Permanent Magnets Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented by Magnet Material (Neodymium Iron Boron, Samarium Cobalt, Samarium Cobalt, Alnico, Ferrite, Rare Earth), By Magnet Shape and Type (Sintered Magnets, Bonded Magnets, and Segmented Magnets), By Industry Type (BFSI, Manufacturing, Energy and Power Generation, Automotive, Others), By Region, Competition Forecast 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 24.17 Billion
CAGR (2026-2031)	9.76%
Fastest Growing Segment	Automotive
Largest Market	Asia Pacific
Market Size (2031)	USD 42.26 Billion

Market Overview

The Global Permanent Magnets Market will grow from USD 24.17 Billion in 2025 to USD 42.26 Billion by 2031 at a 9.76% CAGR. Permanent magnets are materials that retain their magnetic properties in the absence of an inducing field and serve as critical components in electric motors, generators, and sensors. The market is primarily propelled by the accelerating global transition toward renewable energy and the electrification of the automotive sector where these materials are essential for wind turbines and electric vehicle drivetrains. Furthermore the expansion of industrial automation and robotics continues to bolster demand for high performance magnetic materials which ensures steady industrial consumption distinct from transient market patterns.

However the sector faces a significant impediment regarding the geographical concentration of the supply chain which creates geopolitical vulnerabilities and raw material access risks. This centralization is heavily skewed toward a single nation and exposes global manufacturers to potential trade disruptions. According to the International Energy Agency, in 2024, China held approximately a 90% share of global rare earth permanent magnet manufacturing capacity. Consequently international trade policies and export restrictions remain a critical challenge that could severely impede broader market expansion.

Key Market Drivers

The accelerating adoption of electric and hybrid vehicles constitutes a primary catalyst for the permanent magnet sector, particularly regarding demand for neodymium-iron-boron components essential to drivetrain motors. As automotive manufacturers transition away from internal combustion engines, the requirement for high-efficiency magnetic materials has surged to support longer driving ranges and superior torque performance. This structural shift in the automotive industry creates a direct correlation between vehicle unit production and raw material consumption, compelling suppliers to scale operations rapidly. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', global electric car sales neared 14 million in 2023, representing a substantial volume increase that necessitates a parallel expansion in magnetic component manufacturing capacity.

Simultaneously, the expansion of renewable energy and wind power generation drives significant market growth, especially within the offshore segment where direct-drive turbines are favored for their reliability and reduced maintenance needs. These energy systems utilize large-scale permanent magnets to convert kinetic energy into electricity with minimal loss, establishing a consistent, long-term consumption pattern for rare earth materials distinct from consumer electronics cycles. According to the Global Wind Energy Council, April 2024, in the 'Global Wind Report 2024', the global wind industry installed a record 117 GW of new capacity in 2023, signaling a robust trajectory for material application in green energy infrastructure. To support these growing downstream applications, upstream material security remains a focal point. According to the U.S. Geological Survey, in 2024, domestic production of rare-earth concentrates in the United States increased to 43,000 tons in 2023, reflecting critical efforts to bolster the supply chain foundation for the broader permanent magnets market.

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Key Market Challenges

The geographical concentration of the supply chain constitutes a structural bottleneck that severely restricts the scalability of the Global Permanent Magnets Market. Because manufacturing capacity is overwhelmingly localized within a single nation, the market is acutely sensitive to export quotas and trade policy shifts from that specific jurisdiction. This dependence creates a fragile logistics environment where regulatory changes can abruptly curtail the availability of essential magnetic materials required for critical applications. Consequently, downstream manufacturers face high uncertainty and supply insecurity, which forces them to delay production schedules and scale back expansion plans, thereby artificially suppressing the market's natural growth trajectory.

This centralization fundamentally limits the industry's ability to respond to surging demand from the renewable energy and automotive sectors. When access to the dominant supply source is restricted, there are no immediate alternative hubs to offset the deficit, leading to unavoidable volume contractions. According to the European Association of Automotive Suppliers, in 2025, stricter enforcement of trade protocols resulted in an approval rate of only 25% for rare earth magnet export requests filed by manufacturers. This tangible restriction on material flow demonstrates how supply chain concentration creates physical limits on market activities, preventing the industry from capitalizing on global electrification trends.

Key Market Trends

The expansion of magnet-to-magnet recycling and circular supply chain initiatives is emerging as a critical mechanism to decouple raw material availability from primary mining operations. By establishing closed-loop systems, manufacturers are recovering valuable rare earth elements directly from end-of-life products, creating a secondary feedstock that buffers against upstream volatility and extraction constraints. This industrial shift is actively reshaping investment strategies as companies build dedicated infrastructure to process scrap material into high-purity oxides suitable for remanufacturing. For instance, according to Cyclic Materials, June 2025, in the 'Cyclic Materials Announces USD $25M Investment to Establish Centre of Excellence', the company committed $25 million to launch a commercial-scale recycling hub in Kingston, Ontario, designed to process magnet-rich feedstock for the North American market.

Simultaneously, the strategic localization and reshoring of magnet manufacturing capabilities is advancing rapidly to establish autonomous production ecosystems in key demand regions. To mitigate the risks associated with single-source dependency, Western nations are incentivizing the construction of downstream fabrication facilities that can produce finished components domestically for the automotive and defense sectors. This trend involves significant capital deployment into new plants that integrate alloy production and sintering processes closer to end-users, thereby shortening logistics loops and enhancing supply security. Demonstrating this capacity expansion, according to Caliber.Az, November 2025, in the article 'German magnet maker calls Europe for tougher approach on critical rare earths', Vacuumschmelze opened a new rare-earth magnet plant in South Carolina with an initial annual production capacity of 2,000 tons to serve the electric vehicle market.

Segmental Insights

The Automotive sector represents the fastest-growing segment in the Global Permanent Magnets Market, fueled by the accelerating production of electric and hybrid vehicles. This growth is anchored in the critical need for high-performance magnets, particularly Neodymium-Iron-Boron types, which enable the efficiency and torque density required by modern electric traction motors. Furthermore, regulatory bodies like the European Union have implemented rigorous CO2 emission standards, effectively mandating a shift toward low-emission transport. This regulatory pressure compels manufacturers to secure consistent magnet supplies, thereby driving substantial and sustained expansion within this specific market segment.

Regional Insights

Asia Pacific maintains a dominant position in the Global Permanent Magnets Market, fundamentally supported by China’s vast reserves of rare earth elements and integrated processing capabilities. The region serves as the central global manufacturing hub, satisfying intense demand from the electric vehicle, consumer electronics, and renewable energy industries. This leadership is sustained by strategic industrial oversight, such as the production quotas enforced by China’s Ministry of Industry and Information Technology to regulate resource extraction. Ultimately, the unique combination of raw material availability and localized manufacturing infrastructure underpins the region's market supremacy.

Recent Developments

• In August 2025, Noveon Magnetics entered into a long-term supply agreement with ABB to provide sintered neodymium-iron-boron magnets for industrial motor applications. This collaboration focused on supporting the technology leader's North American manufacturing operations, with the delivery of magnetic components scheduled to commence immediately and ramp up through 2026. The partnership underscored the growing demand for sustainably produced, domestic rare earth magnets in the industrial sector. By utilizing its specialized recycling technologies, the company aimed to deliver resource-efficient magnetic solutions that complied with strict environmental and quality standards for critical infrastructure equipment.
• In July 2025, MP Materials finalized a multibillion-dollar strategic agreement with the United States Department of Defense to significantly expand domestic production of rare earth permanent magnets. As part of this comprehensive deal, the government entity agreed to become a major shareholder in the company and guaranteed a floor price for key magnetic materials to mitigate market volatility. The company committed to constructing a new manufacturing facility capable of producing 10,000 metric tons of magnets annually by 2028. This expansion aimed to support the supply chains for electric vehicles, wind turbines, and critical defense applications against global shortages.
• In July 2024, Vacuumschmelze executed a definitive binding contract with General Motors to supply permanent magnets for the automaker's electric vehicle portfolio. This strategic collaboration involved the development of a new manufacturing facility in South Carolina, intended to localize the production of critical rare earth magnets for the North American market. The agreement established the magnet manufacturer as a key partner in the automotive company’s supply chain, supporting the production of electric motors for various vehicle platforms. The planned facility was designed to utilize locally sourced raw materials to enhance supply chain resilience and meet regional content requirements.
• In March 2024, POSCO International secured significant supply contracts valued at approximately 1.16 trillion won ($885 million) to provide rare earth permanent magnets to major automotive manufacturers in North America and Europe. The company announced that its United States subsidiary would supply magnets for the drive motors of new medium-to-large electric vehicle models for a global automaker from 2026 to 2031. Additionally, its German subsidiary finalized an agreement to deliver permanent magnets to a premium European automotive brand between 2025 and 2034. These components were set to be manufactured by Star Group Industrial using raw materials sourced independently of China.

Key Market Players

• Arnold Magnetic Technologies
• Proterial, Ltd.
• Ningbo Tongchuang Magnetic Materials Co., Ltd.
• VACUUMSCHMELZE GmbH & Co. KG
• Magnequench International, LLC
• Goudsmit Magnetics Group
• Stanford Magnets
• Thomas & Skinner, Inc.
• Adams Magnetic Products Co., Ltd.
• Permanent Magnets Limited

By Magnet Shape and Type	By Industry Type	By Region
Sintered Magnets Bonded Magnets and Segmented Magnets	BFSI Manufacturing Energy and Power Generation Automotive Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Permanent Magnets Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Permanent Magnets Market, By Magnet Shape and Type:

• Sintered Magnets
• Bonded Magnets
• and Segmented Magnets

• Permanent Magnets Market, By Industry Type:

• BFSI
• Manufacturing
• Energy and Power Generation
• Automotive
• Others

• Permanent Magnets Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE