Europe Permanent Magnet Market Report (2021-2031) by Scope, Segmentation, Dynamics, and Competitive Analysis

The Europe Permanent Magnet Market is projected to grow from US$ 2,027.1 million in 2024 to US$ 3,664.7 million by 2031, representing a Compound Annual Growth Rate (CAGR) of 9.3% from 2025 to 2031.

Executive Summary and Market Analysis

The permanent magnet market in Europe is rapidly expanding, mainly due to the region's strong commitment to green energy, electrification, and technological advancements. A significant driver of this growth is the increasing demand for electric vehicles (EVs), prompted by stringent environmental regulations and policies from the European Union that encourage a transition towards sustainable transportation. Permanent magnets, especially those used in high-efficiency permanent magnet synchronous motors (PMSMs), are vital components in EVs, making the automotive sector a major contributor to market growth.

Market Segmentation Analysis

The permanent magnet market can be analyzed through two key segments: type and application.

By Type: The market is divided into neodymium-iron-boron, ferrite, samarium cobalt, alnico, and others. The neodymium-iron-boron segment dominated the market in 2024.

By Application: The market is segmented into consumer electronics, automotive, aerospace and defense, medical, industrial machinery, energy, and others. The consumer electronics segment held the largest market share in 2024.

Market Outlook

Europe's increasing investment in renewable energy, particularly wind power, is driving demand for permanent magnets in wind turbine generators, as these components are essential for efficient direct-drive turbines. The region's ambitious goal of achieving carbon neutrality by 2050, under the European Green Deal, accelerates the adoption of renewable energy and electrification technologies, which in turn boosts the need for permanent magnets across various applications. Additionally, Europe is investing in creating a more resilient and sustainable supply chain for rare earth elements, critical for permanent magnet production, including initiatives to develop domestic mining and recycling facilities to lessen reliance on external sources, particularly China. Furthermore, the industrial sectors in Europe, including robotics, automation, and aerospace, are increasing the demand for high-performance permanent magnets for use in motors, actuators, and sensors.

Country Insights

The Europe permanent magnet market is further segmented by country, including Belgium, the Netherlands, Luxembourg, Germany, France, Italy, the Russian Federation, Spain, Switzerland, Turkey, Poland, Sweden, Austria, the United Kingdom, Denmark, Ukraine, Romania, Greece, Portugal, Norway, and Finland. Germany held the largest market share in 2024.

Germany has a robust electronics industry that encompasses manufacturing, research, and development of electronic devices and components, leading to a growing demand for permanent magnets. According to Germany Trade & Invest GmbH, Germany's electrical and digital sector experienced a year-on-year growth of 13.4% in August 2022. Furthermore, the Statistisches Bundesamt estimates that revenue from the manufacture of electric motors, generators, and transformers in Germany will reach approximately US$ 19.5 billion by 2025. This growth in the electrical and electronic sector is driving the demand for permanent magnets.

The automotive sector in Germany is also experiencing significant growth, particularly in the EV segment. As one of Europe's leading automotive manufacturers, Germany's shift toward electric mobility has greatly increased the demand for high-performance permanent magnets essential for electric motors in EVs. In September 2023, the Federal Office for Economic Affairs and Export Control (BAFA, Germany) approved the subsidized purchase of 2 million electric cars, with an investment of US$ 10 billion earmarked for electric car subsidies.

Company Profiles

Key players in the Europe permanent magnet market include Hitachi Ltd, Shin-Etsu Chemical Co. Ltd, TDK Corp, Arnold Magnetic Technologies, Galaxymagnets, Goudsmit Magnetics, Electron Energy Corporation, Dexter Magnetic Technologies, Adams Magnetic Products, LLC, and NINGBO YUNSHENG Co., Ltd. These companies are employing strategies such as expansion, product innovation, and mergers and acquisitions to remain competitive and continue offering innovative products to their customers.