, Alternators, and Others.
• By End Use: Electrical and Electronics, Telecommunication, Automotive, Energy and Power, and Others.
• By Geography: North America, South America, Europe, APAC, and RoW.

Key Takeaways

• the Asia Pacific dominates the Soft Magnetic Materials market owing to the presence of iron ore mines in countries such as China and India.
• Robust industrialization across Asia-Pacific countries, coupled with geographical advantages such as the presence of iron mines in India and China, is the driving force behind the soft magnetic materials market in this region.
• The market drivers and restraints have been assessed to understand their impact over the forecast period. The report further identifies the key opportunities for growth while also detailing the key challenges and possible threats.
• The other key areas of focus include the various applications in the Soft Magnetic Materials market and their specific segmented revenue.

Soft Magnetic Materials Market Segment Analysis - By Type

Pure Iron held the largest share in the Soft Magnetic Materials market in 2019. The world's leading industries in the manufacture of iron powder specify the use of water atomized high-purity iron powders for high-quality soft magnetic applications. Production costs are significantly high for the manufacture of pure iron; sintered iron with a moderate amount of impurities in the form of solid cores is commonly used for telephone relays and switches, contactors, electromagnets, plungers, pole parts, solenoids and other DC devices. Since pure iron has low resistance, it is not suitable for its magnetic application in AC devices. In general, the magnetic properties of pure iron can be further enhanced as the degree of impurity decreases. The residual non-metallic impurity in iron must be less than the solid solubility limit at room temperature.

Soft Magnetic Materials Market Segment Analysis - By Application

Motors is projected to witness the highest share in the Soft Magnetic Materials market in 2019. Currently motors are typically made from silicon steels. Metal amorphous nanocomposite materials (MANCs) offer an alternative to silicone steels which, due to their high resistance, do not heat up as much and can thus rotate at much higher speeds. According to the University of Chicago figures, 50 percent of U.S. power goes into the generator. Vehicles like cars and planes rely on power-transforming engines, as do household appliances like vacuums and refrigerators. Since this room is so big, more powerful motors may make a major difference in energy consumption. In 2020, end use industries of soft magnetic materials experienced a downturn due to the COVID-19 pandemic due to the temporary lockdown of all economic activities across the globe. This in turn has impacted the demand and supply chain of Soft Magnetic Materials.

Soft Magnetic Materials Market Segment Analysis - By End Use

Electrical and Electronics dominates the Soft Magnetic Materials market consisting a share of 10%. Soft magnetic materials are used for two types of AC and DC applications. In DC applications, the material is charged with a particular final purpose to conduct the operation and then demagnetized at the end of the operation. In AC applications, the material will be constantly cycled from being magnetized in one direction to the next, over the time of operation. The use of such materials in electrical applications and the use of such materials in energy generation wind turbines will also contribute to the growth of the industry. In the automotive industry soft magnetic materials are used for anti-lock brake systems, fuel injectors, motors, compressors and various rotating devices.

Soft Magnetic Materials Market Segment Analysis - Geography

Asia-Pacific (APAC) dominated the Soft Magnetic Materials market growing at a CAGR of 39% followed by North America and Europe. Significant factors contributing to regional market growth include growing the base of automobile producers and rising investment in the production of advanced electronics and telecommunications industries. Increasing demand encourages key players to move their emphasis from developed nations to emerging nations such as China, India and South Korea. China and Japan are the key countries driving the demand for soft magnetic materials in the Asia-Pacific region. The automotive industry in China has seen exponential growth. The North American market is expected to see substantial growth in the forecast period led by technological developments in the field of soft magnetic materials. The European area is expected to see steady growth in the global demand for soft magnetic materials during the forecast period. The European area is the epicenter for major automotive manufacturing firms. The region has experienced rising R&D investment on the production of high energy efficient vehicles. Such efforts are expected to fuel demand for the soft magnetic materials market in the region.

Soft Magnetic Materials Market Drivers

Advancement in Soft Magnetic Material will drive the market

An advanced soft magnetic material has been developed for ac and dc motor applications. In comparison to the conventional method of stacking punched laminations, the engine components are made of a powder metallurgical process. This new material has many production advantages. It also has strong high-frequency magnetic properties, a core loss of 90 W / kg when calculated at 400 Hz and an induction of 1,5 T due to its low eddy current loss. Components made from this new magnetic material have shown comparable performance at 60 Hz and superior performance at frequencies > 60 Hz compared to cold rolled motor lamination steels. When sintered, the fresh pressed material still has outstanding dc properties.

Soft Magnetic Materials Market Challenges

Fluctuations in raw material prices and destabilization of the supply chain can restrict the market

The prices of iron ore saw a substantial decline in August 2019 (already discussed in our previous blog) due to the seasonal decline in demand and the recovery of supply by iron ore majors. Since then, prices have fluctuated between USD 85 per MT and USD 96 per MT between August 2019 and January 2020 (pre-Covid period). During the Covid period (January 2020-April 2020) as well, the prices of iron ore were volatile within the same pre-Covid range, but there was no significant fall as seen in the prices of other metals and minerals.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Soft Magnetic Materials market. In 2019 the Soft Magnetic Materials market has been consolidated by the top five players accounting for xx% of the share. Major players in the Soft Magnetic Materials market rare Toshiba Materials Co., Ltd., GKN Sinter Metals Inc., Sintex a/s, Hitachi Metals, Ltd., Mate Co., Ltd. and Others.

Acquisitions/Technology Launches/ Product Launches

• In July 2020, The Fraunhofer Institute for Manufacturing Technology and Advanced Materials (IFAM) in Dresden, Germany, has launched a new research area working group on soft magnetic materials. This research is particularly important for the highly topical areas of renewable energy and electromobility.

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