The global magnetic material market is anticipated to grow considerably within the forecast period from 2013 to 2019. The market scene seems to be much consolidated with the presence of a few well-established companies. The competition among the few major companies in the market, both global as well as regional, is likely to heat up in the near future. With the rise in adoption of magnetic applications, the market is foreseen to draw more players into it. The major companies are concentrating on coming up with better products to differentiate those from that of their rivals and banking upon strategic pricing to grow their shares.
Some of the major vendors are Daido Steel, Arnold Magnetic Technologies, Hitachi Metals, Lynas Corporation, and TDK Corporation. The other significant players in the market are A.K. Steel Holding Corporation, Adams Magnetic Products, BGRIMM Magnetic Materials & Technology, Dura Magnetics, Dexter Magnetic Technologies, Electron Energy Corporation, Hengdian Group DMEGC Magnetics, GKN Sinter Metals, Neo, Shin-Etsu Chemical, Ningbo Vastsky Magnet, Sintex, Tengam Engineering, Steward Advanced Materials, Toshiba Materials, Zhejiang Kaiven Magnet Company, and VACUUMSCHMELZE.
According to Transparency Market Research, the global magnetic materials market is expected to grow at a steady CAGR of 8.9% within the forecast period from 2013 to 2019. The market valuation is estimated to reach around US$87.18 bn by the end of 2019. In year 2013, the market valuation was around US$48.0 bn in the global market.
Based on product, the global magnetic materials market is segmented into permanent magnetic materials, semi-hard magnetic materials, and soft magnetic materials. Out of these, the semi-hard magnetic materials have been the most dominant segment since past few years. In 2012, the segment accounted for 55% of total market share. The segment is prognosticated to lead the market within the forecast period as well. Geography-wise, Asia Pacific region is likely to dominate the market. The region accounted for 79.0% of overall demand in year 2012. Owing to rise in manufacturing industries, the region is flourishing.
High Demand for Magnetic Materials in Automotive Sector to Support Market Growth
Rise in demand for magnetic materials owing to betterment in automotive sector is anticipated to be one of the key growth drivers of the market. With propelling demand for electricity, the growth in usage of magnetic materials in wind turbine energy generation industries is rising as well, and this is likely to support the demand in the market in the near term.
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Fluctuating Cost of Rare Earth Metals to Hamper Market Growth
Nevertheless, the variation in costs of rare earth metals for example neodymium and dysprosium is anticipated to cause hindrance to the growth of the market in the forthcoming years. The rising application of magnets in hybrid electric vehicles (HEVs) along with growing demand for these vehicles is expected to generate opportunities for the growth of the market in coming years.