The magnetic materials market size has grown strongly in recent years. It will grow from $35.17 billion in 2024 to $37.11 billion in 2025 at a compound annual growth rate (CAGR) of 5.5%.

Why?

Growth can be attributed to an electronics boom, automotive applications, telecommunications infrastructure, renewable energy growth, and medical imaging, and in general consumer demand for convenience and wanting technology to play a bigger part in their everyday lives.

The magnetic materials market size is expected to see strong growth in the next few years. It will grow to $49.54 billion in 2029 at a compound annual growth rate (CAGR) of 7.5%. The growth in the forecast period can be attributed to the electric vehicle revolution, miniaturization trends, energy storage solutions, emerging magnetocaloric cooling, automation and robotics. Major trends in the forecast period include 5g technology deployment, magnetic levitation technologies, magnetic recording technology, magnetic 3d printing, IoT integration, and magnetic materials for aerospace.

Magnets make consumer products work.

Technological developments stand out as a key trend gaining popularity in the magnetic materials market, with companies actively adopting new technologies to maintain their positions.

This rising demand has considerable implications for the utilization of magnetic materials, which are essential for various components and systems in vehicles, appliances, devices we wear, enhancing their performance, efficiency, and safety.

The growing magnetic materials market consists of sales of permanent magnets, magnetic storage media, magnetic sensors and devices, electromagnets and magnetic assemblies, magnetic separation, and sorting systems. Magnets are used not only in consumer products, but also heavily in the manufacturing process to make those products.

An industry focused on exponential growth.

Major companies in the magnetic materials market are adopting a strategic partnership approach for the extraction of rare earth magnets. Strategic partnerships involve companies leveraging each other's strengths and resources for mutual benefits. For instance, in September 2023, the University of Birmingham, a UK-based public research university, partnered with HyProMag Ltd., Offshore Renewable Energy (ORE) Catapult, and Magnomatics, all UK-based companies. This partnership aims to extract rare earth magnets from end-of-life wind turbines and use them in new wind turbines, both onshore and offshore.

In April 2024, Master Magnetics Inc., a US-based manufacturer and distributor of magnetic products, was acquired by Factor89, a Chicago-based private equity firm. This acquisition is expected to bolster Master Magnetics' market position and broaden its product offerings across OEM, Retail, online and specialty industries.