Rare Earth Metals Market: North America Projected to Register Significant Growth over the Forecast Period: Global Industry Analysis and Opportunity Assessment, 2016-2026
Asia Pacific Excluding Japan accounted for significant market share among all regions in 2016
Asia Pacific Excluding Japan is expected to register faster growth among all other regions in the global rare earth metals market. The region is projected to strengthen its market value share from a little more than 70% in 2016 to almost 77% by the end of 2026, recording a massive gain of 640 BPS between 2016 and 2026. China followed by India is the leading consumer of rare earth metals. The rare earth metals market in the APEJ region is forecast to expand at a robust CAGR of 9.4% during 2016- 2026 and is likely to be valued at more than US$ 5,600 Mn by the end of 2026. The APEJ region is projected to create incremental $ opportunity of more than US$ 3,300 Mn between 2016 and 2026. APEJ is expected to be a relatively attractive region in the rare earth metals market during the forecast period and is likely to incline towards high value–high growth.
Rising demand for hybrid and electric vehicles likely to fuel the growth of the rare earth metals market in the APEJ region
Rising demand for rare earth metals from various end-use industries in countries such as China and India is anticipated to drive the rare earth metals market in the APEJ region. Rapid industrialisation, rising GDP and increasing family income propel the demand for automobile and electronics, which in turn boosts demand for rare earth metals in the region. The growth of end-use industries such as automotive, green energy and electronics especially in China, South Korea and India is expected to drive the growth of the rare earth metals market in the region over the forecast period. Also, demand for rare earth metals is expected to be bolstered by rising demand from various applications such as metallurgy and alloys, polishing, phosphors, ceramics defence among others.
The renewable energy industry is one of the primary end-use industries in APEJ for rare earth metals. Permanent magnets produced from rare earth metals such as neodymium and dysprosium are widely used in wind turbines. A steady growth in the installation of wind turbines is expected to drive the growth of the rare earth metals market during the forecast period in APEJ. Another key end-use industry for rare earth metals is the electric vehicles industry, which is witnessing a robust growth in the APEJ region, especially in China. Here, rare earth metals find application in batteries that power these electric vehicles. The anticipated robust growth in the global electric and hybrid vehicles market is expected to in turn drive the growth of the rare earth metals market in the APEJ region during the period of assessment.
Rare earth metals play a crucial role across a gamut of high growth potential industries. As such, demand for these has witnessed a steady growth over the past few years. This, coupled with attractive revenue generation has prompted the entry of several market participants in China and other APEJ countries during the past decade. The majority of the consumers of rare earth metals are dependent on Chinese rare earth output, which is boosting the China market for rare earth metals.
Neodymium is projected to lead the rare earth metals market over the forecast period in the APEJ region
In APEJ, the Neodymium segment is projected to gain a massive 270 basis points in market share by 2026 as compared to that in 2016. The Neodymium segment in the APEJ rare earth metals market is projected to increase 2.8X and be valued at more than US$ 2,200 Mn by the end of 2026. This segment is estimated to create about 42% of the incremental $ opportunity in the APEJ rare earth metals market by the end of 2026.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook