Global Soft Magnetic Material Market by Product (Electrical Steel, Soft Ferrite, Permalloys), by Application (Motors, Transformers, Alternators) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

In 2019, the global soft magnet material market was worth USD 19.23 billion. It is projected to grow at a compound annual rate (CAGR of 3.9%) between 2020 and 2027. Market growth is expected to be driven by increasing power distribution and increased demand for motors in various application areas, especially medical equipment. Market growth is further fueled by innovations in harvesting renewable energy and rising investments in power distribution. In 2019, for example, the European Investment Bank funded energy efficiency and renewable energy projects around the world worth EUR1.5 billion. The U.S. is seeing an increase in investments in the manufacturing of electric vehicles, the power transmission sector, and medical equipment production. This has boosted the demand for soft magnet materials in the country.

Hydro-Quebec announced in July 2019 that it had invested USD 85 million to ensure the growth of Dana TM4 within the electric powertrain industry. Dana TM4 is a joint venture company that designs and manufactures electric motors. There are three types of magnetic materials: soft, semi-hard and hard. The demand for soft magnet materials is high due to their low coercivity and high permeability. They also have electrical resistivity and corrosion resistance. Soft ferromagnetic magnetic magnets are most commonly used in electric circuits. They are used to amplify the magnetic flux density within a magnetic field generated by electric currents. These magnets are used in a variety of applications, including electric power, radio reception, inductors and relays.

Motors are used primarily in the power sector, which is expected to grow due to rising populations, rapid infrastructure development, increased manufacturing activity, and electricity reaching remote areas in developing countries. In India, for example, the demand for electricity increased by 8% in 2018. Additional government initiatives like DDUGJY and IPDS and progressive measures to improve distribution and increase power generation capacity are expected to boost growth in this sector. This is expected to boost motors demand and eventually soft magnetic materials over the forecast period.

Many markets, including those that use soft magnetic materials, have been severely affected by the COVID-19 pandemic. Both in terms of supply and price. The pandemic has increased the demand for medical equipment such as ventilators. These devices use motors to provide regulated airflow and high torque density. They also have proper control and make less noise. Due to the rapid rise in coronavirus cases around the world, ventilator demand is increasing. This is expected to increase motor demand and ultimately market growth.

Application Insights

In 2019, electric motors accounted for more than half of the total revenue. There are many industries that use electric motors, including electric transmission, consumer electronics and electric vehicles. Small electric motors are used in medical equipment, such as high quality pumps, infusion pumps and scanners.

Soft magnets market is dominated by electric motors. They have been used for decades in a variety of applications, including household appliances, transportation, and industrial drives. They consume enormous amounts of electricity. A small improvement in efficiency can result in huge savings and reduce carbon dioxide. Permanent and soft magnets are used in electric motors because of their small size and light weight. This allows them to provide the required torque and power for transportation and actuation applications.

The second largest application segment in the soft magnet material market is transformers. Soft magnetic materials are used in transformer cores. The market is expected to grow due to several investments in the transformer industry. In December 2019, Hyosung heavy Industries (HICO), announced that it would buy the Mitsubishi Electric Power Products Inc. plant, which will be worth USD 86.9million. HICO will produce core-form power transducers at the facility.

Product Insights

The market is segmented based on product: electric steel (silicon iron alloy), ferrites and permalloys. The highest revenue share, at over 60% in 2019, was for electrical steel. Because silicon increases electric resistance and reduces magnetization, iron-silicon alloys are used in transformer cores.

Manufacturers are being forced to increase their production capacity due to increasing demand for electrical steel. Baosteel, for example, announced in September 2019 that it would build a line of high-grade non-oriented silica steel to meet the growing demand from new industries such as automotive and energy. The production trial is scheduled to start at the end 2021, and will be completed by June 2023.

Ferrites was the second-largest product segment in the market in 2019, after nickel-zinc and manganese-zinc. Soft ferrites include manganese-zinc, nickel-zinc, and other metals. Because they have high saturation flux density, permeability, and magnet cores, manganese-zinc ferrites are used in transformers, noise filters, choke coils and transformers. High-frequency applications may require nickel-zinc ferrites. However, they should be avoided in transformers with switch power supplies as they do not have the ability to maintain low power loss. Soft ferrites have a lower saturation flux density than electrical steel and therefore are less popular in the market.

Regional Insights

North America was the third largest regional segment, accounting for a revenue share exceeding 15.0% in 2019. This is mainly due to the U.S. The United States is the country's largest consumer of electric motors. These motors are extensively used in many industrial applications, including pumping, compressor air, fans and refrigeration.

The country saw a slight improvement in industrial production in 2019, which was further elongated by COVID-19. However, certain sectors, such as transit equipment, consumer goods, defense and space equipment and construction supplies, reported gains in May 2020. They resumed partial operations, despite the decline in industrial production. Over the forecast period, the demand for soft magnetic materials and electric motors will increase due to increased industrial activity.

In 2019, Europe was a dominant market player. The large market share in Europe is due to power distribution investments. In December 2019, Akkuyu Nuclear JSC (TEIAS) signed the Republic of Turkey Transmission Grid Connection Agreement. The agreement covers high-voltage lines that exceed 1,000 km in length and power generation through 6 transformer substations.

The largest market share was held by Asia Pacific in 2019, and the trend is expected to continue for the forecast period. This is due to growing populations, increasing electricity demand, rising investments and government initiatives in the developing world. Myanmar's power sector is one of the biggest beneficiaries of FDI. Myanmar has one of Asia's lowest electrification rates and has the potential to increase its power capacity.

The Asia Pacific has seen a rise in demand for transformers and motors. This demand is especially strong in developing countries that place more emphasis on manufacturing within their country. WEG, for example, announced in 2019 its plans to manufacture low-voltage electric motors in India. WEG's new unit, worth USD 20 million, is set to begin production in Hosur in 2021. It is expected to produce 250 000 electric motors annually. The country's demand for soft magnetic materials will rise over the next few years by increasing the motor production.

Market Share Insights & Key Companies

With many players on the market, the market is extremely competitive. Market players have been driven to invest in R&D to increase technological advances and innovating products. In May 2020, scientists at the International Advanced Research Centre of Powder Metallurgy & New Materials devised a new method to produce soft magnetic alloys that are iron-phosphorus (FeP) based. This was for the automotive industry. The wrought FE–P alloy produced by this process is superior to silicon steel, and will be highly valued. This process will provide an advantage to Indian steel producers in a time of increasing emphasis on electric vehicle development. As of May 2020, the alloy was in trial and is currently being tested. The market for soft magnetic materials is dominated by the following players:

• 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 and Co.

Up Market Research published a new report titled “Soft Magnetic Material Market research report which is segmented by Product (Electrical Steel, Soft Ferrite, Permalloys), by Application (Motors, Transformers, Alternators), By Players/Companies VACUUMSCHMELZE GmbH & Co KG, Arnold Magnetic Technologies, Steward Advanced Materials LLC, JFE Steel Group, MATE CO LTD, Hitachi Metals Group, Meyer Sintermetall AG, GKN Sinter Metals Engineering GmbH, Mahindra CIE, Sintered Specialties LLC”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Soft Magnetic Material Market Report Segments:

The market is segmented by Product (Electrical Steel, Soft Ferrite, Permalloys), by Application (Motors, Transformers, Alternators).

Soft Magnetic Material Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Soft Magnetic Material Market

Overview of the regional outlook of the Soft Magnetic Material Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Soft Magnetic Material Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Soft Magnetic Material Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Electrical Steel

                2. Soft Ferrite

                3. Permalloys

                1. Motors

                2. Transformers

                3. Alternators

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Soft Magnetic Material Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
• Channel & Customer Management
• Identifying Appropriate Advertising Appeals

Reasons to Purchase the Soft Magnetic Material Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.