North America Permanent Magnet Market Report (2021–2031) by Scope, Segmentation, Dynamics, and Competitive Analysis

The North America Permanent Magnet Market is projected to reach US$ 5,615.3 million by 2031, up from US$ 3,208.9 million in 2024. This market is expected to grow at a CAGR of 8.8% from 2025 to 2031.

The growth of the permanent magnet market in North America is driven by several key factors, including the increasing demand for clean energy technologies, electric vehicles (EVs), industrial automation, and renewable energy applications. The automotive industry is a major consumer of permanent magnets, which are essential components in EV motors due to their high magnetic strength and stability, critical for efficient performance. According to the International Energy Agency, from August 2022 (when the Inflation Reduction Act was passed) to March 2023, major EV and battery manufacturers announced investments totaling US$ 52 billion in EV supply chains in North America. Consequently, the rising investments in the EV sector have significantly boosted the demand for permanent magnets.

North America Permanent Magnet Market Segmentation Outlook

The permanent magnet market is segmented by type and application:

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

-By Application: The market segments include consumer electronics, automotive, aerospace and defense, medical, industrial machinery, energy, and others. In 2024, the consumer electronics segment held the largest market share.

North America Permanent Magnet Market Analysis

The ongoing demand for consumer electronics, such as smartphones, wearables, and other personal gadgets, is driving the need for small, efficient permanent magnets. These magnets are commonly used in speakers, headphones, vibration motors, and other components. While this sector contributes significantly to overall market growth, its growth rate is slower compared to the automotive and renewable energy sectors. Additionally, North America is shifting toward cleaner energy sources, evidenced by the increasing installation of wind turbines, both onshore and offshore. Permanent magnets are widely used in wind turbine generators, especially in direct-drive turbines that do not require gearboxes.

Manufacturers are pursuing various strategic initiatives, including technological developments, partnerships, and collaborations. For example, in January 2023, Vacuumschmelze (VAC) signed an agreement with General Motors, a US-based automaker, to construct a permanent magnet manufacturing plant in North America using locally sourced raw materials. Such initiatives further enhance the demand for permanent magnets across the region.

Country Insights

Geographically, the North America permanent magnet market comprises the US, Canada, and Mexico, with the US holding the largest market share in 2024. The permanent magnet market is experiencing significant growth in the US due to rising demand from various end-use industries, including automotive, aerospace, and consumer electronics. The shift toward electric vehicles is accelerating the application of permanent magnets in the automotive sector, as manufacturers increasingly incorporate permanent magnet-based motors in their EV models. Permanent magnets, particularly rare-earth magnets, are crucial in electric motors used in EVs, wind turbines, and other renewable energy systems, thus driving the demand for high-performance materials. Furthermore, the increasing emphasis on decarbonization, along with US government incentives for EV adoption and renewable energy initiatives, is propelling market expansion in the country.

Company Profiles:

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