Soft Magnetic Materials Market Size Worth $26.12 Billion By
SAN FRANCISCO, Aug. 17, 2020 /PRNewswire/ -- The global soft magnetic material market size is anticipated to reach USD 26.12 billion by 2027, according to a new report by Grand View Research, Inc. The market is expected to expand at a revenue-based CAGR of 3.9% from 2020 to 2027. The rapid expansion in electricity grids and power distribution is anticipated to boost the demand in the market.
The demand for soft magnetic materials is driven by the phenomenal character of getting magnetized and demagnetized with ease. This characteristic is quite essential in electrical and electronic circuits as the magnetic energy is converted back to electrical energy easily before being reintroduced in the circuit. This is not possible in case of hard or permanent magnetic materials, as their magnetization and demagnetization require a large amount of energy. As a result, soft magnetic materials find applications in motors, transformers, generators, and others.
Key suggestions from the report:
- Middle East & Africa expected to register the fastest growth rate of 5.0% in terms of revenue over the forecast period, owing to the huge potential for the power sector to flourish in the region
- Asia Pacific constituted a volume share of over 46.0% in 2019 of the global market, which is attributable to the increasing manufacturing activities in terms of automotive, medical equipment, consumer goods, and infrastructure in developing economies of the region
- Motors is anticipated to witness the fastest growth rate of 4.1% in terms of revenue across the forecast period, considering its wide range of applications which is accelerating in electric vehicles and power distribution sectors
- Ferrites held a revenue share of over 12.0% in 2019 of the global market owing to their high cost than electrical steel
- The market growth is sluggish as of 2020 owing to the covid-19 pandemic, which has disrupted the manufacturing sector, where demand for soft magnetic materials exists. However, the demand in the healthcare sector persists, owing to increasing patients and their rising need for medical equipment such as ventilators.
Read 120 page research report with ToC on "Soft Magnetic Material Market Size, Share & Trends Analysis Report By Application (Motors, Transformers, Alternators), By Product (Electrical Steel, Soft Ferrite, Permalloys), And Segment Forecasts, 2020 - 2027" at: https://www.grandviewresearch.com/industry-analysis/soft-magnetic-materials-market
Motors held the largest volume share of the market in 2019. Soft magnetic materials are used in motors where they enhance the field produced by motor windings and channel the flux in permanent magnet motors. Electric motors have ample applications in machine tools, pumps, power tools, turbines, ships, mills, vehicles, home appliances, HVAC equipment, and medical equipment, among others. The use of motors in various industries is boosting its demand.
Electric vehicles are a prominent end-use segment of motors. The growing production of electric vehicles owing to environmental concerns related to conventional vehicles and government initiatives is anticipated to positively influence the demand for motors. Due to the growing demand, manufacturers are compelled to expand their motor production capacities.
For example, in February 2020, Nidec announced its intention to invest a sum of ¥200 billion (USD 1.8 billion) in EV powertrains rush. The investment of the company shall be split into three new plants in China, Poland, and Mexico. Together the three facilities are expected to produce 8.4 electric motors annually.
Electrical steel or silicon steel is the most prominent type of soft magnetic material and is used in transformers, motors, and generators. Owing to its high silicon content, it helps increase electrical resistivity thus, reducing eddy current losses. Grain-oriented silicon steel is preferred in transformers because of its orientation, which helps minimize magnetic losses.
Electrical steel has high demand in its end-use segments, which has propelled its production. For example, in January 2019, U. S. Steel Košice announced about building a new non-grain oriented electrical steel line in Kosice worth an investment of USD 130 million and an annual production capacity of 100 kilotons. The plant was expected to be operational by the fourth quarter of 2020. However, on account of the outbreak of COVID-19 virus across the world, the U.S. Steel Corporation had to take certain actions in order to preserve long-term growth, under which the above-mentioned investment remains delayed, as of March 2020.
Asia Pacific held the largest share of the market in 2019 and this trend shall continue over the forecast period, owing to increasing emphasis on power distribution, electric vehicle production, and growth in consumer goods and medical equipment in developing economies. Countries such as India have huge potential for investment as the electricity demand in the country is expected to reach over 15,000 TWh by 2040. The gradual shift towards renewable energy sources is another driving factor for the power sector, thus, a positive sign for market growth.
The competitive scenario of the market is high with the presence of various players, who are engaged in developing strategies in order to gain a competitive edge in the market. For example, in July 2019, Carpenter Technology announced that it shall help provide soft magnetic alloys for electric aircraft engine demonstrators. The company had made an investment of USD 100 million in a precision strip mill for expanding its soft magnetic capabilities for catering to the aerospace and other industries.
Grand View Research has segmented the global soft magnetic materials market report on the basis of application, product, and region:
Soft Magnetic Materials Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
Soft Magnetic Materials Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
- Electrical Steel
Soft Magnetic Materials Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
- North America
- The U.S.
- Asia Pacific
- South Korea
List of Key Players of Soft Magnetic Materials Market
- Arnold Magnetic Technologies
- GKN Sinter Metals Engineering GmbH
- Hitachi Metals Group
- JFE Steel Group
- Mahindra CIE
- MATE CO., LTD
- Meyer Sintermetall AG
- Sintered Specialties, LLC
- Steward Advanced Materials LLC
- VACUUMSCHMELZE GmbH & Co. KG
Find more research reports on Advanced Interior Materials Industry, by Grand View Research:
- Chillers Market – Chillers are used in various industries, including plastics, food & beverage, printing, medical, electronics, petrochemical, pharmaceutical, and power plants to provide cooling. Increasing adoption of chillers in manufacturing facilities, residential structures, hospitals, restaurants, and sporting arenas, among others is expected to positively impact the product demand.
- Ferroalloys Market – Among these products, ferro silicomanganese is expected to register the fastest growth over the coming years owing to its extensive consumption as a desulfurizing and deoxidizing agent in carbon steel manufacturing. Ferrochrome is added to Stainless Steel (SS) to impart corrosion resistant properties and give the aesthetic appearance. Therefore, the product is expected to register a healthy growth, in terms of volume demand, as the SS industry is likely to register a strong growth from 2021 following the global pandemic in 2020. Asia Pacific dominated the global market in 2019.
- Corundum Market– The presence of Fe and Ti within the crystal structure of the product provides the sapphire with blue color. Similarly, the presence of chromium provides the ruby with red color. These aforementioned colored gems are widely popular in the retail segment of the U.S. jewelry industry, which valued at around USD 83.4 billion in 2016. Although, due to the various level of processing stages involved within the value chain of colored gems, the retail price of the product is highly marginalized. The growth of the U.S. jewelry industry is directly related to the nation's economic macro indicators, which are likely to observe a declining trajectory in FY 2020 due to the emergence of coronavirus.
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Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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