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

The Western Europe Permanent Magnet Market is projected to grow significantly, reaching approximately US$ 3,262.1 million by 2031, up from US$ 1,776.7 million in 2024. This represents a compound annual growth rate (CAGR) of 9.1% from 2025 to 2031.

Executive Summary and Market Analysis:

The demand for permanent magnets in Western Europe is rapidly increasing, fueled by the region's commitment to sustainability, green energy, and technological innovation. As countries such as Germany, France, and the UK transition to renewable energy sources, the need for permanent magnets-especially those used in wind turbines, electric vehicles (EVs), and energy-efficient technologies-is on the rise. The renewable energy sector, particularly wind energy, is a major contributor to this demand. Permanent magnets are essential components in modern wind turbines, which are crucial for achieving the region's renewable energy targets. As Western European countries expand their wind farms, there is a growing need for high-performance magnets, specifically neodymium-iron-boron (NdFeB).

Market Segmentation Analysis:

The permanent magnet market is analyzed based on type and application. By type, the market is segmented into neodymium-iron-boron, ferrite, samarium cobalt, alnico, and others, with the neodymium-iron-boron segment dominating in 2024. In terms of application, the market includes consumer electronics, automotive, aerospace and defense, medical, industrial machinery, energy, and others, with the consumer electronics segment holding the largest market share in 2024.

Market Outlook:

The automotive sector is another significant contributor, driven by the growing shift towards electric vehicles. As Western Europe takes the lead in the transition to EVs, the demand for permanent magnets in electric motors is accelerating. These magnets play a crucial role in the efficient operation of EVs, further boosting production demand. Additionally, advancements in electronics, robotics, and automation are contributing to the need for permanent magnets in various industries, including manufacturing, healthcare, and aerospace. As the region focuses on decarbonization and technological development, the demand for permanent magnets is expected to continue its upward trajectory, supporting a green economy and high-tech industries.

Country Insights:

The Western Europe permanent magnet market can be broken down by country into Belgium, Netherlands, Luxembourg, Germany, France, Italy, Spain, Switzerland, Sweden, Austria, United Kingdom, Denmark, Portugal, Norway, and Finland. In 2024, Germany held the largest market share.

Germany has a robust electronics industry, encompassing the manufacturing and research & development of electronic devices and components. The demand for permanent magnets is increasing due to the growing use of electronic devices. According to Germany Trade & Invest GmbH, the country's electrical and digital sector experienced year-on-year growth of 13.4% as of August 2022. Additionally, 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. Therefore, the growth of the electrical and electronic sector is driving the demand for permanent magnets.

The automotive sector in Germany is also experiencing significant growth, especially regarding electric vehicles. As one of Europe’s leading automotive manufacturers, the shift toward electric mobility has substantially increased the demand for high-performance permanent magnets necessary for electric motors in EVs. In September 2023, the Federal Office for Economic Affairs and Export Control (BAFA, Germany) approved subsidies for the purchase of 2 million electric cars, with an investment of US$ 10 billion in electric vehicle incentives.

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. Show more